Northern District of Georgia
Press releases recorded for this federal judicial district.
Nigerian national sentenced to a decade in prison for role in $1.83 million romance fraud scheme involving elderly victimsRead the Press Release
ATLANTA - Olu Victor Alonge has been sentenced for his role in a multi-year wire fraud scheme that targeted users of American dating websites and caused a total loss of $1,835,279. Six other Nigerian nationals have been charged as part of the conspiracy; three have pled guilty, and Alonge is the first to be sentenced.
“The conspirators in these cases, including some who were overseas, used fake personas on online dating websites to trick individuals, including elderly retirees, into giving them large amounts of money,” said U.S. Attorney Byung J. “BJay” Pak. “The conspirators would spend weeks cultivating online relationships with their victims before defrauding them of hundreds of thousands of dollars, often taken from their retirement savings or inheritances. The judge rightly called the romance fraud scheme ‘pure evil’ before handing down the defendant’s sentence. Combating this type of transnational fraud targeting elderly Americans is a top priority of my office and the Department of Justice; would-be cybercriminals should think twice before engaging in such vile conduct.”
“This sentencing exemplifies IRS Special Agents' intense focus on the rigorous pursuit of crimes against our most vulnerable citizens, the elderly,” said Atlanta Field Office IRS Criminal Investigation Special Agent in Charge Thomas J. Holloman, III. “Individuals who commit fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. Olu Alonge perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable.”
“I greatly appreciate the hard work of our investigators in pursuing this crime, and that of the U.S. Attorney’s staff for prosecuting this case. Everyone did an excellent job in bringing this serious matter to a satisfactory conclusion,” said Steven A. Sund, Chief of the U.S. Capitol Police.
According to U.S. Attorney Pak, the charges and other information presented in court: The defendants and other conspirators created phony dating profiles on popular online dating websites that described fictitious personas. These profiles displayed photographs of men and women that, in some instances, were public figures, such as government officials or models, taken from publically available websites. The conspirators then used their fake online personas to target users of online dating websites and falsely pose as potential paramours by expressing strong romantic interest in the targeted users. These conspirators often targeted vulnerable individuals who possessed financial assets and in some cases spent months cultivating romantic relationships with them through online messaging, text messaging, and voice calls.
After gaining their affection and trust, the conspirators, posing as the fake paramours, provided the targeted users with elaborate false stories to cause the users to send them money through interstate wire or online transfers to bank accounts controlled by the conspirators. The fake paramours often claimed to be working overseas and in need of money to travel back to the United States or to complete business deals abroad. Once the conspirators received money from targeted users, the conspirators quickly withdrew the funds and dispersed them into other accounts, domestically and abroad.
The conspirators caused a total loss of $1,835,279.00 to the eight identified victims. One victim lost $610,319.00. Four other victims lost $418,697.00, $388,900.00, $260,000.00, and $148,800 respectively.
The two superseding indictments returned by a grand jury on June 20, 2018 charged the defendants with a total of 60 counts of wire fraud, money laundering, identity theft, and use of false passports. The defendants charged include:
- Olu Victor Alonge, a/k/a Serge Damessi, a/k/a Didier Baraze, a/k/a Mobo Marcus Adeh, a/k/a Ayo Baraze, a/k/a Nicolas Soglo, 35, of Newnan, Georgia, who was sentenced by U.S. District Judge Timothy C. Batten, Sr., on October 30, 2019, to 10 years of imprisonment and ordered to pay $1,835,279.00 in victim restitution.
- Ugochukwu Lazarus Onebunne, a/k/a Policap Tizhe, a/k/a Saheed Ademoha, 41, of Douglasville, Georgia;
- Olajide Olalekan Adara, a/k/a Kelvin Mensah, 33, of Loganville, Georgia;
- Joshua Adedeji Ipoade, 28, of Atlanta, Georgia;
- Oladunni Temitope Oladipupo, 24, of Lynn, Massachusetts; and
- Two other defendants are fugitives and their identities remain sealed.
Onebunne and Adara have pleaded guilty and are awaiting sentencing. Ipoade and Oladipupo are awaiting trial dates pending the completion of pretrial litigation. Alonge, Onebunne, and Adara will face immigration removal proceedings after the completion of their criminal cases, as will Ipoade, if convicted.
Members of the public are reminded that the indictment only contains charges. The defendants who have not been convicted are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
Users of online dating websites should be aware of romance scams involving internet dating sites and should exercise extreme caution if asked for money by anyone online or over the phone.
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 phone scams, mass-mailing fraud schemes, and tech-support fraud schemes.
The U.S. Capitol Police and Internal Revenue Service Criminal Investigations Division are investigating this case.
Assistant U.S. Attorneys John S. Ghose and Sekret Sneed 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.
- Olu Victor Alonge, a/k/a Serge Damessi, a/k/a Didier Baraze, a/k/a Mobo Marcus Adeh, a/k/a Ayo Baraze, a/k/a Nicolas Soglo, 35, of Newnan, Georgia, who was sentenced by U.S. District Judge Timothy C. Batten, Sr., on October 30, 2019, to 10 years of imprisonment and ordered to pay $1,835,279.00 in victim restitution.
Justice Department announces Procurement Collusion Strike Force: a coordinated national response to combat antitrust crimes and related schemes in government procurement, grant and program fundingRead the Press Release
ATLANTA - The Justice Department announced the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“We will remain laser-focused on rooting out the fraud, waste, and abuse that can plague the procurement process at all levels of government,” says U.S. Attorney Byung J. “BJay” Pak. “By providing this additional training and outreach to those involved in the process, we believe that we can rapidly begin to remove opportunities for corruption.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
At a press conference at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Byung J. “BJay” Pak, Northern District of Georgia
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [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 Tech professor sentenced for defrauding the National Science FoundationRead the Press Release
ATLANTA - Maysam Ghovanloo has been sentenced for violating the federal wire fraud statute in furtherance of a scheme to defraud the National Science Foundation. Ghovanloo was a tenured full professor in the School of Electrical and Computer Engineering at the Georgia Institute of Technology.
“Grant funding is limited, and the competition for those dollars is keen,” said U.S. Attorney Byung J. “BJay” Pak. “People awarded grants to do research and development vow that they will adhere to the rules governing it. Ghovanloo decided to sacrifice his reputation by dodging those rules and lying.”
“The National Science Foundation's Small Business Innovation Research (SBIR) program provides small businesses with funding to conduct research and development work that will lead to the commercialization of innovative new products and services. This sentence serves as a reminder that fraud in the SBIR Program will not be tolerated. The NSF Office of Inspector General remains committed to ensuring the integrity of the SBIR program and will actively pursue oversight of these taxpayer funds. I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort.”
According to U.S. Attorney Pak, the charges and other information presented in court: Maysam Ghovanloo owned and operated a Georgia corporation called Bionic Sciences, Inc. (BSI). Ghovanloo and BSI received federal grants through Small Business Innovation Research (SBIR) programs sponsored by NSF. To be eligible for SBIR grant funds, Ghovanloo and BSI were required to meet program-eligibility requirements, adhere to award terms and conditions, and provide only truthful information in all documents submitted to NSF. However, Ghovanloo submitted certifications that contained materially false and fraudulent statements and omissions, followed by electronic payment requests to NSF.
Maysam Ghovanloo, 46, of Atlanta, Georgia, was sentenced to eight months home confinement, and ordered to pay $40,000 in restitution. As part of his guilty plea and plea agreement, he resigned from his position at Georgia Tech, effective June 21, 2019. He was also was barred from doing business with the federal government for a period of three years. Ghovanloo was convicted on these charges on August 21, 2019, after he pleaded guilty.
The National Science Foundation Office of Inspector General and the Department of Health and Human Services Office of Inspector General investigated this case.
Assistant U.S. Attorney Russell Phillips 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.
Metro-Atlanta chiropractors sentenced for healthcare and tax fraudRead the Press Release
ATLANTA –Two metro-Atlanta chiropractors, Allan Spagnardi and Stacy Spagnardi, have been sentenced to federal prison for using their chiropractic clinic to commit healthcare fraud and for defrauding the Internal Revenue Service.
“These chiropractors used their patients’ personal information to obtain over a million dollars from a private insurance company,” said U. S. Attorney Byung J. (“BJay”) Pak. “Then they went further by engaging in a lengthy scheme to hide their income from the IRS. Healthcare professionals who defraud insurance companies do not just abuse the trust afforded to them by their patients, they also drive up healthcare prices for honest citizens throughout the country.”
“The community has a right to expect that when seeking healthcare services, their healthcare provider will not abuse their private information for personal gain," said Thomas J. Holloman, III, Special Agent in Charge, IRS-Criminal Investigations. “Professionals, including chiropractors, who abuse the public’s trust, will be held accountable and face severe consequences including imprisonment and substantial fines. The American public deserves our vigilance in the investigation and prosecution of allegations of fraud by unscrupulous healthcare professionals who hide income and evade the payment of their fair share of taxes.”
“The Spagnardis chose to take advantage of patients and the entire health care industry by billing for services that were never provided and defrauding the IRS,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes to steal from taxpayers and defraud the industry.”
“Here in Georgia, we are committed to protecting consumers and taxpayers from bad actors like the Spagnardis, whose actions erode trust in our healthcare system and lead to higher premiums across the state,” said Georgia Insurance and Safety Fire Commissioner John F. King. “I’m thankful for the work of U.S. Attorney Pak and his team to bring these individuals to justice and send a clear message that these types of activities will not be tolerated in Georgia.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Dr. Allan Spagnardi and Dr. Stacy Spagnardi operated a chiropractic clinic located in Marietta, Georgia. Over a multi-year period, the Spagnardis used their patients’ personal information to bill a private insurance company for services that were never actually rendered. At times, the Spagnardis submitted claims for reimbursement for services occurring when they were not even in the country. For instance, the Spagnardis claimed that their clinic had 296 patient visits during a week that they were actually on a cruise vacation out of the country.
Despite earning well over $1 million in personal income in 2014 and 2015, the Spagnardis failed to file federal income tax returns or pay federal income taxes for those tax years and instead took steps to hide their true income from the Internal Revenue Service (“IRS”). After the Spagnardis were indicted, they continued to take steps to hide their income from the IRS, including by filing a false federal income tax return in early 2018.
Allan Spagnardi, 41, and Stacy Spagnardi, 52, both of Atlanta, Georgia, were each sentenced to four years, three months of incarceration, and three years of supervised release. Both defendants were also ordered to pay full restitution to the victim of the offense.
The Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the Georgia Office of Commissioner of Insurance investigated the case.
Assistant U.S. Attorneys Thomas J. Krepp and Leanne M. Marek 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 Union General Hospital CEO and Blairsville doctor convicted of illegally prescribing and obtaining more than 15,000 pain pills from pharmacies in three statesRead the Press Release
GAINESVILLE, Ga. - John Michael “Mike” Gowder and James Heaton have been convicted after a two-week jury trial on 102 counts related to illegally prescribing and obtaining more than 15,000 doses of prescription pain medications outside the usual course of professional practice and for no legitimate medical purpose. In addition, Heaton was convicted of 27 counts of issuing prescriptions to two female patients outside the usual course of professional medical practice and for no legitimate medical purpose.
“When doctors prescribe opioids outside of the applicable rules, they are nothing but drug traffickers with a medical degree,” said U.S. Attorney Byung J. “BJay” Pak. “Therefore, we will accordingly treat them as such.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “Pharmaceutical products that are distributed for non-medical reasons can be just as deadly as illicit drugs. The defendants in this case distributed vast quantities of pharmaceutical products and had ill-will and total disregard for human life. This conviction should serve as a reminder to all drug traffickers, including those with medical degrees, that DEA and its law enforcement partners will expend the necessary resources to disrupt and destroy those who distribute poison throughout our communities. This is a perfect example of the success that can be accomplished when federal, state and local resources are combined.”
“This is a very substantial victory in the battle against opioid use in our communities. It goes to show what can be accomplished when the DEA and local law enforcement work together. Drugs know no boundaries including state lines. I am very grateful for our relationship with Union County and the DEA,” said Derrick Palmer, Sheriff, Cherokee County, North Carolina.
According to U.S. Attorney Pak, the charges and other information presented in court: From 2011 to 2016 Mike Gowder was the Chief Operating Officer and later Chief Executive Officer of Union General Hospital in Blairsville, and Dr. James Heaton operated a family practice clinic in Blairsville, Georgia, and worked as the Medical Director of the Nursing Home of Union General Hospital.
During that time, Dr. Heaton illegally prescribed increasing quantities of hydrocodone and oxycodone to Mike Gowder, knowing that the prescriptions were issued outside the usual course of professional practice and that the pills obtained with the prescriptions had no legitimate medical purpose. Dr. Heaton violated numerous standards of medical practice by prescribing the pills to Mike Gowder without adequately documenting the medical need for the prescriptions in his patient file and without monitoring patient abuse of the pills he obtained. During the three and half years in which Dr. Heaton prescribed more than 15,000 hydrocodone and oxycodone pills to Mike Gowder, Dr. Heaton only six of the prescriptions were recorded in his patient file for Mike Gowder.
Starting in 2012, Mike Gowder obtained oxycodone by fraud, subterfuge, and deception by filling the illegal prescriptions that Dr. Heaton issued for oxycodone at different pharmacies in Georgia, Tennessee, and North Carolina in an effort to conceal the large numbers of pills that Dr. Heaton was prescribing to him.
Between January 5, 2012, and June 16, 2015, Dr. Heaton wrote at least 95 illegal prescriptions for hydrocodone and oxycodone to Mike Gowder. In addition to filling the prescriptions at pharmacies in Georgia, Mike Gowder often travelled to North Carolina and Tennessee to fill multiple prescriptions a month at pharmacies in those states. On multiple occasions, Dr. Heaton wrote two prescriptions for oxycodone for Mike Gowder on the same day. On other occasions, Mike Gowder would travel to North Carolina to fill one prescription and Tennessee to fill the second prescription to conceal the fact that multiple prescriptions were written to him on the same day.
In addition, Dr. James Heaton issued prescriptions hydrocodone, oxycodone, and methadone to two female patients outside the usual course of professional practice and without a legitimate medical purpose.
Oxycodone, hydrocodone, and methadone are powerful pain medications that are listed as controlled substances under federal law because each has a high potential for psychological and physical abuse and dependence. Oxycodone, which may be combined with acetaminophen, is sold generically under brand names including Percocet, Endocet, Oxycontin, and Roxicodone. Hydrocodone is sold generically or under brand names including Lortab, Vicodin, and Norco. Methadone is an opioid pain medication that is also used in opioid dependence therapy.
On March 15, 2019, Dr. George David Gowder pleaded guilty to a single count of the superseding indictment in this case for illegal dispensing medications outside the scope of professional practice and without a legitimate medical purpose. Sentencings for John Michael “Mike” Gowder, 61, of Nashville, Tennessee, and James Heaton, 63, of Blairsville, Georgia, have not yet been scheduled.
The Drug Enforcement Administration, the Union County (Georgia) Sheriff's Office, Cherokee County (North Carolina) Sheriff’s Office, Georgia Drugs and Narcotics Agency, and Zell Miller Mountain Parkway Drug Task Force are investigating this case.
Assistant U.S. Attorneys William McKinnon and Laurel R. Boatright are prosecuting the case.
This case was brought as part of Operation SCOPE, Strategically Combatting Opioids through Prosecution and Enforcement. SCOPE is our initiative combining our efforts (criminal, civil, and educational) with those of our law enforcement partners to create one unified front in the battle against the opioid/heroin epidemic. One important aspect of Operation SCOPE is to prosecute those who are illegally prescribing, or distributing, painkillers.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man sentenced for stealing more than $300,000 as part of a healthcare fraud schemeRead the Press Release
ATLANTA - Michael Bang has been sentenced for defrauding the Colorado Public Employees Retirement Association’s (“COPERA”) health insurance plan, called PERACare.
“Bang exploited a public entity that was at the same time providing him with medical and other benefits,” said U.S. Attorney Byung J. “BJay” Pak. “His scheme depleted the healthcare resources available to other retirees and cost the public hundreds of thousands of dollars.”
“Bang falsified prescriptions in order to generate illicit profits at the expense of retirees and tax payers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing will not only hold him accountable for those actions but will serve as a reminder to others that the FBI will pursue any individual who abuses our health care system.”
According to U.S. Attorney Pak, the charges and other information presented in court: As part of the healthcare fraud scheme, Bang, who at the time was a resident of Atlanta, sought reimbursement for medications through the submission of fraudulent reimbursement forms for medication that he was either not receiving or that was more expensive than the medications he was receiving. Bang’s scheme involved three Atlanta-area pharmacies.
PERACare’s prescription benefits were administered by Express Scripts. Over more than two years, Bang submitted fraudulent reimbursement claims to Express Scripts, including forms with forged pharmacist signatures, forms for medications that Bang never received, and forms claiming out-of-pocket expenses that Bang never actually incurred. According to pharmacy records, Bang paid a total of approximately $3,500 for prescription medications, while bank records show Bang received more than $180,000 in prescription drug reimbursements from Express Scripts during the same period. Bang received more than $300,000 from COPERA in reimbursements to which he was not entitled.
Michael Bang, 58, of Antioch, California, has been sentenced to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $306,179.28. Bang was convicted on these charges on August 5, 2019, after he pleaded guilty.
The Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorneys Ryan Huschka and Alison Prout 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 Coca-Cola employee charged with embezzlementRead the Press Release
ATLANTA - Anne Gronek-Gibbs has been arraigned on federal charges of wire fraud for embezzling hundreds of thousands of dollars from the Coca-Cola Company.
