Northern District of Georgia
Press releases recorded for this federal judicial district.
Defendant convicted in string of horrific armed robberies of Asian-run businessesRead the Press Release
ATLANTA – A federal jury has convicted Dravion Sanchez Ware for conducting a string of armed robberies targeting Asian owned-and-operated businesses in Atlanta, Doraville, Duluth, Roswell, Stone Mountain, and Norcross in October and November 2017.
“Ware terrified his innocent victims, demonstrating a callous disregard for the lives of these small business owners and their customers,” said U.S. Attorney Byung J. “BJay” Pak. “The courage of his victims, and the coordination of federal and local law enforcement officers who were determined to bring him to justice, will ensure he faces a very lengthy prison sentence.”
“The victims of these violent armed robberies will be emotionally scarred forever, but thanks to a federal jury, hopefully they can rest easier knowing that Ware will not traumatize any more victims like they were, for a long, long time,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our state and local law enforcement partners who helped bring this violent defendant to justice.”
“The strong partnerships we work hard to forge in Atlanta with local, state and federal agencies are critical to bringing dangerous criminals like Ware to justice,” said Atlanta Police Chief Erika Shields. “Congratulations to all of those involved in putting an end to this violent string of robberies.”
“These are the results we get when agencies come together and pool our resources to ensure our communities remain safe from people who choose to do harm. Because of all of the hard work from our investigators, as well as the hard work from all of the agencies involved, we were able to make a good case and get a solid conviction. We are pleased that these individuals will not be loose on our streets wreaking havoc,” said Interim Doraville Police Chief Chuck Atkinson
Gwinnett County Police Chief Butch Ayers said, “The series of crimes committed by these perpetrators are a prime example of the need for strong working relationships between federal and local agencies. Criminals do not abide by jurisdictional boundaries. The knowledge that law enforcement works together across those boundaries should discourage others who would commit such crimes.”
“The violent actions of these individuals created grief and fear within our communities. Thanks to coordination and cooperation between the dedicated members of the participating agencies, Ware and Smith will be held responsible for these vicious attacks,” said Roswell Police Chief James W. Conroy.
According to U.S. Attorney Pak, the charges, and other information presented in court: Between October 7 and November 10, 2017, Ware, along with co-defendant Tabyron Rashad Smith, committed multiple armed robberies of Asian-run businesses in Metro-Atlanta. Ware participated in at least nine armed robberies. He pistol-whipped several victims, terrified many others, and even shot three women during one of the robberies. One of Ware’s victims attempted to avoid detection while squatting on her knees, facedown, behind a cash register. Ware then calmly walked up behind her and shot her in the back at point-blank range.
Ware’s convictions for conspiring to commit, and commission of, multiple Hobbs Act robbery offenses, and the charges of discharging or brandishing a firearm during the robberies, stem from his armed robberies of three businesses in Atlanta, two in Doraville, as well as one business in each of the following cities: Norcross, Duluth, Stone Mountain, and Roswell, Georgia.
Ware was captured on November 22, 2017, after the FBI led a multi-jurisdictional investigation that included participation of the Georgia Bureau of Investigation, the Doraville Police Department, the Fulton County Police Department, the Gwinnett County Police Department, the Atlanta Police Department, the Roswell Police Department, and the Sandy Springs Police Department.
Ware’s co-defendant, Tabyron Rashad Smith, pled guilty on July 23, 2019, to conspiracy to commit the Hobbs Act robberies, and four counts of discharging or brandishing a firearm during several of the robberies.
Sentencing for Dravion Sanchez Ware, 23, of Atlanta, Georgia, is scheduled for November 5, 2019, at 10:00 a.m. before U.S. District Judge Timothy C. Batten, Sr. Ware was found guilty on August 2, 2019 by a federal jury.
Assistant U.S. Attorneys Bret R. Hobson and Timothy H. Lee prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three indicted for illegal drug and gun sales in Riverdale strip mallRead the Press Release
ATLANTA - Kyle C. Sims, Herman A. Fields, and Peter Armour have been indicted for selling illegal guns and drugs out of a store in Riverdale, Georgia. Sims and Armour were charged with possessing a machinegun, which they sold for $1,250 in cash. Sims and Fields were charged with conspiring to distribute marijuana, cocaine, heroin, methamphetamine and Xanax. Sims was also charged with two counts of possessing a firearm after being convicted of a felony.
“Illegal possession and sales of firearms goes hand in hand with drug trafficking and violence,” said U.S. Attorney Byung J. “BJay” Pak. “In this case, law enforcement quickly put an end to the defendants’ illicit business.”
“The defendants in this case showed no regard for the safety of the Riverdale community,” said ATF Special Agent in Charge Arthur Peralta. “The illegal sale of firearms endangers everyone and we will continue to identify, investigate and arrest those individuals who choose to go down this path.”
“The City of South Fulton is pleased to get these violent criminals off our city streets. We would like thank the ATF and US Attorney’s Office for their partnership in helping us to achieve our ultimate goal of crime reduction,” said Keith Meadows, South Fulton Chief of Police.
According to U.S. Attorney Pak, the indictment, and other information presented in court: Sims and Fields allegedly worked together to sell a variety of guns and drugs out of a T-shirt printing shop. Through undercover operations in the spring and summer of 2019, the ATF bought marijuana, cocaine, heroin, methamphetamine, and Xanax from Sims and Fields.
Using connections with various individuals, Sims also offered his customers a wide range of firearms for cash, with no questions asked, no ID check, and without the paperwork required for a legal gun purchase. Through the same undercover operations, the ATF allegedly purchased 9mm pistols and a machinegun at the storefront.
Both Kyle C. Sims, a/k/a K-Rock, 33, of Fayetteville, Georgia, and Herman A. Fields, a/k/a Tip, 38, of Riverdale, Georgia, have been previously convicted of felony drug offenses. Both Sims and Fields were charged with conspiring to distribute marijuana, cocaine, heroin, methamphetamine and alprazolam (Xanax).
Sims and Peter Armour, a/k/a Petey, 24, of Riverdale, Georgia, were charged with possessing a machinegun. The machinegun was a Norinco, MAK-90 Sporter (7.62 x 39mm caliber), with the shoulder stock removed. Allegedly, Armour, with assistance from Sims, sold the machinegun and a high capacity magazine on May 16, 2019 for $1,250 in cash. Under federal law, the term “machinegun” includes any weapon which automatically shoots more than one shot, without manual reloading, by a single function of the trigger.
Sims was additionally charged with two counts of being a felon in possession of a firearm. Those charges relate to 9mm pistols that Sims allegedly sold in April and May, 2019. Sims also has two prior felony convictions for possessing a firearm after being convicted of a felony.
Sims is a registered sex offender, and was on probation at the time of the criminal conduct alleged in the indictment. Sims was arrested on May 31, 2019. On August 6, 2019, a federal magistrate judge entered a detention order holding Sims pending further proceedings in this case.
Herman Antonio Fields, a/k/a “Tip” is currently a fugitive. Individuals with information about the whereabouts of Fields should call the ATF or the U.S. Marshal Service with information. Tips may be submitted anonymously to the U.S. Marshal Service via mobile phone through the USMS Tips app, or on the world wide web at https://www.p3tips.com/USMS.aspx.
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 the South Fulton Police Department.
Assistant U.S. Attorney Alana R. Black 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.
Two defendants sentenced for operating clandestine PCP laboratory that exploded in 2013 fireRead the Press Release
ATLANTA – Coleman Warnock and Adrian Banks have been sentenced to federal prison for conspiring to manufacture and possess phencyclidine, a psychedelic controlled substance commonly known as “PCP” and “angel dust,” with intent to distribute. The concealed drug lab they operated in Fulton County exploded in July 2013, and burned for two days.
“Their clandestine laboratory put an entire community at risk through their illicit enterprise,” said U.S. Attorney Byung J. “BJay” Pak. “That risk became reality when the chemicals they were using to produce the poison exploded, causing an inferno that lasted for two days. The fire that destroyed the home could have injured neighbors nearby but thankfully, it did not. Nor did it destroy the evidence that landed these two long federal sentences.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencings, “The clandestine PCP manufacturing site in South Fulton County was one of the largest ever discovered on the east coast. When these defendants chose to manufacture PCP, the subsequent explosion and fire proved to be a recipe for disaster. Not only was the structure burned to the ground, but surrounding neighbors were put at risk and were inconvenienced for several days as public safety and law enforcement officials worked tirelessly to snuff out the two-day burning fire. Because of the collective efforts between DEA, its local, state and federal law enforcement counterparts and the U.S. Attorney’s Office, these defendants will spend well-deserved time in prison.”
According to U.S. Attorney Pak, the charges and other information presented in court: Warnock, a multi-convicted felon whose criminal history stretches back to the early 1990s, and Banks, a convicted drug trafficker, conspired to manufacture large quantities of PCP in the basement of a Fairburn, Georgia home.
On July 6, 2013, while Warnock and Banks were working in the laboratory, some of the chemicals ignited and caused the laboratory to catch fire. Over the next two days, the home that concealed the lab burned to the ground. Investigators who responded to the scene of the fire recovered numerous barrels and canisters of chemicals, as well as protective equipment such as suits, gloves, and respiratory masks.
Based on the quantity of chemicals recovered by law enforcement, DEA determined that the illicit lab was one of the largest in the country. DNA taken from some of the protective equipment matched the DNA of Warnock and Banks.
The co-conspirators sentenced by U.S. District Judge Amy Totenberg are:
- Coleman Warnock, 46, of Powder Springs, Georgia, and Compton, California, was sentenced to 15 years in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $85,000. Warnock pleaded guilty to conspiracy to possess with the intent to distribute and manufacture phencyclidine on March 27, 2019, and was sentenced on July 23, 2019.
- Adrian Banks, 44, of Douglasville, Georgia, was sentenced to 20 years and two months in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $85,000. Banks pleaded guilty to conspiracy to possess with the intent to distribute and manufacture phencyclidine on August 28, 2014, and was sentenced on June 30, 2017.
This case was investigated by the Drug Enforcement Administration and Georgia Bureau of Investigation. Numerous other state and local agencies, including the former Fulton County Fire & Rescue Department, the Fulton County Police Department, the Georgia State Fire Marshal’s Office, and the Atlanta Fire Department, provided valuable assistance.
Assistant U.S. Attorney Theodore S. Hertzberg and Special Assistant U.S. Attorney Valerie Verduce 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.- Coleman Warnock, 46, of Powder Springs, Georgia, and Compton, California, was sentenced to 15 years in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $85,000. Warnock pleaded guilty to conspiracy to possess with the intent to distribute and manufacture phencyclidine on March 27, 2019, and was sentenced on July 23, 2019.
Food and Drug Administration employee pleads guilty to conflict of interestRead the Press Release
ATLANTA - Elvis Gordon, a former senior facilities technician for the U. S. Food and Drug Administration, has pleaded guilty to an undisclosed conflict of interest involving more than $126,000 worth of jobs performed at Atlanta’s FDA facility by a company in which Gordon had a direct financial interest.
“Federal employees are in a position of public trust and, as they perform their duties, must be held to the highest standards of integrity,” said U.S. Attorney Byung J. “BJay” Pak. “Instead of exposing his conflict of interest, Mr. Gordon capitalized on it, putting his personal benefit above his obligation to serve the public.”
“All federal employees are subject to specific ethics requirements that inform standards for their professional conduct and address matters such as conflicting financial interests, impartiality in performing official duties, and misuse of their position, among other things,” said Special Agent in Charge Antoinette V. Richard, FDA Office of Criminal Investigations Office of Internal Affairs. “If we learn of an FDA employee engaging in improper behavior such as abusing their position for personal financial gain, we will act swiftly to investigate, and when appropriate, refer criminal violations to the Department of Justice for prosecution to ensure that those responsible are held accountable.”
According to U.S. Attorney Pak, the charges and other information presented in court: Gordon was hired by the FDA in 1997. From November, 2010 through December, 2017, Gordon was responsible for scheduling and overseeing building maintenance and the purchase of janitorial supplies for the FDA’s district office in Atlanta. During the same time period, Gordon had a financial interest in P&E Management LLC (P&E), a Georgia corporation, which was principally owned and operated by Gordon’s co-defendant, Ivan Ponder.
With Gordon’s oversight and project support, P&E was continually selected as a vendor to supply maintenance and janitorial services at Atlanta’s FDA facility. In addition, Gordon often paid P&E for its work by using an FDA credit card issued to him. Gordon neither disclosed to FDA management that he had a personal connection to P&E, nor did he report to the FDA that he was receiving financial payments from P&E.
On August 6, 2019, Elvis Gordon, 53, of Marietta, Georgia, pleaded guilty to a federal conflict of interest charge. On July 15, 2019, Ivan Ponder, 49, of Hiram, Georgia, pleaded guilty to aiding and abetting Gordon’s conflict of interest scheme.
Sentencing for Gordon is scheduled for November 17, 2019 before United States District Judge Mark H. Cohen.
This case is being investigated by the U. S. Food and Drug Administration’s Office of Criminal Investigations Office of Internal Affairs.
Assistant U.S. Attorneys Brent Alan Gray and Matthew S. Carrico 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.
Man pleads guilty to stealing more than $300,000 in healthcare fraud schemeRead the Press Release
ATLANTA – Michael Bang has pleaded guilty to healthcare fraud charges related to a fraudulent reimbursement scheme targeting the Colorado Public Employees Retirement Association (“COPERA”).
“Bang’s stole hundreds of thousands of dollars from a public entity that was at the same time providing him with medical and other benefits,” said U.S. Attorney Byung J. “BJay” Pak. “Schemes like this can ultimately cost other customers precious resources to which they are entitled.”
“Falsifying prescriptions in order to generate illicit profits at the expense of tax payers will not be tolerated and the FBI will pursue anyone who chooses to do so,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Bang was driven by greed and he will now be held accountable for his transgressions.”
According to U.S. Attorney Pak, the charges and other information presented in court: Bang, who from at least 2014 to 2017 was a resident of Atlanta, Georgia, received retiree health benefits from COPERA’s self-funded health insurance program, PERACare. The prescription coverage portion of the program was administered by Express Scripts. PERACare provided insurance for current and former Colorado public employees no matter where they lived.
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.
The reimbursement claim forms that Bang faxed to Express Scripts were fraudulent for a number of reasons:
- The forms themselves were fabricated and submitted by Bang—they were not created by the pharmacies;
- Pharmacists’ signatures on each form were forged or unauthorized reproductions of the signatures of each pharmacist;
- Certain forms contained claims for medications that Bang never received and that never would have been prescribed simultaneously;
- The forms contained prescription numbers that did not match the medication claimed under that number;
- Many reimbursement forms claimed a “fill date” for prescriptions on dates when the pharmacies have no records of filling any prescriptions for Bang; and
- The forms claimed out-of-pocket expenses that were never incurred by Bang.
Between May 2014 and December 2017, Bang stole at least $300,000 from COPERA through his fraudulent reimbursement scheme.
On November 7, 2018, Bang, 58, of Mesa, Arizona, was indicted on twenty counts of healthcare fraud, wire fraud, and aggravated identity theft. He pleaded guilty to one count of healthcare fraud. Sentencing is scheduled for October 24, 2019, at 3:00 p.m., before U.S. District Judge Steve C. Jones.
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.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Ryan J. Huschka 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.
International drug traffickers plead guilty to smuggling heroin through Atlanta airportRead the Press Release
ATLANTA – Guatemalan nationals Paola Valenzuela Arevalo and Herbert Jonathan Castillo Juarez, who are husband and wife, have pleaded guilty to eight federal charges for their roles in an international heroin and cocaine trafficking conspiracy. Valenzuela and Castillo employed and coordinated the operations of numerous couriers who imported heroin and cocaine into and through the United States as well as throughout Europe on behalf of Valenzuela, Castillo, and their drug-trafficking organization.
“This case continues our efforts to combat the devastating impact of opiates in our community,” said U.S. Attorney Byung J. Pak. “Atlanta’s status as a major transportation hub and the location of the world’s busiest airport makes our city a target for criminal organizations seeking to import heroin and other dangerous drugs. Disrupting drug trafficking organizations and seizing their narcotics as well as getting their members off the streets is one of our highest priorities.”
“The drug trafficking organization overseen by Valenzuela and Castillo contributed significantly to the Opioid plague sweeping across this country. Taking these individuals, and their illicit narcotics off the streets, is a small step in making this country a safer place and we will continue our relentless pursuit of any and all who would choose to follow in their path,” said HSI Special Agent in Charge, Nick Annan.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the guilty pleas, “DEA’s mission is to eradicate the distribution of drugs at the highest level and to follow the far-reaching tentacles of drug trafficking. DEA, its law enforcement counterparts and the U.S. Attorney’s Office will continue to use every available resource to dismantle, disrupt, and destroy drug distribution networks. This case was successful because of the collaborative efforts between law enforcement authorities on all levels.”
According to U.S. Attorney Pak, the charges and other information presented in court: From at least October 2015 until August 2016, Valenzuela and Castillo engaged in a conspiracy to import heroin and cocaine from Guatemala to and through the United States and to Europe for distribution. They recruited, managed, and oversaw numerous couriers who trafficked these drugs from Guatemala, including exploiting minors under the age of 18 as drug couriers. Much of the heroin that Valenzuela and Castillo trafficked was routed through Hartsfield-Jackson Atlanta International Airport and ultimately was destined for major Northeastern U.S. cities, including New York City, and Philadelphia, Pennsylvania. Valenzuela and Castillo also trafficked cocaine from Guatemala to several European countries, including Switzerland, Norway, and elsewhere.
Among the many instances in which couriers trafficked drugs at Valenzuela’s and Castillo’s direction include following:
- On July 15, 2016, a Guatemalan citizen flew on a Delta flight from Guatemala City to Atlanta carrying heroin hidden inside luggage that he had received from Valenzuela, Castillo, and their source of supply. During an inspection of the man and his luggage, U.S. Customs and Border Protection (“CBP”) discovered more than two kilograms of heroin. A female minor aboard the same flight also was trafficking heroin at Valenzuela’s and Castillo’s direction. She, too, was arrested carrying more than two kilograms of heroin.
