Northern District of Georgia
Press releases recorded for this federal judicial district.
Former cardiology practice office manager sentenced for embezzling over $1.1 millionRead the Press Release
ATLANTA - Monica Rigsby, a former office manager for a cardiology practice, has been sentenced to federal prison for embezzling over $1.1 million from her employer.
“This defendant’s greed drove her to steal over one million dollars from her employer,” said U.S. Attorney Byung J. “BJay” Pak. “Criminals who embezzle money from businesses will face prosecution, but employers should also take steps to safeguard against fraud committed by their employees.”
“Rigsby took advantage of her position to profit illegally, violating the trust that Georgia Pediatric Cardiology put in her,” said J.C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “Her conviction should serve as a reminder that the FBI is committed to making cases like this a strong deterrent to those tempted by greed.”
According to U.S. Attorney Pak, the charges and other information presented in court: Rigsby was the office manager at the Georgia Pediatric Cardiology practice located in Stockbridge, Georgia. While working as the office manager, the defendant altered the accounting system to make it appear that she was being reimbursed for legitimate expenses when, in fact, she was stealing a portion of the funds and diverting the money for her own personal use. Rigsby’s fraud scheme cost the medical practice over $1.1 million. The defendant used the embezzled funds to purchase clothing, jewelry, an automobile, and to pay for her daughter’s college tuition.
Monica Rigsby, 55, of Saint Petersburg, Florida, was sentenced to two years, six months in prison to be followed by three years of supervised release on August 7, 2018. Rigsby was also ordered to pay restitution in the amount of $1,178,314.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp and Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber & Intellectual Property Crime 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 City of Atlanta deputy chief of staff charged with accepting bribesRead the Press Release
ATLANTA - Evelyn Katrina Taylor-Parks has been charged with conspiring to accept bribe payments while serving as the City of Atlanta’s Deputy Chief of Staff to the Mayor.
“As the Deputy Chief of Staff, the City of Atlanta and its citizens placed immeasurable trust in Parks to act in the best interests of the city,” said U.S. Attorney Byung J. “BJay” Pak. “Public officials have a responsibility to lead with integrity. Regrettably, Parks allegedly exchanged the power and trust given to her for bribe money paid by a city contractor.”
“Great trust was placed in Parks as Deputy Chief of Staff and she is charged with abusing that position to serve her own financial interests,” said J. C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “Because actions like this erode the public’s trust in government, the FBI will continue to vigorously pursue any public official who chooses to violate that trust.”
“Parks’ alleged engagement in personal benefit over the public’s trust cannot be tolerated as a high ranking city official,” said Thomas J. Holloman, Special Agent in Charge of IRS-Criminal Investigation Atlanta. “Pay to play politics will continue to drive IRS-CI and its partners to follow the money in this saga of city hall malfeasance.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately January 2010 to May 2018, Parks served as the Deputy Chief of Staff to the Mayor of the City of Atlanta, working with the Chief of Staff, Chief Operating Officer, and Department Commissioners to advance the administration’s legislative agenda with the Atlanta City Council. She also served as a representative on several community outreach committees. From 2011 to February 2014, Parks conspired to accept bribes from a vendor with the City of Atlanta. The vendor paid Parks thousands of dollars, and in return the vendor received tens of thousands of dollars for City of Atlanta contract work. Parks filed financial disclosure statements with the City of Atlanta in which she falsely attested that she was not self-employed or employed by any business or entity other than the City of Atlanta.
Evelyn Katrina Taylor-Parks, 49, of Douglas County, Georgia, has been charged in a criminal information with one count of conspiratorial bribery. Parks is expected to plead guilty to the charge at 3:00 p.m. on August 13, 2018, before U.S. District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Sections, and Assistant U.S. Attorney Jill E. Steinberg, Deputy Chief of the Criminal Division are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney announces the appointment of eight new Assistant U.S. AttorneysRead the Press Release
ATLANTA – The U.S. Attorney for the Northern District of Georgia, Byung J. “BJay” Pak has announced the appointment of eight new Assistant U.S. Attorneys to support our mission to enforce the law and defend the interests of the citizens we serve in this district.
“The opportunity to represent the United States is one of the greatest honors for a lawyer,” said U.S. Attorney Byung J. “BJay” Pak. “I’m honored to lead these exceptionally talented and dedicated lawyers whose commitment to public service is unmatched.”
Angela Adams joins the office from the Department of Justice in Washington, where she served as a trial attorney in the Fraud Section of the Criminal Division. She is pleased to return to Atlanta, where she previously spent six years with Alston & Bird LLP, specializing in government investigations and white collar crime and serving as lead associate in a high-profile criminal RICO case involving school officials. Angela received her law degree from Howard University School of Law and graduated, magna cum laude, from Clark Atlanta University with a B.A. She has also clerked for Hon. Clarence Cooper, Senior District Court Judge in the Northern District of Georgia. Angela is a member of the Criminal Division.
Austin Hall returned to the office from the Georgia Attorney General’s Office, where he served as an Assistant Attorney General in the Medicaid Fraud Control Unit (MFCU). Before leaving for MFCU, Austin worked as a Civil Assistant U.S. Attorney on cases involving the securitization of residential mortgages and violations of the Controlled Substances Act. Prior to that, he worked as a Senior Associate at Alston & Bird LLP, focused on federal securities fraud, SEC enforcement and insider trading cases. Additionally, he has served as a Judicial Extern for Hon. Frank Mays Hull, on the Eleventh Circuit Court of Appeals. Austin earned his law degree cum laude from Georgia State University School of Law, where he served as a Board Member for the Georgia State University Law Review, and graduated with a B.A. in English from the University of the South – Sewanee. Austin is a member of the Civil Division.
Theodore Hertzberg was previously an Assistant U.S. Attorney in the Southern District of Georgia, where he served as the Asset Forfeiture Chief. He has experience in a wide variety of cases, including OCDETF and violent crimes. Prior to joining the SDGA, Teddy was an associate with Kramer Levin in New York City. He also clerked for Hon. Kristi DuBose, of the U.S. District Court for the Southern District of Alabama. He received his law degree from New York University, and his B.A., cum laude, from Amherst. Teddy is a member of the Criminal Division.
Flora Manship was previously a Senior Associate at Kilpatrick Townsend & Stockton LLP in Atlanta, where she focused on labor and employment litigation. Flora received her law degree from Emory University School of Law, where she served as the Executive Managing Editor of the Emory International Law Review. She graduated magna cum laude, Phi Beta Kappa, from Drew University in Madison, New Jersey. She served as a Summer Law Clerk for California Rural Legal Assistance in San Francisco and completed an externship with The Coca-Cola Company and a judicial internship with Hon. Allison E. Accurso, Superior Court of New Jersey. Flora is a member of the Civil Division.
Leanne Marek joined the office from Alston & Bird LLP, where she was a Senior Associate focused on white collar matters. She previously served as a summer clerk in the office and as a Third Year Practice Prosecution Clinic Intern with the U.S. Attorney’s Office in the Western District of Virginia, where she worked on a wide variety of matters, including the first “bath salts” case in that district. Leanne earned her law degree from the University of Virginia School of Law and graduated summa cum laude from Auburn University with a B.A. in Political Science. During her time at Auburn, Leanne served as a senator in the Student Government Association. Leanne is a member of the Criminal Division.
Andres Sandoval joined the office from Sequor Law, P.A. (formerly Astigarraga Davis Mullins & Grossman, P.A.) in Miami, where he was a civil litigator, specializing in asset recovery, financial fraud, bankruptcy, and other commercial actions, recovering over $70 million on behalf of fraud victims. Prior to practice, he served as Student Extern to the Hon. Robert A. Mark of the U.S. Bankruptcy Court in Miami. Andres earned his law degree, cum laude, from the University of Florida, Levin College of Law, and graduated with a B.A. in political science, cum laude, from Florida International University. Andres is a member of the Civil Division.
Prior to joining the office, Noah Schechtman worked for the DeKalb County District Attorney’s Office, where he was a Senior Assistant District Attorney in the Trial Division and tried a wide range of cases, including narcotics, trafficking, armed robbery and murder. His experience includes serving as clerk for Hon. Daniel J. Yablonsky, Judge of the Superior Court – Passaic Vicinage Criminal Division, as well as an externship with Hon. David E. Peebles, United States Magistrate Judge in the Northern District of New York. He graduated cum laude from Syracuse University College of Law, received a B.S. in Business Administration from George Washington University, and currently coaches the mock trial team at Emory Law School. Noah is a member of the Criminal Division.
Erin Spritzer joined the office from the U.S. Attorney’s Office for the Middle District of Georgia, where she prosecuted narcotics, firearms, public corruption and child pornography cases. Prior to that, she worked as an Associate with the Law Office of Arthur W. Leach, specializing in white collar criminal and civil defensive matters. She served as a Law Fellow for Hon. Paul M. Newby, Associate Justice of the Supreme Court of North Carolina. Erin earned her law degree from Emory University School of Law, where she was managing editor of the Emory International Law Review, and graduated from the University of North Carolina at Chapel Hill with a B.A. in American Studies and a minor in Spanish. Erin is a member of the Criminal Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Northwest ENT Associates, P.C. to pay approximately $1.2 million to resolve False Claims Act allegationsRead the Press Release
ATLANTA –Northwest ENT Associates, P.C. (“Northwest ENT”), a Marietta, Georgia based professional corporation, has agreed to pay $1,195,361 to resolve allegations that it violated the False Claims Act by submitting claims for sinus dilation procedures in which it re-used balloon catheters that were intended for single use only.
“When healthcare providers take shortcuts in order to increase their financial bottom line, their patients are put at risk and federal funds are diverted from legitimate medical procedures,” said U. S. Attorney Byung J. “BJay” Pak. “This settlement demonstrates our commitment to pursuing healthcare providers who put their own financial well-being ahead of the well-being of their patients.”
“The goal of our agency is to protect the health and safety of the American tax payer,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners by investigating allegations where the health and safety of Medicare beneficiaries are at risk.”
“American consumers expect and deserve that the devices used by their health care practitioners during medical procedures are not only safe and effective, but also have been held under sanitary conditions,” said Peter Kuehl, Acting Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigations’ Miami Field Office. “FDA remains fully committed to working with the Department of Justice and our law enforcement partners to hold those who place profits before the health and safety of patients fully accountable.”
“This settlement demonstrates the Government’s commitment to protect public funds that support the operations of our armed forces healthcare program (TRICARE) from fraud and abuse,” said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office. “Every military contractor that submits claims must ensure that its claims are billed appropriately. DCIS and its partnering agencies will continue to vigorously pursue defense contractors that disregard billing requirements.”
“Federal employees deserve health care providers that meet the highest standards of ethical and professional behavior,” said Bret Mastronardi, Special Agent in Charge for the Office of Personnel Management - Office of the Inspector General. “Today’s settlement reminds all providers that they must observe those standards, and reflects the OPM-OIG’s commitment to pursuing improper and illegal billings that increase the cost of medical care.”
Northwest ENT has five office locations, operates a single specialty surgery center, and provides services at four hospitals in Georgia. The physicians at Northwest ENT specialize in the medical field of otolaryngology and are commonly referred to as “ear nose and throat” or “ENT” physicians.