“The defendant used her employer’s money to pay for trips, jewelry and expensive hand-bags,” said U.S. Attorney Byung J. “BJay” Pak. “Employees who are trusted with access to corporate funds are not entitled to use them to enrich themselves. This case is a reminder that all entities should have strong internal controls and a robust compliance program to prevent this type of fraud.”
“When someone is elevated to a position of leadership in a company, it is a sign of that company’s trust in the integrity and honesty of the person chosen to lead,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “When someone violates that trust and abuses their position, as is alleged in these charges, the FBI stands ready to hold them accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Gronek-Gibbs was a sales director who allegedly used her position to obtain personal goods and services from Coca-Cola Company suppliers and had the company pay for those goods and services. She ordered luxury goods, tickets, and gift cards and also booked first class travel, and had Coca-Cola pay for luxury hotel accommodations for personal trips. Gronek-Gibbs modified electronic versions of quotes, purchase orders, and invoices from vendors which she then submitted to Coca-Cola for payment. Ultimately, Gronek-Gibbs purchased hundreds of thousands of dollars’ worth of gift cards, jewelry, handbags, and purses using this system and, all told, embezzled over $450,000.
Anne Gronek-Gibbs, 41, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Christopher C. Bly. The government filed an information charging Gronek-Gibbs on October 28, 2019.
The Federal Bureau of Investigation is investigating this case with assistance from the Atlanta Police Department Major Fraud Unit.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Community Threat Awareness Conference CallRead the Press Release
U.S. Attorney Byung (BJay) Pak invites you to participate in the next community threat awareness conference call sponsored by the US Attorney’s Office for the Northern District of Georgia, scheduled for Wednesday, October 30th, at 2:00 PM. The guest speakers will be Assistant U.S. Attorney Jolee Porter and Special Assistant U.S. Attorney Valerie Verduce. AUSA Porter leads the Elder Fraud Strike Force in Atlanta, and SAUSA Verduce is an attorney from the Federal Trade Commission attached to our office. They will be speaking on elder fraud and scams conducted in Northern Georgia and around the nation. The call is scheduled for an hour.
As space is limited to 200 participants, we ask that you register for the call at the link provided below – first come, first served. Once your registration is received, the call-in number and activation pin will be emailed to you. Once we reach capacity, you will be placed on a waiting list. The registration link will also allow you to submit questions for consideration prior to the call.
We hope to expand this capacity using commercial tools available at a later date. We also plan to conduct these calls multiple times throughout the year, on different topics, with different audiences.
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.
Talking Rock man receives 15 years in federal prison for producing child pornographyRead the Press Release
GAINESVILLE, Ga. - Michael Bush has been sentenced on federal charges of producing, receiving, and possessing child pornography. During the search of his home, agents discovered images that Bush had taken, even images of an eleven-year-old child.
“Bush created and collected images showing the exploitation and sexual abuse of minor children,” said U.S. Attorney Byung J. “BJay” Pak. “His disgusting passion for these types of images further exploits the children in the photographs. We will continue to identify and remove those individuals who pose a threat to our children.”
“Individuals who produce child pornography steal the innocence of children and re-victimize them each time the evidence of their exploitation is shared online,” said Homeland Security Investigations Atlanta Acting Special Agent in Charge Travis Pickard. "This case clearly demonstrates HSI aggressively works to disrupt the trade of these illegal images, seeking to prosecute those criminals who produce and possess them to the fullest extent of the law.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Federal agents determined that Bush purchased child pornography online on multiple occasions between 2015 and 2018. Agents executed a search warrant at Bush's home in August 2018 and found multiple digital devices containing thousands of images and videos of child pornography. They also discovered that Bush took a series of pornographic photographs of an eleven-year-old child and saved them to his computer where he retained them for years.
Michael Bush, 49, of Talking Rock, Georgia, was sentenced before U.S. District Court Judge Steve C. Jones, to 15 years imprisonment, followed by a 10 years of supervised release. He also was ordered to pay restitution to victims of his offenses.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case.
Assistant U.S. Attorney Jill E. Steinberg, Deputy Chief of the Criminal Division, prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Norcross cousins plead guilty to operating meth lab near an elementary schoolRead the Press Release
ATLANTA - Roberto Arroyo-Garcia has pleaded guilty to methamphetamine trafficking on premises where a minor child resides and within 1,000 feet of a school. Arroyo-Garcia and two co-defendants illegally entered the United States from Mexico and then utilized a family home across the street from an elementary school to operate a methamphetamine laboratory and to distribute methamphetamine.
“Running a drug lab in a residential neighborhood demonstrates how little the defendant cared for the safety of neighbors and especially children attending the school nearby,” said U.S. Attorney Byung J. “BJay” Pak. “Also, a child lived in the residence where the three operated the lab. Clearly, Garcia only cared about making money at any cost.”
“These criminals’ days of selling poison and endangering children, neighbors and other innocent people are over,” said Homeland Security Investigations Atlanta Acting Special Agent in Charge Travis Pickard. “HSI is firmly committed to working with state and local law enforcement partners to dismantle drug trafficking organizations and protect our communities.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division said, “Methamphetamine traffickers pose a clear and present danger to our nation and DEA will be unrelenting in our efforts to bring them to justice. The defendant in this case put the lives of neighbors and school-age youth at risk by engaging in illegal drug trafficking activities near an elementary school. Such traffickers are a true menace to society. Now that they have been removed from the streets, our children and the entire community, are much safer. I want to thank our federal, state and local law enforcement counterparts who had a direct impact in making this investigation a success.”
According to U.S. Attorney Pak, the charges and other information presented in court: In August 2017, HSI agents began investigating a local methamphetamine distributor. Using a combination of investigative information, agents identified a stash house they believed was used as part of the drug distribution operation. The house was located across the street from part of an elementary school in Norcross, Georgia.
As agents were surveilling the suspected drug stash house, Georgia State Patrol, working in conjunction with HSI, stopped defendant Zury Brito-Arroyo as he was driving away from the house. Inside his car, they found $10,000 cash wrapped in green cellophane and a 9mm pistol. Brito-Arroyo’s five-year-old child and wife were also in the car. Upon searching Brito-Arroyo’s cell phone pursuant to a federal search warrant, agents discovered an app that monitored security cameras mounted at the stash house. Agents then searched the stash house, and found defendants Roberto Arroyo-Garcia and Bonifacio Brito-Maldonado actively operating a methamphetamine laboratory in a shed in the backyard. Arroyo-Garcia fled after being handcuffed, but was ultimately recaptured.
Agents seized over 12 kilograms of crystal methamphetamine from the shed and inside the house, plus additional methamphetamine in liquid form. They also seized a another 9mm pistol, $8,500 cash, and other methamphetamine trafficking paraphernalia including respirators, rubber gloves, and digital scales.
The DEA Clandestine Laboratory Enforcement Team responded to the scene to remove the dangerous chemicals. Agents also found children’s clothes inside the house, and later confirmed that a ten-year-old child, who was related to the defendants, lived there. With assistance from the Sandy Springs Police Department, agents also searched another residence used by Brito-Arroyo, where they discovered a plastic bin with methamphetamine residue, another 9mm pistol, an electronic money counter, and four bundles of cash totaling $41,000 wrapped in green cellophane.
At the time of these events, all three defendants were illegally present in the United States. Roberto Arroyo-Garcia, a/k/a Jonathan Valenzuela Rodriguez, a/k/a Santiago Arroyo Prieto, 37, of Norcross, Georgia, was previously deported twice following separate drug convictions. His co-defendants, Zury Brito-Arroyo, 27, and Bonifacio Brito-Maldonado, 23, pleaded guilty on October 17, 2019, to these charges and to maintaining a premises for methamphetamine trafficking.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the Georgia State Patrol, and the Sandy Springs Police Department are investigating this case.
Assistant U.S. Attorneys Ryan M. Christian and Garrett L. Bradford, Deputy Chief of the Narcotics and Dangerous Drugs Section, are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Atlanta Strike Force is to disrupt and dismantle the most significant drug trafficking organizations designated as Consolidated Priority Organization Targets (CPOTs) or Regional Priority Organization Targets (RPOTs) and their affiliates in the Atlanta metropolitan area and the Northern District of Georgia.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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 attorney sentenced for obstructionRead the Press Release
ATLANTA - Natasha Simone White, has been sentenced for obstructing an official forfeiture proceeding. White, a lawyer and licensed real estate agent, used drug proceeds to renovate a house she owned in California. She blatantly disobeyed warnings from the federal government not to sell the house, and made off with a profit of almost one million dollars from the sale.
“While she did not sell the drugs, White lined her pockets with the excessive profits gained from drug trafficking, using the funds to build her dream house in California,” said U.S. Attorney Byung J. “BJay” Pak. “But when the Government came knocking, White packed her bags and tried to leave town, along with $1 million dollars in profit. As an attorney herself, White should have known better than to obstruct the federal government in its pursuit of justice.”
“HSI is firmly committed to targeting the illegal import and sale of narcotics; following the money trails, and leveraging our transnational partnerships to stop drug trafficking organizations in their tracks,” said Homeland Security Investigations Atlanta Acting Special Agent in Charge Travis Pickard. “HSI will continue to focus on bringing to justice members of drug trafficking organizations, those complicit in their activities as well as seizing every illicitly-derived proceed and ill-gotten gain.”
“The sentencing of Natasha White signals an important victory for the American public. The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle major international drug trafficking organizations,” said Thomas J. Holloman III, IRS Criminal Investigation, Special Agent in Charge, Atlanta Field Office. “One of the government's most powerful weapons is the ability to seize the assets associated with narcotics-related crime. We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2012, federal agents began investigating a drug trafficking and money laundering organization operating in the Atlanta area. In 2015, agents identified White, who was at the time a romantic interest of a target of the drug investigation, for her possible involvement in the laundering of the drug proceeds.
Through the investigation, agents began to suspect White was involved in concealing the source of the drug proceeds. Agents learned that White is an attorney admitted to the State Bar of Georgia and a real estate broker licensed in California. Agents also learned that White had received hundreds of thousands of dollars in drug proceeds, which she used to purchase a house located in Los Angeles, California, for $625,000, and then renovate and improve with an additional $600,000.
Once in 2015, and again in 2016, agents interviewed White about the drug and money laundering investigation, and each time, the agents informed White that the Los Angeles house was subject to federal forfeiture on the grounds that it was the proceeds of drug trafficking and that it was involved in money laundering. Agents also advised White not to sell the property, and she agreed.
In August 2016, agents discovered that White listed the Los Angeles house for sale on various real estate websites with an asking price of $1,600,000. White's attorney agreed to have her withdraw the property from the listing services, and a few days later, agents confirmed that she had done so.
On September 29, 2016, the United States filed a civil forfeiture complaint against the Los Angeles house in the U.S. District Court for the Northern District of Georgia. Agents then contacted White's lawyer to inform him that the complaint had been filed and that the government would be recording a lien, known as a lis pendens, against the house in the real property records of Los Angeles County, California. Agents also informed the attorney that White could be charged with obstruction if she were to sell the house.
On November 6, 2016, despite instructions to the contrary from the federal government, White sold the Los Angeles house for $1,550,000 to a third-party who had no knowledge that the property was subject to forfeiture. After paying off the mortgage, White received sale proceeds of more than $997,196, which she spent, among other things, to purchase a house in Union City, Georgia, to fund her bank accounts, and to pay off hundreds of thousands of dollars in personal and family debt, including her school loans.
Natasha White, 44, of Inglewood, California, pleaded guilty to obstruction before U.S. District Judge Mark Cohen on July 22, 2019. White was sentenced to six months in prison followed by two years of supervised release with the first six months to be served on home confinement. She was also ordered to pay a personal forfeiture money judgment of $997,196 and to forfeit the real property located in Union City, Georgia and approximately $59,000 in funds seized from her bank accounts.
The U.S. Department of Homeland Security, Homeland Security Investigations, the Internal Revenue Service, and the Drug Enforcement Administration investigated this case.
Assistant U.S. Attorneys C. Brock Brockington, Sekret T. Sneed, Deputy Chief of the Asset Forfeiture and Money Laundering Section, and former Assistant U.S. Attorney Timothy H. Lee prosecuted the case. Assistant U.S. Attorney Michael J. Brown, Chief of the Asset Forfeiture and Money Laundering Section, prosecuted the related civil forfeiture case against the Los Angeles house.
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 to ten years for possession of child pornographyRead the Press Release
ATLANTA - Michael Frost, who was previously convicted and served a sentence in federal prison for possession of child pornography, has been sentenced for possessing child pornography including images of children as young as seven.
“Frost made a decision to go back to victimizing children even though he has already been jailed once for it,” said U.S. Attorney Byung J. “BJay” Pak. “Child pornography is disgusting and it is a second victimization of a child who has already been traumatized. Our office will continue to pursue and prosecute those who prey on children. Additionally, we will pursue criminals who use the dark web to avoid prosecution for their illicit activities.”
“Clearly prison time was not a deterrent that kept Frost from continuing his abhorrent behavior,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “If he thought he could hide behind the dark web, he was wrong, thanks to the cooperative work of the FBI and our local law enforcement partners. Now Frost will serve several more years in prison where he won’t be able to victimize any more children.”
“There is no work in law enforcement more important than protecting children. Officers, agents and prosecutors at all levels of our profession take great pride in capturing and prosecuting vile men and women that aim to victimize children. We are so grateful for our working relationship with the FBI and the U.S. Attorney’s Office, and this is a great example of our partnerships leading to the apprehension of another child predator,” Chief John Robison, Alpharetta Department of Public Safety.
“Again a person intent on victimizing our children has been brought to answer for his criminal acts. Only through continued diligence by local, state and federal law enforcement can these online predators be stopped. The Forsyth County Sheriff’s Office is committed to working with our partner agencies and prosecutors to stop these criminals. Kudos to FBI Atlanta, the U.S. Attorney’s Office and the Alpharetta Department of Public Safety for their assistance. Cases like this should serve as a warning to these criminals, that there is no room to hide when you endanger our children. We will not stop and we will find you and hold you accountable for your criminal acts,” said Forsyth County Sheriff Ron Freeman.
According to U.S. Attorney Pak, the charges and other information presented in court: During an undercover operation on the dark web, an area on the Internet where illegal content is uploaded and shared, law enforcement identified an IP address assigned to a physical address in Cumming, Georgia where child pornography had been downloaded, and interviewed the occupant at that address. The occupant was not involved in downloading child pornography, but told law enforcement that Michael Frost visited regularly and used his personal laptop computer to access the web when at the address.
When law enforcement obtained a search warrant for Frost’s address in Atlanta, Georgia, they seized multiple electronics that contained tens of thousands of images and videos of children as young as seven years old engaged in sodomy and other sexually explicit activity. Defendant had been previously convicted in 2002 in federal court of possessing child pornography and served approximately three years in federal prison.
Michael Frost, 49, of Atlanta, Georgia, was sentenced by U.S. District Court Judge Leigh Martin May to ten years in prison followed by ten years supervised release, and ordered to register as a sex offender for life. He was also ordered to pay a special assessment of $5,100, and restitution of $20,000 to victims. Frost was convicted of these charges on July 19, 2019, after he pleaded guilty.
The Federal Bureau of Investigation, Forsyth County Sheriff’s Office, and Alpharetta Police Department investigated this case, with assistance from the Atlanta Police Department.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Department of Justice awards more than $85.3 million in grants to address school violenceRead the Press Release
ATLANTA – The Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“Children are precious gifts and deserve to be safe while they are in school,” said U.S. Attorney Byng J. “BJay” Pak. “These grants will provide the resources necessary for enhanced training as well as assistance with developing technology to expedite emergency notifications.”
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,” said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
The grants award more than $1,050,873 in funding to prevent violence in schools to the Meriwether County Board of Education, Fulton County Board of Education, and Calhoun City School District. In addition, the Georgia Criminal Justice Coordinating Council received $999,554. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV
About the Office of Justice Programs: The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services: The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former state prison guard pleads guilty to smuggling methamphetamine and other drugs to inmatesRead the Press Release
ROME, GA. - Voltaire Peter Pierre, a former corrections officer at Hays State Prison, has pleaded guilty to smuggling methamphetamine, crack cocaine, and marijuana past prison security and into the hands of inmates in exchange for payments. Because Pierre stored the drugs at his family home before smuggling them into the prison, he also pleaded guilty to possession with intent to distribute methamphetamine on premises where a minor resides.
“Public service is a duty and a privilege, not an opportunity to leverage a position of trust for personal financial gain,” said U.S. Attorney Byung J. “BJay” Pak. “As a former corrections officer, Pierre violated his oath to uphold the law, betrayed the community, and endangered his fellow officers and inmates. We will continue working with our federal and state law enforcement partners to ferret out and remove corrupt officials and to combat the flow of drugs and other contraband into our prisons.”
“Smuggling illegal contraband into a prison not only jeopardizes the safety of staff and inmates, it also fosters criminal activities inside and outside of the prison,” said the Special Agent in Charge of FBI Atlanta, Chris Hacker. “Pierre not only violated his sworn oath, but betrayed every hard working corrections officer. The FBI will vigorously pursue any allegations of corruption in these facilities to ensure the safety of both staff and inmates.”