- On four trips to the United States between June 2016 and August 2016, at Valenzuela and Castillo’s direction, a U.S. citizen carried narcotics on flights departing Guatemala City and delivered the narcotics in the United States. The man concealed the heroin he carried either internally (by swallowing it) or that hidden in luggage. He delivered the heroin to Philadelphia and New York. On August 4, 2016, he was arrested at Hartsfield-Jackson Atlanta International Airport internally carrying approximately one kilogram of heroin that he had swallowed at Valenzuela and Castillo’s direction. The man also transported cocaine at Valenzuela and Castillo’s direction, from Guatemala through Miami, Florida, to Zurich, Switzerland on October 24, 2015 and from Guatemala through Atlanta to Norway on February 13, 2016.
- On July 24, 2016, a U.S. citizen was arrested at Los Angeles International Airport after a CBP inspection found that he was carrying more than two kilograms of heroin hidden in bags also at the direction of Valenzuela, Castillo, and their source of supply. The man was supposed to deliver the narcotics to a buyer in New York.
- On August 13, 2016, a Guatemalan citizen flew from Guatemala City to Hartsfield-Jackson International Airport and was arrested after a CBP inspection found that he was carrying 952.9 grams of heroin hidden in pellets that he was internally carrying, also having swallowed them. The man also was recruited by Valenzuela and Castillo who coordinated and oversaw his drug trafficking trip.
On August 18, 2016, Swiss authorities, acting on a tip by U.S. law enforcement, arrested Valenzuela and Castillo attempting to import cocaine that they had swallowed into Zurich Switzerland. After serving sentences on the Swiss drug charges, Valenzuela and Castillo were extradited to the United States to face the drug-trafficking charges to which they pleaded guilty.
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.
On January 22, 2019, Valenzuela, 39, and Castillo, 42, both of Guatemala, were indicted on eight counts each of possession with the intent to distribute heroin and the importation of heroin into the United States, as well as conspiracy to commit both of those offenses by trafficking heroin and cocaine to the United States and Europe. They pleaded guilty to all counts. Sentencing is scheduled for January 7, 2020, at 9:00 a.m., before U.S. District Judge Mark H. Cohen.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Drug Enforcement Administration. The Department of Justice’s Office of International Affairs is also providing assistance with this case.
Assistant U.S. Attorneys Ryan J. Huschka and Ryan M. Christian are prosecuting the case.
This prosecution is being brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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 and money laundering organizations and those primarily responsible for the nation’s drug supply.
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.
Repeat offender sentenced to prison for second federal firearm convictionRead the Press Release
ATLANTA - Mark Antonio Sanders has been sentenced for possession of a firearm by a convicted felon and possession of a firearm with an obliterated serial number. Sanders has previous felony convictions related to multiple Atlanta shootings, including a 2004 federal conviction for possession of a firearm by a convicted felon.
“Repeat offenders in possession of a firearm pose one of the most serious threats to public safety in our communities,” said U.S. Attorney Byung J. “BJay” Pak. “Sanders’ history of armed violence demonstrates his lack of concern for the welfare of others and his disregard for the law.”
“This case involves the illegally possessed firearm in the hands of a criminal,” said ATF Assistant Special Agent in Charge Beau Kolodka. “It demonstrates the cooperation that exists between the Atlanta Police Department and ATF.”
“We appreciate the U.S. Attorney’s Office commitment to ensuring these armed felons serve meaningful prison sentences,” said Chief Erika Shields. “We see, all too often, the havoc that the proliferation and use of guns by criminals causes on our streets.”
According to U.S. Attorney Pak, the charges and other information presented in court: On May 6, 2017, Atlanta Police Department officers responded to gunfire on the porch of a residence in Atlanta. The victim notified police that an unknown man, later identified as Sanders, struck him on the side of his face with a firearm and then shot him through the top of his foot. On May 30, 2017, officers spotted Sanders a few blocks from the scene of the shooting. Sanders then led police on a foot chase during which he briefly crouched behind the “Welcome to East Atlanta” sign. Once Sanders was detained, officers searched behind the sign and located a loaded Jiminez Arms 9mm pistol with a scratched off serial number.
Mark Antonio Sanders, 50, of Atlanta, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release as a result of a guilty plea on April 30, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Atlanta Police Department.
Assistant U.S. Attorney Irina Dutcher prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Romanian citizens sentenced to federal prison for their roles in a multi-million dollar computer hacking and fraud schemeRead the Press Release
ATLANTA - Teodor Laurentiu Costea, Robert Codrut Dumitrescu, and Cosmin Draghici have been sentenced to federal prison on wire fraud conspiracy, computer fraud and abuse, and aggravated identity theft charges. Their scheme originated from Romania and resulted in the illegal intrusion into computer servers in the United States. They also deployed phishing messages to thousands of victims and subsequently stole victims’ social security numbers and bank account information.
“These defendants sought to victimize citizens of the Northern District of Georgia and ultimately across the United States,” said U.S. Attorney Byung J. “BJay” Pak. “We are warning cyber-criminals no matter where they reside, that this office and our law-enforcement partners are committed to finding you, extraditing you to this district, and prosecuting you.”
“The FBI won’t let geographic boundaries stop us from pursuing and prosecuting those persons who cause tremendous financial pain to U.S. citizens,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These three criminals felt like they were safe in Romania hiding behind their computers. Hopefully their sentences send a message to anyone who thinks they can prey on our citizens from afar and get away with it.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately October 2011 through February 2014, Robert Codrut Dumitrescu, Teodor Laurentiu Costea and Cosmin Draghici conducted a “vishing” and “smishing” scheme from Romania. “Vishing” is a type of phishing scheme that communicates a phishing message, or a message that purports to be from a legitimate source, in this case the victims’ banks, through a voice recording. “Smishing” is similar to “vishing,” but communicates a phishing message through text messages.
As part of the scheme, the defendants compromised computer servers located in the Northern District of Georgia, and elsewhere, and installed both interactive voice response and bulk emailing software. That software initiated thousands of telephone calls and text messages to victims in the Northern District of Georgia, and across the United States, tricking them into disclosing Personally Identifiable Information (PII) such as financial account numbers, PINs, and Social Security Numbers.
When a victim received a telephone call, they would be greeted by a recorded message falsely claiming to be a bank. The interactive voice response software would then prompt the victim to enter their PII.
When a victim received a text message, the message purported to be from a bank and directed the recipient to call a telephone number hosted by a compromised Voice Over Internet Protocol server. When the victim called the telephone number, they were prompted by the interactive voice response software to enter their PII. The stolen PII was stored on the compromised computer servers and accessed by Dumitrescu and Costea, who then sold or used the fraudulently obtained information with the assistance of Draghici.
At the time of their arrests in Romania, Dumitrescu possessed 3,278 financial account numbers, Costea possessed 36,050 financial account numbers, and Draghici possessed 3,465 financial account numbers – all fraudulently obtained through this scheme. Based upon these numbers alone, the loss amount exceeded $21,000,000.
- Robert Codrut Dumitrescu, 41, of Ploiesti, Romania, was sentenced to seven years, three months in prison to be followed by three years of supervised release;
- Teodor Laurentiu Costea, 43, of Ploiesti, Romania, was sentenced on June 11, 2019 to eight years and two months in prison to be followed by three years of supervised release.
- Cosmin Draghici, 30, also of Ploiesti, Romania, was sentenced on June 12, 2019 to four years, three months in prison to be followed by three years of supervised release.
Dumitrescu, Costea, and Draghici were convicted of these charges following their guilty pleas earlier this year. A restitution hearing has been scheduled for August 30, 2019. Costea, Dumitrescu, and Draghici were extradited from Romania to Atlanta in 2018 to face these charges.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, prosecuted the case, with valuable assistance from the Department of Justice’s Office of International Affairs.
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.
Paulding County man indicted for producing child pornographyRead the Press Release
ATLANTA, Ga. – Thomas Cwik has been arraigned on federal charges of producing, distributing, receiving, and possessing child pornography.
“Cwik allegedly produced, distributed, and collected images portraying the sexual exploitation and abuse of young children,” said U.S. Attorney Byung J. “BJay” Pak. “It is imperative that we continue target and prosecute sexual predators who victimize children.”
“Child pornography production is, plainly speaking, the filming of child rape. In this case Mr. Cwik allegedly victimized numerous children,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “I want to commend our law enforcement partners, including the Paulding County Sheriff’s Office for a quick multi-agency effort which resulted in Cwik’s arrest. Homeland Security Investigations is committed to investigating and seeking prosecution of these cases as one the agency’s highest priorities.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Federal agents determined that Thomas Cwik allegedly traded child pornography online with another individual in January 2019. Agents executed a search warrant at Cwik’s home in April 2019 and found multiple digital devices containing hundreds of images and videos of child pornography. They also discovered that Cwik allegedly engaged in sex acts with a minor child in Cobb County, Georgia and captured his sexual abuse of that child on two videos taken on each instance of abuse.
Thomas Cwik, 31, of Powder Springs, Georgia, was arraigned before U.S. Magistrate Judge Linda T. Walker. Cwik was indicted by a federal grand jury on July 9, 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.
Anyone with information, or who may have been a victim in this case, please contact the Paulding Sheriff’s Juvenile Investigations Division at 770-445-6105 or 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.
Assistant U.S. Attorney Jill E. Steinberg, Deputy Chief of the Criminal Division, is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Dalton man pleads guilty to sex trafficking of minorsRead the Press Release
ROME, Ga. - Brian Hernandez Acosta, the lead defendant in a child sex trafficking case, has pleaded guilty to charges of conducting a child exploitation enterprise, conspiring to engage, and engaging, in sex trafficking minors by force, fraud, or coercion, sex trafficking of children under 18 years old, interstate transport of a minor for prostitution, producing child pornography, and distributing cocaine to a person under 21 years old.
“The defendant produced child pornography and pursued a full range of child exploitation methods,” said U.S. Attorney Byung J. “BJay” Pak. “The scheme in this case is especially egregious because they coerced their child victims into engaging in sexual activity in some instances through the use of alcohol and cocaine. We are hopeful that Hernandez Acosta’s guilty plea will encourage more victims to contact law enforcement.”
“This defendant and his friends preyed upon vulnerable teens, and in a scheme of cruelty and brutality coerced his victims to sell their bodies for his own gratification and profit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI has zero tolerance for the sex trafficking of children and will continue to work with law enforcement partners to ensure justice is served for the victims.”
“I am very pleased that members of the Dalton Police Department were able to assist with this case. The hard work and efforts by the FBI and the task force members really paid off. Their efforts have helped to dismantle a group that was sexually exploiting minors,” said Dalton Police Chief Cliff Cason.
According to U.S. Attorney Pak, the charges and other information presented in court: Hernandez Acosta conspired to traffic minor girls for commercial sex throughout North Georgia. Beginning in November 2015, and continuing until December 2016, the defendants allegedly caused at least six girls between 16 and 17 years old to engage in prostitution, through the use force, fraud, and coercion.
Hernandez Acosta, after pursuing some of the girls on Facebook and Snapchat, posted provocative photographs of them in the adult entertainment and escort sections of Backpage.com, a classified advertisement website seized by the Department of Justice. Hernandez Acosta used these ads to solicit men to engage in sex with the minors for money. The advertisements used fake names for the minors and falsely listed the girls’ ages as between 19 through 21 years old. For example, Hernandez Acosta forced one 16-year-old girl to engage in sex with men after driving her from Florida to Georgia after falsely offering the girl a place to live. The defendant required the young girls to engage in sex acts with multiple men each night and kept a large portion of the money they earned.
Between July 2016 and December 2016, co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe allegedly hosted numerous sex parties at their residence in Canton, Georgia, where they engaged in sex acts with minor girls or young women while plying them with alcohol and cocaine. Investigators recovered images of some of this conduct on Hernandez Acosta’s cellphone. Lawhon is alleged to have paid Hernandez Acosta thousands of dollars in exchange for commercial sex and cocaine. Investigators are working to identify other girls and young women allegedly victimized in this child exploitation scheme.
Hernandez Acosta’s guilty plea follows the previous guilty pleas of co-defendants Nilageo Alvarez Acosta and Jaime Adam Riano. The trial of co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe is currently scheduled for September 16, 2019, before U.S. District Judge Timothy C. Batten, Sr.
- Brian Hernandez Acosta, 28, of Dalton, Georgia, pleaded guilty on July 1, 2019, to the offenses of conducting a child exploitation enterprise, sex trafficking minors by force, fraud, or coercion, sex trafficking of children under 18 years old, transporting a minor in interstate commerce for prostitution, producing child pornography, and distributing cocaine to a person under 21 years old.
- Nilageo Alvarez Acosta pleaded guilty on April 11, 2019, to conspiracy to engage in sex trafficking, sex trafficking by force, fraud or coercion, sex trafficking children under 18 years old, and interstate transport of a minor for prostitution.
- Jaime Adam Riano pleaded guilty on November 17, 2017, to sex trafficking children under 18 years old.
This case is being investigated by the Federal Bureau of Investigation and the Dalton Police Department. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Georgia Bureau of Investigation, and the Murray County Sheriff’s Office also provided assistance.
Assistant U.S. Attorneys Suzette A. Smikle, Dashene Cooper, and Phyllis Clerk are prosecuting the case.
Members of the public are reminded that the indictment concerning co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe only contains charges. Lawhon and Stumpe 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 brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia man who hacked professional athletes and musicians sentenced to prisonRead the Press Release
ATLANTA - Kwamaine Jerell Ford has been sentenced to federal prison for hacking into more than 100 Apple accounts belonging to high-profile professional athletes and rappers and spending nearly $325,000 using stolen financial information from several of these victims.
“Ford targeted celebrities and professional athletes in his identity theft scheme and used credit card information stolen from these victims to fund his personal lifestyle,” said U.S. Attorney Byung J. “BJay” Pak. “Citizens should remember that anyone can fall prey to identity theft, and they should be vigilant in protecting their personal information.”
“In today’s high tech world, citizens entrust their personal information to a number of service providers and expect that information to be protected,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Unfortunately, identity thieves are becoming more creative and more devious. But the FBI’s dedicated agents are determined to keep up with that devious creativity to protect our citizens and bring suspects like Ford to justice.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in at least March 2015, Ford targeted college and professional athletes, including NBA and NFL players, and rappers in a “phishing” scheme. Phishing is a scheme in which the perpetrator sends a message that purports to be from a legitimate source in the hopes of securing personal information of a potential victim. Ford sent thousands of phishing emails to victims from email accounts he set up to spoof legitimate Apple customer service accounts.
Ford, posing as an Apple customer support representative, requested that the victims send him their username and password or answers to security challenge questions, which Ford claimed was needed either to reset their Apple accounts or to access videos that individuals were purportedly trying to send the victims. More than 100 victims provided their login credentials for Apple accounts based on the phishing scheme.
After obtaining the victims’ passwords, Ford gained complete control over the victim accounts by resetting the account passwords and changing the victims’ credentials and contact information. As a result, the victims could not log into their own accounts unless they contacted Apple by phone and proved their identity. Apple records showed hundreds of unauthorized logins to victim Apple accounts.
After gaining control of the victims’ Apple accounts, Ford found credit card information belonging to several victims. Ford then used the stolen credit card numbers to spend $322,567 over a three-year period, including thousands of dollars in flights, car travel, hotels, retail purchases, restaurants, and cash transfers to his online financial accounts.
Kwamaine Jerell Ford, 27, of Dacula, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to three years and one month in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $697,270. Ford was convicted of computer fraud and aggravated identity theft charges on March 28, 2019, after he pleaded guilty.
This case was investigated by the FBI.
Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes Section, prosecuted the case. Apple Inc. provided valuable assistance in the investigation and prosecution.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Stone Mountain man sentenced to federal prison for being a convicted felon in possession of a firearmRead the Press Release
ATLANTA - Jonathan Christopher Scott, who has been convicted of multiple felonies, has been sentenced to federal prison for possession of a stolen firearm.
“Convicted felons like Scott, in possession of stolen firearm, pose one of the most serious threats to public safety,” said U.S. Attorney Byung J. “BJay” Pak. “His flagrant firing of the weapon showed he had no regard for citizens, or fear of the law.”
“Let’s be clear about this,” said ATF Special Agent in Charge Art Peralta. “It is already a crime for a convicted felon to possess a firearm. Jonathan Scott made a conscious decision to take it a step further and shot his handgun in the parking lot potentially endangering the lives of anyone in the area. His decision to pull the trigger demands our immediate attention and in this case, I am relieved that Mr. Scott was arrested before his criminal behavior resulted in serious injury to anyone.”
“Thanks to our professional and hard-working officers, Mr. Scott was apprehended and his ability to harm others quelled. I am extremely proud of every City of Norcross Police Officer for the tremendous service they provide this city every day. I am also thankful for the ATF’s efforts in this case. Their partnership is crucial to the success of local law enforcement,” said Norcross Police Chief Bill Grogan.
According to U.S. Attorney Pak, the charges and other information presented in court: On March 20, 2018, Norcross Police responded to reports of gunfire at a local hotel. Upon arrival, they were notified that Jonathan Christopher Scott had fired a handgun in the parking lot. The entire incident was captured on video, but Scott left the location prior to law enforcement's arrival.
Shortly thereafter, Norcross Police were notified that Scott returned to the hotel. Officers were directed to his room and Scott refused to answer. After several attempts to contact him were unsuccessful, police obtained a search warrant, entered the hotel room, and observed Scott walking away from the bathroom. Scott was detained and police located a loaded Smith and Wesson .40 caliber handgun inside of the water tank affixed to the toilet. The handgun was reported stolen from a vehicle in Henry County, Georgia on January 30, 2018.
Jonathan was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Norcross Police Department.
Deputy Chief Assistant U.S. Attorney Jill Steinberg and Assistant U.S. Attorney Noah Schechtman 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 Jackson County substitute teacher sentenced for possession of child pornographyRead the Press Release
GAINESVILLE, Ga. - Ernest Leander Shaw has been sentenced for possession of child pornography. Shaw, a former substitute teacher, taught at various schools throughout the county.