Among the procedures that Northwest ENT performed, is the treatment of sinusitis with a “balloon catheter,” which is inserted into the patient’s sinus and inflated by the physician to enlarge the sinus cavity. The balloon catheters that Northwest ENT used was cleared by the U.S. Food and Drug Administration as intended for single use only. Despite this, the physicians at Northwest ENT re-used the devices on their patients, instead of using a new device for each patient. The civil settlement resolves the government’s investigation into these allegations.
The government alleges that Northwest ENT violated the False Claims Act, 31 U.S.C. § 3729, et seq., by causing the submission of false claims to Medicare, TRICARE and Federal Employee Health Benefit Plans for sinus dilation procedures during the period March 1, 2011 through March 30, 2012, in which the single-use balloon catheters were re-used on their patients.
In addition, pursuant to a Non-Prosecution Agreement with the United States, Northwest ENT has accepted responsibility for its actions. It has entered into a three-year Integrity Agreement with the Office of the Inspector General of the Department of Health and Human Services. Under the agreement, an independent organization will review Northwest ENT’s claims quarterly for medical necessity, accurate coding, and safe and appropriate use of medical devices.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of Inspector General, the Food and Drug Administration – Office of Criminal Investigations, the Defense Criminal Investigative Service, and the Office of Personnel Management - Office of the Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David, Deputy Chief of the Civil Division. The criminal resolution was reached by Assistant U.S. Attorney Randy Chartash.
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.
Northwest ENT Settlement Agreement
NW ENT Settlement AgreementDefendant sentenced for two armed bank robberiesRead the Press Release
ATLANTA - Darius Taurean Caldwell has been sentenced for committing two armed bank robberies, brandishing a firearm in connection with those robberies, and possessing a firearm after having been convicted of a felony offense.
“Caldwell terrified and endangered the lives of innocent victims during these armed robberies,” said U.S. Attorney Byung J. “BJay” Pak. “We are committed to keeping our communities safe and ensuring that justice is served for the victims of his crimes.”
“If not for the quick response by the Smyrna Police Department, this violent offender more than likely would have continued robbing and threatening innocent citizens,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “His reckless disregard for their safety could have easily turned into tragedy. Fortunately he is no longer a threat.”
According to U.S. Attorney Pak, the charges and other information presented in court: On August 24, 2016, Caldwell robbed a North of Atlanta (NOA) Bank branch in Doraville, Georgia. He walked into the bank wearing a blue facemask and an inside-out t-shirt. Caldwell stuck a black and silver handgun in a teller’s face and demanded money. Minutes later, he fled on foot with several thousand dollars. He managed to evade capture following this armed robbery.
On September 7, 2016, Caldwell robbed a Bank of America branch in Smyrna, Georgia. Again wearing a blue facemask and an inside-out t-shirt, he walked into the bank, reached past a terrified customer, stuck a black and silver handgun in a teller’s face, and demanded money. He again fled on foot with several thousand dollars. However, this time Smyrna, Georgia, Police Department officers captured Caldwell within minutes of the robbery while he hid behind a nearby residence. Investigators later linked Caldwell to the earlier NOA Bank robbery.
Darius Taurean Caldwell, 33, of Duluth, Georgia was sentenced to 32 years, one day in federal prison to be followed by five years of supervised release. He was also ordered to pay $ 14,841 in restitution. Caldwell was convicted by a federal jury on April 12, 2018, on two counts of armed bank robbery, two counts of brandishing a firearm during the commission of those robberies, and the offense of possessing a firearm after having been convicted of a felony offense.
This case was investigated by the Federal Bureau of Investigation and the Smyrna Police Department.
Assistant U.S. Attorney Bret R. Hobson and Assistant U.S. Attorney Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security 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.
Accountant sentenced to prison for embezzling over one million dollars from employerRead the Press Release
ATLANTA – Stantisha D. Kemp, an accounting manager who embezzled over $1.2 million dollars from her employer over a six-year period has been sentenced.
“Kemp’s egregious misconduct threatened the financial soundness of her company when she stole over one million dollars,” said U.S. Attorney Byung J. “BJay” Pak. “Businesses should build in checks and balances in their accounting procedures that safeguard their assets from fraud.”
“Hopefully this sentencing makes a statement that the FBI is committed to making cases like this a strong deterrent to the temptation of greed,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “Kemp not only defrauded the company she worked for, she also violated the trust they put in her.”
According to U.S. Attorney Pak, the charges and other information presented in court: From 2007 to 2013, Kemp served as a payroll and accounting manager of an Atlanta-based company that developed medical technology. During that time, Kemp embezzled over $1.2 million dollars by falsifying payroll records sent to a third-party payroll processing company and instructing the payroll processor to direct deposit funds into her personal bank accounts on a monthly basis.
Kemp falsely instructed the payroll processing company that a doctor with the initials Y.H.J. was a company employee, and she further instructed the payroll processing company to direct deposit Y.H.J.’s salary payments into her personal bank accounts. She concealed her scheme by preparing a set of fabricated internal payroll records that made no mention of Y.H.J., who had not been employed by the company since early April 2010. Nonetheless, Y.H.J.’s unauthorized salary payments were deposited into Kemp’s personal bank accounts, month after month, until February 2013.
Kemp was sentenced to two years in prison to be followed by three years of supervised release on August 1, 2018. She was also ordered to pay restitution in the amount of $1,253,287.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime 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 Auburn, Georgia police officer sentenced for extortion and robberyRead the Press Release
ATLANTA - Charles Hubbard, a former police officer with the Auburn, Georgia Police Department, has been sentenced to federal prison for his role relating to conspiracies to commit extortion, traffic drugs, and commit robbery. Co-defendants, Shane J. Mattadeen, Wilfred Rivera, Michael L. Henley, Jr., Shaeib H. Morgan, Clem C. Williamson, and Martin Rosendary, were also charged in the scheme.
“Instead of enforcing the laws he swore to uphold, Hubbard abused his positon as a law enforcement officer by stealing from drug traffickers for his own financial gain,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for our law enforcement partners who worked tirelessly to bring Hubbard and his co-conspirators to justice.”
“The overwhelming majority of police officers perform their duties with honor and professionalism,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “This defendant abused his position of trust by robbing drug dealers and now he must spend well-deserved time in prison for his criminal acts. This case would not have been possible without the dedicated cooperation between HIDTA, DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office.”
“The public places trust in law enforcement officials and expects for officers to protect and serve them,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “When an officer violates his oath, this trust is eroded. The defendant in this case unfortunately does not fairly reflect the honest and hardworking men and women of law enforcement who put their lives on the line daily to protect its citizens. This case is a reminder that no officer is above the law. It is also a great example of what can be achieved when DEA works hand-in-hand with its law enforcement counterparts and the U.S. Attorney’s Office.”
According to U. S. Attorney Pak, the indictment, and other information presented in court: From 2009 until 2016, Hubbard partnered with at least six other people to identify, extort and rob drug dealers. After a several months’ long investigation, the planning for their latest exploit started on March 30, 2016, when a confidential source approached co-defendant Morgan with a plan to steal money from purported drug dealers who were going to give the confidential source $60,000 for a kilogram of heroin. The confidential source proposed that Morgan elicit Hubbard’s help, a sworn police officer with the Auburn, Georgia, Police Department, to conduct a fake traffic stop of the source and seize the money for the participants to split. That same day, Morgan presented the plan to Rosendary who, in turn, presented it to Hubbard. Hubbard agreed to participate in the robbery and extortion plan.
On April 4, 2016, DEA agents gave the confidential source $40,000. The source drove to an apartment complex where Hubbard, wearing a tactical police vest and police badge, approached the source and took the money. Hubbard, Rosendary, and Morgan met briefly, divided the money, and departed. DEA agents then arrested all three, but not before Rosendary led the agents on a high-speed chase which ended after Rosendary lost control of his vehicle. Morgan, who was the passenger in the vehicle, fled on foot and was tracked down by a canine. When the dog found him, Morgan had $10,000 in his pants and another $10,000 nearby. Hubbard was found with $20,000 in his vehicle.Charles Hubbard, 54, of Loganville, Georgia was sentenced to nine years in prison to be followed by three years of supervised release on July 30, 2018. Hubbard pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 17, 2016.
The other defendants pleaded guilty as follows:
●Martin Rosendary, 47, of Atlanta, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right, conspiracy to possess cocaine with the intent to distribute, and conspiracy to commit robbery by force on September 2, 2016. Rosendary is scheduled to be sentenced on August 15, 2018.
●Shane J. Mattadeen, 41, of Lilburn, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on February 12, 2018. Mattadeen was sentenced to eight years in prison to be followed by five years of supervised release on July 10, 2018.
●Wilfred Rivera, 38, of Sugar Hill, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on March 5, 2018. Rivera was sentenced to seven years, eight months in prison to be followed by three years of supervised release on June 4, 2018.
●Michael L. Henley, Jr., 32, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit robbery by force on February 26, 2018. Henley was sentenced to six years, three months in prison to be followed by three years of supervised release on June 7, 2018.
●Shaeib H. Morgan, 42, of Stone Mountain, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and distribution of heroin on August 18, 2016. Morgan was sentenced to three years, 10 months in prison to be followed by three years of supervised release on May 28, 2018.
●Clem C. Williamson, 43, of Lawrenceville, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 29, 2017. Williamson was sentenced to one year, six months in prison to be followed by three years of supervised release on April 24, 2018.
This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area Program, and the Drug Enforcement Administration, with assistance from the Georgia State Patrol and the Federal Bureau of Investigation.
Assistant U.S. Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Special Assistant U.S. Attorney Tyler A. Mann 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.
AlphaBay spokesperson sentenced to federal prisonRead the Press Release
ATLANTA - Ronald L. Wheeler III, a/k/a Trappy, has been sentenced for conspiracy to commit access device fraud while working as a public relations specialist for the Dark Web Marketplace AlphaBay.
“By providing access to and promoting AlphaBay, this defendant profited off the ruination of countless individuals,” said U.S. Attorney Byung J. “BJay” Pak. “This case shows, once again, that criminals cannot hide in the shadows of the Dark Web.”
“Wheeler felt like he was shielded from law enforcement by operating on the Dark Web, but he was clearly mistaken,” said Ricardo Grave de Peralta, Acting Special Agent in of FBI Atlanta. “Cyber criminals like him present a critical threat to our community’s, in this case, by encouraging people to purchase illegal drugs and contraband. No matter where crime happens, the FBI will not stop diligently prosecuting anyone who chooses to threaten our citizens.”
“Sites like Alphabay are extremely problematic and the sentence handed down to Wheeler should send a clear message that when criminals participate in these Dark Web sites, you will be caught and face jail time,” said Thomas J. Holloman, Special Agent in Charge of IRS, Criminal Investigation. “We will continue working with our law enforcement partners in dismantling these Dark Web sites.”
According to U.S. Attorney Pak, the charges and other information presented in court: Wheeler conspired with Alexandre Cazes a/k/a Alpha02 a/k/a Admin, and others to commit access device fraud through the operation of The Onion Routing Dark Web marketplace AlphaBay.
AlphaBay was an international criminal marketplace that enabled users to purchase and sell stolen and fraudulently obtained access devices, illegal drugs, firearms, hacking tools, and other illicit goods and services. Sales listings on the website were organized into categories, including “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.” Shortly before AlphaBay was shut down by law enforcement, the website contained thousands of sales listings for illegal products, including approximately 4,488 sales listings for stolen personally identifying information; 28,800 sales listings for stolen online account information; 6,008 sales listings for stolen credit card information; 3,586 sales listings for computer hacking tools, such as botnets and exploit kits; and 257,533 sales listings for illegal drugs, including cocaine, heroin, and a variety of opioids. The sales of stolen personally identifying information, online account information, and credit card information all provided fertile grounds for access device fraud to flourish on the Dark Web. Aside from product listings, AlphaBay provided message board forums where users could securely discuss their criminal activities and receive support from Wheeler and other AlphaBay staffers.