“The Georgia Department of Corrections maintains a zero tolerance policy for individuals who choose to ignore their oath and jeopardize our non-negotiable mission of public safety. We appreciate the support of our Federal partners in our efforts to see that justice is served on this former Officer,” said GDC Commissioner Timothy C. Ward. “The actions of this individual do not reflect the hundreds of Officers who are committed each and every day to ensuring the safety of the public and the safe operations of our facilities.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in June 2018, and continuing until his arrest on October 1, 2018, Pierre smuggled methamphetamine, crack cocaine, marijuana, and tobacco into Hays State Prison in Trion, Georgia, for distribution to inmates, many of whom were members of the Bloods criminal street gang. He coordinated with inmates and their associates outside prison to arrange drug drop-offs at motels and at his family’s home. After receiving the drugs, the defendant smuggled them into the prison in soup containers and other seemingly innocuous items. Inmates and their associates paid the defendant through a mobile payment app.
On October 2, 2019, Voltaire Peter Pierre, 39, of Norcross, Georgia, was charged via criminal information with (1) conspiracy to possess with intent to distribute methamphetamine, crack cocaine, and marijuana and (2) possession with intent to distribute methamphetamine on premises where a minor resides. Pierre pleaded guilty to both of those charges.
The Federal Bureau of Investigation is investigating this case in coordination with the Georgia Department of Corrections.
Assistant U.S. Attorney Ryan M. Christian 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
Atlanta Woman Sentenced to Prison for Conspiring to File False Tax ReturnsRead the Press Release
An Atlanta, Georgia, woman was sentenced today to 56 months in prison for her role in a scheme to file false federal tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Byung J. Pak for the Northern District of Georgia.
According to documents and information provided to the Court, between January 2010 and April 2014, Tiffany Lewis and her co-conspirators filed more than 5,000 false federal tax returns, many of which used stolen personal identifiable information. In total, Lewis was responsible for filing returns that claimed more than $11.9 million, and which caused the Internal Revenue Service (IRS) to issue more than $3.7 million in fraudulent refunds.
After directing the fraudulent refunds into bank accounts they controlled, Lewis and her co-conspirators used checks and debit cards to withdraw cash or pay personal expenses. Later, when Lewis was interviewed by a Special Agent of the IRS Criminal Investigation Division, Lewis lied about her involvement in the fraud scheme.
"Identity thieves have figured out that if they can steal Social Security numbers, they can file false returns with us," said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigations, Atlanta Field Office. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentence should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating these crimes and holding to account those who would defraud the government.”
In addition to the term of imprisonment, U.S. District Judge Steve C. Jones ordered Lewis to serve a term of three years of supervised release and to pay restitution to the United States in the amount of $3,799,991.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Pak commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys David B. Zisserson and Sean Beaty of the Tax Division, as well as Assistant United States Attorney Jeffrey A. Brown, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
U.S. Attorney's Office reaches agreement with the Fox Theatre to improve servicesRead the Press Release
ATLANTA – The U.S. Attorney's Office for the Northern District of Georgia has entered into an agreement with the Fox Theatre, Inc. (“the Fox”) to improve the quality and availability of auxiliary aids and services for customers who are deaf or hard of hearing. The agreement with the Fox is the culmination of negotiations that led to greater accessibility for persons who are deaf and hard of hearing.
“The cooperative process between the Fox and our office led to this agreement and is an example of what can be accomplished through collaboration between private industry and the government,” said U. S. Attorney Byung J. “BJay” Pak. “By strengthening the Fox Theatre's services for people who are deaf or hard of hearing, this agreement will make a difference in the lives of people who are hard of hearing or deaf and wish to enjoy a live theatre performance.”
The agreement will resolve complaints regarding a violation of the Americans with Disabilities Act (“ADA”) that were filed with the U.S. Attorney’s Office. The complaints alleged that customers with hearing disabilities were denied effective communication in violation of the ADA. Under the agreement, the Fox will continue to provide auxiliary aids and services necessary for deaf and hard of hearing individuals to enjoy the programs and services at the Fox. These auxiliary aids and services have been expanded to include closed captioning. Additionally, as set forth in the agreement, the Fox will evaluate the effectiveness of its auxiliary aids and services and explore innovative methods to ensure effective communication for people who are deaf or hard of hearing.
This agreement was achieved with extensive input and assistance from the Georgia Advocacy Office. The U.S. Attorney’s Office, Northern District of Georgia recognizes and appreciates the valuable contribution of our stakeholders.
Assistant U.S. Attorney Aileen Bell Hughes, Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office, handled this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Romanian nationals unlawfully in United States charged in $1 million ATM skimming and cash-out schemeRead the Press Release
ATLANTA – Ovidiu Nedelcu and Ovidiusz Dragos Cordas, both citizens of Romania, have been charged in a 32-count indictment with bank fraud, access device fraud, and aggravated identity theft offenses for their roles in a nationwide conspiracy.
“The defendants are accused of making their living by stealing from Americans’ bank accounts,” said U.S. Attorney Byung J. “BJay” Pak. “They allegedly installed ATM skimming devices to steal customer data, and then used their network of conspirators to cash-out and profit from their crimes.”
“This investigation and subsequent indictment demonstrates the Secret Service’s commitment to safeguarding our nation’s critical financial infrastructure and payment systems,” said Kimberly A. Cheatle, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “These cyber criminals used a national network of co-conspirators to withdraw large sums of money from ATM machines. Our success in this case is due to the level of cooperation and information sharing throughout this investigation by all law enforcement partners.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From 2018 to 2019, the defendants, Ovidiu Nedelcu and Ovidiusz Dragos Cordas, a/k/a Dragos Ovidiusz Folea, conspired with one another and others to use account numbers and PINs stolen from bank and credit union customers in order to unlawfully withdraw money from those customer accounts. They accomplished this by conspiring with each other and others to:
- Cause surreptitious electronic devices, known as ATM “skimmers,” to be installed over ATM card slots at various locations in order to capture and record account access information from customers of numerous financial institutions;
- Cause tiny surreptitious cameras to be installed above the keypads of the ATMs with the ATM skimmers in order to visually record the key strokes as customers entered their PINs for their accounts;
- Cause stolen customer account access information recorded on the ATM skimmers to be encoded onto blank magnetic stripes on unbranded plastic cards; and
- Cause the stolen account access information—customer account numbers and PINs—to be used to unlawfully withdraw United States currency from those compromised financial institution accounts at ATMs in Georgia, and elsewhere, including Florida, Colorado, and Washington.
Ovidiu Nedelcu, 41, of Craiova, Romania, and Ovidiusz Dragos Cordas, a/k/a Dragos Ovidiusz Folea, 50, of Oradea, Romania, were indicted by a federal grand jury on September 18, 2019. Both defendants are present in the United States illegally.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Secret Service, with assistance from the DeKalb County Police Department. Assistant U.S. Attorneys John S. Ghose and Alex R. Sistla 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.
Gainesville man sentenced for defrauding his former brokerage firm clients with “biofuel” schemeRead the Press Release
ATLANTA – Winston Wade Turner, a former licensed broker for nationwide financial services firms, has been sentenced for mail fraud.
“Turner pitched a bogus biofuel scheme to former clients he met through reputable brokerage firms where he previously worked,” said U.S. Attorney Byung J. “BJay” Pak. “He lured his victims into signing ‘corporate notes’ with promises of immediate returns on a profitable biofuel producer which turned out to be only a shell company of his own invention. This case is a reminder that if it seems too good to be true, it usually is.”
“Retirees simply looking for safe and secure returns on their hard earned investments should not have to worry about someone like Turner, who preyed on them for his own greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Those individuals who use false promises to capitalize financially at the expense of unsuspecting investors should be aware that the FBI will vigorously pursue them for prosecution.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: beginning in July 2015, Turner represented to investors that he was a broker for “North American BioFuel,” a purported biofuel producer based in Bradenton, Florida. Turner encouraged his victims, former clients from his previous employment at two financial services firms, to move funds he had invested for them, or in some cases, new funds, in North American BioFuel. Turner promised them their ‘loans’ would generate a stream of monthly interest payments and return of the full principal at the end of investment periods ranging from one to three years.
Unknown to his victims, Turner had been fired, lost his broker’s license and been banned from the securities industry. Turner represented the company as specializing in and already producing biofuel, at a time when it was in fact only a shell company consisting of a rented mailbox address and articles of incorporation in Florida. Turner typically made a fraction of the promised interest payments, did not return the principal, and ceased contact with the victims. Turner was found to have bilked investors in the fictitious biofuel firm of $877,188.
Winston Wade Turner, 50, of Jefferson, Georgia, was sentenced by U.S. District Court Judge Richard W. Story to two years, nine months in prison to be followed by three years of supervised release, and was ordered to pay $877,188 in restitution. He was also ordered to forfeit $160,149.52. Turner pleaded guilty to mail fraud on June 5, 2019.
This Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorney Brian Pearce 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 Georgia CEO indicted for multi-million dollar investment fraud schemeRead the Press Release
ATLANTA –James Torchia has been indicted for running a fraud scheme that caused investors to spend over $40 million on his company’s promissory notes.
“Torchia is alleged to have stolen investors’ hard-earned money by lying to them about the security of their investments and how he would use their money,” said U.S. Attorney Byung J. “BJay” Pak. “It is important that investors thoroughly investigate who they are investing with before committing any of their hard-earned savings.”
“The harm that can be caused by greed and the false promise of safe investments can be devastating,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “By disrupting this alleged scheme, the FBI has demonstrated our commitment to aggressively pursue those engaged in acts of financial fraud.”
According to U.S. Attorney Pak, the charges, and other information presented in court: James Torchia was the CEO of a Georgia company named Credit Nation. Credit Nation purchased life insurance policies and subprime automobile loans and offered investors the opportunity to purchase promissory notes for those policies and loans. Torchia solicited investments in Credit Nation “promissory notes” that offered a 9% rate of return and that were purportedly “100% asset-backed” and “backed by hard asset dollar for dollar.” However, when making these representations, Torchia knew that these investments were not backed by hard assets “dollar for dollar” as Credit Nation had actually been operating at a significant financial loss. Torchia also allegedly lied to investors about how their funds would be used and diverted investors’ funds for undisclosed purposes.
The indictment further alleges that even after Torchia’s own forensic accountant produced a report to him showing that Credit Nation did not have sufficient assets to cover all outstanding promissory notes, Torchia continued to provide false information about the security of the promissory notes and the use of investors’ funds. All told, investors spent over $40 million on Credit Nation’s promissory notes.
In November 2015, the U.S. Securities and Exchange Commission (“SEC”) filed a federal civil complaint alleging that Credit Nation investors had been defrauded out of millions of dollars. Torchia allegedly sent a letter to investors refuting the SEC’s allegations. The letter also referenced steps that the company had taken during the SEC investigation, which included “hir[ing] a forensic accountant to assist the SEC with its understanding of our business operations and assets. All of this was to no avail.” The letter, however, failed to disclose that the forensic accountant’s report confirmed that Credit Nation could not pay back all of its investors.
James Torchia, 61, of Canton, Georgia was arraigned today before U.S. Magistrate Judge Catherine M. Salinas.
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 Federal Bureau of Investigation is investigating this case. The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Torchia and Credit Nation in the Northern District of Georgia.
Assistant U.S. Attorneys Thomas J. Krepp and Leanne M. Marek 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
Three Gangster Disciples leaders convicted of racketeering, attempted murder, and other crimesRead the Press Release
Jury heard about triple murder in nightclub, murder of witness, 50 pounds of cocaine, and shooting of teenager
ATLANTA – Three leaders of the Gangster Disciples national criminal organization have been convicted by a federal jury of offenses including racketeering conspiracy involving murder, attempted murder in aid of racketeering, drug trafficking conspiracy, and other crimes. This case is the latest of a series of trials and pleas for members and leaders of the Gangster Disciples.
“The Gangster Disciples are extremely organized and their reach is wide-spread across the United States,” said U.S. Attorney Byung “BJay” Pak. “Their strict chain of command that carried their message of violence and crime throughout the organization posed a serious threat nationwide. They lured young people into the gang with the promise of a better life, and then inducted them into an appalling world of violence and crime.”
"The Gangster Disciples have terrorized communities in Georgia and elsewhere for far too long,” said Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s convictions, as well as the convictions of 32 co-defendants to date, send a clear message: the Department of Justice is committed to dismantling this violent and lawless criminal enterprise.”
“Drug trafficking, thefts, violent assaults and murders are all crimes that the Gangster Disciples commit every day to protect their turf, increase their territory, control and recruit members and terrorize rival gangs. They are merciless and have wreaked havoc in our neighborhoods for far too long,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “The FBI and our partners will aggressively pursue gangs wherever they surface. We are dedicated to dismantling these organized and violent criminal enterprises in order to make Atlanta and the surrounding communities, a safer place for our citizens.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The Gangster Disciples are a national gang with roots in Chicago dating back to the 1970’s. The gang is highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “silence and secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death.
The evidence showed that the defendants and their fellow gang members used the gang’s structure to carry out a pattern of violent and serious crimes, including murder, attempted murder, robbery, bank and wire fraud, drug trafficking, and extortion. The jury heard testimony and other evidence about multiple murders and attempted murders by Gangster Disciples.
Included in those murders was a deadly shooting at a nightclub in Macon, Georgia. Three people were killed and another three were wounded after gang member Vertuies Wall and his subordinates started a gunfight with rivals. On another occasion, gang member Lewis Mobley shot a teenage victim twice at point-blank range. Mobley believed that the victim had disrespected the gang by walking through a crowd while shouting a slogan and wearing the color associated with a rival gang. In a third incident, a top Gangster Disciples leader summoned the gang’s National Chief Enforcer to travel across the country to kill a witness. The witness, who was scheduled to testify against a Gangster Disciple on drug charges, was shot dead in her home on the gang’s orders.
The evidence also showed that each of the trial defendants held a position of authority within the gang’s structure. Mobley held a position in the gang’s security/enforcement arm, and exercised leadership over the enforcement team known as “HATE Committee,” that was responsible for committing murders, shootings, and other violence. Wall was the “First C,” or local leader, for the Macon area Gangster Disciples. Gang member Lawrence Grice also held a leadership position over Gangster Disciples in parts of Texas including the city of Houston.
The defendants listed below were convicted in this case, and found guilty of the following charges:
- Lewis Mobley, 42, of Atlanta, Georgia, was convicted of RICO conspiracy, including murder and drug conspiracy; committing an attempted murder in aid of racketeering and using a firearm to do so; and possessing with intent to distribute cocaine and possessing a firearm relating to the drug crime.
- Vertuies Wall, 43, of Atlanta, Georgia, was convicted of RICO conspiracy, including murder.
- Lawrence Grice, 30, of Houston, Texas, was convicted of RICO conspiracy, and a drug conspiracy regarding more than five kilograms of cocaine.
To date, 27 defendants have pleaded guilty, five were convicted at a separate trial, and three defendants are presently awaiting trial.
The FBI Safe Streets Task Force; ATF; U.S. Marshal Service; The U.S. Postal Service, the Bureau of Prisons; the Georgia Department of Community Supervision; the Georgia Department of Corrections; DeKalb Police Department; Cobb County Police Department; Bibb County District Attorney’s Office; Atlanta Police Department; Louisiana State Police; and Aurora, Colorado Police Department investigated this case.
Assistant U.S Attorneys Kim S. Dammers, Chief of the Organized Crime and Gangs Section, Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Erin N. Spritzer of the Northern District of Georgia, and Department of Justice Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Gangster Disciples Leaders Convicted of Racketeering Conspiracy, Attempted Murder and Other CrimesRead the Press Release
A federal jury has convicted three leaders of the Gangster Disciples (GD) national criminal organization of offenses including racketeering conspiracy (RICO) involving murder, attempted murder in aid of racketeering, drug trafficking conspiracy and other crimes.
Lewis Mobley, 42, of Atlanta, Georgia, was convicted of RICO conspiracy, including a sentencing enhancement for murder and a sentencing enhancement for drugs; committing an attempted murder in aid of racketeering and using a firearm to do so and possessing with intent to distribute cocaine and possessing a firearm relating to the drug crime. Vertuies Wall, 43, of Atlanta, Georgia, was convicted of RICO conspiracy, including a sentencing enhancement for murder. Lawrence Grice, 30, of Houston, Texas, was convicted of RICO conspiracy, including a sentencing enhancement for drugs and a separate conviction for drug conspiracy regarding more than five kilograms of cocaine.
According to court documents, the Gangster Disciples are a national gang with roots in Chicago dating back to the 1970s. The gang is highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “Silence and Secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death.
“The Gangster Disciples have terrorized communities in Georgia and elsewhere for far too long,” said Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s convictions, as well as the convictions of 32 co-defendants to date, send a clear message: the Department of Justice is committed to dismantling this violent and lawless criminal enterprise.”
“The Gangster Disciples are extremely organized and their reach is wide-spread across the United States,” said U.S. Attorney Byung “BJay” Pak for the Northern District of Georgia. “Their strict chain of command that carried their message of violence and crime throughout the organization posed a serious threat nationwide. They lured young people into the gang with the promise of a better life, and then inducted them into an appalling world of violence and crime.”
“Drug trafficking, thefts, violent assaults and murders are all crimes that the Gangster Disciples commit every day to protect their turf, increase their territory, control and recruit members and terrorize rival gangs. They are merciless and have wreaked havoc in our neighborhoods for far too long,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “The FBI and our partners will aggressively pursue gangs wherever they surface. We are dedicated to dismantling these organized and violent criminal enterprises in order to make Atlanta and the surrounding communities, a safer place for our citizens.”
The evidence showed that the defendants and their fellow gang members used the gang’s structure to carry out a pattern of violent and serious crimes, including murder, attempted murder, robbery, bank and wire fraud, drug trafficking and extortion. The jury heard testimony and other evidence about multiple murders and attempted murders by Gangster Disciples.