“Child pornography is abuse of society’s most vulnerable population—young children,” said U.S. Attorney Byung J. “BJay” Pak. “Children trust that adults and those in leadership positions will be their protector. Shaw chose to betray that trust.”
“There is no sentence that can ever make the victims of child pornography whole again,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is even more disheartening when a person entrusted to protect children, our most vulnerable citizens, is the person who promotes this abuse. We can only hope that Shaw's sentence will discourage others from this depraved behavior.”
“It is my hope that Shaw is monitored to the fullest extent and can never have access to children again, as he had access here in Jackson County in our schools. He committed horrendous acts when he possessed child pornography for his gratification and then had access to our children here in Jackson County,” said Jackson County Sheriff Janis Mangum.
According to U.S. Attorney Pak, the charges and other information presented in court: In or around May 2018, the Jackson County Sheriff’s Office received information that Shaw possessed an electronic device that contained child pornography. During their subsequent interview with Shaw, he admitted that the images belonged to him. Based upon Shaw’s consent to a search of his residence, telephones, and other electronic devices, and a search warrant obtained from a Jackson County Magistrate Judge, the Jackson County Sheriff’s Office eventually found hundreds of images and videos of child pornography on various electronic devices in Shaw’s residence.
Ernest Leander Shaw, 66, of Nicholson, Georgia, was sentenced today by U.S. District Court Judge Richard W. Story to two years in prison, to be followed by 10 years of supervised release of which the first two years will be served on home confinement. Shaw was indicted by a federal grand jury on September 18, 2018. He pleaded guilty to the sole count in the indictment, pursuant to a written plea agreement.
This case was investigated by the Federal Bureau of Investigation, with the initial investigation handled by the Jackson County Sheriff’s Office.
Assistant U.S. Attorney Sekret T. Sneed 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.
California man sentenced to 35 years for traveling to Atlanta to have sex with a nine-year-old childRead the Press Release
ATLANTA - Craig Alan Castaneda has been sentenced for traveling from San Diego, California, to Atlanta, Georgia, to have sex with a nine-year-old girl and enticing a minor to engage in illegal sexual activity.
“This sentence is a reminder of what child predators can expect if they seek to harm a child here,” said U.S. Attorney Byung J. “BJay” Pak. “There is no tolerance for their depraved conduct. Our mission is to protect citizens, especially the most vulnerable members of our community.”
“The severity of this sentence is the greatest message we can send to anyone who would even think about hurting a child in this way,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI won’t tolerate it, and we will continue to make predators like Castaneda a priority in our mission to uphold the Constitution and protect our citizens.”
According to U.S. Attorney Pak, the charges and other information presented in court: In early April 2015, an FBI agent acting in an undercover capacity posted an ad on Craigslist in which he portrayed himself as a mother in search of a “teacher” for her nine-year-old daughter. Craig Alan Castaneda responded to the ad the next day and described his previous experience in molesting children, including a child as young as four-years-old. He also said that had been “grooming” (that is, preparing) another child to be molested but that the family had moved away a few months earlier.
Castaneda continued to communicate with the undercover agent for the next several weeks, and he made plans to travel from San Diego to Atlanta. In one of his final communications with the undercover agent before boarding the plane, he instructed the mother to have sex toys and lubricant available. When he stepped off the plane at Hartsfield-Jackson Atlanta Airport on May 2, 2015, he was met by FBI agents and was taken into custody.
Later, friends staying at Castaneda’s apartment in California found that his computers contained suspected child pornography. The FBI searched the computers and found that he had hundreds of videos and images of children being sexually abused. They also found evidence that he paid minors to send him pornographic videos over Skype. Castaneda’s search history reflected that he had been searching Craigslist ads in eight states as well as Mexico for similar offers of sexual contact with children.
Craig Alan Castaneda, 40, of Imperial Beach, California, was sentenced by U.S. District Judge Eleanor L. Ross to 35 years in prison to be followed by 10 years of supervised release. He will also be required to register as a sex offender when he is released from prison. Castaneda was convicted on these charges at trial on December 12, 2018.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Nicholas Hartigan and Paul R. Jones prosecuted the case.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Equifax employee sentenced for insider tradingRead the Press Release
ATLANTA - Jun Ying, the former Chief Information Officer of Equifax U.S. Information Solutions, has been sentenced to federal prison for insider trading.
“Ying thought of his own financial gain before the millions of people exposed in this data breach even knew they were victims,” said U.S. Attorney Byung J. “BJay” Pak. “He abused the trust placed in him and the senior position he held to profit from inside information.”
“If company insiders don’t follow the rules that govern all investors, they will face the consequences for their actions. Otherwise the public’s trust in the stock market will erode,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will do everything in its power to stop anyone who takes unfair advantage of their insider knowledge.”
According to U.S. Attorney Pak, the charges and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta, Georgia. During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million Americans. At the time, Jun Ying was the Chief Information Officer of Equifax U.S. Information Solutions. In that role, he was provided sensitive information that led him to conclude that Equifax was the victim of the data breach before it was made public.
On Friday, August 25, 2017, Ying texted a co-worker that the breach they were working on “sounds bad. We may be the one breached.” The following Monday, Ying conducted web searches on the impact of Experian's 2015 data breach on its stock price. Later that morning, Ying exercised all of his stock options, resulting in him receiving 6,815 shares of Equifax stock, which he then sold. He received proceeds of over $950,000, and realized a gain of over $480,000, thereby avoiding a loss of over $117,000. On September 7, 2017, Equifax publicly announced its data breach, which resulted in its stock price falling.
Jun Ying, 44, of Atlanta, Georgia, was sentenced to four months in prison to be followed by one year of supervised release, ordered to pay restitution in the amount of $117,117.61, and fined $55,000. Ying was convicted on these charges on March 7, 2019, after he pleaded guilty.
Ying is the second Equifax employee found guilty of insider trading relating to the data breach, following Sudhakar Reddy Bonthu, a former manager at Equifax, who pleaded guilty on July 23, 2018.
This case was investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission contributed to the case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and former Assistant U.S. Attorney Lynsey M. Barron 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.
Chemical plant manager sentenced for polluting a tributary of the ChattahoocheeRead the Press Release
ATLANTA - Carlos Conde has been sentenced for violating the Clean Water Act by instructing employees at the Apollo Industries chemical processing plant in Smyrna, Georgia, to wash carburetor fluid into a tributary of the Chattahoochee River.
“We must ensure that citizens can continue to enjoy the beautiful natural resources we have here in Georgia like the Chattahoochee,” said U.S. Attorney Byung J. “BJay” Pak. “Protecting those resources, and the environment, is part of our mission. We take this responsibility seriously, and we will prosecute those who have no respect for the laws that preserve them for all to use and enjoy.”
“The defendant in this case intentionally contaminated a tributary of the Chattahoochee River, killing fish and damaging the environment,” said Special Agent in Charge Andy Castro of EPA’s Criminal Investigation Division. “This sentencing demonstrates that EPA and its law enforcement partners are committed to protecting our natural resources and the communities that rely upon them.”
According to U.S. Attorney Pak, the charges and other information presented in court: on the evening of August 12, 2016, a batching tank at the Apollo Industries chemical mixing facility in Smyrna, Georgia, began leaking a carburetor cleaner containing naphalene, a toxic and hazardous chemical. The following morning, two workers discovered the spill and called Carlos Conde, the plant manager.
Conde arrived at the plant and instructed the employees to wash the chemical away with water from multiple hoses. The chemical was washed into a tributary of Nickajack Creek and the Chattahoochee River. Conde then twice denied his role in interviews with a Special Agent of the U.S. Environmental Protection Agency. The carburetor cleaner turned the water milky white and opaque and killed the wildlife in the creek, including fish and frogs.
Carlos Conde, 37, of Smyrna, Georgia, was sentenced by Chief U.S. District Judge Thomas W. Thrash, Jr., to 12 months’ probation with the first four months to be served as home detention, a $2000 fine, and a $100 special assessment. Conde was convicted on these charges on January 24, 2019, after he pleaded guilty.
This case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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 GBI inspector sentenced for charging over $60,000 on government credit cardsRead the Press Release
ATLANTA - Sandra J. Stevens, f/k/a Sandra J. Putnam, has been sentenced for making more than 325 personal charges totaling over $60,000 on government credit cards when she was a high-ranking member of the Georgia Bureau of Investigation (“GBI”).
“No member of law enforcement is above the law,” said U.S. Attorney Byung J. “BJay” Pak. “Stevens traded the years of distinguished service and trust that she built as an agent for personal gain. Citizens must have confidence in the integrity of those entrusted with law enforcement power.”
“It is imperative sworn officers obey the law while they enforce the law. This sentence sends a clear message that public corruption will not be tolerated and the violators, no matter who they are, will be held accountable,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the indictment, and other information presented in court: the GBI is a statewide agency that provides assistance to the criminal justice system in the areas of criminal investigations, forensic laboratory services, and computerized criminal justice information.
In October 1994, Stevens joined the GBI as an Intelligence Technician. On June 3, 1999, after becoming a Special Agent, Stevens took an oath of office to support and defend the Constitutions of the United States and the State of Georgia; to maintain public trust and abide by the GBI’s Code of Ethics; and to obey the laws of the land and the regulations of the GBI.
As a Special Agent with the GBI, Stevens held several prestigious and high-ranking leadership positions, including being the Special Agent in Charge of the Child Exploitation and Computer Crimes Unit, where she supervised approximately 25 GBI employees; and an Inspector of the Investigative Division, where Stevens supervised approximately 55 GBI employees. As the Inspector of the Investigative Division, Stevens earned more than $100,000 per year.
As a state agency, the GBI participates in Georgia’s Visa Purchasing Card (“P-Card”) Program. P-Cards are credit cards provided to Georgia employees for official business purchases, such as supplies, materials, equipment, and services for official use. State policy expressly prohibits using P-Card for personal purchases. P-Card users are required to reconcile all purchases by electronically uploading receipts for each P-Card transaction.
In 1998, the GBI issued Stevens a P-Card for business-related purchases and expenses. As P-Card holder, Stevens signed an agreement stating that “under no circumstances will [she] use the Purchasing Card to make personal purchases, either for [her]self or for others.”
Nevertheless, from approximately May 9, 2013 to August 17, 2016, Stevens used her P-Card and the P-Cards of other GBI employees to make more than 325 unauthorized purchases of goods and services for her personal benefit or the personal benefit of others, including: a seven-piece dining set for $562.99, a corn hole game set for $229.99, two chaise lounge chairs for $399.99, and a 65-inch ultra HD smart television for $1597.99.
Stevens also submitted altered receipts to the GBI in which she changed the description of the items purchased, the addresses to which the items were shipped, or both the item description and the shipping address. For example, on May 27, 2016, Stevens used another GBI employee’s P-Card to order a $930.12 sofa from Amazon.com that was delivered to her home in Covington, Georgia. Subsequently, Stevens submitted a false receipt to the GBI in which she misrepresented the item description as 12 anti-spyware software discs, rather than a sofa, and misrepresented the shipping address as the GBI’s Headquarters in Decatur, Georgia, rather than her home address.
In total, the GBI paid over $60,000 for more than 325 unauthorized purchases made by Stevens on at least six GBI P-Cards. As a result of Stevens’s scheme to defraud, federal money from the U.S. Department of Justice and U.S. Department of Homeland Security grants was impacted.
Sandra J. Stevens, 46, of Covington, Georgia, was sentenced by U.S. District Judge Steve C. Jones to one year and one day in prison to be followed by two years of supervised release. Stevens was convicted on January 3, 2019, after she pleaded guilty to mail fraud.
This case was investigated by the Georgia Bureau of Investigation, with assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Jolee Porter 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.
Defendant sentenced for managing $1 million methamphetamine trafficking operationRead the Press Release
ATLANTA – Hugo Solano-Garcia has been sentenced for conspiring to possess with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Solano-Garcia was a manager in a sophisticated methamphetamine trafficking operation that sought to distribute more than $1 million worth of drugs in DeKalb and Gwinnett Counties.
“This elaborate ring profited from pumping poison in the form of high-grade methamphetamine into our community,” said U.S. Attorney Byung J. “BJay” Pak. “When agents took down their operation, it was discovered that the traffickers had used weapons to protect their clandestine labs. All but one of the defendants in this case, including Solano-Garcia, were in this country illegally. In the end, the payout for each of them is a long federal prison sentence and then deportation.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Drug dealing breeds violence and the traffickers who engage in this dangerous lifestyle often protect their ill-gotten gains with dangerous weapons, as was the case in this investigation. DEA, the entire law enforcement community and the U.S. Attorney’s Office are committed to making the citizens of metropolitan Atlanta and elsewhere safer by removing dangerous criminals form their neighborhoods.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning in July 2017, agents with the DEA and the Atlanta-Carolina High Intensity Drug Trafficking Area Program began investigating Solano-Garcia and his associates for trafficking methamphetamine that had been smuggled from Mexico into the Atlanta area.
Over the course of the investigation, federal and local law enforcement agents uncovered a series of stash houses and methamphetamine conversion laboratories in DeKalb and Gwinnett Counties where the defendants would convert liquid methamphetamine into crystal methamphetamine for distribution, sometimes hiding the illicit drugs in hollowed-out fire extinguishers and car batteries. The defendants barricaded some of these conversion laboratories and guarded them with guns.
Agents raided one conversion laboratory in Brookhaven, Georgia, on January 30, 2018, where they found approximately 130 pounds of methamphetamine in crystal and liquid form and three firearms, including an AR-15-style rifle. This is believed to be one of the largest methamphetamine seizures in the history of the City of Brookhaven.
Hugo Solano-Garcia, a/k/a Gordo, 31, of Michoacán, Mexico, was sentenced by U.S. District Judge Leigh Martin May to 20 years in federal prison, and he will be deported subsequent to completing his term of incarceration.
In total, nine other defendants were indicted in this conspiracy in addition to Solano-Garcia, and eight have been sentenced, including:
- Gerardo Calderon-Pacheco, a/k/a Plebe, age 22, who pleaded guilty and was sentenced on March 15, 2019 to 12 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine;
- Valentin Solano-Salas, age 22, who pleaded guilty and was sentenced on March 10, 2019 to 15 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime;
- Juan Confesor Camilo, a/k/a Jean Carlos Camilo, a/k/a Tigre, age 38, who pleaded guilty and was sentenced on March 19, 2019 to four years and three months in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine;
- Aldrin Barajas-Ramirez, age 44, who pleaded guilty and was sentenced on April 11, 2019 to 15 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime;
- Miguel Pacheco-Penaloza, age 20, who pleaded guilty and was sentenced on May 3, 2019 to 9 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime;
- Octavio Pacheco-Torres, a/k/a Burro, age 26, who pleaded guilty and was sentenced on December 10, 2018 to 10 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine;
- Sair Calderon-Pacheco, age 20, who pleaded guilty and was sentenced on February 6, 2019 to 5 years and 10 months in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine; and
Joaquin Reyes-Guillen, a/k/a Aviel Cabrera-Hernandez, age 35, who pleaded guilty and was sentenced on December 11, 2019 to five years and three months in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine.
This case was investigated by the Drug Enforcement Administration, the Atlanta-Carolina High Intensity Drug Trafficking Area Program, and the following agencies: U.S. Immigration and Customs Enforcement, U.S. Department of State, DeKalb County High Intensity Drug Trafficking Area Unit, Georgia State Patrol, Gwinnett County Police Department, and Franklin County Sheriff’s Department.
Special Assistant U.S. Attorneys Nicholas N. Joy and Erin H. Harris 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.Former stockbroker sentenced for defrauding clientsRead the Press Release
ATLANTA - Sean Kelly has been sentenced to federal prison for wire fraud and securities fraud after pleading guilty to stealing over $1.4 million from his clients.
“Kelly never intended to fulfill his fiduciary responsibility to his clients, which included elderly citizens and veterans,” said U.S. Attorney Byung J. “BJay” Pak. “As thieves like Kelly continue to try avoiding detection and covering their fraudulent methods, we will continue to catch them and prosecute them. We encourage people to thoroughly check out anyone that promises to shepherd their investments.”
“While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is, however, a very real victimization felt and lives are changed forever,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is hopeful that Kelly’s sentence will send a strong message to anyone who would try to take advantage of unsuspecting clients for their own personal greed.”
According to U.S. Attorney Pak, the charges and other information presented in court: For almost five years, from January 2014 through October 2018, defendant Sean Kelly defrauded his investor clients. Kelly was a stockbroker and investment adviser who purported to provide tax planning, insurance brokering, and other financial services to his clients. Kelly advised his victims to invest in various ways, including through private placements, annuities, investments funds, and real estate investment trusts.
Despite the claimed investments, Kelly instead took his victims’ money and used it for personal expenses, to include mortgage payments, Super Bowl tickets, vacations, and significant cash withdrawals. Ultimately, he stole over $1.4 million from more than 18 clients. In October 2018, closely following the filing of a lawsuit by the U.S. Securities and Exchange Commission, the FBI obtained a warrant based on Kelly’s fraud and arrested him. At his sentencing, the Court found that Kelly’s fraud injured vulnerable victims, including the elderly and veterans.
Sean Kelly, 50, of Marietta, Georgia, was sentenced to five in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,457,043.99. Kelly was convicted on these charges on January 4, 2019, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission contributed to 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.
Atlanta man sentenced for nine bank robberiesRead the Press Release
ATLANTA - Patrick Jerome Mouton has been sentenced for nine metro-Atlanta bank robberies. During the robberies, Mouton would approach tellers and give them a threatening note that demanded cash.
“Whether by firearm or threatening note, bank robberies strike fear in the hearts of bank employees and customers,” said U.S. Attorney Byung J. “BJay” Pak. “Citizens trying to do their jobs or conduct their banking business deserve to feel safe in their communities. Thankfully law-enforcement partners worked tirelessly to end this series of robberies.”
“Mouton’s conviction was made possible by a collaborative effort with our law enforcement partners in Atlanta, Alpharetta, Sandy Springs and Cobb County,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “To anyone thinking about robbing a bank, the message from this sentence is clear. You will get caught, and when you do, you will serve a significant amount of time in prison.”