On or about May 25, 2015, Wheeler began working as a public relations specialist for AlphaBay. Wheeler’s duties included moderating the AlphaBay subreddit on the internet website reddit.com, moderating the AlphaBay message board forums, mediating sales disputes among AlphaBay users, promoting AlphaBay on the internet, and providing non-technical assistance to AlphaBay users. Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use the website. In return for his work, Wheeler received a salary in Bitcoin. Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down the website.
Ronald L. Wheeler III, a/k/a Trappy, 25, of Streamwood, Illinois was sentenced to three years, 10 months in prison to be followed by three years of supervised release on July 31, 2018. He was also ordered to forfeit approximately $140,000 in cash and Bitcoin. Wheeler was convicted on March 8, 2018, after he pleaded guilty.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Samir Kaushal 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.
Airline employee and his wife charged with running an illegal cash smuggling businessRead the Press Release
ATLANTA – Bubacarr Drammeh, a DAL Global Services, LLC employee, and his wife Matako Drammeh, have been charged with smuggling hundreds of thousands of dollars in cash through Hartsfield-Jackson Atlanta International Airport, and transporting that money to California. Bubacarr Drammeh has also been charged with bribing airport employees to get the cash through security.
“Airports are a critical component of our nation’s transportation infrastructure,” said U.S. Attorney Byung J. “BJay” Pak. “The alleged actions of the Drammehs put all passengers at risk. We are committed to protecting the integrity of Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport, from this kind of activity.”
“The Drammehs are charged with allegedly breaching airport security at the busiest airport in the world,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “The FBI takes airline safety and security very seriously. We want to thank our various law enforcement partners at Hartsfield-Jackson Atlanta International Airport, along with Delta Air Lines whose cooperation provided us with information needed to investigate this case.”
“While halting bulk cash smuggling is an important Homeland Security Investigations (HSI) priority, eliminating a potential vulnerability in airport security may serve a larger contribution to national security and protection of critical infrastructure,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case illustrates HSI’s ongoing commitment to working with our federal, state and local partners to protect public safety. Further, HSI is working with relevant airlines to identify and close potential vulnerabilities, which will ensure other criminal networks are not able to engage in similar activity.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately November 2016 to September 2, 2017, the Drammehs exploited Bubacarr Drammeh’s status as an airline employee to evade airport security screenings in an effort to smuggle hundreds of thousands of dollars in cash through airport security checkpoints. Once through security, Bubacarr Drammeh allegedly transported the unscreened bulk cash on passenger flights to California. Matako Drammeh also took similar trips to California with cash that her husband delivered to her in the airport after he smuggled the cash through security undetected. Together, the Drammehs allegedly took over 50 trips.
In addition to abusing his airline employee status, the indictment also alleges that Bubacarr Drammeh bribed or attempted to bribe airport employees with money to smuggle bulk cash through security. On September 2, 2017, Bubacarr Drammeh attempted to bring a bag filled with over $140,000 in cash through an employee security checkpoint. When a screener at the checkpoint found stacks of money in his bag, Bubacarr Drammeh allegedly offered the screener $8,000 in cash in exchange for not reporting the money to the authorities. Airport security refused and properly contacted law enforcement officers.
On July 24, 2018, a federal grand jury returned an indictment against Bubacarr Drammeh, a/k/a John Dimites, a/k/a BoBo, 42, and Matako Drammeh, 38, both of Riverdale, Georgia, charging them with conspiring to operate an unlicensed money transmitting business and entering an aircraft and airport area in violation of security requirements. A federal grand jury also charged Bubacarr Drammeh with bribery.
Members of the public are reminded that the Indictment contains only charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement - Homeland Security Investigations Division, with assistance from the Atlanta Police Department.
Assistant U.S. Attorney Ryan M. Christian 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 Auburn, Georgia police officer sentenced for extortion and robberyRead the Press Release
ATLANTA - Charles Hubbard, a former police officer with the Auburn, Georgia Police Department, has been sentenced to federal prison for his role relating to conspiracies to commit extortion, traffic drugs, and commit robbery. Co-defendants, Shane J. Mattadeen, Wilfred Rivera, Michael L. Henley, Jr., Shaeib H. Morgan, Clem C. Williamson, and Martin Rosendary, were also charged in the scheme. “Instead of enforcing the laws he swore to uphold, Hubbard abused his positon as a law enforcement officer by stealing from drug traffickers for his own financial gain,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for our law enforcement partners who worked tirelessly to bring Hubbard and his co-conspirators to justice.” “The overwhelming majority of police officers perform their duties with honor and professionalism,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “This defendant abused his position of trust by robbing drug dealers and now he must spend well-deserved time in prison for his criminal acts. This case would not have been possible without the dedicated cooperation between HIDTA, DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office.” “The public places trust in law enforcement officials and expects for officers to protect and serve them,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “When an officer violates his oath, this trust is eroded. The defendant in this case unfortunately does not fairly reflect the honest and hardworking men and women of law enforcement who put their lives on the line daily to protect its citizens. This case is a reminder that no officer is above the law. It is also a great example of what can be achieved when DEA works hand-in-hand with its law enforcement counterparts and the U.S. Attorney’s Office.” According to U. S. Attorney Pak, the indictment, and other information presented in court: From 2009 until 2016, Hubbard partnered with at least six other people to identify, extort and rob drug dealers. After a several months’ long investigation, the planning for their latest exploit started on March 30, 2016, when a confidential source approached co-defendant Morgan with a plan to steal money from purported drug dealers who were going to give the confidential source $60,000 for a kilogram of heroin. The confidential source proposed that Morgan elicit Hubbard’s help, a sworn police officer with the Auburn, Georgia, Police Department, to conduct a fake traffic stop of the source and seize the money for the participants to split. That same day, Morgan presented the plan to Rosendary who, in turn, presented it to Hubbard. Hubbard agreed to participate in the robbery and extortion plan. On April 4, 2016, DEA agents gave the confidential source $40,000. The source drove to an apartment complex where Hubbard, wearing a tactical police vest and police badge, approached the source and took the money. Hubbard, Rosendary, and Morgan met briefly, divided the money, and departed. DEA agents then arrested all three, but not before Rosendary led the agents on a high-speed chase which ended after Rosendary lost control of his vehicle. Morgan, who was the passenger in the vehicle, fled on foot and was tracked down by a canine. When the dog found him, Morgan had $10,000 in his pants and another $10,000 nearby. Hubbard was found with $20,000 in his vehicle. Charles Hubbard, 54, of Loganville, Georgia was sentenced to nine years in prison to be followed by three years of supervised release on July 30, 2018. Hubbard pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 17, 2017. The other defendants pleaded guilty as follows: ●Martin Rosendary, 47, of Atlanta, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right, conspiracy to possess cocaine with the intent to distribute, and conspiracy to commit robbery by force on September 2, 2016. Rosendary is scheduled to be sentenced on August 15, 2018. ●Shane J. Mattadeen, 41, of Lilburn, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on July 10, 2018. Mattadeen was sentenced to eight years in prison to be followed by five years of supervised release on February 12, 2018. ●Wilfred Rivera, 38, of Sugar Hill, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on March 5, 2018. Rivera was sentenced to seven years, eight months in prison to be followed by three years of supervised release on June 4, 2018. ●Michael L. Henley, Jr., 32, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit robbery by force on February 26, 2018. Henley was sentenced to six years, three months in prison to be followed by three years of supervised release on June 7, 2018. ●Shaeib H. Morgan, 42, of Stone Mountain, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and distribution of heroin on August 18, 2016. Morgan was sentenced to three years, 10 months in prison to be followed by three years of supervised release on May 28, 2018. ●Clem C. Williamson, 43, of Lawrenceville, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 29, 2017. Williamson was sentenced to one year, six months in prison to be followed by three years of supervised release on April 24, 2018. This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area Program, and the Drug Enforcement Administration, with assistance from the Georgia State Patrol and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Special Assistant U.S. Attorney Tyler A. Mann 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.MARTA department administrator charged with false invoice scamRead the Press Release
ATLANTA – Jhonnita L. Williams, a former department administrator at the Metropolitan Atlanta Rapid Transit Authority (MARTA) agency, has been charged with participating in a false-invoice scheme, resulting in MARTA paying more than $500,000 for maintenance work that was never performed.
“For years, Williams allegedly betrayed her employer and exploited her position of trust at MARTA, resulting in a massive theft of tax payer money,” said U.S. Attorney Byung J. “BJay” Pak. “This grand jury charged yet another defendant in this significant fraud scheme.”
“Williams is accused of dipping into taxpayers’ money to subsidize her own personal greed,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “Public corruption like this hits at the heart of government, eroding the public’s confidence, and that’s why the FBI is committed to holding accountable those who choose to abuse their positions of trust.”
“With this indictment and the conviction of Ms. Williams’s co-conspirator Joe Erves, who is currently serving time, MARTA is closing the chapter on this incident,” said MARTA Chief of Police Wanda Y. Dunham. “We have zero tolerance for employees who violate the public trust. We remain vigilant to guard against and root out this type of behavior.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: MARTA is the principal public transportation operator in the Atlanta area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed by Metropolitan Atlanta Rapid Transit Authority Act of 1965, MARTA is a multi-county local governmental agency with a 2016 annual budget of more than $880 million.
Williams worked for MARTA from 1999 to 2017. From 2010 to 2017, Williams worked as an assistant and department administrator for Joseph J. Erves. Erves served as MARTA’s senior director of operations and oversaw the maintenance of all of its buses and rail cars.
From approximately June 2010 to December 2016, Williams and Erves allegedly had numerous fake invoices prepared on behalf of three vendors for MARTA maintenance projects for which no work was performed. Williams and Erves allegedly used the false invoices as a basis to authorize payments to the three vendors – including fake invoices submitted by a business owned by Ferrell Williams (who was romantically involved with Jhonnita Williams). After being paid, the three vendors funneled a portion of the money received from MARTA back to Williams and Erves.
Williams used the money to pay for various personal expenses, including the financing and purchase of an approximately 3,000 square foot single-family home with four bedrooms and two and a half bathrooms. To secure the loan, Williams falsely represented on her loan application that she received $8,500 as a gift from a family member, when in fact she was the source of the money.
On July 24, 2018, a grand jury returned a seven-count indictment against Jhonnita L. Williams, 47, of Atlanta, Georgia, charging her with conspiratorial and substantive federal program theft, mail fraud, and false statements on a loan application.
On September 20, 2017, Joseph J. Erves, 53, of Lithonia, Georgia pleaded guilty to federal program theft. On January 16, 2018, Erves was sentenced to two years and nine months in federal prison, and was ordered to pay $522,825.45 in restitution.
On March 29, 2018, Ferrell Williams, 63, of Cincinnati, Ohio, pleaded guilty to conspiring to commit federal program theft. Ferrell Williams’s sentencing hearing is scheduled for August 1, 2018.
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 and the MARTA Police Department.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity & Special Matters Section, and Assistant U.S. Attorney Alison Prout 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.
Defendant sentenced in international business email compromise scamRead the Press Release
ATLANTA – Kerby Rigaud, who participated in an international business email compromise scheme, has been sentenced to federal prison for conspiracy to commit wire and bank fraud and money laundering.