Included in those murders was a deadly shooting at the Wings Café nightclub in Macon, Georgia. Three people were killed and another three wounded after Wall and his subordinates started a gunfight with rivals. On another occasion, Mobley shot a teenage victim twice at point-blank range. Mobley believed that the victim had disrespected the gang by walking through a crowd while shouting a slogan and wearing the color associated with a rival gang. In a third incident, a top Gangster Disciple leader summoned the gang’s National Chief Enforcer to travel across the country to kill a witness. The witness, who was scheduled to testify against a Gangster Disciple on drug charges, was shot dead in her home on the gang’s orders.
The evidence showed that each of the trial defendants held a position of authority within the gang’s structure. Mobley held a leadership position in the gang’s security/enforcement arm, and exercised leadership over the enforcement team known as “HATE Committee” that was responsible for committing murders, shootings and other violent crimes. Wall was the “First C,” or local leader, for the Macon-area Gangster Disciples. Grice held a leadership position over Gangster Disciples in parts of Texas including Houston.
To date, 27 defendants have pleaded guilty, five were convicted at a separate trial and three defendants are presently awaiting trial.
The FBI Safe Streets Task Force, DeKalb Police Department, DeKalb District Attorney’s Office and Atlanta Police Department investigated this case.
Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kim S. Dammers, Chief of the Organized Crime and Gangs section, Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security section and Erin N. Spritzer of the Northern District of Georgia prosecuted the case.
Texas couple indicted in Georgia for $4 million false invoicing schemeRead the Press Release
ATLANTA – April and James Thompson have been indicted for defrauding an Atlanta timberland investment company out of more than four million dollars.
“The defendants allegedly stole millions of dollars through a false invoicing scheme,” said U.S. Attorney Byung J. “BJay” Pak. “Employees who take advantage of their positions of trust will be prosecuted when they use their positions to engage in fraud schemes such as this.”
“When a person takes advantage of a company by abusing the position they were entrusted to uphold, the FBI must hold them accountable,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “We are committed to protecting companies from employees who are driven by personal greed and not the company’s best interests.”
According to U.S. Attorney Pak, the charges, and other information presented in court: April Thompson worked on behalf of a company named Kingwood Forestry Services (“Kingwood”) that provided services to timber properties in various states. Kingwood was contracted with Forest Investment Associates (“FIA”), an Atlanta-based company that provides timberland investment advisory and management services for institutional timberland investors. At Kingwood, April Thompson managed invoices submitted to FIA and requested payments to contractors.
The indictment alleges that from 2011 through April 2019, April Thompson billed FIA for over $4 million for work that James Thompson had allegedly done on FIA timber properties. However, these invoices were all fraudulent as James Thompson had never been an FIA or Kingwood contractor and never did any work on the timber properties. As a result of these fraudulent invoices, April and James Thompson received over $4 million, which they then used for their own personal benefit.
April Thompson, 41, and James Thompson, 46, both of Maud, Texas were indicted by a federal grand jury in the Northern District of Georgia, on September 25, 2019, and had their initial appearances on October 1, 2019, in the Eastern District of Texas.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia business owner sentenced for identity theft and credit card schemeRead the Press Release
ATLANTA – Kingston Ansah, the owner of a Georgia shipping company, has been sentenced to federal prison for an identity theft and credit card scheme. Ansah has been in federal custody since he attempted to flee the country after learning of these charges in November 2017.
“Identity theft and credit card fraud is an all too common problem in the business community,” said U.S. Attorney Byung J. (“BJay”) Pak. “Thieves like Ansah continue to pursue new ways to enrich themselves at others’ expense. We will employ every tool available to catch and prosecute people who seek to take what is not theirs.”
“Postal Inspectors, along with our law enforcement partners from the Social Security OIG, were able to unravel this sophisticated financial scheme that resulted in bringing this perpetrator to justice,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “We will continue to be vigilant in pursuing individuals who illegally utilize the mail system for illicit financial gain.”
“The Social Security OIG will continue to partner with the Department of Justice and other law enforcement agencies to uphold the integrity of the Social Security number and prevent its misuse for profit,” said Rodregas Owens, Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Atlanta Field Division. “I want to thank the U.S. Postal Inspection Service and the U.S. Attorney’s Office for pursuing this case and bringing an end to this individual’s fraudulent activities.”
According to U.S. Attorney Pak, the charges and other information presented in court: Kingston Ansah was the owner of “Oceane Cargo Link,” an Atlanta company that specialized in shipping products around the world. Beginning in 2016, Ansah made over $800,000 worth of credit card transactions using fraudulently obtained credit cards. The fraudulently obtained credit cards had been obtained by combining real and false personal identifying information (what are commonly known as “synthetic identities”). The fraudulent credit card transactions caused financial institutions to send hundreds of thousands of dollars to bank accounts under Ansah’s control.
In November 2017, U.S. Postal inspectors executed search warrants at Ansah’s home and Oceane Cargo Link’s headquarters. At Oceane Cargo Link, Postal Inspectors found dozens of fabricated driver’s licenses and fraudulent credit cards as well as folders cataloging individual synthetic identity profiles. In October 2017, Ansah was notified through his attorney that a federal grand jury had returned an indictment charging him with these offenses. Instead of surrendering to federal authorities, Ansah purchased a one-way plane ticket back to his native country of Ghana. Fortunately, U.S. Postal Inspectors learned of Ansah’s attempt to flee and arrested him as he waited to board his flight at Atlanta Hartsfield Jackson International Airport.
Kingston Ansah, 37, of Atlanta, Georgia, was sentenced to four years, nine months in prison, and three years of supervised release. Ansah was also ordered to pay full restitution to the victims.
The U.S. Postal Inspection Service and the Social Security Administration investigated this case.
Assistant U.S. Attorney Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former law enforcement officer indicted for using his position to steal cocaine and methamphetamineRead the Press Release
ATLANTA - Former Gwinnett County Sheriff’s Deputy Antione Riggins, who was also a federal task-force member, has been arraigned on federal charges that he used his former position to steal cocaine and methamphetamine before the drugs could be secured in evidence, and made a series of false statements to cover up his drug theft.
“Riggins’ alleged theft of previously seized drugs is shocking,” said U.S. Attorney Byung J. “BJay” Pak. “He also allegedly fabricated documents and made false statements to prevent the arrest and prosecution of the drug trafficking suspects from whom the drugs were seized, in an apparent effort to cover his tracks. Riggins’s alleged actions betray the community he was sworn to protect.”
“The allegations in this indictment are particularly disturbing because they are against a law enforcement officer,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “The alleged actions of this individual undermine and insult the integrity of every law enforcement officer who takes an oath to serve and protect the people in their communities.”
“As a Task Force Officer, Riggins engaged in conduct that betrayed the oath he took to faithfully serve the people of Gwinnett County. His behavior should not take away from the outstanding work done each day by the vast majority of law enforcement professionals around the country.” DHS OIG’s Acting Special Agent in Charge Ronnie Tippett.
“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 and 2018, 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). Riggins’s duties during this time included investigating drug trafficking cases with HSI agents and other law enforcement officers. Riggins was also responsible for assisting Gwinnett County authorities to prosecute local drug cases investigated by HSI. In this role, Riggins was entrusted with transporting seized drugs from HSI crime scenes to the Gwinnett County evidence vault, and obtaining arrest warrants for drug traffickers.
On February 23, 2017, an HSI investigation resulted in the seizure of 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 Gwinnett County evidence vault. The next day, Riggins allegedly checked only one kilogram of cocaine into evidence, not three, and he failed to secure a warrant for the arrest of the cocaine trafficker.
On July 14, 2017, an HSI investigation resulted in the seizure of approximately six kilograms of methamphetamine from an Atlanta hotel room. An HSI agent again tasked Riggins with transporting the methamphetamine to the Gwinnett County evidence vault; however, none of the methamphetamine was subsequently checked into evidence.
Riggins also allegedly made false documents and statements in relation to the cocaine theft, for the purpose of covering up his theft of those drugs. In particular, the indictment alleged that Riggins created and submitted a falsified evidence form to the GCSO, Riggins presented a false court order to the Magistrate Court of Gwinnett County, and made two false statements to HSI agents, all to prevent prosecutors from discovering the missing drugs.
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.
Antione Riggins, 40, of Loganville, Georgia, was arraigned before U.S. Magistrate Judge Catherine M. Salinas. The defendant was indicted by a federal grand jury in the Northern District of Georgia on September 24, 2019, on charges of possession with intent to distribute controlled substances, unlawfully removing property to prevent government seizure, and making false statements and documents.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation, Department of Homeland Security - Office of the Inspector General, the Georgia Bureau of Investigation, and the Gwinnett County District Attorney’s Office are investigating this case.
Assistant United States 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.
Defendant sentenced for a second time for using counterfeit checks to buy United States Postage StampsRead the Press Release
ATLANTA - John Lamb, a/k/a Johnny Lamb, has been sentenced to federal prison for a second time for again using counterfeit checks for purchases from the United States Postal Service (USPS).
“Lamb proves that some people never learn,” said U.S. Attorney Byung J. “BJay” Pak. “He once again used counterfeit checks to purchase postal products and again will serve time in a federal prison. If you seek to steal from our public institutions, and ultimately the American people, you will be prosecuted and sent to prison every time.”
“This career offender stole from the Postal Service for his own financial gain and the sentence sends a message to others to deter from these types of illegal acts,” said David M. McGinnis, Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to investigate and apprehend individuals that engage in criminal activities against the nation's mail system.”
According to U.S. Attorney Pak, the charges and other information presented in court: From September 2018 through March 2019, John Lamb a/k/a Johnny Lamb engaged in a scheme to defraud the USPS throughout the Southeastern United States, including North Georgia. Lamb negotiated over 200 counterfeit and forged checks at post offices in Georgia, Tennessee, North Carolina, Alabama, and Kentucky, defrauding the United States Postal Service of over $140,000. The value of these checks ranged from $500 to $950, which he used to buy U.S. postage stamps.
The U.S. Attorney’s Office for the Northern District of Georgia prosecuted Lamb in 2014 for using counterfeit checks to buy over $500,000 worth of U.S. Postal Service products, including stamps and services. He served a sentence in federal prison.
Lamb was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $143,960. Lamb was convicted on these charges on June 20, 2019, after he pleaded guilty.
The U.S. Postal Inspection Service investigated this case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pharmaceutical Company Targeting Elderly Victims Admits to Paying Kickbacks, Resolves Related False Claims Act ViolationsRead the Press Release
ATLANTA - The Department of Justice announced today that Avanir Pharmaceuticals (Avanir), a pharmaceutical manufacturer based in Aliso Viejo, California, has been charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta.
“When a drug company pays kickbacks to physicians, it can affect their medical decision making and undermine the proper treatment of their patients,” said U.S. Attorney Byung J. “BJay” Pak. “This is particularly troublesome when it affects our vulnerable elderly population.”
“Kickbacks have the power to corrupt a provider’s medical judgment,” said Assistant Attorney Jody Hunt of the Department of Justice’s Civil Division. “And it is particularly concerning when a pharmaceutical company uses kickbacks to drive up sales in connection with a vulnerable population, such as elderly patients in nursing care facilities.”
“Paying kickbacks to medical providers in an effort to increase profits is illegal and diminishes the trust and credibility of drug companies who engage in these activities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. My agency’s five-year compliance agreement with Avanir has been tailored to ensure such alleged behavior will not be repeated.”
As alleged in a one-count Information filed today in the U.S. District Court for the Northern District of Georgia, Avanir violated the Anti-Kickback Statute by paying a doctor to induce him to become a high prescriber of Nuedexta to beneficiaries of federal healthcare programs, offering him financial incentives to write additional Nuedexta prescriptions for beneficiaries of federal healthcare programs, and inducing him to recommend that other physicians prescribe Nuedexta to beneficiaries of federal healthcare programs. Nuedexta is approved by the Food and Drug Administration for the treatment of pseudobulbar affect (PBA), which is characterized by involuntary, sudden, and frequent episodes of laughing or crying, and occurs secondary to a neurologic disease or brain injury.
The Northern District of Georgia also announced a deferred prosecution agreement resolving the charge, under which Avanir admits that it paid the doctor to induce him to not only maintain, but increase his prescription volume. Under the agreement’s terms, Avanir will pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. The United States will defer prosecuting Avanir for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
The Northern District of Georgia entered into the deferred prosecution agreement with Avanir based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including capturing and producing text messages from employee cell phones, the extensive remedial measures taken by the company, including terminating, or permitting to resign in lieu of termination, multiple employees, at various levels of the organization, including senior executives, and its enhanced compliance program. Other facts and circumstances include: Avanir has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Avanir from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Avanir’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
The Northern District of Ohio also announced indictments of four individuals, including former Avanir employees and one of the top prescribers of Nuedexta in the country, who were involved in the kickback scheme. Avanir has also agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long term care facilities to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.
Named in the 83-count Northern District of Ohio indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks. Avanir has agreed to cooperate in the prosecution of these individuals.
“Doctors should prescribe medicine based on what is best for their patients, not on which drug company is paying for their travel and meals,” said U.S. Attorney for the Northern District of Ohio Justin Herdman.
In a separate civil resolution, Avanir has agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta. The government alleged that between October 29, 2010, and December 31, 2016, Avanir provided remuneration in the form of money, honoraria, travel, and food to certain physicians and other health care professionals to induce them to write prescriptions for Nuedexta. One form of remuneration included Avanir’s payment to certain health care professionals to give talks (commonly known as “speaker’s programs”) about Nuedexta based on their willingness to prescribe Nuedexta. These events were primarily social, with no educational value.
The government further 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. In particular, Avanir sought to capitalize on efforts by the Centers for Medicare and Medicaid Services to reduce the use of anti-psychotics on dementia patients in LTC facilities, based in part on CMS’s concern that anti-psychotics can be and have been used as a form of chemical restraint for residents. Avanir did so by instructing its sales force to initiate discussions in LTCs regarding anti-psychotic use and how Nuedexta could be used to reduce a LTC facility’s reliance on anti-psychotics even though Avanir’s own studies demonstrated that the actual population of patients with PBA is limited. In order to counter the objection by certain physicians that they had few, if any, patients that exhibited signs of PBA in their facilities, Avanir instructed sales representatives to provide false and misleading information that PBA patients could be exhibiting a wide variety of “behaviors” such as crying without tears, moaning, or making other inarticulate sounds, when, in fact, those symptoms are commonly observed in patients who have dementia but do not have a diagnosis of PBA. This strategy worked, and Nuedexta utilization in LTC facilities increased.
In one example of the impact of these strategies, the government alleged that an Avanir employee reported that one doctor, who was also a paid speaker for Nuedexta, had “entire units” of patients on Nuedexta at the LTC facility where he worked, which contained a large number of dementia patients with behavioral issues. And while another doctor, a geriatrician, who also worked in the same LTC facility routinely discontinued Nuedexta for patients, the doctor paid by Avanir “constantly re-initiat[ed]” the treatment.
Contemporaneous with the civil settlement, Avanir entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Avanir implement additional controls around its interactions with physicians and conduct internal and external monitoring of promotional and other activities. It also increases individual accountability by requiring compliance-related certifications from its Board and key executives.
The civil settlement resolves lawsuits filed by Kevin Manieri, Duane Arnold, and Mark Shipman, all former employees of Avanir, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suits were filed in the Northern District of Ohio and the Northern District of Georgia and are captioned United States ex rel. Kevin Manieri v. Avanir Pharmaceuticals, Inc. and Deepak Raheja, Action No. 5:15-cv-611 (N.D. Ohio), and United States ex rel. Duane Arnold and Mark Shipman v. Avanir Pharmaceuticals, Inc., Action No. 1:15-cv-01250 (N.D. Ga.). Manieri will receive $12,389,823 of the civil settlement, and Arnold and Shipman will receive $5,365,000 of the civil settlement. In addition to the $95,972,017 being paid to resolve the United States’ civil claims, Avanir will pay an additional $7,027,983 to resolve state Medicaid claims.
The government is represented in the criminal case against Avanir by Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds Section, U.S. Attorney’s Office for the Northern District of Georgia, and against the individuals by Assistant U.S. Attorneys Michael Collyer and Megan Miller, U.S. Attorney’s Office for the Northern District of Ohio. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorneys Patricia Fitzgerald and Brendan Barker of the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorney Neeli Ben-David of the U.S. Attorney’s Office for the Northern District of Georgia, and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by the FBI, HHS-OIG, the Department of Defense Criminal Investigative Services, the Office of Personnel Management Office of Inspector General, the Department of Veteran’s Affair Office of Inspector General, and the Ohio Medicaid Fraud Control Unit. Assistance was also provided by the Consumer Protection Branch of the Department of Justice, HHS Office of Counsel to the Inspector General and the National Association of Medicaid Fraud Control Units.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Except as to conduct admitted as part of the deferred prosecution agreement and its Statement of Facts, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pharmaceutical Company Targeting Elderly Victims Admits to Paying Kickbacks, Resolves Related False Claims Act ViolationsRead the Press Release
Avanir Pharmaceuticals (Avanir), a pharmaceutical manufacturer based in Aliso Viejo, California, was charged for paying kickbacks to a physician to induce prescriptions of its drug Nuedexta, the Department of Justice announced today. The Northern District of Ohio also announced indictments of four individuals, including former Avanir employees and one of the top prescribers of Nuedexta in the country, who were involved in the kickback scheme. Avanir has also agreed to pay over $95 million to resolve civil False Claims Act allegations of kickbacks as well as its false and misleading marketing of Nuedexta to providers in long term care facilities to induce them to prescribe it for behaviors commonly associated with dementia patients, which is not an approved use of the drug.