“I’m tremendously proud of our detectives and the work they put in to help solve this case. This demonstrates the importance of having such a close working relationship with our surrounding law enforcement partners.” Chief John Robison, Alpharetta Department of Public Safety.
“Getting a prison sentence for this bank robber shows what good can result when law enforcement agencies work together,” said Atlanta Police Chief Erika Shields. “We are grateful the U.S. Attorney’s Office has shown its commitment to getting serious offenders off of our streets and in prison, where they belong. Their office continues to do exceptional work.”
“We are proud of the partnerships we have established with local, state, and federal law enforcement agencies. We will relentlessly pursue suspects across multiple jurisdiction’s boundaries until we bring the lawless to justice,” said Chief Ken DeSimone of the Sandy Springs Police Department.
“The Cobb County Police Department is proud to be part of the interagency cooperation in this case. It is imperative law enforcement agencies continue to share information in cases like this in order to bring to justice those who prey upon the public regardless of jurisdictional lines,” said Chief Tim Cox of the Cobb County Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: From September 2017 until February 2018, metro-Atlanta banks experienced a startling series of bank robberies. During the robberies, the robber approached the teller and passed a note that demanded cash and threatened harm. On February 2, 2018, Patrick Mouton was arrested after robbing a Regions Bank branch in Atlanta. FBI reviewed surveillance video from numerous robberies and determined that Mouton had robbed seven other banks. In fact, he was captured after robbing a Regions Bank branch for the second time. Alpharetta Police Department detectives utilized information from the Sandy Springs Police Department to locate Mouton’s would-be getaway car and FBI found notes he used in other robberies and items identified in the surveillance videos.
Patrick Jerome Mouton, 47, of Atlanta, Georgia, has been sentenced by U.S. District Court Judge Eleanor L. Ross to five years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $15,734. Mouton was convicted on these charges on January 30, 2019, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Alpharetta Police Department, Sandy Springs Police Department, Cobb County Police Department, and Atlanta Police Department.
Assistant U.S. Attorney Ryan K. Buchanan 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.
Naturalized United States citizen pleads guilty to smuggling aliensRead the Press Release
GAINESVILLE, Ga. – Hector Escobedo-Reyna, a naturalized United States citizen, has pleaded guilty in federal court to the offense of transporting illegal aliens for financial gain.
“Human smugglers carry out their illegal activities seeking financial gain with little regard for human life and no respect for our laws,” said U.S. Attorney Byung J. “BJay” Pak. “Additionally, they endanger not only the people they smuggle, but innocent motorists, when an over-loaded vehicle like the one he was driving either has an accident or causes one.”
“Identifying and stopping criminal networks that engage in cross-border human smuggling as well as individuals who seek to illegally enter the U.S. is a priority focus for Homeland Security Investigations,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “These criminal organizations have no regard for the well-being of the people they attempt to smuggle, who are often put at great risk during an attempt to illegally enter the U.S., and HSI will continue to work collaboratively with our federal, state and local partners to investigate and prosecute such activity.”
“As an assisting agency, the Georgia State Patrol takes pride in being a part of any investigation in which criminals are removed from our roadways. It is a reminder that what some may call a ‘routine’ traffic stop, often leads to more than a traffic citation,” said SFC Stephanie Stallings, Director of Public Information for the Georgia State Patrol.
According to U.S. Attorney Pak, the charge, and other information presented in court: on December 28, 2018, a Trooper from the Georgia State Patrol (GSP) performed a routine traffic stop of a 2004 Chevrolet Suburban on Interstate 85 in Jackson County, Georgia. The vehicle, driven by Hector Escobedo-Reyna, contained ten undocumented individuals, including a minor. Homeland Security Investigations special agents from the Atlanta Field Office responded to the scene to assist the GSP.
Investigators discovered that Escobedo-Reyna had transported the passengers to Atlanta after the group had crossed the United States border with Mexico and traveled through Houston, Texas. Escobedo-Reyna intended to transport and deliver his passengers to other cities along the east coast.
Hector Escobedo-Reyna, 62, of Houston, Texas, was indicted on February 6, 2019, for the offense of knowing, and recklessly disregarding the fact, that aliens had come to, entered, and remained in the United States in violation of law, and of transporting and moving the aliens within the United States by means of transportation and otherwise, for the purpose of financial gain. He pleaded guilty to this offense on May 9, 2019.
This case is being investigated by HSI-Atlanta and the Georgia State Patrol.
Assistant U.S. Attorney Ryan Buchanan and Special Assistant U.S. Attorney Greg Radics 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 defendants sentenced for conspiring to send nearly 14 kilograms of 100% pure methamphetamine from California to GeorgiaRead the Press Release
ATLANTA - Yadira Gomez-Gonzalez has been sentenced for conspiracy to possess with the intent to distribute methamphetamine. Gomez-Gonzalez is the last of three defendants whose drug ring was infiltrated by undercover DEA agents when they attempted to send nearly 14 kilograms of 100% pure methamphetamine from California to Georgia.
“This drug trafficking ring affected countless people with the methamphetamine they were sending across the country,” said U.S. Attorney Byung J. “BJay” Pak. “Thankfully our law enforcement partners penetrated this tight-knit group and have removed this poison from our streets.”
Robert J. Murphy, Special Agent in Charge of the Atlanta DEA office stated, “These individuals established a very lucrative methamphetamine smuggling operation in Atlanta that was crushed by the men and women of DEA. DEA along with its partners will continue to fight those predators who distribute poison in our community.
According to U.S. Attorney Pak, the charges and other information presented in court: DEA agents identified Gomez-Gonzalez and her husband, Fernando Herrera-Rojas, as drug smugglers looking for tractor-trailer drivers to haul drugs between Los Angeles, California and Atlanta, Georgia. An undercover agent, acting as a long-haul trucker, volunteered for the job and negotiated the terms of the transportation and payment with Gomez-Gonzalez and Herrera-Rojas.
After coordinating by phone with Gomez-Gonzalez and Herrera-Rojas, the undercover agent collected nearly 14 kilograms of 100% pure methamphetamine from Reynaldo Gonzalez-Arreola in Commerce, California. All three defendants were arrested after the undercover agent delivered the drugs to Gomez-Gonzalez and Herrera-Rojas in the Atlanta area. Agents also seized $23,890 and a firearm from Gonzalez-Arreola’s home in Los Angeles. Gomez-Gonzalez’s arrest thwarted a separate shipment of drugs she was attempting to coordinate from McAllen, Texas to the Atlanta area.
Members of the conspiracy who have been sentenced by U.S. District Judge Leigh Martin May are:
- Yadira Gomez-Gonzalez, 34, of Kennesaw, Georgia was sentenced to 14 years in prison to be followed by five years of supervised release. Gomez-Gonzalez was convicted on these charges on September 14, 2018, after she pleaded guilty.
- Fernando Herrera-Rojas, 35, of Kennesaw, Georgia, was sentenced to eight years in prison, to be followed by five years of supervised release. Herrera-Rojas pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine on September 14, 2018, and was sentenced on March 29, 2019.
- Reynaldo Gonzalez-Arreola, 32, of Los Angeles, California, was sentenced to 14 years in prison, to be followed by five years of supervised release. Gonzalez-Arreola pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine on January 3, 2019, and was sentenced on March 19, 2019.
All three defendants will be deported to Mexico following their sentence of imprisonment.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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 and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Nicholas Hartigan 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.
DeKalb County agrees to pay $750,000 to settle false claims act allegations related to its use of workforce training grantsRead the Press Release
ATLANTA – DeKalb County, Georgia has agreed to pay $750,000 to resolve allegations that the County and its agency WorkSource DeKalb violated the False Claims Act by misusing grant funds for the Department of Labor’s On-the-Job Training (“OJT”) program, the U.S. Attorney’s Office for the Northern District of Georgia announced today.
“Rather than using the funds to provide training for its citizens who needed it the most, DeKalb County used those funds to subsidize its own payroll,” said U.S. Attorney Byung J. “BJay” Pak. “Public servants who have the fiduciary responsibility of managing federal grant programs should never forget that taxpayers trust them to use grant funds properly. We will aggressively pursue all available remedies against individuals or entities that violate that trust.”
“This settlement resolves allegations that WorkSource DeKalb failed to ensure U.S. Department of Labor funds were used to benefit those who qualified for the Department's On-the-Job Training Programs. We will continue to investigate allegations of DOL grant fraud, especially when American workers may be deprived of training and employment opportunities,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
The OJT program is funded by Department of Labor grant funds that are currently authorized by the Workforce Innovation and Opportunity Act (until July 2015, the Workforce Investment Act). Grant funds are distributed initially to the State of Georgia, who then distributes the funds to local “One-Stop” operators such as WorkSource DeKalb. The OJT program incentivizes employers to hire and train individuals who are either unemployed or employed but not earning self-sufficient wages by subsidizing the salaries for these employees. OJT funds may be used only to reimburse employers for the extraordinary cost of training individuals for whom the One-Stop operator has identified skills gaps that prevent their obtaining employment.
The civil settlement resolves the United States’ claims that, between January 1, 2013 and December 18, 2016, DeKalb County falsely certified compliance with Department of Labor regulations related to OJT. The government alleged that, contrary to these regulations, WorkSource DeKalb used OJT funds to subsidize the wages of County employees who were not eligible for the OJT program and who received no services from WorkSource DeKalb. Specifically, the United States contends that WorkSource DeKalb required that individuals that were not eligible for the program sign OJT paperwork as part of the onboarding process after they were hired by numerous County agencies on the open job market. For example, the County enrolled at least 42 firefighters in the OJT program who were hired as the most qualified applicants in a competitive application process. These individuals had never heard of WorkSource DeKalb prior to being hired, received no services from WorkSource DeKalb, and did not qualify for the OJT program. WorkSource DeKalb employees induced these newly hired firefighters to sign OJT paperwork by providing them free boots and gas cards, which were also paid for with Department of Labor grant funds.
In addition to the Fire and Rescue Department, the civil settlement encompasses the County’s use of OJT funds for employees of the following agencies: GIS Department; Human Resources; Emergency 911; District Attorney’s Office; Board of Commissioners Clerk; Planning and Sustainability; Chamber of Commerce; Sanitation, Information Systems; Child Advocacy; and Voter Registration. The settlement also resolves claims that WorkSource DeKalb enrolled ineligible employees with VetConnexx, a private employer.
The claims settled in the civil settlement are allegations only, and there has been no determination of liability. As part of its settlement with the United States, DeKalb County has also entered into a Corrective Action Plan with the Department of Labor, in which the County will be subject to reporting and monitoring requirements related to its administration of the OJT Program.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Department of Labor, Office of Inspector General.
Assistant U.S. Attorney David A. O'Neal handled this matter for the U.S. Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Gangster Disciples gang members convicted including a former DeKalb police officerRead the Press Release
ATLANTA – A federal jury has convicted five members of the Gangster Disciples (“GD”) national criminal organization of offenses including racketeering, conspiracy involving murder, carjacking, attempted robbery, and other crimes.
“The defendants in this case were each responsible for horrific violent crimes,” said U.S. Attorney Byung J. “BJay” Pak. “It should give the community comfort to know that justice has been done and that each defendant faces a long prison sentence in a federal facility. Gangs like this cannot hide behind a veil of performing community service while at the same time encouraging crimes such as murder and robbery. We, along with our local law enforcement and district attorney partners, will continue to vigorously prosecute gangs and seek punishment for their leaders.”
“I would like to thank the FBI led Safe Streets Gang Task Force and its state and local partners, in particular in this case, the Atlanta Police Department and DeKalb County Police Department, for their efforts in making this case and making our streets safer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The Gangster Disciples are a ruthless gang that has preyed upon the good people of our communities for far too long. We are dedicated to continue dismantling these organized and violent criminal enterprises until we reach our ultimate goal of ending their reign of terror.”
“This case is a great example of the value of interagency cooperation on a state and federal level. We are proud to stand with our Federal partners in an effort to dismantle dangerous gang operations plaguing our communities. We hope these convictions, along with the previous Gangster Disciple convictions in our local jurisdiction, send a strong and clear message that those who choose to engage in violent behavior will pay a price,” said DeKalb County District Attorney Sherry Boston.
According to U.S. Attorney Pak, the charges and other information presented in court: The Gangster Disciples are a national gang with roots in Chicago dating back to the 1970s. The gang is highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “Silence and Secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death.
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 twelve victims murdered by Gangster Disciples and another twelve non-fatally shot.
Included in those murders was the killing of a man as he and his family walked home from a convenience store, leaving the man shot and dying in front of a 4-year-old child. The jury also saw surveillance footage from a shooting inside a Macon nightclub that left three people dead and another three injured. The jury also heard from a victim who was shot more than a dozen times because he refused to take part in a Gangster Disciples’ sponsored community clean-up.
Evidence of other crimes included a recording that captured a gang meeting where members planned to rob over $80,000 from another fraudster and recorded phone calls where defendants planned and then committed a carjacking.
Among the defendants convicted, three were Gangster Disciples with high-level state leadership positions. The evidence at trial showed that Alonzo Walton was the “Governor,” or highest-ranking Gangster Disciple in the State of Georgia, overseeing the entire state. Kevin Clayton was the “Chief Enforcer” for the state, responsible for violently maintaining discipline among members. The state’s enforcement structure included a specialized team known as the “Hate Committee,” led by Donald Glass and responsible for carrying out shootings, robberies and murders.
Also convicted was Vancito Gumbs, a former DeKalb County police officer who was a Gangster Disciple member and self-professed “hitman” for the gang while serving as an officer. Evidence showed that Gumbs relayed law enforcement information to the gang and provided guns. The jury also convicted Antarious Caldwell, who took part in murders and robberies as a member of the “Hate Committee.” One defendant, Perry Green, was acquitted on of the single charge against him.
The defendants convicted in this case were found guilty of the following charges:
- Alonzo Walton, 51, of Atlanta, Georgia, was convicted of racketeering conspiracy involving murder, carjacking, and brandishing a firearm during and relation to a crime of violence.
- Kevin Clayton, 47, of Stone Mountain, Georgia, was convicted of racketeering conspiracy involving murder.
- Donald Glass, 31, of Decatur, was convicted of racketeering conspiracy involving murder, discharging a firearm during and in relation to a crime of violence, and causing death through the use of a firearm.
- Vancito Gumbs, 27, of Stone Mountain, Georgia, was convicted racketeering conspiracy involving murder.
- Antarious Caldwell, 25, of Ellenwood, Georgia was convicted racketeering conspiracy involving murder.
Previously, 18 defendants pleaded guilty, and there are 15 defendants presently awaiting trial in this case.
This case was investigated by the FBI Safe Streets Task Force, DeKalb Police Department, DeKalb District Attorney’s Office, and Atlanta Police Department.
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.
Cartel transportation head sentenced to federal prison for drug trafficking and money launderingRead the Press Release
ATLANTA - Carlos Montemayor, the head of the U.S. arm of the cocaine transportation and distribution network of Edgar Valdez-Villareal, a/k/a La Barbie, has been sentenced to federal prison on charges of cocaine trafficking and money laundering.
“Montemayor came to the United States from Mexico and used his skills, hard work, and the opportunities afforded in this country to build a successful trucking company from the ground up,” said U.S. Attorney Byung J. “BJay” Pak. “However, he was ultimately driven by greed and partnered with Edgar Valdez-Villareal to convert his trucking company into a transportation arm for the Sinaloa and Beltran-Leyva cartels, shipping tons of cocaine and drug money across the United States.”
Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration in Atlanta commented, “Today’s sentencing of Carlos Montemayor is a victory for the citizens of this country. This defendant’s decision to hide behind the veil of his once legitimate trucking company led to a twist of fate driven by greed. Because of the united front between DEA, the United States Attorney’s Office, its federal, state, local, and foreign partners, the citizens of this country can feel safer.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in 1992, Montemayor established and built a successful trucking and logistics company in Laredo, Texas, that specialized in moving goods across the border from Nuevo Laredo, Mexico, and then into and across the United States.
In 2002, however, he partnered with Edgar Valdez-Villareal, the infamous and ruthless enforcer for the Sinaloa and Beltran-Leyva cartels. Valdez, who would ultimately become the highest ranking American-born member of a Mexican drug cartel, needed help moving his cocaine from Mexico to customers in the United States. Montemayor’s transportation network fit the need exactly.
Using his logistics skills, trucks, and distribution hubs, Montemayor was soon moving up to 300 kilograms of cocaine per week to stash houses in Atlanta, Memphis, Tennessee, and other cities in the United States. He then used his trucks to smuggle proceeds from the drugs sales back to Mexico – in shipments that carried no less than $1 million cash per load. Montemayor’s transportation network was particularly regimented, disciplined, and efficient, with Montemayor and his lieutenants exercising tight control over the workers and all aspects of the drug trade.
The entire drug trafficking network was pierced by DEA agents who began wiretapping phones used by Montemayor’s workers at a distribution hub in Atlanta. Methodically unraveling the network of conspirators, seizing hundreds of kilograms of cocaine and millions of dollars of cash at a time, agents followed the chain of command of the organization to identify Montemayor, ultimately intercepting the calls in which he tightly controlled activities from Mexico. Agents then went even further to identify Montemayor’s partner and cocaine supplier: Valdez. Both Valdez and Montemayor were arrested in Mexico in 2010, and extradited to face trial in the United States in 2015.
Carlos Montemayor, a/k/a The Director, a/k/a Licenciado, a/k/a Fox, 47, of Tamaulipas, Mexico, was sentenced to 34 years, three months in prison to be followed by 10 years of supervised release by U.S. District Judge Leigh Martin May. Montemayor pleaded guilty to conspiracy to import cocaine, conspiracy to distribute cocaine, possession with intent to distribute cocaine, and conspiracy to launder money on November 14, 2018.
Members of the drug trafficking operation previously sentenced in the U.S. Court for the Northern District of Georgia are:
- Edgar Valdez-Villareal, a/k/a La Barbie, of Laredo, Texas, was sentenced to 49 years and one month in prison to be followed by 10 years of supervised release, and ordered to forfeit the sum of $192,000,000. Valdez-Villareal pleaded guilty to conspiracy to import cocaine, conspiracy to distribute cocaine, and conspiracy to launder money on January 6, 2016, and was sentenced on June 6, 2018.