“Rigaud and his co-conspirators stole over $1 million from victims while perpetrating their email scam,” said U. S. Attorney Byung J. “BJay” Pak. “Citizens are urged to carefully scrutinize any email directing the transfer of money via wire.”
“Rigaud and his co-conspirators used cyberspace to organize a complex criminal scheme that crossed borders and defrauded numerous people right here in Georgia,” said Malcolm D. Wiley, Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “Today’s sentence should be a warning to other like-minded criminals that take advantage of unsuspecting victims that they will be punished for their crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: From April 2015 through April 2016, Rigaud served as a key player an international business email compromise scam impacting victims across the U.S., including in the Northern District of Georgia.
In numerous instances, victims received emails that appeared to be from trusted sources, including banking representatives and closing agents. In reality, Rigaud’s co-conspirators sent the emails, directing the victims to wire money to specific bank accounts, some of which were opened in the metro-Atlanta area. In some instances, the co-conspirators hacked email accounts or they “spoofed” the email addresses, causing the email address to appear as if it were sent by a trusted source, when in reality, it was sent from a different account.
Rigaud recruited numerous individuals who agreed to allow him use their bank accounts for the purpose of receiving large wires from unwitting victims. After receiving the wires, Rigaud directed his recruits on where to send the money, including to a number of financial institutions in Asia. Rigaud and his co-conspirators attempted to steal over $1 million during the timeframe of the conspiracy.
Kirby Rigaud, 27, of Duluth, Georgia, was sentenced to two years, three months in prison to be followed by three years of supervised release following his prison term. He was also ordered to pay restitution in the amount of $176,059.03.
This case was investigated by the U.S. Secret Service.
Assistant U.S. Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime 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.
Defendant arraigned for seriously injuring an FBI agentRead the Press Release
ATLANTA - Cedrick Hill has been arraigned on a federal charge for assaulting an FBI agent with his truck in an attempt to evade arrest. Hill was a fugitive at the time his arrest, having been previously indicted on federal charges for alleged drug offenses.
“Hill allegedly attempted to flee arrest, showing no regard for life when he seriously injured an FBI agent,” said U.S. Attorney Byung J. “BJay” Pak. “This case is an important reminder of the risks that our law enforcement officers face every day to keep our community safe. We support the work they do and have zero tolerance those who bring them harm.”
“The actions of this defendant were reprehensible, with absolute disregard for the life of our agent,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “The agent was dragged for about a quarter mile at high speeds before the defendant stopped the vehicle due to the defendant’s injuries. Our agent displayed tremendous courage and calm under fire during this very difficult situation. Fortunately, our agent is recovering from his injuries and will have his day in court for this blatant attack on a federal officer.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In January 2018, Hill was a fugitive, having previously been indicted by a federal grand jury in a 30-defendant indictment for drug offenses. On January 5, 2018, FBI agents believed Hill was located at a hotel in Sandy Springs, Georgia. Upon arrival at the hotel, an agent encountered Hill in the foyer and told him he was under arrest.
Hill began to put his arms behind his back, but pulled away as the agent began to handcuff him. Hill then allegedly ran through the lobby and exited the hotel with the agent in pursuit. The defendant ran to his truck to escape arrest. The agent attempted to stop him, and became lodged in the driver’s side door.
With the agent dangling from the door, Hill allegedly sped through the parking lot at a high rate of speed and hit another vehicle, crushing the agent at the point of impact and breaking his arm and femur. The agent managed to discharge his service weapon with his free hand, striking Hill twice.
Despite being shot, Hill drove out of the hotel parking lot, crossed Interstate 285, and turned down an access road before stopping the vehicle and releasing the injured agent onto the side of the road. The injured agent managed to call 911 and request medical care for himself and Hill. The defendant drove back to the hotel, where he was treated by first responders and later arrested. The agent remained on the side of the road until he was located by first responders.
Cedrick Hill, 26, of Marietta, Georgia was arraigned before U.S. Magistrate Judge Justin S. Anand for assaulting an FBI agent. Hill was indicted by a federal grand jury on July 17, 2018. 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 Federal Bureau of Investigation.
Assistant U.S. Attorney Jessica C. Morris is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal inmate sentenced to additional prison time for escaping from Atlanta’s federal penitentiary prison campRead the Press Release
ATLANTA - Dennis Kitchens has been sentenced to an additional two years in prison for escaping from the minimum-security camp at the U.S. Penitentiary in Atlanta (USP Atlanta) over 10 years ago.
“Kitchens evaded law enforcement for years after his escape in 2006, but he was ultimately caught and returned to prison,” said U.S. Attorney Byung J. “BJay” Pak. “Inmates who escape from prison threaten the safety of our communities. Eventually, the road will run out for them and they will be found and prosecuted, as in this case.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2004, Kitchens was sentenced to serve time in prison after a conviction for possession with intent to distribute crack cocaine. From January 2006 through June 2006, Kitchens was assigned to serve his time at USP Atlanta. USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. On June 11, 2006, Kitchens escaped from the prison camp.
After his escape, U.S Marshals worked to locate Kitchens, but he evaded detection by law enforcement for over 10 years. On January 27, 2017, a Cobb County Georgia Police Officer pulled Kitchens over after he cut across lanes of traffic without warning. Kitchens gave the officer a false name, but the officer fingerprinted him at the scene and discovered his true identity. At the time, Kitchens possessed approximately 10.5 grams of cocaine and 29 OxyContin pills.
On March 6, 2018, Kitchens pleaded guilty to possession of cocaine with the intent to distribute in the Superior Court of Cobb County, Georgia and was sentenced to 10 years in prison on that charge.
Dennis Kitchens, 57, of Atlanta, Georgia, was sentenced to two years in prison to be followed by three years of supervised release for escaping from prison. This term of imprisonment will run consecutive to his prior federal term of imprisonment resulting from his 2004 conviction. Kitchens was convicted of the escape on April 24, 2018, after he pleaded guilty.
This case was investigated by the U.S. Marshals Service.
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.
Atlanta businessmen sentenced to 10 years in prison for securities fraud schemesRead the Press Release
ATLANTA - Marc E. Bercoon and William A. Goldstein have been sentenced to federal prison on charges that they manipulated the market for shares of MedCareers Group, Inc., a publicly traded company, and that they carried out a second investment fraud scheme using a new business corporation that they organized as the bait for investors.
“These defendants manipulated the stock of a publicly traded company by orchestrating two schemes, netting over $2.5 million from investors,” said U.S. Attorney Byung J. “BJay” Pak. “At the same time they were rigging the stock market, the defendants fleeced dozens of investors in a separate fraud scheme. Today’s sentencing marks a fitting end to the defendants’ long history of cheating investors out of their hard-earned money.”
“It’s easy to dismiss financial fraud cases like this as harmless, but there is a real victimization and lives are changed because of it,” said Murang Pak, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Hopefully the sentencing of these two criminals will give the many people who were defrauded some solace.”
According to U.S. Attorney Pak, the charges and other information presented in court: From July 2009 through September 2011, Bercoon and Goldstein conspired with others to manipulate the market for shares of MedCareers Group, Inc., a publicly traded company quoted on the over-the-counter bulletin board under the ticker symbol “MCGI.”
The conspiracy culminated in two “pump and dump” schemes carried out in March and May 2010. To carry out these schemes, Bercoon and Goldstein arranged for MedCareers Group, Inc. to issue a series of misleading press releases and SEC filings, at the same time as co-conspirators sent out mass emails touting the stock. While the price of MCGI and the demand for the stock were both artificially high because of these efforts, the defendants orchestrated a sell-off of their stock, coordinating activity in multiple “nominee” accounts, which were titled in the names of other people and entities to hide the defendants’ involvement.
From May 2009 through June 2010, Bercoon and Goldstein also carried out a second investment fraud concerning a privately held company. Specifically, Bercoon and Goldstein organized a private corporation, Find.com Acquisition, Inc., and then solicited investments from dozens of individuals. Bercoon and Goldstein told investors, and induced brokers working for them to tell investors, that their funds would be used to develop an internet search engine named Find.com. Bercoon and Goldstein used the bulk of the over $1.5 million raised from investors for unrelated purposes, such as subsidizing their other business ventures and making payments to themselves and their family members. In fact, over $550,000 of the $1.5 million invested in Find.com Acquisition, Inc. was simply withdrawn from the bank in cash shortly after being invested.
As part of the scheme, investors were provided with written offering materials. In addition to stating that the investments would be used to develop the Find.com internet search engine business, the written materials stated that investors were being offered the opportunity to buy stock at a price of $1.00 per share, and that no more than 12.5% of investments would go toward commissions. Despite these representations, Bercoon and Goldstein sold stock to some investors at heavily discounted prices, without informing other investors, and paid commissions of 30% to 40% to brokers on some investments.
These charges flow from a securities fraud investigation conducted by the FBI, in which court-authorized wiretaps were used to intercept telephone conversations.
Marc E. Bercoon, 58, of Dunwoody, Georgia and William A. Goldstein, 54, of Alpharetta, Georgia were each sentenced to 10 years in prison, three years of supervised release following their prison terms, and payment of restitution in the amount of $1,496,733. The Court also entered a forfeiture order as to each defendant in the amount of $1,953,974. On February 21, 2018, Bercoon and Goldstein were convicted by a jury on 12 counts of conspiracy, mail fraud, wire fraud, and securities fraud.
In 2010, the U.S. Securities and Exchange Commission sued Bercoon and Goldstein in connection with a separate investment fraud scheme concerning LADP Acquisition, Inc. A judgment of over $3 million was entered against both men in that case. The Court applied a sentencing enhancement for violation of a prior judicial order, finding that the defendants violated a preliminary injunction in the LADP case.
This case was investigated by the Federal Bureau of Investigation. The Atlanta Regional office of the SEC, the Los Angeles Regional Office of the SEC, the Internal Revenue Service Criminal Investigation, and the Criminal Prosecution Assistance Group of FINRA provided valuable contributions in the case.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, and Assistant U.S. Attorneys Alana R. Black and Kamal Ghali 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 Equifax manager pleads guilty to insider tradingRead the Press Release
ATLANTA - Sudhakar Reddy Bonthu, a former manager at Equifax, pleaded guilty today to a charge of insider trading based on his purchases of options ahead of Equifax’s public announcement of its data breach.
“Bonthu was privy to nonpublic information pertaining to Equifax’s data breach, and he violated the law when he used that knowledge to enrich himself,” said U.S. Attorney Byung J. “BJay” Pak. “Our office will continue investigate and prosecute those who take advantage of their positions for illegal gain.”
“Our message with this case is simple - company insiders must follow the same rules that govern regular investors, otherwise the public’s confidence in the stock market erodes,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “If they don’t, the FBI and its federal partners are determined to investigate them and hold them accountable.”
“Bonthu used confidential information to determine that his company had suffered a massive data breach and then violated company policy to illegally profit from it,” said Richard R. Best, Director of the Securities and Exchange Commission’s Atlanta Regional Office. “Corporate employees cannot take advantage of their access to sensitive information and unlawfully benefit from it.”
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. 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 consumers.