“Kickbacks have the power to corrupt a provider’s medical judgment,” said Assistant Attorney Jody Hunt of the Department of Justice’s Civil Division. “And it is particularly concerning when a pharmaceutical company uses kickbacks to drive up sales in connection with a vulnerable population, such as elderly patients in nursing care facilities.”
As alleged in a one-count Information filed today in the United States District Court for the Northern District of Georgia, Avanir violated the Anti-Kickback Statute by paying a doctor to induce him to become a high prescriber of Nuedexta to beneficiaries of federal healthcare programs, offering him financial incentives to write additional Nuedexta prescriptions for beneficiaries of federal healthcare programs, and inducing him to recommend that other physicians prescribe Nuedexta to beneficiaries of federal healthcare programs. Nuedexta is approved by the Food and Drug Administration for the treatment of pseudobulbar affect (PBA), which is characterized by involuntary, sudden, and frequent episodes of laughing or crying, and occurs secondary to a neurologic disease or brain injury.
The Northern District of Georgia also announced a deferred prosecution agreement resolving the charge, under which Avanir admits that it paid the doctor to induce him to not only maintain, but increase his prescription volume. Under the agreement’s terms, Avanir will pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. The United States will defer prosecuting Avanir for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
“When a drug company pays kickbacks to physicians, it can affect their medical decision making and undermine the proper treatment of their patients,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “This is particularly troublesome when it affects our vulnerable elderly population.”
The Northern District of Georgia entered into the deferred prosecution agreement with Avanir based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including capturing and producing text messages from employee cell phones, the extensive remedial measures taken by the company, including terminating, or permitting to resign in lieu of termination, multiple employees, at various levels of the organization, including senior executives, and its enhanced compliance program. Other facts and circumstances include: Avanir has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Avanir from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Avanir’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
The Northern District of Ohio also announced indictments of four individuals who paid or received kickbacks from Avanir. Named in the 83-count indictment are: Deepak Raheja, 63, of Hudson; Gregory Hayslette, 43, of Aurora; Frank Mazzucco, 41, of Dublin, and Bhupinder Sawhny, 70, of Gates Mills. All four are charged with conspiracy to solicit, receive, offer and pay health care kickbacks. Avanir has agreed to cooperate in the prosecution of these individuals.
“Doctors should prescribe medicine based on what is best for their patients, not on which drug company is paying for their travel and meals,” said U.S. Attorney for the Northern District of Ohio Justin Herdman.
In a separate civil resolution, Avanir has agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta. The government alleged that between October 29, 2010, and December 31, 2016, Avanir provided remuneration in the form of money, honoraria, travel, and food to certain physicians and other health care professionals to induce them to write prescriptions for Nuedexta. One form of remuneration included Avanir’s payment to certain health care professionals to give talks (commonly known as “speaker’s programs”) about Nuedexta based on their willingness to prescribe Nuedexta. These events were primarily social, with no educational value.
The government further 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. In particular, Avanir sought to capitalize on efforts by the Centers for Medicare and Medicaid Services to reduce the use of anti-psychotics on dementia patients in LTC facilities, based in part on CMS’s concern that anti-psychotics can be and have been used as a form of chemical restraint for residents. Avanir did so by instructing its sales force to initiate discussions in LTCs regarding anti-psychotic use and how Nuedexta could be used to reduce a LTC facility’s reliance on anti-psychotics even though Avanir’s own studies demonstrated that the actual population of patients with PBA is limited. In order to counter the objection by certain physicians that they had few, if any, patients that exhibited signs of PBA in their facilities, Avanir instructed sales representatives to provide false and misleading information that PBA patients could be exhibiting a wide variety of “behaviors” such as crying without tears, moaning, or making other inarticulate sounds, when, in fact, those symptoms are commonly observed in patients who have dementia but do not have a diagnosis of PBA. This strategy worked, and Nuedexta utilization in LTC facilities increased.
In one example of the impact of these strategies, the government alleged that an Avanir employee reported that one doctor, who was also a paid speaker for Nuedexta, had “entire units” of patients on Nuedexta at the LTC facility where he worked, which contained a large number of dementia patients with behavioral issues. And while another doctor, a geriatrician, who also worked in the same LTC facility routinely discontinued Nuedexta for patients, the doctor paid by Avanir “constantly re-initiat[ed]” the treatment.
Contemporaneous with the civil settlement, Avanir entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Avanir implement additional controls around its interactions with physicians and conduct internal and external monitoring of promotional and other activities. It also increases individual accountability by requiring compliance-related certifications from its Board and key executives.
“Paying kickbacks to medical providers in an effort to increase profits is illegal and diminishes the trust and credibility of drug companies who engage in these activities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. My agency’s five-year compliance agreement with Avanir has been tailored to ensure such alleged behavior will not be repeated.”
The civil settlement resolves lawsuits filed by Kevin Manieri, Duane Arnold, and Mark Shipman, all former employees of Avanir, under the qui tam or whistleblower provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suits were filed in the Northern District of Ohio and the Northern District of Georgia and are captioned United States ex rel. Kevin Manieri v. Avanir Pharmaceuticals, Inc. and Deepak Raheja, Action No. 5:15-cv-611 (N.D. Ohio), and United States ex rel. Duane Arnold and Mark Shipman v. Avanir Pharmaceuticals, Inc., Action No. 1:15-cv-01250 (N.D. Ga.). Manieri will receive $12,389,823 of the civil settlement, and Arnold and Shipman will receive $5,365,000 of the civil settlement. In addition to the $95,972,017 being paid to resolve the United States’ civil claims, Avanir will pay an additional $7,027,983 to resolve state Medicaid claims.
The government is represented in the criminal case against Avanir by Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds Section, U.S. Attorney’s Office for the Northern District of Georgia, and against the individuals by Assistant U.S. Attorneys Michael Collyer and Megan Miller, U.S. Attorney’s Office for the Northern District of Ohio. The civil settlement was the result of the coordinated efforts of Assistant U.S. Attorneys Patricia Fitzgerald and Brendan Barker of the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorney Neeli Ben-David of the U.S. Attorney’s Office for the Northern District of Georgia, and Senior Counsel Natalie Waites of the Civil Division’s Commercial Litigation Branch. The investigation was conducted by the FBI, HHS-OIG, the Department of Defense Criminal Investigative Services, the Office of Personnel Management Office of Inspector General, the Department of Veteran’s Affair Office of Inspector General, and the Ohio Medicaid Fraud Control Unit. Assistance was also provided by the Consumer Protection Branch of the Department of Justice, HHS Office of Counsel to the Inspector General and the National Association of Medicaid Fraud Control Units.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Except as to conduct admitted as part of the deferred prosecution agreement and its Statement of Facts, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Defendant sentenced for robbing eight businesses including seven Dollar Stores during a nine-day crime spreeRead the Press Release
ATLANTA - Wayne Patterson, who committed a string of eight armed robberies in the metro-Atlanta area, has been sentenced to federal prison.
“Patterson’s decision to rob these businesses at gunpoint placed employees’ and customers’ lives in danger,” said U.S. Attorney Byung J. “BJay” Pak. “Cooperation among federal and local law enforcement officers ended Patterson’s robbery spree and ensured the lengthy prison sentence he received.”
“Patterson terrorized employees and customers at seven different businesses he robbed in a nine day period in 2018 across three counties,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to our partnerships with six different local law enforcement agencies we were able to stop him before someone got hurt or killed. Hopefully the victims of those robberies can take some solace with this sentencing.”
“The Covington Police appreciates the diligence of the employee to stay calm, cooperate with the robber, get an accurate tag number, and give details of the crimes to the responding officers. This great effort allowed CPD to locate and arrest the suspect thus ending his criminal activity,” said Stacey L. Cotton, Chief of the Covington Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: Patterson robbed seven Family Dollar and Dollar General Stores in the metro-Atlanta area over nine days in July 2018. In each case, Patterson browsed in the store, selected an item to supposedly purchase, and then approached the cash register. Once at the register, Patterson brandished a handgun and demanded money, and then fled the store with whatever money the cashier gave him.
Approximately three weeks after committing the Family Dollar and Dollar General Store robberies, Patterson robbed a clothing store in Covington, Georgia, using the same tactic. On this occasion, however, an employee recorded the license plate of Patterson’s getaway car and provided that information to Covington Police who arrested Patterson shortly thereafter.
Wayne Patterson, 39, of Covington, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 20 years in prison to be followed by 5 years of supervised release. Patterson was convicted on June 19, 2019 after he pleaded guilty to eight counts of Hobbs Act robbery and two counts of brandishing a firearm during a crime of violence.
Assistant U.S. Attorney Bret R. Hobson prosecuted the case.
The Federal Bureau of Investigation, the Covington Police Department, the Clayton County Police Department, the Riverdale Police Department, the Cobb County Police Department, the Atlanta Police Department, and the Conyers Police Department investigated the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
DeKalb felon sentenced for robbing multiple Waffle House restaurants and a motelRead the Press Release
ATLANTA – Joseph Orlando Hood, a career offender, has been sentenced following his armed robbery of three Waffle House restaurants and a DeKalb County motel.
“Hood threatened the lives of multiple citizens and law enforcement officers during his crime spree,” said U.S. Attorney Byung J. “BJay” Pak. “He demonstrated a complete lack of concern for the victims in this case and justly deserved this lengthy prison sentence.”
“Criminals who choose to use guns to harm or intimidate their victims have no regard for others,” said ATF Special Agent in Charge Arthur Peralta. “Mr. Hood initiated those acts of violence and his actions placed many innocent people at risk of great bodily harm or worse.”
According to U.S. Attorney Pak, the charges, and trial transcript: Hood robbed three Waffle House restaurants and a motel during a one-week span. Two of the restaurant robberies occurred on the same day. Hood shot at a customer during one of the Waffle House robberies. While he missed the customer, Hood nearly struck a Waffle House employee. During the motel robbery, Hood hit an employee on the head with the butt of his gun, knocking the employee unconscious.
Hood’s robbing spree ended during the early morning hours of November 17, 2016. That day, Hood entered a local bar and grill restaurant and walked towards a backroom where customers were seated. Hood pointed two firearms at the customers and demanded money. While Hood was taking money from the customers, one of the men tried to escape. Hood fired his gun at the man and chased him through the Bar, while firing additional rounds.
After fleeing the restaurant, Hood exchanged gunfire with the bar’s owner. During the gun battle, the bar owner shot Hood in the leg. Hood then fled to a nearby apartment complex, where DeKalb County police officers arrested him. The officers transported Hood to a local hospital from where Hood subsequently escaped. Shortly after, Atlanta Police officers apprehended him.
Joseph Orlando Hood, 32, of Scottsdale, Georgia was sentenced by U.S. District Judge Steve C. Jones to 39 years in federal prison, followed by five years of supervised release. On February 12, 2019, a jury found Hood guilty of four counts of Hobbs Act robbery and four counts of brandishing a firearm during those robberies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DeKalb County Police Department.
Assistant U.S. Attorneys Dash A. Cooper and Joseph Plummer prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Brazen theft crew stole jewelry and cash from temples around the countryRead the Press Release
ATLANTA – Valer Iazmin Varga, Robert-Auras Adam, and Ana-Loredana Adam, all Romanian nationals, have been arraigned on federal charges of conspiracy to transport, in interstate commerce, stolen goods with a value of at least $5,000 and transporting, in interstate commerce, gold jewelry with a value of at least $5,000, which the defendants stole from the Hindu Temple of Atlanta, in Riverdale, Georgia. Co-defendant Stela Patricia Varga was arrested on September 11, 2019 in Slidell, Louisiana on a federal arrest warrant related to the same charges.
“These defendants posed as tourists and allegedly stole gold and money from places of worship,” said U.S. Attorney Byung J. “BJay” Pak. “They exploited their victims’ custom of receiving visitors with open arms in their temples and religious centers, and also allegedly involved their minor children in their theft scheme.”
“It is deeply troubling and hard to fathom that criminals would exploit the tenets of one’s faith by taking advantage of their kindness,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Even though these suspects are alleged to have travelled from state to state to commit these crimes, they were not able to elude arrest, thanks to our partnerships with federal, state and local law enforcement agencies in six different states.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendants traveled to Hindu and Buddhist places of worship in at least six states, including Georgia, for the purpose of stealing gold jewelry or cash. Visiting the temples during operating hours, the defendants allegedly posed as tourists and asked representatives of the temples questions regarding the customs and practices associated with the temples. As one or more of the defendants questioned temple staff members, other defendants stole gold jewelry and cash from the temples, sometimes taking gold jewelry directly from statues within the sanctuaries in the form of various deities.
Although the defendants allegedly attempted to interfere with the temples' security cameras, the defendants were captured on camera within the sanctuaries; and in some cases, the defendants were captured on film in the act of stealing jewelry. When three of the defendants were arrested on local charges in connection with the thefts in early June 2019, they were in possession of over $50,000 in U.S. currency, despite the fact that the defendants have no record of employment in the U.S.
Valer Iazmin Varga, 28, Robert-Auras Adam, 31, and Ana-Loredana Adam, 30, all Romanian nationals, were arraigned on September 11, 2019, before U.S. Magistrate Judge Russell G. Vineyard. The defendants were indicted by a federal grand jury in the Northern District of Georgia on August 20, 2019.
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 FBI, Atlanta Division, Transnational Organized Crime Squad with assistance by the FBI’s New Orleans Gang Task Force, the Forsyth County Sheriff’s Office (Georgia), the Lilburn Police Department (Georgia), the Clayton County Police Department (Georgia), the Delaware County Sherriff’s Office (Ohio), the Bloomingdale Police Department (Illinois), the Lemont Police Department (Illinois), the Bridgeton Police Department (Missouri), and the Franklin Police Department (New Jersey).
Assistant U.S. Attorney Jessica C. Morris 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.
Managing partner of Chicago travel agency indicted for carrying out $1.75m fraud on Delta's Skybonus programRead the Press Release
ATLANTA - Gennady Podolsky, a dual Ukrainian and American citizen, and managing partner of Vega International Travel Services, Inc., has been arraigned for wire fraud.
“Podolsky used his knowledge of the travel industry to take advantage of his travel agency clients,” said U.S. Attorney Byung J. “BJay” Pak. “Through his access, he allegedly took advantage of Delta Airlines corporate frequent flyer program, illegally reaping millions of SkyBonus points worth more than $1.75 million dollars.”
“The fraudulent accumulation of frequent flyer miles in the travel industry may seem like a victimless crime, however, large corporations stand to lose significant profits”, said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will do everything in its power to protect companies and to stop anyone who participates in this corrupt behavior.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Vega International Travel Services, Inc. (“Vega Travel”) was a small, full-service travel agency located in Chicago, Illinois, that catered to clients of Russian and Eastern European descent who were living abroad.
Podolsky was Vega Travel’s managing partner and lead travel agent. Delta Air Lines, based in Atlanta, Georgia, operates a frequent-flyer program for individuals called SkyMiles, and a similar program for businesses called SkyBonus, that allows individuals and businesses to earn points for free travel and other valuable perks. Enrolled businesses can earn points under the SkyBonus program at the same time the traveling passengers earned points under the SkyMiles program.
A business enrolled in the SkyBonus program accrues points whenever its employees travel on Delta and a SkyBonus account identification number is entered electronically at the time of booking. For an enrolled business to accrue SkyBonus points under the terms of the program, the traveling passenger must have been an actual employee of that business. Enrolled businesses could redeem accrued SkyBonus points for flight reward certificates, ticket upgrades, and other valuable benefits.
According to the indictment, beginning in March 2014 until April 2015, Podolsky allegedly devised and executed a scheme to defraud Delta through the fraudulent accrual and redemption of over 42 million SkyBonus points, causing a loss to Delta of over $1.75 million dollars. As part of the scheme, Podolsky caused a SkyBonus account to be registered in the name of a fertility center owned and operated by a family member of the president of Vega Travel.
When Vega Travel booked its customers for air travel on Delta, Podolsky caused the SkyBonus account number for the fertility center to be associated with those customers’ tickets, even though those customers were not employees of that company or any similar entity. By doing so, Podolsky caused SkyBonus points to accrue fraudulently in the fertility center’s account for passengers who were not employees of that company. Podolsky then caused the SkyBonus points that had fraudulently accrued to be redeemed by requesting, receiving, and utilizing reward certificates for free air travel and other valuable benefits.
Gennady Podolsky, 43, of Kiev, Ukraine, was arraigned before U.S. Magistrate Judge Russell G. Vineyard on twelve counts of wire fraud. Podolsky was indicted by a federal grand jury on September 11, 2019.
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. Assistant U.S. Attorneys John S. Ghose and Bernita Malloy 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.
Heroin trafficker sentenced for transporting 4.24 kilograms of heroin stashed inside car batteryRead the Press Release
ATLANTA - Francisco Castaneda Rivera has been sentenced to federal prison for transporting 4.24 kilograms of heroin from Texas to the Atlanta area hidden inside a car battery.
“Drug traffickers employ sophisticated and ever-changing tactics to bring their deadly product into our communities,” said U.S. Attorney Byung J. “BJay” Pak. “However, our law enforcement partners are able to adapt to their methods and combat this scourge. Through the hard work of our federal, state, and local law enforcement partners, we were able to stop these drugs from hitting our streets.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug traffickers like Castaneda Rivera often take extreme measures in order to hide the poison they peddle, as was the case in this investigation. This is a perfect illustration of the battle DEA, its law enforcement counterparts and the U.S. Attorney’s Office face when trying to prevent dangerous drugs from hitting the streets of our communities. As a result of DEA’s unwavering commitment and through the strength of its partnerships, Castaneda Rivera will spend well-deserved time in prison.”