- Ruben Hernandez, a/k/a Super, a/k/a Secre, was sentenced to 22 years, four months in prison to be followed by five years of supervised release. Hernandez pleaded guilty to conspiracy to distribute cocaine and conspiracy to launder money on January 29, 2013, and was sentenced on October 15, 2013.
- Juan Montemayor, a/k/a Vice, a/k/a Johnny-5, was sentenced to 21 years, 10 months in prison to be followed by five years of supervised release. Juan Montemayor pleaded guilty to conspiracy to import cocaine and conspiracy to distribute cocaine on July 16, 2013, and was sentenced on October 15, 2013.
- Jesus Ramos, a/k/a C-1, was sentenced to eight years, four months in prison to be followed by five years of supervised release. Ramos pleaded guilty to conspiracy to distribute cocaine on June 18, 2010, and was sentenced on January 21, 2011.
- Jesus Hector Flores, a/k/a Cain, was sentenced to 38 years, four months in prison to be followed by 10 years of supervised release. Flores was convicted by a jury of conspiracy to distribute cocaine and ecstasy, possession with intent to distribute cocaine, and possession of firearms in furtherance of a drug trafficking crime on January 11, 2008, and was sentenced on May 9, 2008.
- Romero Roel Martinez, a/k/a Cache, a/k/a Cuchillo, was sentenced to 26 years, 10 months in prison to be followed by five years of supervised release. Martinez pleaded guilty to conspiracy to distribute cocaine and possessing firearms in furtherance of a drug trafficking crime on April 20, 2007, and was sentenced on May 8, 2008.
- Luis Fernando Trevino, a/k/a Chile, was sentenced to 14 years, nine months in prison to be followed by five years of supervised release. Trevino pleaded guilty to conspiracy to distribute cocaine and possessing firearms in furtherance of a drug trafficking crime on March 14, 2007, and was sentenced on June 17, 2008.
- Joe Louis Lopez, a/k/a Jolly, was sentenced to 29 years, four months in prison to be followed by 10 years of supervised release. Lopez was convicted by a jury of conspiracy to distribute cocaine, possession with intent to distribute cocaine, and brandishing a firearm in furtherance of a drug trafficking crime on January 11, 2008, and was sentenced on May 7, 2008.
- Roberto Garcia, a/k/a Gordo, a/k/a Mike Jones, was sentenced to 14 years, nine months in prison to be followed by five years of supervised release. Garcia pleaded guilty to conspiracy to distribute cocaine and possessing firearms in furtherance of a drug trafficking crime on April 20, 2007, and was sentenced on May 28, 2008.
Florentino Villanueva-Castillo, a/k/a Tejano, was sentenced to 11 years in prison to be followed by five years of supervised release. Villanuevo-Castillo pleaded guilty to conspiracy to distribute cocaine on January 7, 2008, and was sentenced on May 28, 2008.
This case was investigated by the Drug Enforcement Administration.
Former U.S. Attorney John Horn, Assistant U.S. Attorney Elizabeth M. Hathaway – Chief of the Narcotics and Dangerous Drugs Section, and Assistant U.S. Attorney Garrett L. Bradford – Deputy Chief of the Narcotics and Dangerous Drugs Section prosecuted the case. The Department of Justice’s Office of International Affairs provided assistance with this case.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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 and money laundering organizations and those primarily responsible for the nation’s drug supply.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Georgia Insurance Commissioner Jim Beck charged with $2,000,000 fraud schemeRead the Press Release
ATLANTA - Georgia Insurance Commissioner Jim C. Beck has been indicted by a federal grand jury on charges of wire fraud, mail fraud and money laundering. The 38-count indictment alleges that Beck stole more than $2,000,000 from his former employer, the Georgia Underwriting Association, during the five years just prior to Beck’s election to statewide office in November, 2018.
“The grand jury seeks to hold Commissioner Beck accountable for taking advantage of his position at the Georgia Underwriting Association. Beck allegedly pocketed a substantial amount of money to which he was not entitled while he was the GUA General Manager for Operations,” said U.S. Attorney Byung J. “BJay” Pak. “To be clear, the grand jury has charged Commissioner Beck with crimes that occurred before he was elected to his current public office.”
“The FBI investigation found that Beck abused the trust of friends and his employer (GUA), in an elaborate scheme to enrich himself at GUA’s expense,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The indictment is a testament to the fact that the FBI will expend all resources necessary to hold those who seek to enrich themselves through fraud and deceit, accountable for their actions.”
According to U.S. Attorney Pak and the indictment: From January 2012 until Beck was sworn in as Insurance Commissioner on January 14, 2019, Beck worked as the General Manager of Operations for the Georgia Underwriting Association (GUA) after being elected to that post by the GUA board of directors. GUA, located in Suwanee, Georgia, is an insurance association created as part of the Georgia Fair Access to Insurance Requirements (FAIR) law to provide high-risk property insurance to homeowners located throughout Georgia. In addition to premiums collected from its customers, GUA is also funded by issuing assessments to the association members, which include every insurer authorized to write any form of property insurance in the State of Georgia.
While Beck served as General Manager at GUA, he also maintained controlling financial interests in two businesses known as Creative Consultants and the Georgia Christian Coalition. Beginning in 2013, Beck allegedly talked four associates into forming four separate businesses which supposedly supplied necessary services including residential property inspections and water damage mitigation to GUA. These new businesses are identified in the indictment as Companies A, B, C, and D.
Then, through an elaborate system of fraudulent invoicing which included producing false documentation and concealing the truth from his four associates, Beck regularly approved substantial GUA payments to the four new companies. Beck then allegedly sent fraudulent invoices from Creative Consultants and the GA Christian Coalition to Companies A, B, C, and D. At Beck’s direction, his four associates paid the fraudulent invoices from a portion of the money they had been paid by GUA. All told, between February 2013 and August 2018, Beck defrauded GUA out of more than $2,000,000.
Jim C. Beck, 57, of Carrollton, Georgia, was indicted on May 14, 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.
U.S. Attorney Pak and Assistant U.S. Attorney Brent Alan Gray, Deputy Chief of the Public Integrity and Special Matters Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury finds podiatrist guilty of operating pill millRead the Press Release
ATLANTA – Dr. Arnita Avery-Kelly, a licensed podiatrist, has been found guilty on federal charges of illegally prescribing opioid painkillers and other drugs at clinic locations purporting to provide podiatric care in Sandy Springs, and Lithonia, Georgia.
“Avery-Kelly took an oath and was trusted to provide appropriate podiatric care to her patients,” said U.S. Attorney Byung J. “BJay” Pak. “Instead, with the assistance of her office manager, she prescribed addictive opioids without any legitimate medical need, turning her prescription pad into an ATM. Her behavior fed into the continuing problem of addiction to powerful prescription opioids, which, unfortunately, continues to take a daily toll on many members of our community.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the case, “While in the midst of this country’s prescription opioid crisis, removing and ultimately eliminating physicians who recklessly overprescribe pharmaceutical pills (particularly prescribed opioids) for non-medical reasons, is an important part of DEA’s mission. This pill peddling Podiatrist distributed large quantities of opiate-based pills to scores of drug-seeking patients. She will no longer be able to commit such unlawful acts because of the hard work and dedication put forth by DEA, its federal, state and local law enforcement partners and the U.S. Attorney’s Office.”
“Dr. Avery-Kelly DPM abused her position as a podiatrist and recklessly prescribed very powerful and addictive opioids without any regard for the devastating effects they would have,” said Derrick L. Jackson, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS-OIG is committed to bringing to justice, those medical practitioners who would endanger our communities, taint their profession and abuse their ability to prescribe these drugs for profit.”
According to U.S. Attorney Pak, the charges and other information presented in court: Arnita Avery-Kelly was a licensed podiatrist, which means she was permitted to evaluate and treat the foot and leg. A nearly three-year federal investigation began when the Georgia Drug & Narcotics Agency (GDNA) agents contacted Dr. Avery-Kelly in November 2013, and again in February 2014, to discuss the high volume, high dosage prescriptions she had written for opioids. Despite GDNA’s warnings, as well as a subsequent inquiry by the Georgia Podiatry Board, Dr. Avery-Kelly, with the assistance of office manager Brenda Lewis, continued to prescribe large volumes of controlled substances without a legitimate medical need and outside the scope of podiatric practice.
After these visits, GDNA worked with the Drug Enforcement Administration (DEA) and the Department of Health and Human Services (HHS) to conduct the investigation, which culminated in this jury trial.
After being suspended from submitting claims through Medicare, Avery-Kelly began prescribing opioids and benzodiazepines to addicts and drug traffickers posing as patients at her podiatric clinics. During the time her clinics were open, Avery-Kelly prescribed over 275,000 30mg oxycodone pills, along with 104,000 8mg hydromorphone pills, and 300 fentanyl patches to patients who were either addicted to these substances or selling them on the streets. The average price for a single Oxycodone 30mg pill was about $30 per pill.
In April 2016, DEA and HHS agents executed a federal search warrant at Avery-Kelly’s office in Sandy Springs, effectively shutting down her clinics. At that time, Avery-Kelly also voluntarily surrendered her DEA registration, which permitted her to prescribe controlled substances. After five days of hearing evidence and two days of deliberation, a jury found Avery-Kelly guilty of 27 counts of distributing these highly addictive opioids, without a legitimate medical purpose and outside the scope of professional practice.
Sentencing for Arnita Avery-Kelly, 56, of Sandy Springs, Georgia, is scheduled for July 24, 2019, at 10:00 a.m. before U.S. District Judge Eleanor L. Ross. Avery-Kelly was indicted along with her officer manager, Brenda Lewis, on December 21, 2016.
This case is being investigated by the Drug Enforcement Administration and Department of Health and Human Services.
Assistant U.S. Attorneys Trevor Wilmot and Cassandra J. Schansman are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bartow county man charged with employing and exploiting illegal aliensRead the Press Release
ROME, Ga. - Juan Antonio Perez has been indicted on charges that his construction company, Aztec Framing, which operated in northwest Georgia and eastern Tennessee, profited by employing illegal aliens and paying them below-market wages. He has also been charged with being an illegal alien in possession of 14 firearms. Federal law prohibits illegal aliens from possessing firearms.
“Perez not only broke the law by allegedly hiring illegal aliens at below-market wages and paying no taxes, he had a large assortment of weapons including shotguns and pistols that he had acquired through various means other than buying them himself,” said U.S. Attorney Byung J. “BJay” Pak. “Illegal aliens, such as Perez, are not allowed to own firearms at all. We will get to the bottom of how he acquired them.”
“Individuals, like Mr. Perez, who flagrantly violate federal law to give themselves an unfair business advantage are cheating both law-abiding employers and employees exploited by these unfair and illegal labor practices,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “This case is an illustration of serious threats to public safety on numerous levels. Homeland Security Investigations will continue to focus not only on workers who violate federal law but also their employers.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Perez allegedly came to the United States illegally in 1992. He has lived in Bartow County, Georgia, and has operated Aztec Framing at least since 2009. Aztec Framing has offices in Cartersville and Rossville, Georgia, and Hixon, Tennessee.
Perez allegedly employed illegal aliens at below-market rates, provided no benefits or insurance, and did not pay payroll taxes or Social Security. Perez built his family a 7,500-square-foot house, bought other houses where he allowed some of his employees to live, and purchased more than 50 sports cars and heavily customized trucks. Yet, as of April 2019, the Georgia Department of Labor had no record of Perez reporting any income. Perez was also known to collect firearms, and was found to have 14 in his home when agents searched it on April 30, 2019.
Juan Antonio Perez, 46, of Rydal, Georgia, was indicted by a federal grand jury on May 7, 2019. He will be arraigned at 9:30 a.m. on Monday, May 13, 2019, before U.S. Magistrate Judge Walter E. Johnson.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bartow-Cartersville Drug Task Force, with assistance from the Federal Bureau of Investigation, U.S. Customs and Border Protection Air and Marine Operations, the Georgia Bureau of Investigation, the Cherokee Multi-Agency Narcotics Squad, and the Polk County Drug Task Force.
Assistant U.S. Attorney William Traynor 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.
Gang member sentenced to federal prison for possessing drugs and a firearm while on probationRead the Press Release
ATLANTA - Enrique Fuentes has been sentenced for possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Fuentes is a member of the “18th Street” gang.
“This gang member, while on probation, sat outside of a restaurant in broad daylight with a gun as well as methamphetamine packaged for sale,” said U.S. Attorney Byung J. “BJay” Pak. “Fuentes will be off our streets as a result of the outstanding efforts of the Chamblee Police Department and Homeland Security Investigations. We are strategically and aggressively working to make our communities safer and this case is another example of the positive impact of Project Safe Neighborhoods.”
“HSI is committed to combatting transnational gang members who threaten public safety with criminal activities in our neighborhoods,” said Nick S. Annan, Special Agent in Charge of HSI Atlanta. “Violent street gangs and their transnational contacts are a priority focus for HSI and this case illustrates the importance of collaborative relationships between HSI and local law enforcement across Georgia to keep our communities safe.”
“We are very appreciative of the outstanding partnership between state, local, and federal agencies which has proven to be effective in keeping our communities safe. In this case, it has taken a dangerous gang member and drug dealer off the streets. The successful prosecution of cases like this reduces crime and the fear of crime in our communities,” said Assistant Chief of Police Michael Beller, Chamblee Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: On the morning of April 25, 2018, officers with the Chamblee Police Department were on patrol when they observed Fuentes and a female sitting in front of a restaurant. One of the officers then witnessed him hand something to the female, so they approached and discovered that both Fuentes and the female had been smoking marijuana. The officers then learned that Fuentes had an outstanding warrant for a probation violation.
After Fuentes was secured, officers searched a brown paper bag next to him and found 11 smaller plastic baggies, each containing methamphetamine, which weighed a total of 289 grams. In addition to the drugs, officers found inside of the bag a .38 caliber revolver and a small scale used for weighing narcotics for distribution and sale. At the time he possessed these narcotics and firearm, Fuentes was on probation for a 2016 felony conviction.
Enrique Fuentes, a/k/a Grumpy, 32, of Chamblee, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to eight years, eight months in prison to be followed by three years of supervised release. Fuentes was convicted on these charges on February 7, 2019, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Chamblee Police Department.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, 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 probation officer charged with extorting a paroleeRead the Press Release
ATLANTA – Tyrique F. Williams, a former officer with Georgia’s Department of Community Supervision, has been charged with accepting bribe payments from a parolee in exchange for allowing the parolee to avoid wearing an ankle monitor, taking polygraph examinations, and attending treatment classes.
“Officers from Georgia’s Department of Community Supervision serve our citizens faithfully and honorably every day,” said U.S. Attorney Byung J. “BJay” Pak. “Williams, however, allegedly violated both his oath of office as a law enforcement officer and the law when he traded his integrity for money.”
“As citizens, we place our safety and trust in the hands of the law enforcement officers sworn to protect us. When officers betray that trust, they place the community and their fellow law enforcement officers in danger. The DeKalb County District Attorney’s Office is committed to working hand in hand with its partners to ensure those that betray their badge are identified and held accountable for their actions,” said DeKalb County District Attorney Sherry Boston.
“The reputation of law enforcement officers is one of their most valuable tools. The alleged illegal actions committed by Mr. Williams are a disservice to our agency and its upstanding employees who take their oath of office to heart. DCS has zero tolerance for misconduct or illegal activity. Despite the situation being unfortunate and regrettable, DCS was happy to assist in the investigation and will continue to partner with investigative authorities to remove the likes of Williams from our noble profession,” said Racheal B. Peters, Director of Public 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 began 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 for a sexual offense. 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 allegedly 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
Tyrique F. Williams, 28, of Atlanta, has been charged via criminal information with one count of Extortion under the Color of Official Right. Defendants who are charged by a criminal information, typically plead guilty shortly after being arraigned.
This case is being 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, Chief of the Public Integrity and Special Matters Section, 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.
Former correctional officer sentenced after smuggling narcotics into Hays State PrisonRead the Press Release
ROME, Ga. - Mark Edward Jeffery, a former Georgia Department of Corrections (GDC) officer, who smuggled alcohol, drugs, and contraband cellphones into Hays State Prison, has been sentenced to federal prison for possession with the intent to distribute methamphetamine.
“Smuggling illegal contraband into a prison jeopardizes the safety of jailers and inmates alike,” said U.S. Attorney Byung J. “BJay” Pak. “Contraband also fosters criminal activities both inside and outside of prisons. Correctional officers like Jeffery, who disgrace their badge, can expect to be prosecuted and join the prison population they were eager to accommodate by committing these crimes.”
“Jeffery betrayed the trust placed in him by the Department of Corrections through his illegal and potentially dangerous activity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The investigation and prosecution of this case shows that we will not tolerate corrupt staff who violate their sworn duties as government employees and jeopardize the safety of their fellow officers.”
“We are pleased to see that justice has been served on this former Officer for his role in jeopardizing our non-negotiable mission of public safety,” said GDC Commissioner Timothy C. Ward. “Ridding our prisons of corrupt staff and shedding light on those who choose to ignore that mission remains a top priority.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On April 17, 2017, Jeffery began working as a correctional officer at Hays State Prison in Trion, Georgia. The facility opened in 1990 and currently holds approximately 1,680 male prisoners.
On February 7, 2018, one of Jeffery’s fellow correctional officers observed a large rectangular object, wrapped in black electrical tape, hidden in Jeffery’s beverage container. The fellow officer notified a supervisor about possible contraband. Later that day, the prison’s chief of security asked Jeffery to consent to a search of his person and belongings. Jeffery consented to the search and correctional officers found one brown glass smoking utensil, four cellular phone chargers, four smartphones, two bags containing 190 pills, a plastic bag with methamphetamine, and a water bottle with alcohol.
Mark Edward Jeffery, 34, of Fairmount, Georgia, was sentenced by Senior U.S. District Judge Harold L. Murphy to five years in prison, to be followed by three years of supervised release, and a $100 special assessment. A federal grand jury indicted Jeffery, and he pleaded guilty on February 11, 2019 to one count of possession with intent to distribute a controlled substance.