Sudhakar Reddy Bonthu was a software development manager for Equifax’s Global Consumer Services team in August 2017. In that role, he was entrusted with information that resulted in him concluding that Equifax was the victim of a data breach. On August 25, 2017, Bonthu and other Equifax employees were asked to assist in responding to the breach, although he was not directly informed that Equifax had been breached. On August 25, 2017, Bonthu was informed that the target date for announcing the breach publicly was September 6, 2017. Around August 30, 2017, Bonthu learned that at least 100 million individuals’ information was exposed as part of the breach and that the data included names and Social Security numbers. The next day, Bonthu received an email related to his work on the breach with a file attached named “EFXDatabreach.postman_collection.” “EFX” is the stock ticker symbol for Equifax.
On September 1, 2017, Bonthu bought 86 put options in Equifax stock that expired on September 15, 2017. Those put options allowed him to profit if the value of Equifax stock dropped within that two-week period. Equifax publicly disclosed the data breach on September 7, 2017, and its stock fell the next day. Bonthu then exercised his put options, realizing a profit of more than $75,000.
Sudhakar Reddy Bonthu, 44, of Atlanta, Georgia is scheduled to be sentenced on October 18, 2018, at 2:00 p.m. before U.S. District Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the U.S. Securities and Exchange Commission.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Assistant U.S. Attorney Lynsey M. Barron 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.
Defendant sentenced for trafficking methamphetamine from prisonRead the Press Release
ATLANTA - Ricardo Silva, a current inmate at Smith State Prison and a high-ranking member of the Sureños prison gang, has been sentenced to 35 years in federal prison for trafficking methamphetamine. He is currently serving a sentence with the state of Georgia for trafficking cocaine.
“Silva’s time in state prison did not deter him from continuing his drug trafficking activity,” said U.S. Attorney Byung J. “BJay” Pak. “Instead of learning his lesson from his cocaine-trafficking conviction, Silva chose to continue building a drug-trafficking network with methamphetamine, but he will now face the consequences of his crime with a lengthy sentence in federal prison.
“The mission of DEA is unwavering - we combat drug traffickers - to include those who “push” drugs on the streets while incarcerated,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Filed Division. “In the end, these substances cause immeasurable damage to communities. Today’s sentencing is a perfect example of how the law enforcement community and the U.S. Attorney’s Office work together to keep deserving criminals like Silva behind bars.”
“Methamphetamine continues to ravage many communities in our nation,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “Because of the positive results yielded in this case, the sentencing of Silva should serve as a stern warning to others, that whether you seek to push methamphetamine on the streets or while incarcerated, you will ultimately be brought to justice.”
“We are especially proud of our agents and investigators who proactively identified the criminal enterprise being conducted by Silva, and worked tirelessly with our partners at the federal, state, and local levels to expose his actions,” said Gregory C. Dozier, Commissioner of the Georgia Department of Corrections. “This is yet another example of why we appreciate the support and assistance of our law enforcement partners, as we continue to work together in our commitment to expose those who pose a threat to the safety of the citizens of Georgia and ensure justice is served.”
“Criminals who are able to operate inside prisons and conduct this level of criminal activity are a direct threat to the safety of the public,” said GBI Director Vernon Keenan. “The GBI is fully committed to working with the state and federal partners to address this type of crime.”
According to U.S. Attorney Pak, the charges and other information presented in court: Since January 2010, Ricardo Silva has been serving a state sentence for trafficking cocaine. Georgia Department of Corrections officials believed that Silva was – and still is – one of the highest-ranking Georgia members of the Sureños, a dangerous gang with a strong presence in state and federal correctional facilities across the United States.
In 2016, federal agents with HIDTA and the DEA began investigating Silva for trafficking drugs while he was incarcerated in Smith State Prison. Over the course of the investigation, agents learned that Silva obtained access to a contraband cellphone, despite being segregated from the general population for 23 hours a day. Silva was able to thwart the prison’s security features designed to prevent inmates from making calls on unauthorized devices.
Agents used a variety of investigative techniques, including a federal wiretap of Silva’s contraband cellphone, to uncover his drug trafficking activities. During the investigation, they seized or found evidence of more than 100 pounds of methamphetamine in liquid and crystal form. Silva coordinated deliveries of this methamphetamine with a source of supply based in Mexico.
Law enforcement officers also conducted a traffic stop after observing one of Silva’s co-conspirators making a drug transaction, finding a firearm and approximately six pounds of crystal methamphetamine at the scene. Silva’s drug distribution network consisted of family members, former prisoners, and other recruits.
Ricardo Silva, 45, of Lawrenceville, Georgia was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 35 years in prison followed by five years of supervised release for conspiring to possess with intent to distribute at least 50 grams of methamphetamine, possessing with intent to distribute at least 50 grams of methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime. Silva was found guilty by a jury on April 18, 2018.
The following defendants have also been convicted in the conspiracy:
●Victor Alfonso Gattan, a/k/a LA, age 33, of Gwinnett County, Georgia, pleaded guilty and was sentenced on July 10, 2018 to 12 years in federal prison for conspiring to possess with intent to distribute at least 50 grams of methamphetamine;
●Anthony Sandoval, a/k/a Tony, age 25, of Monroe, Georgia, pleaded guilty in federal court to conspiring to possess with intent to distribute at least 50 grams of methamphetamine on April 30, 2018, and is awaiting sentencing;
●Lydia Beck, a/k/a Lady, age 26, of McDonough, Georgia, pleaded guilty in federal court to conspiring to possess with intent to distribute at least 50 grams of methamphetamine on December 12, 2017, and is awaiting sentencing;
●Fernando Betancourt, a/k/a Scrappy, age 33, or Douglasville, Georgia, pleaded guilty in federal court to conspiring to possess with intent to distribute at least 50 grams of methamphetamine on March 5, 2018, and is awaiting sentencing; and
●Leslie Nelson, age 38, of Atlanta, Georgia, pleaded guilty and was sentenced on September 22, 2017 to 15 years in state prison for trafficking methamphetamine and possession of a weapon during a crime in the Superior Court of Clayton County.
This case was investigated by the Atlanta-Carolina High Intensity Drug Trafficking Area Program, the Drug Enforcement Agency, the Georgia Department of Corrections, the Georgia Bureau of Investigation, the Georgia State Patrol, and the Atlanta Police Department.
Special Assistant U.S. Attorney Nicholas N. Joy and Assistant U.S Attorneys Jennifer Whitfield and Vivek Kothari prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends that 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 baggage handler sentenced for smuggling loaded firearms onto aircraftRead the Press Release
ATLANTA - Eugene Harvey, a former baggage handler for Delta Air Lines at Hartsfield-Jackson International Airport, has been sentenced to federal prison for conspiring to carry hundreds or weapons onto passenger planes, as a part of a scheme to traffic firearms from Georgia to New York.
“Harvey breached airport security at one of the nation’s busiest airports in the world, when he smuggled illegal weapons - some of which were loaded - onto passenger airplanes,” said U.S. Attorney Byung J. “BJay” Pak. “We take airline safety seriously and we will continue to prosecute individuals who threaten the safety of our airline travelers.”
“There is no telling how many homicides were prevented by stopping Harvey and his accomplices from continuing to smuggle guns, not to mention the airline safety factor the guns posed,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “This case is another example of our determination to make our neighborhoods safer by keeping illegal firearms off our streets.”
“Firearms trafficking puts guns into the hands of violent criminals,” said ATF Special Agent in Charge Arthur Peralta. “Mr. Harvey was not concerned with the safety of airline passengers or with the fact that his actions promoted violence on the streets of New York City. We must all work together to ensure that people like Mr. Harvey are identified, arrested and prosecuted to the fullest extent of the law.”
According to U.S. Attorney Pak, the charges and other information presented in court: Throughout 2014, Harvey used his security badge to smuggle firearms through airport-controlled security checkpoints at Hartsfield-Jackson, while working as a baggage handler for Delta Air Lines. He then transferred the firearms to his accomplice, another former Delta employee. The accomplice concealed the firearms in his carry-on luggage and took them into the passenger cabins of flights traveling between Atlanta and New York’s JFK and LaGuardia Airports. The transfer of the firearms would take place in locations past the Transportation Security Administration’s checkpoints - such as a men’s restrooms or food court areas. The transfer locations were agreed upon through text messages prior to the handoff. Harvey’s accomplice then flew to New York with the guns, where they were illegally sold by a third accomplice.
A federal investigation into Harvey began when the New York Police Department (NYPD) and the Kings County, New York, District Attorney’s Office notified the FBI that an unidentified individual was helping a gun trafficker move firearms illegally from Georgia to New York. The NYPD identified and arrested the New York seller of the illegal firearms, and worked with the Atlanta FBI Office to investigate how the guns were being smuggled into New York. Upon learning the firearms were being smuggled on passenger planes, Delta Air Lines worked closely with law enforcement to identify Harvey as the inside smuggler and immediately terminated his employment.
In total, Harvey trafficked 135 firearms between Georgia and New York. The last shipment on December 10, 2014, contained 18 firearms, seven of which were loaded.
Eugene Harvey, 34 of College Park, Georgia and his co-conspirators were recently convicted and sentenced in New York for state firearms violations. Harvey was sentenced today by U.S. District Judge Thomas W. Thrash, Jr. to 30 months in prison to run concurrent with the five year sentence he is currently serving in New York, to be followed by three years supervised release for conspiring to carry guns onto an aircraft as part of a scheme to traffic firearms to New York. Harvey was arrested on the federal charges on December 20, 2014 and he pleaded guilty to the conspiracy charge on December 8, 2017.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Air Marshals, with assistance from the Transportation Security Administration.
Assistant U.S. Attorney Kim S. Dammers, Chief of the Organized Crime and Gang Section and Assistant U.S. Attorneys Skye Davis 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 assaulting Federal Marshals with a motor vehicleRead the Press Release
ATLANTA – Shusta Traverse Gumbs was sentenced today following his convictions for two counts of using a motor vehicle to assault members of the U.S. Marshals Services’ Southeast Regional Fugitive Task Force (SERTF) after he eluded arrest in his vehicle, pinning a Deputy U.S. Marshal with his car during his escape.
“In an attempt to flee arresting officers, Gumbs showed no regard for life when he seriously injured one of the Deputy Marshals with his vehicle,” said U.S. Attorney Byung J. “BJay” Pak. “His lengthy prison sentence reflects our commitment to prosecute those who seek to injure our law enforcement partners who work tirelessly to protect us.”
“We appreciate the efforts of the U.S. Attorney’s Office in obtaining this conviction of Gumbs, who is a violent repeat offender,” said Keith D. Booker, Chief Inspector, Southeast Regional Fugitive Task Force, U.S. Marshals Service. “Law enforcement personnel face dangers every day in an effort to keep communities safe. Violence against those who swear an oath to protect the public will not be tolerated.”
According to U.S. Attorney Pak, the charges, and evidence presented at trial: On October 21, 2016, the SERFTF sought Gumbs for an active warrant issued by Douglas County, Georgia, Superior Court for failure to appear for the offenses of theft by receiving stolen property, felon in possession of a firearm, and possession of marijuana. SERFTF members saw Gumbs stopped in a black car in a parking lot of a store in the West End neighborhood of Atlanta.
A deputy entered the parking lot in a car, with another deputy as his passenger. A third deputy arrived in a van, with two more deputies as his passengers. Two separate deputies each arrived in separate vehicles. All the officers then converged on Gumbs’s vehicle with the sirens and blue lights of their vehicles engaged and firearms drawn. Gumbs was ordered to turn off and exit his vehicle. Gumbs suddenly placed his vehicle in reverse and backed up approximately 10 to 15 feet.