According to U.S. Attorney Pak, the charges and other information presented in court: In March and April 2018, DEA agents gleaned intelligence about a suspected drug trafficker who would be involved with the delivery of narcotics in the Union City, Georgia area.
Several months later, on September 1, 2018, law enforcement officers in Montgomery, Alabama conducted a traffic stop of a truck which was driven by Rivera. Intelligence gathered from the stop linked Rivera to a DEA investigation.
On October 19 and 20, 2018, through various methods of intelligence, DEA agents learned that Rivera was traveling, via I-20 eastbound, from Houston, Texas to Atlanta, Georgia. Georgia State Patrol conducted a traffic stop on Rivera's truck in Douglas County, Georgia. Troopers searched the vehicle and observed that the battery in the truck was significantly cleaner than the rest of the engine compartment. Upon closer inspection, agents realized that the battery had been altered. They opened it and found five packages wrapped in electrical tape along with a motorcycle battery wired to provide electrical current sufficient to operate the vehicle. The packages were determined to contain 4.24 kilograms of heroin.
Francisco Castaneda Rivera, 65, of Houston, Texas, was sentenced to ten years in prison to be followed by five years of supervised release. Rivera was convicted on these charges on May 15, 2019, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorneys David A. O'Neal and Garrett L. Bradford prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Local doctor and former pro football player indicted for illegitimate drug distribution and money laundering conspiracyRead the Press Release
ROME, Ga. – Atlanta-area doctor Victor Hanson and former professional football player Sedrick Hodge have been indicted with two other individuals for illegal distribution of prescription drugs, including opioids.
“Hanson allegedly issued numerous illegitimate prescriptions for drugs, including powerful opioid painkillers,” said U.S. Attorney Byung J. “BJay” Pak. “While Hanson prescribed these drugs without a legitimate medical purpose, Sedrick Hodge and other associates allegedly sold these drugs in communities like Cartersville.”
“Americans rely on healthcare providers, many of them Medical Doctors, to use their training to help patients and to ‘do no harm.’ Dr. Hanson violated the law and betrayed the responsibilities of his profession by prescribing controlled substances, to include opioids, outside the usual course of professional practice. In addition, former professional football player Sedrick Hodge sold illegitimate oxycodone pills from Dr. Hanson on the streets for cash,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA, its law enforcement partners and the United States Attorney’s Office are committed to stopping unscrupulous medical professionals like Dr. Hanson from harming patients.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Hanson is a licensed physician who operated a weight loss clinic in Sandy Springs, Georgia. However, he also allegedly prescribed large quantities of controlled substances, including opioids like oxycodone, and stimulants. Hanson accepted only cash or checks as payment.
The indictment alleges that Hanson prescribed these controlled substances irrespective of any legitimate medical purpose, outside the usual course of professional practice, and in inappropriate amounts and dosage combinations. He prescribed these drugs to individuals without conducting thorough medical examinations or—at times—any examinations at all.
Co-defendants Sedrick Hodge, Farrah Hodge, and Marcus McConnell obtained prescriptions for controlled substances from Hanson. Hanson also gave Sedrick Hodge prescriptions written to third parties, including McConnell, when those third parties were not present. In turn, Hodge allegedly sold oxycodone pills on the street for cash. On two separate occasions in October and November 2018, Sedrick Hodge sold oxycodone pills to a confidential source working with the DEA in Cartersville, Georgia.
The following four individuals were indicted on September 3, 2019 and charged with conspiring to distribute and dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose:
- Victor A. Hanson, M.D., 86, of Brookhaven, Georgia, is also charged with maintaining a premises for the purpose of distributing controlled substances, 14 individual counts of illegal drug distribution for specific prescriptions, including several written to undercover federal officers, and a money laundering conspiracy.
- Sedrick Hodge, 40, of Cartersville, Georgia, is also charged with six individual counts of possession with intent to distribute controlled substances, one count of distribution of controlled substances, and a money laundering conspiracy.
- Farrah Hodge, 42, of Cartersville, Georgia, is also charged with a money laundering conspiracy.
- Marcus McConnell, 35, of Adairsville, Georgia, is also charged with three individual counts of possession with intent to distribute controlled substances.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, with assistance from the Bartow-Cartersville Drug Task Force, the Jonesboro Police Department, and the Sandy Springs Police Department.
This case is part of the U.S. Attorney’s Office’s Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), an initiative that targets individuals who illegally prescribe opioids and drug traffickers who also distribute these dangerous and addictive drugs.
Assistant U.S. Attorney John T. DeGenova 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.
- Victor A. Hanson, M.D., 86, of Brookhaven, Georgia, is also charged with maintaining a premises for the purpose of distributing controlled substances, 14 individual counts of illegal drug distribution for specific prescriptions, including several written to undercover federal officers, and a money laundering conspiracy.
Georgia woman sentenced for stealing $196,000 from federal governmentRead the Press Release
ATLANTA - Dyann E. Ramo has been sentenced to three years on probation with the first year in home confinement after she pleaded guilty to one count theft of government funds related to her stealing her deceased mother's Social Security benefits for nearly 20 years
“Ramo went to great lengths to conceal her theft and enjoy the benefits to which she was not entitled,” said U.S. Attorney Byung J. “BJay” Pak. “She continued her deception until she was indicted by a grand jury. Only then did she finally own up to her graft.”
“Concealing a death to improperly receive Social Security benefits is a Federal crime—one that we aggressively pursue to maintain the public trust in Social Security’s vital programs,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We work closely with SSA and other agencies to identify beneficiary deaths, and track benefits paid after death. I greatly appreciate the support of the U.S. Attorney’s Office to pursue justice and recover stolen funds in these cases.”
According to U.S. Attorney Pak, the charges and other information presented in court: Ramo’s mother Virginia died in 1999. No one reported her death to Social Security and her retirement benefits continued to be paid. In 2013, 2014 and three different times in 2018, Social Security employees attempted to confirm whether Virginia Ramo was alive, and each time, Ramo insisted that her mother was alive. In an attempt to maintain her fraud, she claimed a Georgia death certificate in her mother’s name was a “mistake,” and even impersonated her mother on the telephone on two separate occasions. Ramo finally admitted that her mother was deceased after she was indicted by a federal grand jury.
Dyann E. Ramo, 66, of Canton, Georgia, has been sentenced to three years on probation with the first year to be served in home confinement, 200 hours of community service, ordered to pay restitution in the amount of $196,067, and a $100 special assessment. Ramo was convicted on these charges on May 22, 2019, after she pleaded guilty.
This case was investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman 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.
Five former Verizon employees indicted for opening bogus accounts with stolen identity informationRead the Press Release
ATLANTA – Seven defendants, including five former Verizon store employees, have been indicted for opening Verizon accounts using stolen identity information and then fraudulently charging tens of thousands of dollars’ worth of merchandise to those accounts.
“These former employees abused their positions—and numerous unsuspecting victims—by allegedly using stolen identity information to steal thousands of dollars,” said U.S. Attorney Byung J. “BJay” Pak. “Identity theft remains an all-too-common scourge causing widespread damage. We are targeting the problem through our valued partnerships with federal, state, and local authorities and with private companies.”
“This investigation and subsequent indictments demonstrate the Secret Service’s commitment to safeguarding innocent victims, our financial institutions, and our communities,” said Kimberly A. Cheatle, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “We will continue to collaborate with our law enforcement partners and the United States Attorney’s Office to arrest individuals who steal from unsuspecting victims.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From about November 2018 through May 2019, five Verizon employees allegedly opened numerous fraudulent customer accounts at three Verizon stores in Georgia, located in Newnan, Buckhead, and Smyrna. The employees obtained and used stolen personally identifiable information (PII) to open the accounts. The scheme involved a group of “runners,” who also brought stolen PII into the stores. The PII belonged to real people and included names, addresses, dates of birth, and Social Security numbers. Using the stolen information, the corrupt employees created Verizon accounts in the victims’ names, without the victims’ knowledge. The employees ran credit checks on the victims before opening the accounts, using the victims’ Social Security numbers.
The defendants then used the accounts to purchase tens of thousands of dollars’ worth of wireless phones and accessories. After the fraudulent purchases, the accounts went into default, causing the victims to receive bills for the merchandise charged on the fraudulent accounts. Verizon immediately terminated the employees upon discovering the fraud.
The grand jury returned a 36-count indictment charging the following individuals with conspiracy, access device fraud, and aggravated identity theft:
- Edward Bolden, Jr., 37, of Newnan, Georgia, was the former General Manager of the Newnan store.
- Roland C. Newell, 31, of Newnan, Georgia, worked as a Solutions Specialists at the Newnan store.
- Robert A. Woods, 30, of Atlanta, Georgia, worked as a Solutions Specialists at the Newnan store.
- Christian R. James, 36, of Savannah, Georgia, worked as a Solutions Specialist at the Buckhead store.
- Marchel D. Robinson, 33, of Riverdale, Georgia, was charged as a runner in the scheme.
- Eric Gamboa, 39, of Conley, Georgia, was charged as a runner in the scheme.
The grand jury returned a separate 21-count indictment also charging the following individual with conspiracy, access device fraud, and aggravated identity theft:
- James C. Miller, 34, of Atlanta, Georgia, worked as a Solutions Specialist at the Smyrna store.
The defendants were indicted by a federal grand jury on August 28, 2019. Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove their guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Secret Service. Verizon’s Corporate Security Investigations Department in Atlanta provided valuable assistance to law enforcement through the investigation.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Edward Bolden, Jr., 37, of Newnan, Georgia, was the former General Manager of the Newnan store.
City of Atlanta Director of the Office of Contract Compliance pleads guilty to wire and tax fraudRead the Press Release
ATLANTA – Larry Scott has pleaded guilty to wire fraud for failing to disclose to the City of Atlanta that while he served as its Director of Contract Compliance, he also served as the business manager for a consulting firm seeking contracts in the Atlanta-metropolitan area. Scott also failed to report on his taxes the majority of the income earned from the consulting firm.
“Larry Scott betrayed the citizens of Atlanta by failing to disclose that when he served in an executive level position with the City of Atlanta, he was simultaneously working for a consulting firm for businesses who sought contracts in metro-Atlanta,” said U.S. Attorney Byung J. “BJay” Pak. “Scott’s divided loyalty undermined the integrity of the office he served at the City of Atlanta.”
“Deceitful and self-indulgent people have no place in public office at any level of government,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Today's plea doesn't mean our work is done, the FBI and our partners remain committed to ending public corruption in Atlanta and the Georgia community.”
“Public officials, whether elected or appointed, should expect to be held to a higher standard of trust in the eyes of the public. That trust is broken when these officials engage in malfeasance or commit crimes. Failure to disclose income and file a correct income tax return is a crime! No public official gets a free pass to ignore the tax laws, and IRS-CI works to ensure that everyone pays their fair share,” said Thomas J. Holloman, III, Atlanta Field Office Special Agent in Charge IRS-Criminal Investigations.
According to U.S. Attorney Pak, the charges and other information presented in court: the City of Atlanta - Mayor’s Office of Contract Compliance “serves as a liaison, linking Small, Minority, Female and Disadvantaged Businesses with City of Atlanta related business opportunities and encourages equal opportunity for all businesses and individuals in the Atlanta workplace,” and has a stated mission “to mitigate the effects of past and present discrimination against women and minority businesses … [and] to promote full and equal business opportunity for all persons doing business with the City of Atlanta.”
From 2002 to 2019, Scott held several positions with the City of Atlanta, including, serving as the: (a) Senior Contract Compliance Manager in the Office of Contract Compliance; (b) Director of Procurement in the Department of Watershed Management, and (c) the Director of the Office of Contract Compliance. In those positions, Scott earned between $57,000 and $98,000 per year. In total, from 2012 to 2017, Scott earned approximately $530,000 as an employee with the City of Atlanta.
On February 23, 2011, Scott incorporated Cornerstone U.S. Management Group, LLC (“Cornerstone”) with the Georgia Secretary of State as a for-profit corporation.
Cornerstone is a consulting firm for businesses seeking contracts in the Atlanta-metropolitan area and elsewhere. In its Articles of Organization, Cornerstone listed Scott as its organizer and registered agent. From 2012 until November 2017, Scott served as Cornerstone’s business manager. In that role and during that six-year period, Cornerstone paid Scott between approximately $1,000 and $5,000 per month. In total, from 2012 to 2017, Scott earned approximately $220,000 as Cornerstone’s business manager.
According to the City of Atlanta’s Code of Ethics, certain City of Atlanta officials and employees must disclose all “positions of employment held by the official or employee in any business . . . for all or any portion of the year, including a description of the type of business and the existence and nature of any business done by the employer entity with the city.” The City of Atlanta’s Code of Ethics further requires that these officials and employees disclose “[e]ach and every source of income from any business received by such official or employee in excess of $5,000 derived from any single source in the preceding calendar year.”
As the City of Atlanta’s Senior Contract Compliance Manager, Director of Procurement, and Director of Contract Compliance, the City of Atlanta required Scott to complete annually a Financial Disclosure Statement listing any outside employment and sources of income of more than $5,000 per year for calendar years 2012 to 2017.
From 2012 to 2017, Scott electronically filed six (6) false Financial Disclosure Statements, each executed under penalty of perjury. On each Financial Disclosure Statement, Scott knowingly failed to disclose that he had been employed by Cornerstone and that he had received more than $5,000 in annual income from Cornerstone.
From 2012 to 2017, Scott earned approximately $220,000 from Cornerstone while serving as a full-time management or executive level employee with the City of Atlanta. Scott never disclosed to the City of Atlanta his employment with and income from Cornerstone. Scott knew that if he had disclosed his income from Cornerstone on his annual Financial Disclosure Statements, the City of Atlanta could have terminated Scott.
From 2012 to 2017, Scott also filed six (6) false and fraudulent federal income tax returns – in that Scott failed to report the majority of the income that he earned from Cornerstone on his tax returns. For example, in 2015, Scott earned approximately $156,036 in income – (a) $99,136 as the City of Atlanta’s Director of Contract Compliance; and (b) $56,900 as Cornerstone’s business manager. Yet, on his 2015 federal income tax return, Scott falsely listed his “total income” as only $101,630.
Based on his conduct, Larry Scott, 54, of Atlanta, Georgia, was charged with, and pleaded guilty to, one count each of wire and tax fraud.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Stephen H. McClain, and Sekret Sneed 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.
Home health care owner pleads guilty to defrauding Georgia MedicaidRead the Press Release
ATLANTA - Diandra Bankhead, the owner and operator of Elite Homecare (“Elite”), an Atlanta-based home healthcare provider, has pleaded guilty to defrauding Medicaid by submitting thousands of fraudulent claims for services that were never provided to medically fragile children under the Georgia Pediatric Program (“GAPP”).
“Bankhead exploited Medicaid-eligible children who suffer from significant physical and cognitive disabilities,” said U.S. Attorney Byung J. “BJay” Pak. “Her fraud included billing for services never performed and for children never seen. Georgians dependent on these types of services deserve our best, not to be used by someone who is looking to enrich themselves at their expense.”
“The greed of this defendant deprived health care to many at risk children in Atlanta, focusing on profit rather than the care of our kids,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not stand by and allow those who commit fraud to take advantage of programs that are intended to support our state's most vulnerable citizens.”
“This plea is another example of our strong commitment to aggressively pursue health care providers who recklessly bill the Medicaid program,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG, our State law enforcement partners and the U.S. Attorney’s Office will continue to protect government health programs and those they serve.”
“This is one of many cases we have seen lately that involves someone undermining the integrity of the Medicaid program and neglecting their responsibility to support children who may desperately need these services. This trend is unacceptable, and we will continue to work with our federal partners to stop it in its tracks and protect this vulnerable population,” said Georgia Attorney General Chris Carr.
According to U.S. Attorney Pak, the charges and other information presented in court: GAPP is an in-home nursing program designed to serve Medicaid-eligible children under the age of 21 years of age based on a medical necessity. The program offers in-home skilled nursing services for medically fragile children who require nursing services, and personal care services, including feeding, bathing, dressing, personal hygiene, preparation of meal, and assisting with the mobility and ambulation of members.
Medically fragile children who are eligible for services under GAPP typically suffer from significant physical and cognitive disabilities, including autism, blindness, cerebral palsy, Down syndrome, epileptic seizures, and/or paralysis.
Bankhead's scheme began in approximately September 2015 and continued until April 2018. Over that time, Elite submitted more than 5,400 claims to Georgia Medicaid—the vast majority of which were fraudulent—and for which Elite received $1.2 million. Bankhead defrauded Medicaid in a number of ways, including:
- Submitting fraudulent credentialing information to the State of Georgia Department of Community Health in order to become a certified GAPP provider, including falsely representing that a registered nurse—without her knowledge or authorization—served as Elite’s RN Supervisor.
- Falsely representing to Medicaid that a registered nurse (“RN”) or RN Supervisor had conducted the initial evaluation of putative GAPP members as required by applicable regulations.
- Submitting fraudulent claims for in-home nursing services allegedly provided to families who had not retained Elite to provide any services.
- Submitting fraudulent claims in which Elite employees allegedly provided more than 24 hours of services in a given day.
- Submitting fraudulent claims where Elite employees were impossibly providing services to multiple children simultaneously.
- Submitting fraudulent claims in the names of multiple individuals, including RNs, who did not provide the services in question, and did know that their identities and credentials were being used.