This case was investigated by the Federal Bureau of Investigation and the Georgia Department of Corrections.
Assistant U.S. Attorney C. Brock Brockington 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.
Atlanta sex trafficker sentenced to 21 yearsRead the Press Release
ATLANTA - Quintavious Obie has been sentenced to federal prison for engaging in sex trafficking and witness tampering. The defendant was originally indicted for sex trafficking in 2018 but continued to harass and intimidate victims and was charged with witness tampering as well.
“Obie lured his victims into prostitution and after he was arrested continued to harass and intimidate them,” said U.S. Attorney Byung J. “BJay” Pak. “Sex trafficking exploits and traumatizes some of the most vulnerable members of our society. We are sending a clear message to those seeking to engage in this type of criminal activity: you will be caught and prosecuted.”
“This defendant showed a complete disregard for the women he entrapped into sex trafficking,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners made this case a priority and were successful in getting Obie off our community’s streets, despite his efforts to circumvent the charges against him by intimidating his victims.”
“Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
According to U.S. Attorney Pak, the charges and other information presented in court: Quintavious Obie lured young women from rural areas in South Carolina to Atlanta with promises of a lucrative lifestyle. However, once they arrived in Atlanta, they were forced into a life of prostitution through mental and physical abuse. The victims were forced to engage in prostitution and to turn over to Obie all of the money they received. His victims were not allowed to go anywhere without his knowledge nor see anyone unless they were a paying client. Any deviation from his rules brought severe punishment.
Obie was indicted for sex trafficking in January 2018. However, this did not stop Obie from continuing his pattern of harassment and victimization. Specifically, from January 2018 to April 2018, Obie had others call and text his victims to have them retract their statements to law enforcement in an effort have his case dismissed. As a result, he was also charged with witness tampering.
Quintavious Obie, a/k/a Swayzii, a/k/a Shank, 32, of Atlanta, Georgia, was sentenced by U.S. District Judge Orinda D. Evans to 21 years, six months in prison to be followed by 10 years of supervised release, a special assessment of $300, and ordered to pay restitution in the amount of $7,500 per victim. Obie was convicted on these charges after pleading guilty on January 7, 2019.
This case was investigated by the FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Jennifer Keen and Stephanie Gabay-Smith 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.
Two Georgia tax defiers face charges for filing retaliatory liens against IRS officialsRead the Press Release
ATLANTA –Bryan McElroy and Angela McBride have been arraigned in separate federal cases on charges of attempting to file fraudulent, retaliatory liens against federal government officials.
“Attempting to obstruct the IRS’s tax assessment and collection efforts is a federal crime,” said U.S. Attorney Byung J. “BJay” Pak. “Individuals who file false liens against government officials in retaliation for the IRS’s activities, or interfere with the operations of the IRS, will be prosecuted.”
“TIGTA’s statutory mission includes investigating individuals who are alleged to pose a threat to IRS employees engaged in the lawful collection of taxes,” said J. Russell George, Treasury Inspector General for Tax Administration. “Attempts to intimidate or retaliate against IRS employees engaged in the performance of their official duties will not be tolerated. We appreciate the efforts of the U.S. Attorney’s Office to work with TIGTA to protect the integrity of tax administration.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In April 2014, the IRS issued a notice of intent to levy on McElroy regarding his unpaid taxes. In response, McElroy allegedly filed a false lien with the Fayette County clerk of court, listing U.S. Treasury Secretary Jacob Lew, Treasury Inspector General Eric Thorson, and IRS Commissioner John Koskinen as debtors, and responsible parties for his financial liabilities. After the IRS notified McElroy that a frivolous position taken on any filing with the IRS could result in the assertion of a $5,000 penalty, he filed another lien, again naming the same government officials as responsible parties for his debts.
McBride is charged with a similar offense. After McBride allegedly filed a frivolous income tax return for 2013, the IRS notified McBride that she would be subject to a $5,000 penalty unless she filed a corrected tax return within 30 days. Instead of filing a corrected return, McBride filed a lien with the DeKalb County clerk of court purporting to assign the $5,000 penalty issued against her to IRS Commissioner John Koskinen.
Bryan McElroy, 57, of Newnan, Georgia, and Angela McBride, 57, of Ellenwood, Georgia, were arraigned before U.S. Magistrate Judge Linda T. Walker. McBride and McElroy were each charged by a federal grand jury in separate indictments on April 16, 2019. McElroy is charged with six counts of attempting to file a false and retaliatory lien against a government official. McBride is charged with one count of the same.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Irina Dutcher and Annalise Peters are prosecuting the cases against McElroy and McBride.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney reminds taxpayers to be vigilant as tax day approachesRead the Press Release
ATLANTA - With the tax deadline quickly approaching for individual taxpayers, it is important to be aware of tax scams as well as the importance of being compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.
“Criminals continue use tax fraud schemes to steal from tax-payers,” said U.S. Attorney Byung J. “BJay” Pak. “Be honest and truthful in your tax filings, and beware of others who look to take advantage of you and the tax system.”
“We have IRS Special Agents located here in Georgia working around the clock to uncover, stop and work with the U.S. Attorney’s Office in prosecuting tax crimes. With the filing season coming to an end, it’s important that the public be aware of various tax schemes and report the scheme to either the IRS or their local police department,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI, Atlanta Field Office.
The U.S. Attorney’s Office for the Northern District of Georgia, along with agents of IRS-Criminal Investigation and other law enforcement partners, is actively engaged in investigating and prosecuting tax fraud as well as combatting those criminals willing to steal identities and commit tax fraud on the unsuspecting public. Over the past year, multiple tax investigations were successfully resolved, with approximately 13 convicted individuals sentenced related to fraudulent tax schemes since May of 2018. The following are highlights of some of those cases:
Lakeisha Stone
On December 10, 2018, Lakeisha Stone of Fairburn, Georgia was sentenced to four years, two months in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $392,174 to the IRS for her role in a scheme to defraud the IRS. Stone used two other individuals as nominee names to obtain fraudulent Electronic Filing Identifying Numbers and Preparer Tax Identification Numbers to prepare false income tax returns. Stone also stole the identities of some of her tax customers and cashed stolen treasury checks. Stone used the Atlanta-based businesses Taxes R’ Us, Taxs R’ Us, and Tax Tyme to commit her fraudulent activity.
Stephanie Parker
On November 15, 2018, Stephanie Parker of Atlanta, Georgia was sentenced to two years in federal prison, to be followed by one year of supervised release and ordered to pay $5,964 in restitution to the IRS for a scheme to use stolen identities to defraud the IRS. Parker was an employee of the IRS and worked in the IRS office located in Chamblee, Georgia. From September of 2012 through April of 2013, Parker accessed taxpayers’ personal identifying information (“PII”) while employed as a customer service representative for the IRS. Parker took those taxpayers’ PII and filed fraudulent tax returns with the IRS in those names.
Joseph Racine & Arnouse Merlien
On November 8, 2018, Joseph Racine, of Boynton Beach, Florida, was sentenced to three years, four months in federal prison, to be followed by three years of supervised release and Arnouse Merlien, also of Boynton Beach, was sentenced to three years in federal prison, followed by three years of supervised release and both were ordered to pay $3,854,915 in restitution to the IRS for conspiracy to defraud the IRS. Racine was the owner of JSR Westend Tax Services, located in Atlanta, and JSR Tax Services, located in Greenacres, Florida. Merlien was the office manager of JSR Tax Services in Florida. The IRS-CI investigation revealed that Racine was filing fraudulent returns involving multiple credits and deductions, including the fuel tax credit, refundable education credit, and unreimbursed employee business expenses. Racine requested refunds on 99 percent of the returns, a rate significantly higher than the average over the same years. In March 2017, IRS-CI determined that JSR Tax Services in Florida, where Merlien primarily worked, was filing federal tax returns displaying the same patterns of fraud as those prepared at JSR Westend Tax Services in Atlanta. The investigation revealed that Racine and Merlien engaged in this scheme to increase the amount of money they could charge their clients for preparing their returns.
Michael Jon Kell
On October 16, 2018, Michael Jon Kell of Powder Springs, Georgia was sentenced to one year, six months in federal prison, followed by one year of probation and ordered to pay $321,878 in restitution to the IRS for a twenty year tax scheme to funnel millions of dollars in assets through a church he created in order to evade filing federal tax returns. Dr. Kell developed numerous patented technologies and worked as a consultant, which generated millions of dollars in income over the years. In an attempt to hide this income, he founded and claimed to be the “pastor” of the First Meliorite Church, which he said was a branch of the Universal Life Church. Dr. Kell directed his substantial income and assets into bank accounts belonging to the church—all of which were under Dr. Kell’s exclusive control. He used these accounts to cover all of his personal expenses—including overseas vacations, dining out, high-end clothing purchases, online dating services, and private school tuition for his children. Dr. Kell also transferred ownership of his multi-million dollar residence in Vinings several times over the years to various entities he created and controlled, in an effort to protect the property from creditors, including the IRS.
Hanh Tran
On April 8, 2019, Hanh Tran of Lilburn, Georgia was sentenced to ten months of home confinement, to be followed by twelve months of supervised release and ordered to pay $124,812 in restitution to the IRS for willfully filing a false tax return with the IRS. For the tax years 2010 through 2014, Tran underreported his total income causing an underreporting of his tax liability of $124,812. Hanh Tran is the C.E.O. of Glamour Salon & Spa, Inc. located in Marietta, Georgia.
Go to https://www.irs.gov/newsroom/irs-concludes-dirty-dozen-list-of-tax-scams-for-2019-agency-encourages-taxpayers-to-remain-vigilant-year-round for more information on the Dirty Dozen for the 2019 filing season.
For Atlanta Field Office IRS-Criminal Investigation interview requests or questions, please contact their Public Information Officer at [email protected].
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tax business owner charged with preparing and filing false tax returnsRead the Press Release
ATLANTA – Local tax business owner Thomas Holmes has been arraigned on federal charges of willfully preparing and filing federal income tax returns that fraudulently claimed hundreds of thousands of dollars in tax refunds.
“Citizens expect tax preparers like Holmes to accurately prepare and file their returns,” said U.S. Attorney Byung J. “BJay” Pak. “His alleged abuse of the tax system for financial gain undermines public confidence in the system. We have dedicated resources to combat this kind of theft, and we will aggressively prosecute those who believe they can file false tax returns, thereby cheating everyone else.”
“Holmes took advantage of his clients’ trust and lined his pockets with fraudulent tax refunds. If you use a return preparer to file your taxes, ask to review the tax return before it is filed with the IRS and ask for a copy of the filed tax return. If you become suspicious that your return preparer isn’t filing the correct information, report that return preparer to the IRS,” said Steve S. Bahhur, Acting Assistant Special Agent in Charge of IRS-CI, Atlanta Field Office.
According to U.S. Attorney Pak, the charges, and other information presented in court: Thomas Holmes ran a tax preparation business in Austell, Georgia called TKO Tax Pros. Between 2013 and 2017, Holmes, through TKO Tax Pros, prepared and filed thousands of federal income tax returns on behalf of clients. The indictment alleges that on many of those returns, Holmes willfully listed false information, such as false Schedule C business losses and false Schedule A itemized deductions, causing the tax returns to claim thousands of dollars in refunds that taxpayers were not entitled to. When the Internal Revenue Service (“IRS”) issued refunds to these taxpayers, Holmes allegedly kept a portion of the fraudulent refunds for himself and paid the balance to his clients. During the relevant time period, Holmes made hundreds of thousands of dollars for his tax preparation services.
Thomas Holmes, 41, of Austell, Georgia, was arraigned before U.S. Magistrate Judge Janet F. King. He was indicted by a federal grand jury on April 10, 2019 on 22 counts of willfully preparing and filing fraudulent federal income tax returns on behalf of eight individual taxpayers.
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 Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Annalise Peters 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.
Justice Department observes national crime victims’ rights week with events throughout the countryRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia joins the Department of Justice in observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
“During National Crime Victim’s Rights Week we honor all victims of a crime, even those that many people view as victimless such as drug trafficking crimes,” said U.S. Attorney Byung J. “BJay” Pak. “This crime is far from victimless. We have lost thousands of fellow Georgians to drug overdoses – particularly from opioids. Moreover, an untold number of our families, friends or neighbors and their loved ones in the form of financial and emotional toll suffer from the destructive cycle of drug addiction.”
Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the Northern District of Georgia Victim Witness Program at (404) 581-6000.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eight charged with importing cocaine concealed in food cans through airportsRead the Press Release
ATLANTA - Anthony Rondel Blair, Jason Arias, Daniel Newton, David Lomba Barros, Angelica Dominique Cuyugan Tuzon, Shondra Vernon, Michelle Rosa, and Madison Renee Kelleher have been indicted for their roles in a criminal network that imported cocaine into the United States from Costa Rica and laundered the proceeds.
“These defendants allegedly imported dozens of multi-kilogram cocaine shipments within food cans through several U.S. airports including Hartsfield Jackson Atlanta International Airport, and the Charlotte, Raleigh, and Miami airports,” said U.S. Attorney Byung J. “BJay” Pak. “Through the combined efforts of our law enforcement partners, this network has been disrupted and its members will be brought to justice. Even in the midst of the nation’s opioid epidemic, we are reminded that cocaine importation and distribution remains a national problem and a priority of this office.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This criminal network posed a clear and present danger to the safety of the citizens in this country and abroad. Their removal makes the affected communities safer. This successful investigation illustrates how success can be achieved through law enforcement collaboration between federal, state and local law enforcement and the subsequent prosecution by the U.S. Attorney’s Office.”
“Identifying and intercepting transnational drug traffickers is one of Homeland Security Investigations’ highest priorities to protect the public from the serious harm criminals inflict without any regard for the violence and public health damage they cause,” said Special Agent in Charge of HSI Atlanta Nick S. Annan. ”The scale of this case illustrates the lengths to which criminal organizations will go as well as the interagency coordination that exists between federal, state and local law enforcement partners to identify and stop them.”
“The mission of CBP here in the Southeast and across the country is to safeguard America’s borders,” said Don Yando, Atlanta Director of CBP Field Operations. “This is yet another example of how our multi-agency partnerships and collaboration support CBP's mission of protecting the American public. We are proud to continue the work of uncovering and dismantling these types of transnational criminal organizations.”
“We will not allow our airport to be used as a hub for the spread of illegal narcotics to our communities,” said Atlanta Police Chief Erika Shields. “I commend our officers for their efforts on the ground, and to the U.S. Attorney’s Office for aggressively pursuing these cases.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the indictment alleges that Blair organized groups of individuals to fly to Costa Rica from Atlanta. While in Costa Rica, Arias met with some of the conspirators and provided each with approximately four kilograms of cocaine hidden inside sealed food cans and concealed within the travelers’ checked luggage. Once the Atlanta-based travelers returned to the United States, they delivered the cans to Blair who prepared the cocaine for distribution in the Atlanta area and elsewhere. The network also had been operating in Charlotte and Boston.
Law enforcement documented over 90 separate trips for this group, and it is estimated that the conspiracy imported over 375 kilograms of cocaine into the United States using this smuggling technique.
Anthony Rondel Blair, 40, Shondra Vernon and a/k/a Frenchie, 30, both of Atlanta, Georgia, Michelle Rosa, 36, of Jonesboro, Georgia, Jason Arias, 35, and Daniel Newton, a/k/a Russia, 29, both of Charlotte, North Carolina, David Lomba Barros, 32, and Madison Renee Kelleher, 27, of Boston, Massachusetts, and Angelica Dominique Cuyugan Tuzon, 25, of Reston, Virginia, were indicted by a federal grand jury on March 27, 2019. Vernon and Rosa were arraigned before U.S. Magistrate Judge Janet F. King. Blair is scheduled to be arraigned on April 12, 2019, also before Judge King. The remaining defendants appeared in federal courts in Charlotte, Boston, and Alexandria, Virginia.
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. Immigration and Customs Enforcement’s Homeland Security Investigations, the DEA, U.S. Customs and Border Protection, and the Atlanta Police Department.
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.
Defendant sentenced in phone scam targeting U.S. victimsRead the Press Release
ATLANTA – Mehboob Mansurali Charania has been sentenced for his involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses.
“The phone scheme Charania was a part of used lies, intimidation, and fear to extort or outright steal from unsuspecting citizens,” said U.S. Attorney Byung J. “BJay” Pak. “Our law enforcement partners regularly uncover thieves who believe they found a new way to steal. As Charania learned in this case though, law enforcement was well aware of these schemes.”
“Victimizing taxpayers by impersonating IRS employees is a serious crime,” said J. Russell George, Treasury Inspector General for Tax Administration. “Since October 2013, more than 15,000 victims have suffered over $75 million in losses to the perpetrators of telephone scammers who impersonate IRS employees. TIGTA is committed to ensuring that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. Our investigations have identified 140 scammers who, like Mr. Charania, have or are, facing federal criminal proceedings.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant took part in a sophisticated scheme organized in India, that included a network of call centers. Call center operators called U.S. residents over the telephone and misled the potential victims into sending money utilizing a number of different confidence scams.
The scams included impersonation scams where the callers pretended to be Internal Revenue Service (“IRS”) employees demanding payment of taxes and fees. Other scams included grant scams where callers directed victims to pay upfront fees for fictitious grants, student loan scams where callers threatened victims if they did not pay fictitious taxes and fees associated with student loans, and hacking scams where callers would gain remote access to the victim’s computer, lock the victim out of the computer, and deny access to the computer until the victim provided payment.
If the victims agreed to pay, the call centers would have the victims send the funds to the attention of fictitious names used by Charania through wire transfers, including through MoneyGram and Western Union. Charania also would conduct hawala money transfers by transferring proceeds to bank accounts as directed by an individual in India.
Charania, a citizen of India who moved to Tucker, Georgia in 2014, has been sentenced to one year, four months in prison to be followed by three years supervised release, and ordered to pay a $100 special assessment, and pay restitution of $203,958.02 to victims of the scheme. Charania was convicted on January 17, 2019, after he pleaded guilty to engaging in an unlicensed money transfer business.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia man pleads guilty to hacking apple accounts of professional athletes and musiciansRead the Press Release
ATLANTA - Kwamaine Jerell Ford has pleaded guilty to logging into Apple accounts belonging to high-profile professional athletes and musicians without authorization and stealing credit card information from several of those victims.