One of the deputies then ran to his vehicle to retrieve an expandable baton should it become necessary to break any of the windows of Gumbs’ vehicle. As that deputy approached Gumbs’s vehicle a second time, Gumbs accelerated his vehicle to force his way past two of the officers’ parked vehicles. As Gumbs did so, he pinned the deputy between the two vehicles, crushing a thigh, knee, foot, and ankle. Gumbs then fled the West End area at a high rate of speed during heavy traffic, striking a motorist’s vehicle, and running a stop sign and a red traffic light. He eventually abandoned the vehicle and eluded capture until four days later, on October 25, 2016.
Following a jury trial, Shusta Traverse Gumbs, 40, of the U.S. Virgin Islands, was convicted on December 11, 2017, of two counts of forcibly assaulting, impeding, opposing, resisting, or interfering with four federal officers during the performance of their official duties. U.S. District Judge Mark H. Cohen sentenced Gumbs to 19 years, six months in prison, followed by three years of supervised release.
This case was investigated by the U.S. Marshals Services’ Southeast Regional Fugitive Task Force, with assistance from the Atlanta Police Department.
Assistant U.S. Attorney Richard S. Moultrie, Jr., Chief of the Violent Crime and National Security 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.
Man sentenced to federal prison for hiring someone to kill his ex-wifeRead the Press Release
ROME, Ga. - Michael McEarchern has been sentenced for attempting to hire someone to kill his ex-wife, promising $10,000 and two Atlanta Hawks basketball tickets as payment for the murder.
“McEarchern was serious about having his ex-wife killed and provided $800 as a down payment for her murder,” said U.S. Attorney Byung J. “BJay” Pak. “The defendant has been brought to justice and his lengthy prison sentence will provide him with an opportunity to reflect on his egregious crime.”
“Had the FBI not been notified by a concerned citizen, McEarchern more than likely would have found someone to carry out the murder of his ex-wife,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “It is a great example of how law enforcement, working with the public, can prevent crime, and in this case the murder of an innocent woman.”
According to U.S. Attorney Pak, the charges and other information presented in court: McEarchern was an inmate at the jail in Bartow County, Georgia, having been arrested on drug-related charges in October 2017. While incarcerated, McEarchern reached out to several individuals trying to find someone who could arrange for the murder of his ex-wife, who lived in Cobb County. One individual told a friend of McEarchern’s desire to kill his ex-wife, and that person reported the crime to the FBI. To ensure that McEarchern was serious about seeking someone to carry out the murder, the FBI waited for McEarchern to reach out to the informant, which he did.
Believing that he was arranging the killing of his ex-wife, McEarchern agreed to pay $10,000 in cash and two tickets to an Atlanta Hawks basketball game as payment. Additionally, to show that he was serious, he had $800 in cash mailed to the purported assassin. Jail recordings captured McEarchern providing the address to the person who he asked to mail the money for him. The FBI retrieved an envelope containing the $800 with a return address of the person who sent the money on McEarchern’s instruction. The defendant also provided an address where the assassin could find the ex-wife.
Michael McEarchern, 29, of Acworth, Georgia was sentenced by U.S. District Judge Harold L. Murphy on July 13, 2018, to 10 years in prison to be followed by three years of supervised release. McEarchern was convicted of murder-for-hire on April 24, 2018, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Bartow County Sheriff's Office.
Assistant U.S. Attorney Kim S. Dammers, Chief of the 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.
Uncle and nephew indicted in metro Atlanta crime spree involving multiple armed robberies of banks and businessesRead the Press Release
ATLANTA – William Anthony Everett and Marcus Lamont Ward, Jr. were charged in a superseding indictment by a federal grand jury for conspiracy to commit and commission of armed robberies of two banks, and several robberies of Metro PCS stores, Subway sandwich shops, and a Dollar General store. The men were also charged with several counts of possessing a firearm during these armed robberies. Everett was also charged with possessing a firearm while a convicted felon.
“Federal, state, and local law enforcement officers collaborated extensively to solve the violent crime spree for which the defendants are charged,” said U.S. Attorney Byung J. “BJay” Pak. “These defendants are alleged to have committed numerous armed robberies, together and separately, in several metro Atlanta cities. Their crimes involved harrowing incidents in which bank tellers and cashiers were terrorized, while they were forced to relinquish cash at gunpoint.”
“For about a two-month period, these two defendants are alleged to have terrorized innocent victims who just happened to be in their path,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “The reign of terror ended, and now the traumatized victims can take solace that these two defendants will face justice in court, thanks to the coordinated effort of several law enforcement agencies.”
“This indictment demonstrates the outstanding work of law enforcement at all levels to investigate violent crimes in Georgia,” said GBI Director Vernon Keenan. “The GBI remains committed to working with our local and federal partners to aggressively pursue and dismantle this type of criminal element in our state.”
“I commend the U.S. Attorney’s Office for the collaborative partnership that has developed resulting in local, county, state, and federal authorities working together to ensure our communities are protected from violent offenders,” said LaGrange Police Chief Louis Dekmar.
“This case is an excellent example of law enforcement agencies working together quickly and effectively, leading to the arrests and subsequent indictment of these criminals,” said Hogansville Police Chief Brian Harr.
According to U.S. Attorney Pak, the superseding indictment, and other information presented in court: On October 7, 2016, LaGrange Police Department (LPD) officers arrested Everett and Ward in a dark gray jeep following a traffic stop executed by the Hogansville Police Department (HPD). The defendants’ arrests occurred shortly after the armed robbery of a Community Bank and Trust (CB&T) branch in LaGrange. Inside the jeep, owned and driven by Ward, officers recovered a black and silver semi-automatic pistol, money from the LaGrange bank, and clothing - a shirt, baseball cap, and black sunglasses - that matched items worn by the robber during the LaGrange robbery, as captured by the bank’s surveillance cameras. A bank manager at the LaGrange CB&T branch identified Everett as the man who committed the LaGrange and Hogansville armed robberies. A witness described seeing two suspicious men behind the Hogansville CB&T branch emerge from a dark Jeep just before that bank robbery.
Following the defendants’ arrests, the FBI consulted with Georgia Bureau of Investigation agents and local law enforcement officers about a rash of armed commercial robberies involving Metro PCS stores, Subway sandwich shops, and a Dollar General store. During all but one of the robberies, video surveillance footage captured a man who appeared to be Everett pointing either a silver and black, or black, handgun at the cashiers while robbing the establishments. Multiple witnesses described the man resembling Everett as escaping in a dark jeep that matched the general description of Ward’s jeep, in which the men were arrested on October 7, 2016. Another witness from one of the Metro PCS stores knew Everett and Ward and reported their involvement in the Metro PCS store robbery. The cashiers at the Dollar General store also identified Everett as the armed robber of their business.
The superseding indictment alleges that Everett and Ward conspired to commit the following armed robberies, including some in which only Everett is charged in the substantive counts of the indictment:
●September 29, 2016, armed robbery of a Metro PCS store located in southeast Atlanta, Georgia;
●September 22, 2016, armed robbery of a Metro PCS store located in Decatur, Georgia, including the brandishing of a firearm during this crime of violence;
●September 12, 2016, armed robbery of a Metro PCS store located in Fairburn, Georgia, including the brandishing of a firearm during this crime of violence;
●September 7, 2016, armed robbery of a Subway sandwich shop located in Forest Park, Georgia, including the brandishing of a firearm during this crime of violence;
●August 29, 2016, armed robbery of a Metro PCS store located in College Park, Georgia, including the brandishing of a firearm during this crime of violence;
●August 23, 2016, armed robbery of a Metro PCS store located in northwest Atlanta, Georgia; and
●August 14, 2016, armed robbery of a Dollar General store located in Kennesaw, Georgia.
William Anthony Everett, 57, and Marcus Lamont Ward, Jr., 31, both of Atlanta, Ga., were charged in a superseding indictment on July 10, 2018 for conspiracy to commit and commission of armed robberies of two banks, and several store robberies, including several counts of possessing a firearm during and in furtherance of these armed robberies. Members of the public are reminded that the superseding indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Atlanta Police Department, DeKalb Police Department, Fairburn Police Department, Forest Park Police Department, Fulton County Police Department, Hapeville Police Department, Hogansville Police Department, LaGrange Police Department, Kennesaw Police Department, and Newnan Police Department.
Assistant U.S. Attorney Richard S. Moultrie, Jr., Chief of the Violent Crime and National Security Section, and Assistant U.S. Attorney Dashene A. Cooper are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Six defendants charged in high-end car theft ringRead the Press Release
ATLANTA - Six defendants have been indicted by a federal grand jury on charges of stealing expensive cars from dealerships in three states, altering their Vehicle Identification Numbers (VIN), and fraudulently obtaining new titles for the cars.
“These defendants were brazen in stealing expensive vehicles from car dealerships,” said U.S. Attorney Byung J. “BJay” Pak. “They are alleged to have altered the Vehicle Identification Numbers of the stolen cars to cover their tracks and to allow them to sell the cars as legitimate.”
“The FBI Atlanta’s Organized Crime Task Force, working in coordination with the Alpharetta Public Safety Department and others, were able to bring a stop to the illicit business this crime ring is alleged to have been conducting,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “The combined effort is another example of how law enforcement will go to every length to protect our citizens and bring those who violate the law to justice.”
“When a civil servant is associated with criminal activity, it undermines the public’s trust in government,” said Special Agent in Charge Floyd Martinez. “The General Services Administration Office of Inspector General will continue to work with our law enforcement partners to aggressively investigate and hold accountable individuals who abuse this trust for personal gain.”
“This is another great example of what happens when we combine federal and local resources in an effort to combat expansive criminal activity,” said Alpharetta Police Chief John Robison. “We are grateful for our strong partnership with the FBI, and we look forward to continuing to work with them in the future.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendants allegedly worked together to steal high-end vehicles, mainly from car dealerships in Georgia, Tennessee, and South Carolina. After stealing the cars, the defendants researched vehicles that were similar to the ones they had stolen, and when a similar car was found, they used that vehicle’s VIN to create a new VIN for the stolen car. They then affixed the new VIN to the dashboard to thwart detection that the vehicle was actually stolen.
At that point, defendants submitted fraudulent powers of attorney to state motor vehicle departments to obtain copies of the titles of the similar cars. With the fake title in hand, the defendants allegedly sold the stolen car with its new VIN. The defendants allegedly stole eight Bentleys, three Audis, two Mercedes-Benz, two GMC Yukons, two Chevrolet Corvettes, as well as other expensive cars.
The following defendants were indicted by a federal grand jury on June 26, 2018 and charged with conspiracy, wire fraud, mail fraud, and altering a VIN:
●Everett Tripodis, 42, of Atlanta, Georgia;
●Janell Payne, 39, of Atlanta, Georgia;
●Mark Wilson, 31, of Toledo, Ohio;
●Kakawana Tate, 42, of Atlanta, Georgia;
●Antonio Tyler, 42, of Augusta, Georgia; and
●Quentin Berry, 45, of Atlanta, Georgia.
Tripodis and Payne were arraigned on July 10, 2018, on federal charges of stealing expensive cars, altering their Vehicle Identification Numbers (VIN), and fraudulently obtaining new titles for the cars. Tripodis was also ordered detained on July 13, 2018, pending trial by U.S. Magistrate Judge Russel G. Vineyard. Tripodis has two previous federal convictions for tampering with and altering VINs. Payne is trained as a lawyer.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. The Alpharetta Police Department, the Atlanta Police Department, and the General Services Administration – Office of Inspector General also provided assistance on the case.