- Submitting fraudulent claims that had been “upcoded” – that is claims which fraudulently increased the amount Medicaid paid Elite – by materially misrepresenting the level of care provided and the level of licensing for the individual allegedly providing the services. For example, Elite submitted fraudulent claims to Medicaid purporting that an RN (billed at $40/hour) had rendered the services when in fact an licensed professional nurse (billed at $30/hour) and/or personal care service provider (billed at $20/hour) had actually done so.
- Preparing fraudulent supporting documentation for the in-home nursing services that were never provided, including fraudulent patient care charts.
Bankhead pleaded guilty to one count of health care fraud. Sentencing for Diandra Bankhead, 42, of Atlanta, Georgia, is scheduled for January 28, 2020 at 10:00 a.m., before Chief U.S. District Judge Thomas W. Thrash.
This case is being investigated by the Department of Health and Human Services, Georgia Medicaid Fraud Control Unit, and Federal Bureau of Investigation.
Assistant U.S. Attorney Alex R. Sistla 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.
- Submitting fraudulent credentialing information to the State of Georgia Department of Community Health in order to become a certified GAPP provider, including falsely representing that a registered nurse—without her knowledge or authorization—served as Elite’s RN Supervisor.
Canadian citizen unlawfully in the United States sentenced to prison for filing fraudulent tax returns using stolen identities seeking more than $1 million in refundsRead the Press Release
ATLANTA – Vladimir Pierre a/k/a Jimmy Valentine, originally of Montreal, Canada, has been sentenced for his role in a stolen identity tax refund fraud scheme.
"There is no shortage of fraudsters who commit tax fraud using stolen identities—crimes that directly impact every American taxpayer,” said U.S. Attorney Byung “BJay” Pak. “These schemes can be a nightmare for citizens who must endure the process of repairing their credit and IRS returns, citizens are wise to regularly monitor their credit reports for fraud.”
“Individuals who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Thomas J. Holloman, III, Atlanta Field Office Special Agent in Charge. “Pierre demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In May 2019, Pierre pleaded guilty to theft of government funds and aggravated identity theft. He admitted that between approximately January 2015 and April 2018, he filed over 150 fraudulent returns, a significant number of which involved the use of stolen identities, seeking more than $1 million in refunds. Pierre also admitted that as a result of his scheme he caused more than $340,000 in losses to the federal government.
The government noted at sentencing that Pierre took a number of intricate steps to conceal his scheme, including advertising his tax services under a fictitious name, using electronic filing identification numbers and preparer tax identification numbers in the names of others to file returns, and obtaining a tax preparation product using a stolen identity.
Prior to his arrest in December 2018, Pierre had been unlawfully residing in the Atlanta-area for several years after overstaying his visa.
U.S. District Judge Eleanor Ross sentenced Vladimir Pierre, 39, of Atlanta, Georgia, to serve four years, nine months in prison, three years of supervised release, removal to Canada from the United States, and ordered to pay $341,996 in restitution to the Internal Revenue Service.
Many tax fraudsters, for their success, depend on filing a fraudulent return with a stolen identity before their victims file their genuine returns. Filing early and avoiding use of obvious usernames and passwords for online tax websites are two ways to help protect yourself.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Alex R. Sistla prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendants sentenced for violent takeover robberies of metro Atlanta business and bankRead the Press Release
ATLANTA – Lenard Gibbs, Kyre Campbell, and Benita Alveranga have been sentenced for their roles in the violent take-over robberies of two metro-Atlanta businesses - a Loan Max store and a PNC Bank branch.
“The takeover-style robberies were designed to terrify employees and customers,” said U.S. Attorney Byung J. “BJay” Pak. “These violent criminals are off the streets – in Gibbs’ case for decades to come. We are committed to keep our communities safe from violence and seek justice for the victims of these crimes.”
“No one should ever be terrorized physically or emotionally, like the victims in these two violent armed robberies, simply because they work at a business or patronize that business,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to the assistance from our local law enforcement partners, these three criminals won’t be able to wreak harm on any other innocent citizens for a long time.”
“I’m proud of our department and their work alongside the other law enforcement agencies involved in this case,” said Lilburn Police Chief Bruce Hedley. “This teamwork across agencies resulted in the quick arrest of all three individuals. We support the U.S. Attorney’s Office for the Northern District of Georgia’s firm stance and commitment to reduce violent crimes in our communities.”
“We are appreciative of the cooperative effort of the involved agencies and the successful prosecution of the offenders. We will continue to work closely with our Federal, State, and local law enforcement partners in our efforts to combat criminal activity,” said Gwinnett County Police Chief Butch Ayers.
“I am proud of the results the Conyers detectives achieved on this armed bank robbery. Their work along with the efforts of our local and federal partners have taken these violent predators off the streets for a substantial amount of time. I hope this outcome gives the victims some peace of mind,” said Conyers Chief of Police Gene Wilson.
“The Cobb County Police Department remains committed to interagency cooperation to help keep the citizens of Cobb County safe. Law enforcement agencies must continue to work together and share information in cases like this in order to make sure violent criminals who prey upon the public are brought to justice regardless of jurisdictional lines,” said Cobb County Police Chief Tim Cox.
According to U.S. Attorney Pak, the charges and other information presented in court: Gibbs, along with co-defendant Kyre Campbell, robbed at gunpoint a Loan Max store on the morning of November 3, 2016. Gibbs, while pointing the firearm in the faces of two employees, demanded all of the money in the safe. He fled the establishment with the cash.
Later that same afternoon, Gibbs, Campbell and Campbell’s girlfriend, Benita Alveranga, robbed a PNC Bank. During that robbery, Gibbs repeatedly hit a teller with his gun while demanding she move quickly in emptying her drawer. He stole cash from the bank, and all of the defendants fled. Lilburn Police Department located them and after a brief police chase, Campbell and Alveranga were captured. Gibbs was able to flee the scene. A multi-jurisdictional investigation eventually led to his capture three weeks later.
- Lenard Gibbs, 36, of Atlanta, Georgia, has been sentenced to 59 years, seven months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $3,089. On June 13, 2019, a jury convicted Gibbs of Hobbs Act, and armed bank, robbery charges, and related offenses of brandishing a firearm during the robberies.
- Kyre Campbell, 24, of Lilburn, Georgia, pleaded guilty to brandishing a firearm during the bank robbery of PNC bank on January 4, 2019. He was sentenced to seven years in prison to be followed by five years of supervised release and ordered to pay restitution in the amount of $3,089.00.
- Benita Alveranga, 25, of Lilburn, Georgia, pleaded guilty to Misprision of a Felony on July 2, 2019. She was sentenced to one year, one day in prison to be followed by one years of supervised release and ordered to pay $3,089.00 in restitution.
This case was investigated by the Federal Bureau of Investigation, Cobb County Police Department, Conyers Police Department, Lilburn Police Department, and Gwinnett Police Department.
Assistant U.S. Attorneys Phyllis Clerk and Angela Adams prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former hospital director of security indicted for federal fraud and gun chargesRead the Press Release
ATLANTA - Russell Richardson, the former Director of Security for DeKalb Medical Center, has been charged with stealing firearms meant for security personnel and then illegally selling those guns for profit.
“Richardson’s alleged sale of illegally attained weapons is troubling,” said U.S. Attorney Byung J. “BJay” Pak. “He abused his position of authority to enrich himself, and now faces justice.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice. This is an excellent example of such an investigation,” said Assistant Special Agent in Charge Beau Kolodka, ATF Atlanta Field Division.
According to U.S. Attorney Pak, the indictment, and other information presented in court: Between 2016 and June of 2018, while employed as the Director of Security for DeKalb Medical Center, Inc. (“DeKalb Medical Center”), Richardson used his position to fraudulently order numerous firearms from a local federal firearms licensee and then caused the resulting invoices to be submitted to the hospital for payment. DeKalb Medical Center paid the invoices, but never received the firearms. In all, Richardson diverted approximately 93 firearms to his own use, including selling them for profit.
Richardson also misused a hospital issued purchase card for personal gain. Even though the purchase card was solely for gas purchases and maintenance of hospital vehicles, Richardson allegedly charged approximately $45,000 for repairs and services performed on his personal vehicles using a mechanic shop located in South Carolina. The mechanic shop subsequently issued refunds directly to Richardson totaling approximately $20,000. Instead of returning the funds to the hospital, Richardson allegedly kept the money.
Russell Richardson, 43, of Dallas, North Carolina, has been indicted on 15 counts of mail fraud, one count of dealing firearms without a license, and three counts of unlawfully selling firearms to out of state residents. 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 Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from DeKalb Medical Center, now doing business as Emory Decatur Hospital.
Assistant U.S. Attorney Tracia King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Coweta County men sentenced for illegally possessing firearmsRead the Press Release
NEWNAN – Nicholas Ryan Carden and Michael Andrews have each been sentenced for possessing firearms after being convicted of felony offenses. Together, Carden’s and Andrew’s criminal histories involve prior convictions for burglaries and multiple theft offenses.
“Repeat offenders like Carden and Andrews, who possess firearms, pose a serious threat to public safety,” said U.S. Attorney Byung J. “BJay” Pak. “Their continual return to criminal activity represents a lack of fear of consequences for their action. Citizens deserve safety and a drug-free community. Our office will continue prosecuting and removing repeat offenders like these two from our streets as part of our commitment to Project Safe Neighborhoods.”
“Making a conscious choice to possess firearms and narcotics after you have been previously convicted of felony crimes shows a complete disregard for our laws,” said ATF Special Agent in Charge Arthur Peralta. “People who have no regard for themselves clearly do not care about their community and in many instances; they provide firearms and narcotics to others, leading them down a path that many cannot recover from.”
According to U.S. Attorney Pak, the charges and other information presented in court: On January 26, 2018, Coweta County, Georgia, police officers were checking locations known for drug activity in Grantville, Georgia, when they observed Carden sitting in a vehicle in a McDonald’s restaurant parking lot. When the officers approached, Carden sped off. As he fled, officers saw Carden throw a North American Arms .22 caliber pistol and suspected drugs from a window of the car.
On February 22, 2018, Coweta County officers again encountered Carden after he ran a stop sign. After the traffic stop, the officers found a large sharpie pen next to Carden’s seat. The pen contained four small individual bags of methamphetamine. Michael Andrews was a passenger in the vehicle with Carden. Andrews was arrested after officers found a loaded F.I.E. .25 caliber pistol hidden in his waistband, and small bags of methamphetamine in his pockets.
U.S. District Judge Timothy S. Batten Sr. sentenced Carden to two years, five months in federal prison, followed by three years of supervised release. Carden received credit for five months of time served. Andrews was sentenced to two years, one month in federal prison, followed by three years of supervised release. Andrews also received credit for five months timed served. On May 24, 2019, Carden and Andrews each pled guilty to the offenses of felon-in-possession of a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Coweta County Sheriff’s Office.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Former probation officer sentenced to federal prison for extorting a paroleeRead the Press Release
ATLANTA – Tyrique F. Williams, a former officer with Georgia’s Department of Community Supervision, has been sentenced to federal prison for accepting bribe payments from a parolee in exchange for allowing a parolee to avoid wearing an ankle monitor, taking polygraph examinations, and attending treatment classes.
“The citizens of Georgia deserve better than Tyrique Williams,” said U.S. Attorney Byung J. “BJay” Pak. “Someone re-entering society has plenty of obstacles to overcome, but a shakedown by his parole officer is not one they expect. Public servants are expected to possess the utmost integrity. Williams dishonored the thousands of law enforcement officers in Georgia who serve honorably.”
“It is sadly ironic that a sworn parole officer’s extortion scheme was uncovered by a convicted offender who was trying to follow the rules of his parole,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI makes it a priority to investigate anyone who violates their sworn duty for greed and reminds everyone that Williams is not representative of every hard working sworn officer who upholds their oath every day.”
“The vast majority of the men and women in law enforcement serve our communities with honor and integrity. Williams betrayed those values and preyed upon the citizens he was sworn to protect. The DeKalb County District Attorney’s Office stands ready with its law enforcement partners to seek out those who betray the public’s trust and bring them to justice,” said DeKalb County District Attorney Sherry Boston.
“Mr. Williams’ conduct is unacceptable and in no way reflects the values that we stand on at DCS. There is no allowance for any misconduct or illegal activity within our Department. When informed of the allegations, DCS immediately suspended Williams from the performance of his duties pending the outcome of the investigation, and Williams subsequently resigned from employment with DCS. Williams’ actions are in no way representative of the more than 2,000 DCS employees who exhibit the highest degree of dedication, integrity, and professionalism in service to Georgia’s public safety each and every day,” said Brian Tukes, Director of External Affairs for the Georgia Department of Community Supervision.
According to U.S. Attorney Pak, the charges, and other information presented in court: the Georgia’s Department of Community Supervision is responsible for the probation and parole supervision of over 200,000 adult felony offenders and certain juvenile offenders.
In the fall of 2014, Williams started working as a probation officer with the Department of Community Supervision. From 2016 to 2018, the Department of Community Supervision managed a parolee (“Parolee”), who had previously served 14 years in prison. While on parole, the Parolee completed a number of courses and treatment classes and the Parolee never incurred a parole violation. Nevertheless, once Williams became responsible for the supervision of the Parolee, Williams told the Parolee that additional conditions and restrictions would be placed on the Parolee.
On April 19, 2018, Williams visited the Parolee’s residence and displayed a hand written note reading in substance: ‘$3,000, no polygraph, no ankle bracelet, no supervision fee, yes or no?’ After reading the note, the Parolee told Williams that he would pay him the $3,000. The Parolee then contacted the Federal Bureau of Investigation (“FBI”) and reported Williams’ extortionate demand.
On April 27, 2018, in a meeting recorded by the FBI, the Parolee met with Williams at the Georgia Department of Community Supervision in Decatur, Georgia. During the meeting, Williams led the Parolee to a secluded area of the building, where the Parolee paid Williams $1,000 in cash. Williams told the Parolee that in exchange for a second $3,500 bribe payment, Williams would not require the Parolee to wear an ankle monitor or submit to a polygraph examination.
On May 4, 2018, in a meeting recorded by the FBI, the Parolee met with Williams at a fast food restaurant in Stone Mountain, Georgia. In the bathroom of the fast food restaurant, the Parolee paid Williams $3,500 in cash.
Notably, after the Parolee paid the two bribe payments, Williams did not make the Parolee take a polygraph examination, wear an ankle bracelet, or attend any additional treatment classes.
On May 21, 2019, Tyrique F. Williams, 28, of Atlanta, Georgia, pleaded guilty to one count of Extortion under the Color of Official Right. For his crime, Williams was sentenced to one year, and one day in federal prison to be followed by three years of supervised release.
This case was investigated by the FBI, DeKalb County District Attorney’s Office, and the Georgia’s Department of Community Supervision.
Assistant U.S. Attorneys Jeffrey W. Davis and Leanne M. Marek 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 Tech professor pleads guilty to defrauding the National Science FoundationRead the Press Release
ATLANTA - Maysam Ghovanloo has pleaded guilty to violating the federal wire fraud statute in furtherance of a scheme to defraud the National Science Foundation. Ghovanloo owned Bionic Sciences, Inc. (BSI), and was a professor at Georgia Tech.
“Federal grants awarded to develop new medical instruments require meticulous and truthful records be kept of how those dollars are applied,” said U.S. Attorney Byung J. “BJay” Pak. “These funds are designed to help bring new innovations to fulfillment, and hopefully also into the medical arena, where they can be used for wellness.”
“The Small Business Innovation Research Program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort,” said Allison C. Lerner, Inspector General of the National Science Foundation (NSF).
According to U.S. Attorney Pak, the charges and other information presented in court: Dr. Ghovanloo was a tenured full professor at Georgia Tech, and he owned and operated a Georgia corporation called Bionic Sciences, Inc. Dr. Ghovanloo and BSI received federal grants through Small Business Innovation Research (SBIR) programs sponsored by NSF. To be eligible for SBIR grant funds, Dr. Ghovanloo and BSI were required to meet program-eligibility requirements, adhere to award terms and conditions, and provide only truthful information in all documents submitted to NSF. But Dr. Ghovanloo submitted certifications that contained materially false and fraudulent statements and omissions, followed by electronic payment requests to NSF.
As part of this guilty plea, Dr. Ghovanloo paid a lump sum of $40,000 in restitution and was barred from doing business with the federal government for a period of three years. In addition, Dr. Ghovanloo resigned from his position at Georgia Tech, effective June 21, 2019.
Sentencing for Maysam Ghovanloo, 46, of Atlanta, Georgia, is scheduled for November 5, 2019, at 10:30 a.m., before U.S. District Judge Steve C. Jones.
This case is being investigated by Special Agents of the National Science Foundation Office of Inspector General and the Department of Health and Human Services Office of Inspector General.
Assistant U.S. Attorney Russell Phillips 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.
Forsyth County man arrested for soliciting child pornography from teenage girls on SnapchatRead the Press Release
ATLANTA, Ga. – Edward “Eddie” Okenica has been charged on a criminal complaint alleging he produced, received, and possessed child pornography, and committed related charges.
“Okenica allegedly produced, received, and collected images portraying the sexual exploitation and abuse of young teenage girls,” said U.S. Attorney Byung J. “BJay” Pak. “The allegations in this case are heinous, but it also serves as a reminder that parents must be aware of their children’s social media activity. Predators continue to prey on our youth through social media more than any other method.”