“Ford tricked his victims into providing their Apple account passwords and stole sensitive, personal information from the accounts,” said U.S. Attorney Byung J. “BJay” Pak. “After stealing credit card numbers belonging to several professional athletes, he brazenly spent thousands of dollars on personal expenses charged to the athletes’ accounts.”
“The high profile victims in this case are an example that no matter who you are, hackers like Ford are trying to get your personal information,” said Chris Hacker Special Agent in Charge of FBI Atlanta. “This case demonstrates the need to be careful in protecting personal information and passwords, especially in response to suspicious e-mails. Hopefully this is a lesson for everyone, not just the victims in this case.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in at least March 2015, Ford obtained login credentials for Apple accounts belonging to victims primarily through a phishing scheme, which is a scheme in which the perpetrator sends a message that purports to be from a legitimate source. Ford primarily targeted college and professional athletes, including NBA and NFL players, and rappers in his scheme. Ford sent thousands of phishing emails to his intended victims from email accounts he set up to spoof legitimate Apple customer service accounts. Ford, posing as an Apple customer support representative, requested that the victims send him their username and password or answers to security challenge questions, which Ford claimed was needed either to reset their Apple accounts or to access videos that individuals were purportedly trying to send the victims. Dozens of victims provided their login credentials based on the phishing scheme.
After obtaining the victims’ login credentials, Ford logged into their Apple accounts and attempted to take over the accounts. Specifically, he attempted to reset the account password, change the contact email account to an email address he controlled, and alter the security challenge questions. As a result, the victims could not log into their own accounts unless they contacted Apple by phone and proved their identity. Apple records showed hundreds of unauthorized logins to victim Apple accounts.
After gaining control of the victims’ accounts, Ford found credit card information belonging to several of the victims. Ford then used the stolen credit card numbers to pay for thousands of dollars in air travel, hotel stays, other travel expenses, furniture, and money transfers to online payment accounts under his control.
On April 17, 2018, Kwamaine Jerell Ford, 27, of Dacula, Georgia, was indicted on six counts each of wire fraud, computer fraud, access device fraud, and aggravated identity theft. He pleaded guilty to one count of computer fraud and one count of aggravated identity theft. Sentencing is scheduled for June 24, 2019, at 10:30 before U.S. District Judge Timothy C. Batten Sr.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes Section, is prosecuting the case. Former Assistant U.S. Attorney Vivek Kothari investigated the case prior to the indictment.
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 sentenced for smuggling cocaine in children’s toys and laundering drug money through car rental businessRead the Press Release
ATLANTA – Marlon Matthew Pittman, the last of three defendants operating a cocaine smuggling and money-laundering ring, has been sentenced to federal prison. The men routinely shipped their drugs from Puerto Rico to Atlanta through the U.S. Mail hidden inside children’s toys and cans of powdered milk, and laundered their drug money using a car rental company and an elaborate scheme involving hundreds of money orders. All three men had prior federal drug trafficking convictions. Pittman attempted to flee the country while awaiting trial but was arrested trying to board a flight to Ethiopia using a fake identity.
“These drug smugglers endangered countless people from Puerto Rico to Atlanta and beyond,” said U.S. Attorney Byung J. “BJay” Pak. “Ironically, it was the money laundering scheme they created to hide their criminal enterprise that first caught the attention of investigators and led to their downfall. Criminals regularly believe they have developed a new way to evade detection. However, sophisticated abilities developed by our law enforcement partners help identify the crooks, leading to a successful prosecution like this one.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug distribution networks 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 and its law enforcement counterparts 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, these defendants will spend well-deserved time in prison.”
“This sentencing brings to close a lengthy investigation into a complex money laundering scheme in which defendants illegally funneled narcotic proceeds in an effort to avoid detection by law enforcement. By following the money trail, Postal Inspectors were able to identify transactions that were utilized in furtherance of their drug smuggling operation,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “The Postal Inspection Service is committed to working with our law enforcement partners to investigate and seek the prosecution of those who attempt to conceal and launder illicit proceeds.”
According to U.S. Attorney Pak, the charges, and other information presented in court: This multi-agency investigation began when federal agents noticed suspicious financial activity by an Atlanta-based car rental business and an unusual pattern of money order purchases dating back to 2012. Realizing the activity was money laundering, they began a series of federally authorized wiretaps on cellular phones used by the owner of the car rental business—Marlon Pittman—and members of his drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.
The general scheme of the DTO was that Vladimir Collozo-Florido imported loads of more than 200 kilograms of cocaine at a time into Puerto Rico using cargo ships from Colombia. He then sent the cocaine through the U.S. Mail to Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time. In order to avoid detection, if the parcels were inspected, the cocaine was hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans. Carlos Gonzalez-Catala was responsible for packaging the drugs using a can sealing machine and other disguising materials, and then mailing the packages. Pittman used a number of associates in Atlanta to receive the parcels on his behalf using fake names, and he would sell the cocaine to customers in Atlanta, South Carolina, Maryland, and New York.
Pittman initially transferred the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of $90,000 in a duffle bag – as carryon luggage on commercial flights. But to conceal the scheme and deal with increased amounts of cash, he set up a car rental business and funneled the money through the business’s bank accounts. He also purchased money orders in small increments, visiting multiple post offices on the same day, in an effort to avoid detection. He then mailed the money orders to Puerto Rico, where they were cashed by a network of associates.
Collazo-Florido and Gonzalez-Catala pleaded guilty first, with Collazo-Florido ordered to forfeit $1,000,000 as part of his sentence. While Pittman was awaiting trial, he was actually planning to flee the country. He was ultimately caught as he was passing through a TSA checkpoint at an airport to board a flight overseas, using an international travel document in a fake name he obtained by bribing foreign government officials. He also had in his possession eleven pounds of MDMA tablets hidden inside children’s Flinstones vitamins bottles. Upon searching his cell phone, agents realized Pittman had been on a crime spree on his way out of the country, trying to obtain money to take with him through fraudulent loans and fraudulent tax refunds, and also emptying his family’s food stamps account.
Members of the operation who have been sentenced by U.S. District Judge Amy Totenberg are:
- Marlon Matthew Pittman, 45, of Mableton, Georgia, was sentenced to 17 years in prison, to be followed by eight years of supervised release, and ordered to forfeit the residence he purchased with drug money. Pittman pleaded guilty to conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering on August 27, 2018.
- Vladimir Collazo-Florido, 44, of Carolina, Puerto Rico, was sentenced to 11 years and four months in prison, to be followed by eight years of supervised release, and ordered to forfeit $1,000,000. Collazo-Florido pleaded guilty to conspiracy to possess with the intent to distribute cocaine on November 13, 2017, and was sentenced on March 8, 2018.
- Carlos Gonzalez-Catala, 42, of Guaynabo, Puerto Rico, was sentenced to three years and three months in prison, to be followed by three years of supervised release. Gonzalez-Catala pleaded guilty to conspiracy to possess with intent to distribute cocaine on November 13, 2017, and was sentenced on February 8, 2018.
This case was investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief, Narcotics and Dangerous Drugs Section, prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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 women sentenced for stealing HUD funds intended for disabled women and childrenRead the Press Release
ATLANTA - Janice Cooks has been sentenced for stealing hundreds of thousands of dollars in Department of Housing and Urban Development (HUD) funds intended for housing for disabled women and their children.
“The defendant obtained nearly a million dollars from HUD in grant funds designated for housing for disabled women and children,” said U.S. Attorney Byung J. “BJay” Pak. “Cooks intentionally mismanaged the money, spent it on personal and business expenses not covered by the grant, and ultimately caused the intended recipients to lose their homes.
“This sentencing proves our continuing resolve to root out thievery in all forms, especially when the funds involved should have been used to help vulnerable members of our society,” said Nadine Gurley, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development. “We will continue to work with our law enforcement partners and the U.S. Attorney’s Office to protect the integrity of our housing programs.”
“Whether it’s housing benefits for eligible individuals, or Social Security payments to disabled persons, the Social Security Office of the Inspector General is committed to working with our Federal, State and local law enforcement partners to combat fraud, waste, and abuse in benefit programs,” said Wayne R. Warren, Acting Special Agent-in-Charge of the SSA OIG Atlanta Field Division. “Cases like this keep us focused on pursuing bad actors to protect Social Security and other benefits for those whose truly depend on them.”
According to U.S. Attorney Pak, the charges and other information presented in court: During the years 2012 through 2015, HUD awarded Cooks three grants to fund the Quilt SOLE program; a program to provide housing for disabled women and children. Prior to receiving any grant funds, she was required to submit a detailed budget outlining the costs of her program and also attend a training conference to ensure she understood the rules and regulations surrounding receiving federal grant funds. The program rules required that she spend funds only in a manner consistent with her detailed budget and that she maintain documentation to justify all of her spending.
HUD approved funds for the Quilt SOLE to rent 14 apartments thus providing housing for 14 disabled women and their children. Cooks failed to adhere to the budget she created and to follow the program’s rules. In 2012, she requested and received approximately $125,000 in HUD funds. Instead of spending those funds on Quilt SOLE, she transferred over $59,000 into her own personal savings account.
Additionally, despite receiving funding for only 14 apartments, Cooks rented between 22 and 24 apartments at the same apartment complex. She also used HUD funds on business expenses not related to the Quilt SOLE program and on personal expenses like travel, dining out, and shopping. As a result of her misappropriation of the HUD funds in 2015, every family she was supposed to provide housing for received eviction notices and were forced to find other places to live.
Janice Cooks, 53, of Lithonia, Georgia, has been sentenced to four months in prison and eight months of home confinement to be followed by three years supervised release, and ordered to pay a $100 special assessment, and pay restitution of $198,907 to HUD and $35,812.51 to Ashley Cascade Apartments. Cooks was convicted of these charges on September 8, 2017, after she pleaded guilty.
This case was investigated by the Department of Housing and Urban Development and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman and Assistant U.S. Attorney 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.
Local gang member sentenced to federal prison for threatening a tow truck driver with a gunRead the Press Release
ATLANTA - Terry M. Williams has been sentenced to federal prison for possession of a firearm by a convicted felon, after Williams threatened a tow truck driver with a gun to prevent his vehicle from being towed. He also threatened to shoot and kill the apartment maintenance man who called for the tow. Williams is a three-time convicted felon and self-professed member of the “Duct Tape” gang.
“Williams threatened to kill two people who were simply doing their jobs,” said U.S. Attorney Byung J. “BJay” Pak. “He then audaciously attempted to influence the testimony of the maintenance employee while in local custody. Williams, a three-time convicted felon and local gang member, will no longer be a menace to the community. This case demonstrates how Project Safe Neighborhoods is strategically and aggressively working to make our communities safer.”
“Even after three felony convictions, Williams showed no indication he would change and continued to be a menace to society,” said Chris Hacker, Special Agent in Charge of the FBI’s Atlanta field office. “We will use every legal resource to protect our citizens and keep criminals like Williams where they can do no harm, and this case reflects that.”
According to U.S. Attorney Pak, the charges and other information presented in court: On January 8, 2018, a tow truck driver attempted to remove Williams’ vehicle which was improperly parked at a DeKalb County apartment complex. After Williams noticed his vehicle on the tow truck, he blocked in the tow truck driver using another vehicle. Williams then exited his vehicle, pointed a gun at the tow truck driver, and demanded that the driver remove Williams’ vehicle from the tow truck or be killed. Fearing for his life, the tow truck driver removed Williams’ vehicle from the tow truck. Williams then turned his anger on the apartment maintenance employee who called for the tow. Williams threatened to kill the maintenance employee and shoot up the apartment complex in a profanity-laced rant, which the employee recorded on his cellular telephone. Williams then fled the scene and was later arrested after a traffic stop.
While in custody in the DeKalb County jail, Williams instructed his girlfriend to locate the maintenance employee and have him sign an affidavit on Williams’s behalf in an effort to dismiss the charges. The gun which Williams used to threaten the tow truck driver was later found in the apartment which Williams shared with his girlfriend, together with a quantity of crack and powder cocaine. Williams illegally possessed this firearm after being previously convicted of three prior felonies involving drug possession, drug distribution, and theft. The evidence also revealed that Williams had been causing problems at the apartment complex for months preceding this incident, including brandishing a gun in his waistband and threatening an off-duty police sergeant who lived at the same complex.
Terry M. Williams, 40, of Atlanta, Georgia, has been sentenced to three years, eight months in prison to be followed by three years of supervised release. Williams was convicted of these charges on December 11, 2018, after he pleaded guilty during his jury trial.
This case was investigated by the Federal Bureau of Investigation and DeKalb County Police Department.
Assistant U.S. Attorney Michael Herskowitz, Chief, Cyber and Intellectual Property Crime Section and Assistant U.S. Attorney Jessica Morris 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 controller of California company sentenced for embezzling $1.27 millionRead the Press Release
GAINESVILLE, Ga. - Jeanette Elizabeth Ford has been sentenced for embezzling over $1.27 million from her now-bankrupt former employer, Classic Party Rentals (CPR). Ford was convicted of wire fraud on May 14, 2018, after she pleaded guilty to a criminal information.
“Ford abused her position of trust and embezzled a startling amount of money from her employer,” said U.S. Attorney Byung J. “BJay” Pak. “Over 15 months, Ford managed to steal and spend over $1.2 million -- on expensive vacations, the renovation and furnishing of a mountain home, and personal items for herself and her family. Now Ford is going to federal prison and has been ordered to pay restitution to the victims.”
“Ford worked in a position of trust for a company that expected her to honor that trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Instead she chose to abuse it and her personal greed not only hurt the company, but everyone who worked for them. They will never be made whole but can take some solace in the fact that Ford is paying for her crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015 and 2016, Ford was employed as an operations controller in the accounting and finance department at CP OpCo, LLC, d/b/a Classic Party Rentals. Prior to its liquidation and sale in mid-2017, CPR was one of the nation’s largest event rental companies. CPR operated throughout the United States under the names of Classic Tents, Ducky-Bob’s, Panache, Festive Fare, and Capital Party Rentals. Although CPR was headquartered in Inglewood, California, Ford worked remotely from her home in Blue Ridge, Georgia.
As part of her job as a controller at CPR, Ford was responsible for reconciling and recording employees’ corporate credit card transactions within CPR’s accounting records. Ford used her authority and access as an operations controller to circumvent company controls and charge over $1.27 million in unauthorized personal expenses, for herself and her family, to a corporate credit card issued in her name. In her position, she was able to hide her unauthorized charges from her colleagues and supervisors at CPR.
Ford manipulated transaction reports from MasterCard, the corporate credit card company, by deleting the unauthorized transactions from MasterCard spreadsheets and then presenting the manipulated data to conceal the credit card transactions. Ford also recorded fraudulent entries within the accounting system. The corporate credit card company would automatically debit a cash account when CPR’s total credit card transactions reached a certain threshold.
As bank reconciliations were performed at the end of each month, these cash transactions were recorded by crediting cash and debiting the credit card liability. Ford would use her ability and access to post entries within the system and record the fraudulent journal entries. These entries were then used to change the balance of the credit card liability in order to reconcile the credit card file that she manipulated. Ford also circumvented CPR policy by not linking her company credit card to CPR’s expense reporting software.
Jeanette Elizabeth Ford, 46, of Blue Ridge, Georgia, was sentenced by U.S. District Judge Richard W. Story to two years in prison, to be followed by three years of supervised release. Ford has also been ordered to pay $1,274,907.36 in restitution.
Assistant U.S. Attorneys John S. Ghose, Alex Sistla, and Kelly Connors prosecuted the case. The case was investigated by the Federal Bureau of Investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Health care executives sentenced to prison for fraudRead the Press Release
ATLANTA - Shailesh (“Shue”) Kothari, the former owner and CEO of Primera Medical Group, Inc., and Timothy McMenamin, Primera’s former Chief Operating Officer have been sentenced for conspiracy to commit healthcare fraud and aggravated identity theft.
“Patients submit to a doctor’s care with the expectation they will be provided the best care possible,” said U.S. Attorney Byung J. “BJay” Pak. “This case unfortunately is an example of greed. The sentences reflect the seriousness of fraudulent health insurance billing, particularly when that billing is coupled with the provider sending false medical reports to patients.”
“Kothari and McMenamin chose to take advantage of patients and the entire health care industry by billing for services that were never provided and falsifying lab reports,” 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 that defraud the industry and put innocent patients at risk.”
According to U.S. Attorney Pak, the charges and other information presented in court: Primera Medical Group, Inc., was a health clinic in Atlanta, Georgia, owned by Shailesh Kothari, Chief Executive Officer, and operated by Timothy McMenamin, Chief Operating Officer. Primera claimed to focus its practice on preventative wellness, specifically corporate wellness, concierge care, and allergy testing. Kothari is a Doctor of Chiropractic Medicine who has been licensed to practice in Georgia since January 2009.
Primera hired market research companies across the United States in order to recruit patients to participate in allergy testing. Patients were told that there would be no out-of-pocket expenses and that their insurance would cover the cost of the testing in addition to being paid an amount between $65 to $100 for participating. Patients were tested for allergies regardless of whether they had any symptoms, and without any determination of medical necessity for the testing.During the allergy testing, patients’ blood was drawn, purportedly so that it could be sent to a laboratory for allergy and other testing.
Primera Medical Group billed the patients’ private insurers for multiple procedures, including blood tests. When it billed the private insurers, Primera Medical Group used the National Provider Identifier numbers of multiple doctors, without their knowledge and without those doctors having performed the services that were billed. The doctors also did not order the laboratory tests or the allergy immunotherapy injections billed for virtually every patient.Primera Medical Group also billed for blood tests that were never done. As of July 2016, hundreds of blood tests had not been completed, but were billed for by Primera. When an insurance company requested medical records to support some of the billed services, Kothari asked McMenamin to create false laboratory reports to submit to the insurance company. McMenamin created the false laboratory reports and those false reports were provided to the insurance company to support the fraudulent billing.