Assistant U.S. Attorneys Phyllis Clerk and Paul R. Jones 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.
Seven Nigerian nationals indicted for operating online romance fraud scheme that cost victims nationwide over $1.5 million in lossesRead the Press Release
ATLANTA – A federal grand jury has returned two indictments charging seven Nigerian nationals with federal charges ranging from wire fraud to identity theft arising from their operation of online romance fraud schemes that cost users of American dating websites over $1.5 million in losses. Federal agents have arrested five of the seven defendants - two defendants remain at-large. The indictments were partially unsealed earlier today.
“The defendants in these cases allegedly used fake personas on online dating websites to trick lonely individuals into giving them money,” said U.S. Attorney Byung J. “BJay” Pak. “The defendants would allegedly spend weeks cultivating online relationships with their victims before defrauding them. Some victims lost hundreds of thousands of dollars from their retirement savings or inheritances. Users of online dating websites should be aware of such scams and should exercise extreme caution if asked for money by anyone online or over the phone.”
“The anonymity of the internet often makes a tempting playground for unscrupulous individuals who are simply waiting for an opportunity to steal from others,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “The special agents of the IRS - Criminal Investigation are uniquely skilled in their ability to trace the criminal proceeds obtained as a result of online fraud, and will continue to work with our law enforcement partners in an effort to hold cybercriminals accountable for their actions.”
According to U.S. Attorney Pak, the indictments, and other information presented in court: The defendants and other conspirators allegedly created phony dating profiles on popular online dating websites that described fictitious personas. These profiles depicted photographs of attractive men and women that, in some instances, were public figures, such as government officials or models, taken from publically available websites. The conspirators allegedly used their fake online personas to target users of online dating websites and falsely pose as potential paramours by expressing strong romantic interest in the targeted users. These conspirators often targeted vulnerable individuals who possessed financial assets and in some cases spent weeks and months cultivating romantic relationships with them through online messaging, text messaging, and voice calls.
After gaining their affection and trust, the conspirators, posing as the fake paramours, allegedly provided the targeted users with elaborate false stories to cause the users to send them money through interstate wire or online transfers to bank accounts controlled by the conspirators. The fake paramours often claimed to be working overseas and in need of money to travel back to the United States or to complete business deals abroad. Once the conspirators received money from targeted users, the conspirators quickly withdrew the funds and dispersed them into other accounts, domestically and abroad.
The indictments charge the defendants with a total of 60 counts of wire fraud, money laundering, identity theft, and use of false passports. The defendants charged in the indictments are as follows:
●Olu Victor Alonge, a/k/a Serge Damessi, a/k/a Didier Baraze, a/k/a Mobo Marcus Adeh, a/k/a Ayo Baraze, a/k/a Nicolas Soglo, 34, of Newnan, Georgia;
●Ugochukwu Lazarus Onebunne, a/k/a Policap Tizhe, a/k/a Saheed Ademoha, 41, of Douglasville, Georgia;
●Olajide Olalekan Adara, a/k/a Kelvin Mensah, 33, of Loganville, Georgia;
●Joshua Adedeji Ipoade, 28, of Atlanta, Georgia;
●Oladunni Temitope Oladipupo, 24, of Lynn, Massachusetts; and
●Two other defendants are fugitives and their identities remain sealed.
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. Capitol Police and the Internal Revenue Service Criminal Investigations Division.
Assistant U.S. Attorneys John S. Ghose and Sekret Sneed are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Realtor pleads guilty to stealing millions from clientsRead the Press Release
ATLANTA – Emily Moerdermo Fu, a metro Atlanta realtor and businesswoman, who defrauded clients out of more than $22 million dollars over a 2-year period, pleaded guilty to mail fraud on July 12, 2018.
“Real estate professionals who embezzle their clients’ investment funds threaten the integrity of our real estate market,” said U.S. Attorney Byung J. “BJay” Pak. “Investors must remain vigilant against fictitious loans, made-up closings, and other schemes by licensed professionals before they invest their monies.”
“The defendant used her position as a well-regarded realtor to defraud money from hardworking investors for her own personal financial gain,” said Scott D. Fix, Acting U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to vigorously pursue and bring to justice those individuals who use the U.S. mail to commit crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: Fu operated Capital Investment International Management, Inc., a company located in Suwanee, Georgia, that offered a wide range of services to investors in commercial properties around the Atlanta area, including investment recommendations, property financing and acquisition, and management services.
From 2004 to 2017, Fu established several investment companies for a group of clients for the supposed purchase of commercial real estate in Forsyth, Gwinnett, Fulton, and other metro counties. In November 2017, the investors discovered irregularities in the records of some of the investment companies and confronted Fu, who admitted to embezzling around $930,000. Through queries into county property databases and other investigations, it was determined that Fu had never followed through on several commercial real estate purchases, each valued in the millions of dollars. The properties included medical and shopping centers in Atlanta and across the northern metro area.
Fu told her victims that she had completed the closings and was managing the properties, when in fact, she had diverted the loans and investment funds for these “ghost purchases” for her own purposes. She also used properties, purchased by the investors with cash, as collateral for unauthorized loans which she then pocketed. Fu had been a prominent real estate professional, whose recognitions included “Individual of the Year – Governor’s International Award” in Georgia in 2012.
Sentencing for Emily Fu, 57, of Atlanta, Georgia has not been scheduled.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Brian Pearce 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.
Cartersville man sentenced to 25 years for producing child pornographyRead the Press Release
ROME, Ga. - Shawn Ryan Budovic, who targeted very young children for sexual exploitation, was sentenced to 25 years imprisonment for the production of child pornography.
“The defendant used the internet to hunt and sexually exploit young children for his own sexual gratification,” said U.S. Attorney Byung J. “BJay” Pak. “While Budovic will now serve a lengthy prison sentence for his crimes, this is also a reminder to parents of the dangers children may encounter on the internet, as well as an alert to tactics predators use to lure, manipulate and prey on their victims.”
“Individuals responsible for producing child pornography steal the innocence of children and further their revictimization each time the evidence of that exploitation is shared online,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case shows HSI investigators are actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”
According to U.S. Attorney Pak, the charges and other information presented in court: Budovic used the messenger application Kik to meet his former girlfriend when she was a minor and he was in his mid-twenties. Budovic began an online relationship with the minor, and over time he groomed her to believe that his sexual interest in children was normal. He discussed his sexual interest in young children with his girlfriend and sent her images of child pornography. Eventually, Budovic asked his minor girlfriend for sexually explicit photographs of her younger siblings, who were as young as two, four, and nine years old at the time. At Budovic’s urging, the minor girlfriend ultimately sent him multiple sexually explicit photos of her younger sisters. Homeland Security Investigations agents found pornographic photos of the children on Budovic’s phone when they executed a search warrant at his home.
Budovic’s obsession with child pornography did not stop with his minor girlfriend and her siblings. He also had a collection of hundreds of videos and images of pre-pubescent girls being sexually molested and raped. Budovic sought out girls as young as 12 years old on websites, such as Facebook and Skype, and engaged in sexually explicit chats with numerous minors. In multiple instances, he enticed young girls to send him sexually explicit images and videos of themselves over the internet. Budovic also shared images of his own genitals with the girls.
Shawn Ryan Budovic, 28, of Cartersville, Georgia was sentenced to 25 years in prison to be followed by lifetime supervised release. He will be required to register as a sex offender upon release. Budovic was convicted on these charges on May 1, 2018, after he pleaded guilty.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations.
Assistant U.S. Attorney Jolee Porter 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.
Career offender sentenced to 20 years in prison for drug offenseRead the Press Release
ROME, Ga. - Barry Shedd has been sentenced to 20 years in federal prison for possession with the intent to distribute at least 50 grams of methamphetamine less than two months after his release from state custody.
“This defendant had already served sentences for distributing dangerous drugs when he chose to return to criminal activity,” said U.S. Attorney Byung J. “BJay” Pak. “Shedd took his freedom for granted, and now he will serve 20 years in federal prison, where there is no parole.”
“The amount of prison time Shedd received correctly reflects the continuous criminal activities he engaged in, to include the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This sentencing removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to indulge in this lifestyle. DEA and its law enforcement partners and the U.S. Attorney’s Office will relentlessly pursue and ultimately prosecute criminals like Shedd.”
“On the date Shedd was arrested he was cooperative and if not for the vehicle accident would surely still be what I consider a menace to society. It is apparent that the incarceration period and release just prior to this arrest did not have the desired effect of guiding Shedd toward rehabilitation,” said Major Carl Lively, Floyd County Police Department. “Shedd is well known to many officers in our department due to his past drug involvement history. During the past years when he has not been incarcerated he has mostly been a resident in our county. The damages that he has caused to his family and our community through his decisions over the years will never be known.”
According to U.S. Attorney Pak, the charges and other information presented in court: On August 17, 2017, Shedd crashed his vehicle in a single car accident in Floyd County, Georgia. He was observed entering the woods at the site of the crash and then returning to his vehicle.
Because of his known drug history, a K-9 unit searched the wooded area near the crash. Law enforcement officers located a bag containing a quarter kilogram of methamphetamine, 110 pills, digital scales, hypodermic needles, and Shedd’s prison ID card. Officers also seized $3,253 in cash.
Shedd had only just been released from prison 58 days earlier for a prior drug offense. Because of his repeated convictions for trafficking in methamphetamine, the Court designated Shedd a career offender.
Barry Shedd, 46, of Rome, Georgia, was sentenced by U.S. District Judge Harold L. Murphy to 20 years in prison to be followed by 10 years of supervised release on July 12, 2018. Shedd was convicted on these charges on January 10, 2018, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, Floyd County Police Department, Polk County Police Department, and Rome/Floyd Metro Task Force.
Assistant U.S. Attorney Alison Prout 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.
Federal Court and the U.S Attorney’s Office warn citizens about ongoing jury scamsRead the Press Release
ATLANTA – The U.S. District Court and the U.S. Attorney’s Office for the Northern District of Georgia are issuing an alert to citizens concerning a scam that has cost victims thousands of dollars. Citizens continue to receive fraudulent phone calls from scammers falsely claiming to be with the U.S. District Court, the U.S. Marshals Service, or other government agencies. The scammers claim that the victim failed to appear for jury duty in federal court and threaten the victims with arrest unless they purchase a pre-paid credit card—such as a Green Dot card or gift card—and provide the card number to the scammers.
“These schemes are often carried out by state prisoners using contraband cellphones,” said U.S. Attorney Byung J. “BJay” Pak. “While our office has prosecuted dozens of these cases, citizens should be vigilant and suspicious of anyone who claims to be from a federal agency and demands payment for failing to appear for a jury summons. In short, a representative from a federal agency or federal court will never call demanding money.”
“If you missed jury duty, the court will never call you on the phone and demand money or a gift card number,” said Lucy S. Moses, Jury Administrator for the U.S. District Court. “Everything related to jury duty is done through the U.S. Mail to the individual juror. Citizens who receive a call and question whether it is legitimate can verify by calling the jury office themselves.”
Based on reports received by the Northern District’s jury office, over the last two years, local citizens have given scammers anywhere from $400 to $13,000 out of fear that an arrest warrant had been issued due to their failure to appear for jury duty. Many of the victims took money out of their savings or retirement to pay the scammers. One elderly gentleman reported that he had given all he had - $5,000 - and was fearful of what might happen to his wife, who suffers from dementia. On another occasion, a local teacher reported that she gave a scammer $1,200 because she was going through an adoption process and did not want anything that would interfere with her ability to adopt.