“Sextortion remains a huge threat to our youth. Unfortunately once a child’s image is shared online it can never be brought back,” said Homeland Security Investigations (HSI) Special Agent in Charge Nick S. Annan. “HSI remains committed to both aggressively investigating those who try to prey on our children as well as working diligently to try and educate both parents and their children of the dangers that exist in this digital world.”
According to U.S. Attorney Pak, and the other information presented in the federal complaint: Federal agents determined that since at least November 2018, Eddie Okenica had contacted minor girls using a Snapchat account and allegedly solicited nude photographs or videos from these children. Agents determined that Okenica contacted dozens of teenage girls across the country using Snapchat and successfully persuaded them to send him nude photographs and videos. In some instances, Okenica offered to pay the minors for these materials.
Investigators uncovered evidence that Okenica also allegedly threatened to publicly expose at least three of the victims if they refused to send him the nude photographs and videos. Okenica, for example, threatened to send nude photographs of a 12-year-old girl to all her Instagram friends if she did not comply with his demands.
Edward “Eddie” Okenica, 23, of Cumming, Georgia, was arrested on August 14, 2019, and made his initial appearance before U.S. Magistrate Judge Janet F. King.
Members of the public are reminded that a complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
Anyone with information, or who may have been a victim in this case, please contact U.S. Immigration and Customs Enforcement’s Homeland Security Investigations at 404-346-2831.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Forsyth County Sheriff’s Office.
Assistant U.S. Attorneys Alex R. Sistla and Erin Sanders, are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal inmate charged with using a cell phone to post Facebook live videos from prisonRead the Press Release
ATLANTA – Brian J. Wilson, an inmate in Atlanta’s U.S. Penitentiary has been charged with possessing a contraband cell phone that he used to post photographs to and live stream content onto a social media platform from his prison cell.
“The proliferation of contraband cell phones in federal prisons has reached epidemic proportions,” said U.S. Attorney Byung J. “BJay” Pak. “Inmates tempted to use a phone in Atlanta’s federal prison – when we catch you using a cell phone from prison, it will equal more cell time in prison.”
“Unauthorized cell phones in prisons are often used to conduct further illegal activity and can create serious security concerns,” said Chis Hacker, Special Agent in Charge of FBI Atlanta. “We will continue to use our resources and investigate how contraband is smuggled into any federal prison.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the United States Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons.
On or about March 24, 2015, Wilson was sentenced to ten years of imprisonment after incurring a conviction for possession of a stolen firearm. Since approximately May 3, 2018, Wilson has been an inmate at USP Atlanta, with a scheduled release date of November 28, 2022.
As an inmate, Wilson possessed a cell phone in USP Atlanta. From approximately late-May to July 2019, Wilson used a cell phone to post images to and to live stream content onto a social media platform from his prison cell. In fact, Wilson posted a photograph onto his Facebook account of himself holding a cell phone while in his prison cell.
Brian J. Wilson, 32, of Atlanta, Georgia, has been charged via criminal information with possessing a contraband cell phone in prison.
Members of the public are reminded that the information only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The FBI and the Bureau of Prisons 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 Carolyn Cain Burch 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.
Operators of fraudulent auto financing company sentenced to federal prisonRead the Press Release
ATLANTA - Michael Miller and Melvin Goode Wentt have been sentenced for their roles in a bank fraud conspiracy involving seven defendants, over 80 fraudulently obtained auto loans, and $1.7 million in bank and credit union losses. Four other co-defendants previously pled guilty. One defendant is awaiting extradition from the United Kingdom.
“These defendants’ ‘creative financing’ company specialized in ‘auto loan conversions,’ which was simply fraud,” said U.S. Attorney Byung J. “BJay” Pak. “This scam was designed to trick lenders, which in this case were mostly credit unions, into granting loans for sham car sales. While the businesses in their scheme may have been make-believe, the federal sentences they received are very real.”
“Bank fraud is not a victimless crime and these defendants will now have time to reflect on their choice to obtain these fraudulent auto loans,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI treats these types of financial crimes very seriously and warns anyone considering this type of criminal activity to also consider the fate these defendants face as a deterrent.”
“The defendants carried out a scheme to fraudulently obtain millions of dollars in loans to enrich themselves. The sentences handed down in this case will hold these individuals accountable for their criminal misconduct,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to work with our law enforcement partners to detect, investigate and mitigate the effects of these types of financial crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: The defendants, and their co-conspirators started the fraud scheme by incorporating businesses that, by name, appeared to be auto dealerships but, in fact, were just shell corporations. These fake companies had names like “Premier Luxury Motors,” “Platinum Motors Auto Sales,” and “5-Star Motorsports,” but they had no employees, no cars, no car lots, and no dealership licenses.
After establishing the fake companies, the conspirators recruited individuals to apply for car loans with banks and credit unions. The loan applicants would claim that they were purchasing a car from one of the fake companies, and would supplement their applications with fake vehicle purchase orders created by the conspirators. If a loan check was issued to the loan applicant, the proceeds would be deposited into financial accounts opened by the conspirators and held in the names of the fake companies. The conspirators and the loan applicants would then split the money and never pay back the lender. Because there were no cars to repossess, the lender would be left with nothing.
The scheme spanned approximately four years. Over that time, the conspirators sought over 80 auto loans, totaling approximately $2.7M in attempted fraud, and actually obtained about $1.7M.
A jury convicted Miller and Goode Wentt of conspiracy and bank fraud on May 14, 2019. The defendants in this case received the following sentences:
- Giovanni “Riq” Cartier, 55 of Austell, Georgia, was sentenced to four years, nine months in prison, to be followed by three years supervised release, and was ordered to pay $1,706,342.74 in restitution. Cartier pleaded guilty to bank fraud conspiracy on April 18, 2018.
- Melvin Goode Wentt a/k/a Melvin Goode, 59, of Brooklyn, New York, was sentenced to two years, ten months in prison, to be followed by five years of supervised release, and ordered to pay $765,603.25 in restitution.
- Michael Miller, 58, of Sandy Springs, Georgia, was sentenced to two years in prison, to be followed by five years of supervised release, and ordered to pay $316,826 in restitution.
- Rhaine Yamabushi a/k/a Marchelle Mathis, 45, of Florence, South Carolina, was sentenced to one year and a day in prison, to be followed by three years of supervised release, and ordered to pay $164,995 in restitution. Yamabushi pleaded guilty to bank fraud conspiracy on December 6, 2018.
- Vladimir Marcellus, 31, of Ventura, California, was sentenced to three years probation, with 240 days of home detention, and ordered to pay $164,995 in restitution. Marcellus pleaded guilty to bank fraud conspiracy on April 27, 2018.
- Kirk Evans, 46, of Ellenwood, Georgia, was sentenced to three years probation, with six months of home detention, and ordered to pay $47,799 in restitution. Evans pleaded guilty to bank fraud conspiracy on April 18, 2018.
This case was investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service.
Assistant U.S. Attorneys Samir Kaushal and John S. Ghose 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.- Giovanni “Riq” Cartier, 55 of Austell, Georgia, was sentenced to four years, nine months in prison, to be followed by three years supervised release, and was ordered to pay $1,706,342.74 in restitution. Cartier pleaded guilty to bank fraud conspiracy on April 18, 2018.
Violent Mexican national sentenced for illegally re-entering the United StatesRead the Press Release
GAINESVILLE, Ga. – Sadat Alvarez-Sanchez, a Mexican national, has been sentenced for illegally entering the United States after having previously been deported.
“This office continues to collaborate closely with our federal partners to identify and prosecute violent criminals who disregard our immigration laws and unlawfully re-enter the United States,” said U.S. Attorney Byung J. “BJay” Pak.
“This case is another example of the important work that the women and men of ICE do daily to keep our communities safe,” said ICE Atlanta Field Office Director Sean Gallagher.
According to U.S. Attorney Pak, the charge, and other information presented in court: Enforcement and Removal Operations (ERO) officers with Immigration and Customs Enforcement (ICE) encountered Alvarez-Sanchez on September 24, 2018, in Hall County, Georgia. At the time, Alvarez-Sanchez was being held at the Hall County Detention Center following his arrest on felony drug charges. ERO officers performed a background check and determined that Alvarez-Sanchez had recently been deported from the United States on April 12, 2018.
Alvarez-Sanchez’s previous deportation resulted from convictions for violent felony offenses in North Carolina, including 2005 convictions for attempted first degree murder, robbery with a dangerous weapon, and first degree kidnapping and a 2012 conviction for assault with a deadly weapon with the intent to seriously injure.
Alvarez-Sanchez, 40, of Veracruz, Mexico, was sentenced by U.S. District Judge Richard Story to two years, six months in federal prison. He will be deported after completing his sentence. Alvarez-Sanchez pleaded guilty on March 25, 2019, to illegally re-entering the United States.
This case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement’s Office of Enforcement and Removal Operations.
Special Assistant U.S. Attorney Greg Radics 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.
Federal grand jury indicts Chrisley Knows Best stars Todd and Julie ChrisleyRead the Press Release
ATLANTA – A federal grand jury has indicted Todd and Julie Chrisley, the stars of the reality television show Chrisley Knows Best, on multiple counts of conspiracy, bank fraud, wire fraud, and tax evasion. The Chrisleys’ accountant, Peter Tarantino, has also been indicted on tax-related offenses.
“Todd and Julie Chrisley are charged not only with defrauding a number of banks by fraudulently obtaining millions of dollars in loans, but also with allegedly cheating taxpayers by actively evading paying federal taxes on the money they earned,” said U.S. Attorney Byung J. “BJay” Pak. “Celebrities face the same justice that everyone does. These are serious federal charges and they will have their day in court.”
“The reality of this indictment is that the FBI takes allegations of bank fraud and wire fraud very seriously and devotes many resources to protecting the institutions and citizens affected by those crimes,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The Chrisleys’ will now have their day in court, but anyone else considering this type of alleged activity should take notice.”
“The tax charges in this indictment serves notice that the Internal Revenue Service has zero tolerance for individuals who attempt to shirk their tax responsibilities. This action is also part of a much larger and coordinated effort by the IRS and Department of Justice to aggressively find and crack down on individuals who try to conspire with others to hide their income and then lie to federal agents when confronted. Honest and law abiding taxpayers are fed up with the likes of those who use deceit and fraud to line their pockets at their expense,” said Thomas J. Holloman, III, Special Agent in Charge of the Atlanta Field Office.
According to U.S. Attorney Pak, the charges, and other information presented in court: from at least as early as 2007 through approximately 2012, Todd and Julie Chrisley allegedly conspired to defraud numerous banks by providing the banks with false information such as personal financial statements containing false information, and fabricated bank statements when applying for and receiving millions of dollars in loans.
After fraudulently obtaining these loans, the Chrisleys allegedly used much of the proceeds for their own personal benefit. In 2014, two years after the alleged bank fraud scheme ended, Todd and Julie Chrisley allegedly used fabricated bank statements and a fabricated credit report that had been physically cut and taped or glued together when applying for and obtaining a lease for a home in California.
Todd Chrisley, 51, and Julie Chrisley, 46, both of Nashville, Tennessee are also charged with conspiring with their Roswell, Georgia-based accountant, Peter Tarantino, 56, of Milton, Georgia to defraud the Internal Revenue Service.
In February 2017, Todd Chrisley publicly claimed on a national radio program “obviously the federal government likes my tax returns because I pay 750,000 to 1 million dollars just about every year so the federal government doesn’t have a problem with my taxes.” However, Todd and Julie Chrisley allegedly did not timely file income tax returns for the 2013, 2014, 2015, and 2016 tax years or timely pay federal income taxes for any of those years.
Instead, the Chrisleys and Tarantino allegedly took steps to obstruct IRS collection efforts, which included hiding income, lying to third parties about their tax returns, and – in Tarantino’s case – lying to FBI and IRS-CI Special Agents.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Annalise K. Peters are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three men indicted for possession methamphetamine found in active conversion laboratoryRead the Press Release
ROME, Ga. - Daniel Landa-Duerta, Mauricio Dominguez-Vazquez, and Jorge Armando Avalos-Menera has been arraigned on federal charges related to methamphetamine seized from a conversion laboratory in Dallas, Georgia.
“Methamphetamine is poison and continues to be a scourge in our district,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to our vigilant law enforcement partners, this large quantity of drugs was discovered and seized before it could make its way into our community.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the indictment, “The cocktail of deadly chemicals used to manufacture methamphetamine are a recipe for disaster. These substances are not only volatile and toxic, but they also destroy families, communities and lives. Because of the collective effort between our local, state and federal law enforcement counterparts and the U.S. Attorney’s Office, these defendants were brought to justice and will no longer be able to distribute these dangerous chemicals.”
“This case began with information provided to law enforcement by concerned citizens in Paulding County. Agents acted immediately to prohibit citizens being exposed. A search warrant led to the dismantling of an extremely large clandestine methamphetamine conversion lab and the seizure of an unprecedented amount of methamphetamine in Paulding County. The Haralson Paulding Drug Task Force, the Paulding County Sheriff’s Office and the Drug Enforcement Administration are working together to ensure a safe and positive outcome for all.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On June 26, 2019, law enforcement uncovered an active methamphetamine conversion laboratory in Dallas, Georgia, allegedly used to convert liquid methamphetamine into crystal methamphetamine for distribution. Large quantities of crystal and liquid methamphetamine were seized in the laboratory, and additional methamphetamine was seized in a traffic stop of a vehicle leaving the laboratory. In total, law enforcement seized over 80 kilograms of crystal methamphetamine and approximately 75 gallons of liquid methamphetamine during the course of this investigation.
On July 24, 2019, a federal grand jury returned an indictment against Daniel Landa-Duerta, 20, of Múgica, Mexico, Mauricio Dominguez-Vazquez, 53, of Tallahassee, Florida, and Jorge Armando Avalos-Menera, 32, of Tulsa, Oklahoma, charging each of them with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possessing with intent to distribute at least 500 grams of methamphetamine.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, with assistance by the Paulding County Drug Task Force.
Assistant U.S. Attorney Teresa M. Stolze 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.
The United States files false claims act complaint against Robert C. Burkich, M.D. and affiliated entityRead the Press Release
ATLANTA – The United States has filed a False Claims Act complaint against Robert C. Burkich, M.D and Preventative Medicine Anti-Aging & Chelation, Inc. (hereinafter, the “Burkich defendants”). The lawsuit alleges that the Burkich defendants were responsible for the submission of false claims to Medicare for medically unnecessary chelation therapy.
“To participate in the Medicare program, healthcare providers must also certify that the services they provide to patients are medically necessary for the health of the patient,” said U. S. Attorney Byung J. “BJay” Pak. “When healthcare providers falsely certify that the services they provide to patients are medically necessary, they deplete the resources available to Medicare beneficiaries that are actually in need of care. In concert with our regulatory and law enforcement partners, we will continue to identify and pursue actors that commit acts of waste, fraud and abuse against the Medicare program.”
OPM-OIG Deputy Assistant Inspector General for Investigations Thomas W. South said, “The OPM-OIG is committed to investigating health care providers that not only waste federal funds but also compromise the health and safety of patients by providing services that are medically unnecessary.”
“We will not allow greed to impede beneficiaries’ access to necessary, quality health services,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Our agents, working closely with our law enforcement partners, will continue to protect taxpayer dollars and vulnerable recipients of government healthcare programs.”
The United States’ complaint alleges that, between September 2009 and January 2017, Dr. Burkich provided medically unnecessary chelation therapy by, inter-alia, intravenously administering the chelation drug edetate calcium disodium (EDTA) to Medicare beneficiaries who were not suffering from lead poisoning. Chelation therapy is a rarely used treatment that is generally only indicated for individuals suffering from lead poisoning and other forms of heavy metal poisoning (HMP). EDTA, one of the drugs used in chelation therapy, is indicated only as a treatment for lead poisoning and lead encephalopathy.
Lead poisoning is diagnosed by determining whether the patient has had recent exposure to lead, and by testing the patient’s blood lead level (BLL). However, whereas a symptomatic adult patient should only be chelated if she has a significantly heightened BLL (e.g. in excess of 50 mcg/dL), Dr. Burkich allegedly chelated patients with no lead detected in their blood whatsoever, or with only exceedingly low BLLs (e.g., less than 2 mcg/dL).
Dr. Burkich admitted that he left Tennessee and relocated to Georgia because he felt that Tennessee restricted the use of EDTA to patients suffering from lead poisoning, whereas his belief was that Georgia allowed EDTA to be utilized as an experimental treatment for a variety of conditions. Indeed, Burkich allegedly touted and administered EDTA as an effective treatment for a variety of conditions other than lead poisoning, such as heart disease, fatigue and osteoarthritis. However, Medicare does not cover EDTA chelation therapy for alternative and/or experimental uses such as these.
The United States contends that these chelation treatments are contrary to the standard of care and medically unnecessary. EDTA has a black box warning indicating that it “is capable of producing toxic effects which can be fatal.” Its adverse side effects include fever, chills, malaise, fatigue, myalgia, arthralgia, hypotension, cardiac rhythm irregularities, acute necrosis of proximal tubules (which may result in fatal nephrosis), nausea, vomiting, hypercalcemia, tremors, headaches, numbness and others. Inappropriate use of EDTA risks these harms without benefit.
This matter was investigated by Assistant U.S. Attorney Paris Wynn of the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services’ Office of Inspector General and the Office of Personnel Management’s Office of the Inspector General.
The claims asserted against the defendants are allegations only and there has been no determination of liability.
The lawsuit is captioned United States v. Robert C. Burkich, M.D., et al., Civil Action No. 1:19-cv-03510 MLB (NDGA 2019).
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.