Because the laboratory tests were not actually completed for many patients, there were no results to provide patients. When a patient asked for results for laboratory tests that were not completed, McMenamin created false laboratory results for those patients. On multiple occasions, Kothari and McMenamin sent false laboratory reports directly to patients. They did not tell the patients that the results were false. In one specific case, Kothari and McMenamin prepared false lab reports for a five-year-old who was suffering from an unknown reaction.
In total, Primera Medical Group submitted more than 4,500 fraudulent claims using the NPI numbers of unknowing doctors. These claims sought more than $8.5 million in insurance payments.Shailesh (“Shue”) Kothari, 45, of Atlanta, Georgia, and was sentenced to six years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32. Kothari was convicted on these charges on October 29, 2018, after he pleaded guilty.
Timothy McMenamin, 32, of Atlanta, Georgia, was sentenced to seven years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32. McMenamin was convicted on these charges on November 16, 2018, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. Assistance was also provided by the Special Investigations Unit for Blue Cross Blue Shield of Georgia.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Fraud 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.
Georgia couple pleaded guilty to conspiracy to defraud VA and SSARead the Press Release
ATLANTA - Kinsley Kilpatrick and Tracie Jeanne Kilpatrick have pleaded guilty to conspiracy to commit mail fraud by defrauding the Department of Veteran’s Affairs (“VA”) and the Social Security Administration (“SSA”) out of benefit monies by feigning disabilities.
“These two defendants received over $60,000 a year in benefits to which they were not entitled,” said U.S. Attorney Byung J. “BJay” Pak. “Additionally, the VA purchased a brand new Jeep that they would not have received but for their fraud. These programs rely on the honesty of the participants, and those who take advantage will be prosecuted for their greed.”
David Spilker, Special Agent in Charge, Southeast Field Office, VA OIG, stated, “The Kilpatricks’ deceitful actions stole VA resources from a program designed to help disabled veterans obtain compensation for injuries incurred while in the military. VA OIG’s continued oversight safeguards the integrity of VA’s programs.”
“The Social Security Office of the Inspector General is committed to protecting Social Security benefits and pursuing individuals whose deceitful and illegal actions target programs that exist for those who truly need them,” said Wayne R. Warren, Acting Special Agent-in-Charge of the SSA OIG Atlanta Field Division. “Therefore, we will continue to work with our law enforcement partners to investigate and prosecute individuals who try to defraud the SSA.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, Kinsley Kilpatrick, who received VA disability benefits, applied for and received additional VA disability benefits based on his fraudulent claim that he was restricted to a wheelchair and had 100 percent loss of use of arms and legs. In support of his application, Kinsley and Tracie Kilpatrick completed false paperwork and falsely represented his medical condition at medical appointments. In January 2016, based on this false information, the VA approved his application, appointed Tracie Kilpatrick to be his caretaker, and began paying him an additional nearly $5,000 per month in VA benefits.
Meanwhile, in 2016, the defendants also falsely claimed to SSA that Tracie Kilpatrick was completely disabled from a seizure disorder. In the paperwork submitted to the SSA, Kinsley Kilpatrick claimed, that he had to provide assistance to his wife for basic activities like bathing, toileting, and dressing. Tracie Kilpatrick submitted paperwork asserting that she was unable to stand, walk, lift, carry, or drive. Based on these fraudulent assertions, the SSA concluded that Tracie Kilpatrick was disabled and paid her disability benefits. In truth, neither Kinsley nor Tracie Kilpatrick were as limited as they claimed and they were not entitled to the benefits they received based on their fraudulent misrepresentations. In fact, Kinsley Kilpatrick was not restricted to a wheelchair, and had full use of his arms and legs. Tracie Kilpatrick had no serious functional limitations. During the investigation, investigators video recorded Kinsley Kilpatrick doing back flips on a trampoline, and playing and coaching in a kickball league. During surveillance, Tracie Kilpatrick was seen standing, walking, bending, driving, lifting, and carrying heavy items.
Kinsley Kilpatrick, 39, and Tracie Kilpatrick, 45, both of Powder Springs, Georgia, will be sentenced on June 6, 2019, at 10:00 a.m., before U.S. District Judge Leigh Martin May. Additionally, the defendants agreed to forfeit the 2017 Jeep Cherokee that they purchased with VA funds.
This case is being investigated by the Department of Veterans Affairs - Office of Inspector General and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three defendants and an India-based call center indicted in phone scam targeting U.S. victimsRead the Press Release
ATLANTA – Mohit Devendrabhai Sharma, Julliette Belle Carter, Kunal Jagdishbhai Sharma, and a call-center named Skyz International Outsourcing BPO have been indicted for their alleged involvement in a transnational criminal organization that victimized United States residents through a tele-fraud scheme that led victims to believe they owed taxes and fees to the Internal Revenue Service. Julliette Belle Carter was arrested in Canada pursuant to an extradition request. In connection with the scheme, two other defendants and a call center in India were also charged for their alleged involvement.
“IRS phone schemes profit by victimizing United States residents, including vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak. “This indictment and the arrest in Canada demonstrate our commitment to identifying and prosecuting those who perpetuate phone scams on our citizens no matter where the perpetrators are located.”
J. Russell George, the Inspector General for the Treasury Inspector General for Tax Administration (TIGTA) advised that “since 2013, IRS impersonation scams have been on a relentless path, claiming more than 15,000 victims who have lost upwards of $74 Million to the scammers. Today’s unsealed indictment makes clear that TIGTA will continue to be just as relentless in our pursuit of individuals who fraudulently represent themselves as IRS officials in order to extort money from taxpayers. We will not back down from our pursuit of these criminals, and will continue to work with all law enforcement partners to bring them to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The indictment alleges that the defendants were involved in a sophisticated international telephone scheme. Using lists of U.S. residents’ personal identifiable information, co-conspirators allegedly called potential victims while impersonating officials from the Internal Revenue Service.
The callers would then threaten potential victims with prosecution or arrest if they did not pay alleged tax debts immediately. After the victims agreed to pay, the callers would instruct the victims to send the money electronically using banks or money transmitters, such as MoneyGram, to defendants Mohit Devendrabhai Sharma, Julliette Belle Carter, and others. Victims, including residents of Georgia, believed the threats and sent money. Defendants Mohit Devendrabhai Sharma and Julliette Belle Carter retrieved the fraud proceeds from various MoneyGram locations in states such as Illinois, Ohio, Michigan, and Wisconsin.
The indictment charges Mohit Devendrabhai Sharma, Julliette Belle Carter, Kunal Jagdishbhai Sharma, and Skyz International Outsourcing BPO with conspiracy to commit wire fraud and wire fraud. The indictment also charges Mohit Devendrabhai Sharma and Julliette Belle Carter with conspiracy to commit money laundering.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S Attorneys Jolee Porter and Jeffrey A. Brown, Deputy Chief, Complex Fraud Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office for the Northern District of Georgia takes part in largest-ever nationwide elder fraud sweepRead the Press Release
ATLANTA – Attorney General William P. Barr and U.S. Attorney Byung J. “BJay” Pak announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“The U.S. Attorney’s Office has made protecting the elderly a priority. As part of the elder fraud sweep, this Office brought multiple indictments against defendants responsible for defrauding hundreds of victims, many of them are seniors, out of nearly $5 million,” said U.S. Attorney Byung J. “BJay” Pak. “We remain focused on prosecuting the criminals who target our community’s seniors with financial scams and abuse. Citizens always should be wary of callers who make threats and ask for personal information, and should contact law enforcement if they believe that they have fallen victim to one of these scams.”
Three cases from the Northern District of Georgia include:
- United States v. Mehboob Mansurali Charania: On November 6, 2018, the defendant was charged based on his alleged involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses. Criminal India-based call centers seek to profit by exploiting United States residents, including the most vulnerable members of our community, by impersonating officials from the Internal Revenue Service or other scams. The call center operators threaten potential victims with arrest, imprisonment, or fines if they do not pay supposed taxes, penalties, or fees. If the victims agree to pay, the call centers then turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds by purchasing prepaid debit cards or through wire transfers, including through MoneyGram and Western Union, to the attention of fictitious names and U.S.-based defendants and their co-conspirators. Assistant U.S. Attorney Jolee Porter is prosecuting this case.
- United States v. Sean Kelly: On January 4, 2019, the defendant pled guilty to mail fraud and securities fraud. The defendant used his companies, Lion's Share Financial of East Cobb, Inc., Lion's Share & Associates, Inc., and Lionsshare Tax Services, LLC, to defraud his investors of at least $1 million. His victims included veterans and elderly retirees. As part of his scheme, the defendant promised that he would invest his victim’s funds in a variety of investment products, but instead spent it on personal expenses including mortgage payments, Super Bowl tickets, vacations, and large cash withdrawals. Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting this case.
- United States v. Silvia Sanchez Valverde, et al.: These five defendants operated a sweepstakes scam that targeted the elderly. From February 2016 through September 2017, dozens of victims were contacted by telephone and told that they had won a sweepstakes or lottery. The victims were told that they could receive their sweepstakes winnings after they paid various expenses, such as taxes and fees. The victims were directed to pay the expenses to various companies controlled by the defendants. The victims then mailed payments via personal and cashier’s checks to addresses that were linked to mailboxes rented by the defendants. The defendants deposited the checks, totaling over $3.5 million, into their bank accounts and then transferred the majority of the funds to Costa Rica. The defendants were sentenced to prison terms ranging from two to five years in prison. Assistant U.S. Attorneys Kelly K. Connors and Cassandra J. Schansman prosecuted these cases.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found at /media/993261/dl?inline.
A fact-sheet with cases on mass mailing fraud can be found at /media/993271/dl?inline.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found at /media/993266/dl?inline.
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 Romanian citizens plead guilty to participating in a multi-million dollar “vishing and smishing” schemeRead the Press Release
ATLANTA - Robert Codrut Dumitrescu pleaded guilty to federal charges of wire fraud conspiracy, computer fraud and abuse, and aggravated identity theft in connection with a scheme, orchestrated from Romania, which resulted in the illegal intrusion into computer servers in the United States, deployment of phishing messages to thousands of victims, and subsequent theft of victims’ social security numbers and bank account information. His conspirators, Teodor Laurentiu Costea and Cosmin Draghici, also pleaded guilty earlier this year to federal charges related to this scheme.
“These defendants thought they could hide behind their computers in Romania and defraud the citizens of the Northern District of Georgia and elsewhere across the United States,” said U.S. Attorney Byung J. “BJay” Pak. “These guilty pleas resulted from a tireless investigative effort to locate these fraudsters and bring them to justice in our District. We will continue to protect our citizens from cyber-criminals, no matter how far the investigation reaches.”
“Cyber criminals cannot hide in the shadows of the internet no matter where they are,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI won’t let geographic boundaries stop us from pursuing those persons who cause tremendous financial pain to U.S. citizens. To the victims of these three conspirators and other cyber criminals, we will continue to identify them and pursue justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately October 2011 through February 2014, Robert Codrut Dumitrescu, Teodor Laurentiu Costea and Cosmin Draghici conducted a “vishing” and “smishing” scheme from Romania. “Vishing” is a type of phishing scheme that communicates a phishing message, that is, a message that purports to be from a legitimate source, in this case the victims’ banks, through a voice recording. “Smishing” is similar to “vishing,” but communicates a phishing message through text messages.
As part of the scheme, the defendants compromised computer servers located in the Northern District of Georgia, and elsewhere, and installed both interactive voice response and bulk emailing software which initiated thousands of telephone calls and text messages to victims in the Northern District of Georgia, and across the United States, tricking them into disclosing Personally Identifiable Information (PII) such as financial account numbers, PINs, and social security numbers. When a victim received a telephone call, the recipient would be greeted by a recorded message falsely claiming to be a bank. The interactive voice response software would then prompt the victim to enter their PII.
When a victim received a text message, the message purported to be from a bank and directed the recipient to call a telephone number hosted by a compromised Voice Over Internet Protocol server. When the victim called the telephone number, they were prompted by the interactive voice response software to enter their PII. The stolen PII was stored on the compromised computer servers and accessed by Dumitrescu and Costea, who then sold or used the fraudulently obtained information with the assistance of Draghici.
At the time of their arrests in Romania, Dumitrescu possessed 3,278 financial account numbers, Costea possessed 36,050 financial account numbers, and Draghici possessed 3,465 financial account numbers – all fraudulently obtained through this scheme. Based upon these numbers alone, the estimated loss amount is expected to exceed $21,000,000.
On August 16, 2017, a grand jury charged Robert Codrut Dumitrescu, 41, Teodor Laurentiu Costea, 42, and Cosmin Draghici, 29, all of Ploiesti, Romania, with multiple federal computer and fraud-related crimes in connection with this scheme. Dumitrescu, Draghici, and Costea were extradited from Romania to Atlanta last year to face these charges.
Sentencing is scheduled for Costea on June 11, 2019 at 2:00 p.m., for Draghici on June 12, 2019 at 11:00 a.m., and for Dumitrescu on July 23, 2019 at 2:00 p.m., all before U.S. District Judge Thomas W. Thrash.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime 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.
Former Equifax executive pleads guilty to insider tradingRead the Press Release
ATLANTA - Jun Ying, who committed insider trading by exercising his company stock options ahead of Equifax’s public announcement of its massive data breach, pleaded guilty to a charge of securities fraud.
“Insider trading is an abuse of trust and victimizes everyone who invests in the stock market,” said U.S. Attorney Byung J. “BJay” Pak. “Our office will continue its work to keep the stock market fair for all investors.”
“We must not allow company insiders to have an advantage over regular investors, otherwise the integrity of the markets and confidence of investors deteriorates,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The FBI will do everything in its power to maintain a fair and equitable stock market for everyone.”
According to U.S. Attorney Pak, the charges and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta, Georgia. During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million Americans. At the time, Jun Ying was the chief information officer of Equifax U.S. Information Solutions. In that role, he was provided sensitive information that led him to conclude that Equifax was the victim of the data breach before it was made public.
On Friday, August 25, 2017, Ying texted a co-worker that the breach they were working on "Sounds bad. We may be the one breached." The following Monday, Ying conducted web searches on the impact of Experian's 2015 data breach on its stock price. Later that morning, Ying exercised all of his stock options, resulting in him receiving 6,815 shares of Equifax stock, which he then sold. He received proceeds of over $950,000, and realized a gain of over $480,000, thereby avoiding a loss of over $117,000. On September 7, 2017, Equifax publicly announced its data breach, which resulted in its stock price falling.
Ying is the second Equifax employee to be found guilty of insider trading relating to the data breach following Sudhakar Reddy Bonthu, a former manager at Equifax, who pleaded guilty on July 23, 2018.
Sentencing for Jun Ying, 43, of Atlanta, Georgia, is scheduled for June 27, 2019, at 10:30 a.m. before U.S. District Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission made contributions to the case.
Assistant U.S. Attorneys Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Lynsey M. Barron 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.
Lohrasb “Jeff” Jafari indicted on 51 counts including bribery, tax evasion, and money laundering chargesRead the Press Release
ATLANTA – City of Atlanta contractor Lohrasb “Jeff” Jafari has been charged in a 51 count federal indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring.
“Jeff Jafari allegedly paid multiple bribes to two local officials over a period of years and then attempted to obstruct the federal investigation into his misconduct,” said U.S. Attorney Byung J. “BJay” Pak. “He also failed to pay income taxes on millions of dollars he earned from city contracts. Instead, he used the funds to live a lavish lifestyle. Whether you bribe, take a bribe, or otherwise misuse the public’s money to enrich yourself – it’s all corruption. We will vigorously pursue any such cases.”
“FBI Atlanta’s public corruption squad remains very active and determined to expose the criminal conduct of public officials,” said Chris Hacker, Special Agent in Charge of the Atlanta FBI field office. “The investigation of Jafari and resulting indictment on numerous charges is a further example of our commitment to hold those serving the public in positions of trust, accountable.”
“This indictment takes you from the bribes to the benefits and everything in between,” said Thomas J. Holloman, III, Special Agent in Charge, IRS-Criminal Investigation. “It shows how money gains access, influences decisions, supports a lavish lifestyle and corrupts. IRS-CI performed its key role in this case by following the money as Jafari acted to corrupt, impede, evade, launder and conceal his criminal actions while obtaining millions in city contracts.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning at least in 2014 to January 2017, Jafari allegedly paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta. At the time, Jafari was the Executive Vice-President of PRAD Group and did millions of dollars in work with the City of Atlanta, primarily under the City’s Architectural and Engineering contracts. Jafari and Smith met at Atlanta-area restaurants where they discussed City business, among other things, and Jafari would generally pay Smith $1,000 in cash in the restaurant bathroom. Jafari similarly paid bribes to a local official in DeKalb County in April and August of 2014.
In exchange for Jafari’s payments to Smith, Smith met with Jafari regularly and provided Jafari with information and counsel regarding the City of Atlanta’s procurement processes, among other information. When PRAD Group or a joint venture in which PRAD Group was a partner became a successful proponent on a City of Atlanta contract or Request for Proposal, Smith approved and submitted the award of those projects. Smith also approved task and/or purchase orders for those projects.
In February 2017, Jafari became aware of the federal investigation into his payments to Smith, at which time he confronted Smith in an effort to intimidate and persuade Smith to provide false information to federal law enforcement about the payments, instructing Smith to deny taking bribe money from Jafari.
Between 2014 through 2016, Jafari also willfully failed to pay income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used corporate funds for personal expenses, among other things, to avoid the assessment of income tax. In 2014, Jafari owed at least $150,000; in 2015, at least $300,000; and in 2017, at least $700,000 to the IRS. Jafari is additionally charged with numerous counts of money laundering for engaging in financial transactions with funds earned from City of Atlanta work he obtained while he was paying bribes to Adam Smith.
On February 26, 2019, a grand jury returned an indictment against Lohrasb “Jeff” Jafari, 68, of Alpharetta, Georgia, on 51 federal charges, including conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. He was arraigned before U.S. Magistrate Judge John K. Larkins III. 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 and IRS Criminal Investigation.
Assistant U.S. Attorneys Jill E. Steinberg, Deputy Chief of the Criminal Division, Jeffrey W. Davis, Chief of the Public Integrity Section, and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.