Victims commonly report that the scammers sound convincing and speak authoritatively. The scammers may use real information about the victim and court addresses. They may also use the real names of law enforcement officers, court officials, and federal judges to make the scam appear more credible. They may even “spoof” the phone number on caller ID so that it falsely appears to be from the court or a government agency. In one reported instance, a scammer learned that a potential victim was getting married and threatened to cancel her wedding if she did not pay.
Citizens can protect themselves by knowing these facts about federal jury service:
●The court will always send a jury summons by U.S. Mail.
●The court and law enforcement will never demand payment over the phone.
●The court and law enforcement will never demand a gift card number to satisfy an obligation.
●A prospective juror who disregards a jury summons will be contacted through the mail by the court clerk’s office and may, in certain circumstances, be ordered to appear before a judge. Such an order will always be in writing and signed by the judge.
●A fine will never be imposed until after the individual has appeared in court and been given the opportunity to explain his or her failure to appear. If a fine is imposed, it will be in open court and reduced to writing (and will not be payable by gift card number).
Citizens who wish to verify whether they were summoned for federal jury duty may contact the Northern District of Georgia’s jury office at 404-215-1640. Citizens can report a scam phone call by contacting the FBI Atlanta Field Office at 770-216-3000.
Alabama man pleads guilty to enticing a minor to engage in sexual activityRead the Press Release
NEWNAN, Ga. - Christopher Bradley Braden, who on two separate occasions arranged to meet minor girls for sex, pleaded guilty to enticing a minor to engage in illegal sexual activity.
“Braden was lurking on the internet seeking to prey on young girls,” said U.S. Attorney Byung J. “BJay” Pak. “On two separate occasions, the defendant drove for hours hoping to have sex with the girls. Thanks to the vigilance of our local law enforcement partners, Braden will be held accountable for his depraved conduct.”
“The FBI’s Violent Crimes Against Children unit, along with the FBI Atlanta Metro Atlanta Child Exploitation Task Force (MATCH) remain vigilant for predators who pose a threat to our children,” said J. C. Hacker, Special Agent in Charge of FBI Atlanta. “Braden’s plea should send a message to child predators that law enforcement is hunting them just as they are hunting victims.”
“The internet is a tool that has provided our society with many wonderful conveniences, however, the internet also has a dark side that sexual predators can use to prey on children,” said Marietta Police Chief Dan Flynn. “This case is a good example of federal, state, and local law enforcement collaborating to counter criminal activity on the internet in order to protect our children.”
“Our department is fortunate to have teamed up with federal, state and local law enforcement partners to stop this predator,” said Bremen Police Chief Keith Pesnell. “I’m also grateful for the hard work of my officer who was involved in taking Braden off the street to protect our children.”
According to U.S. Attorney Pak, the charges and other information presented in court: In November 2016, Braden started communicating with a young girl on the cell phone app - Meet24. She told him that she was 13 years old. He immediately initiated sexual conversations with the minor, asking about her body development and her sexual experience. Braden sent her a video of himself masturbating. He made arrangements to meet her for the purpose of having sex with her on December 1, 2016. When Braden showed up at the pre-arranged location in Marietta, Georgia, he was met by two Marietta Police Department officers and was arrested. He was later released on bond. The 13-year-old girl was actually an undercover police officer.
In May 2017, almost six months later, Braden met a 14-year-old girl on the same cell phone app – Meet24. Like before, he asked the minor questions about her body development and her sexual experience. He even sent the girl a photo of his erect penis. Braden made arrangements to meet the minor at a gas station in Bremen, Georgia. While traveling to the gas station, he sent the girl a message confirming that she was 14 years old. When Braden showed up near the gas station, he was pulled over and arrested by Bremen Police Department officers. Like before, the 14-year-old girl was actually an undercover police officer.
Christopher Bradley Braden, 40, of Jasper, Alabama was charged in a federal indictment with two counts of enticing a minor to engage in illegal sexual activity. He pleaded guilty to one count, which carries a mandatory minimum sentence of 10 years in prison. Sentencing is scheduled for October 11, 2018, at 10:00 a.m. before U.S. District Judge Timothy C. Batten, Sr.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Marietta Police Department and the Bremen Police Department.
Assistant U.S. Attorney Paul R. Jones is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former federal prison guard sentenced to prison for accepting bribesRead the Press Release
ATLANTA – Melvin Thomas, a former correctional officer at the U.S Penitentiary in Atlanta (“USP Atlanta”) was sentenced to federal prison for accepting bribe payments in exchange for smuggling contraband into the prison.
“Thomas reneged on his oath of office by violating the laws he pledged to uphold,” said U.S. Attorney Byung J. “BJay” Pak. “This type of conduct will not be tolerated, and the defendant will now be held accountable for his betrayal of the public trust, as well as his disloyalty to his fellow correctional officers.”
“Smuggling contraband into federal prisons compromises the safety of correctional officers and inmates. For that reason, the OIG takes very seriously investigations of this nature,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Miami Field Division.
According to U.S. Attorney Pak, the charges and other information presented in court: From approximately July 2009 to April 2017, Thomas was a correctional officer at USP Atlanta, a medium-security federal prison for male inmates that is operated by the Federal Bureau of Prisons. USP Atlanta prohibits inmates from using or possessing tobacco products. As a correctional officer, Thomas accepted several bribe payments from an inmate in exchange for smuggling tobacco into the prison. In total, the inmate paid Thomas approximately $3,500 for the contraband that he smuggled into the prison.
Melvin Thomas, 40, of Rocky Mount, North Carolina, was sentenced by U.S. District Judge Timothy C. Batten, Sr. to one year, one day in prison to be followed by two years of supervised release. He was also ordered to pay a $3,500 fine. Thomas pleaded guilty to bribery of a public official on April 10, 2018.
This case was investigated by the Department of Justice Office of Inspector General.
Assistant U.S. Attorney Ryan Huschka 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.
National healthcare fraud takedown results in charges against 590+ individuals, including one in Georgia, who are responsible for $2+ billion in fraud lossesRead the Press Release
ATLANTA – The Department of Justice (DOJ) and the Department of Health and Human Services (HHS) announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 590+ charged defendants across 56 federal districts, including 150+ doctors, nurses, and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 150 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Twenty-nine state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 587 providers, including doctors, nurses and pharmacists.
The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid related overdose.
“Health care fraud steals valuable resources from individuals who are most in need of the funds that support medical services and programs,” said U. S. Attorney Byung J. Pak. “We will continue to focus our efforts on aggressively investigating and prosecuting medical professionals and others who defraud our healthcare system”
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes.”
“Health care fraud costs taxpayers billions of dollars and places our most vulnerable citizens at risk for harm and neglect,” said Derrick L. Jackson, Special Agent in Charge for the U.S. Department of Health & Human Services - Office of Inspector General. “Working with our law enforcement partners, we are dedicated to protecting patients and the federal health care programs intended to serve them.”
“The FBI is dedicated to protecting federally funded health care programs from those driven by greed, those who divert funds to their own pockets, taking them away from those who desperately need them,” said J. C. Hacker, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “The scope of this case is an indication of how widespread the problem is, but also an indication of how determined we are to stop it.”
“Our Medicaid Fraud Control Unit is committed to protecting the integrity of the Georgia Medicaid program, its members and the taxpayer dollars used to provide this service,” said Georgia Attorney General Chris Carr. “We will remain vigilant in our efforts to identify and detect fraud, abuse or waste and aggressively recover all funds spent inappropriately. We are grateful to work with our partners at the U.S. Attorney’s Office and law enforcement to protect Georgians.”
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
Specifically, the Northern District of Georgia case announced as part of the nationwide Medicare Strike Force takedown:
United States v Rosa Fitzhugh
According to U.S. Attorney Pak, the indictment, and other information presented in court: Rosa Fitzhugh owned and operated Casa Luisa, Inc. with locations in Decatur, Georgia. Fitzhugh was a licensed professional counselor (“LPC”) that purportedly provided mental health counseling. In 2014, Fitzhugh and Casa Luisa, Inc. were terminated from several Medicaid funded care management organizations (“CMOs”). After termination, Fitzhugh continued to fraudulently bill these CMOs by contracting with enrolled LPCs. Fitzhugh solicited LPCs to work as independent contractors with companies she controlled and then fraudulently billed CMOs using the LPCs provider numbers for services that were not provided.
Beginning in January 2015, and continuing until October 2017, Fitzhugh billed or directed others to fraudulently bill over $2.4 million to Medicaid CMOs by billing for individual and family psychotherapy services that were not provided, not provided as billed, and not entitled to reimbursement.
The case is being investigated by the U.S. Department of Health & Human Services, Office of the Inspector General, the Federal Bureau of Investigation, and the Georgia State Attorney General’s Medicaid Fraud Control Unit.
Jeffrey Brown, Deputy Chief of the Complex Frauds Section and Assistant Attorney General Elizabeth Grofic are prosecuting the case.
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.
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.
Dose of reality - fighting the opioid epidemicRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia, in partnership with the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) Program, have released an opioid public service announcement to remind Georgians that the opioid epidemic demands the urgent attention of everyone in our community.
“Fighting this epidemic remains our highest priority and we will continue to prosecute criminals who threaten our communities with these dangerous drugs,” said U.S. Attorney Byung J. “BJay” Pak. “This public service announcement is a renewed call to remain vigilant in our efforts, as we continue to confront the challenges of this public health emergency. We must continue to work together – parents, children, teachers, neighbors, stakeholders, businesses and community leaders – to fight this epidemic and save lives.
“Georgians unfortunately have gotten a dose of reality about the dangers of opioids,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “In 2017, too many Georgians (nearly 1,050) died as a result of opioid overdoses. Atlanta-Carolinas HIDTA is committed to forming strategic partnerships with law enforcement and community partners in an effort to combat this crisis.”
The public service announcement highlights Joseph Abraham, a 19-year-old from Gwinnett County, Georgia, who struggled with addiction and its consequences for several years. He first experimented with drugs in the 8th grade. Throughout the years, his parents, David and Kathi Abraham, intervened by providing Joe with drug treatment, sober living, therapy services, and participation in Alcoholics Anonymous / Narcotics Anonymous (AA/NA). On May 26, 2017, Joe lost his battle with drug addiction minutes after taking a fatal mixture of heroin and fentanyl. Joe is not alone. In 2017, an estimated 1,043 Georgians also lost their lives to opioid overdoses.
“My son has a name and he is more than a statistic. Joe made a mistake. A fatal mistake. One that could not be fixed. Our lives are forever changed because of the opioid problem that is devastating so many families like ours,” said Kathi Abraham. “Addiction does not discriminate. The opioid crisis and the rise of heroin use is not purely for people living in the inner city. Silence is not the solution. We must increase awareness, decrease the stigma of addiction, and educate both our parents and our children. It’s up to us to act in order to save others.”
The public service announcement is currently being shown in 17 theaters within the Northern District of Georgia as a reminder of the reality of this epidemic. To view the public service announcement, please visit our website at https://www.justice.gov/usao-ndga/video/dose-reality-georgia. For additional information and resources, please visit www.doseofrealityga.org/get-support.
This education campaign is part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendants sentenced for an attempted armed carjacking at a Sam’s ClubRead the Press Release
ATLANTA - Arsalan Khalid Khan and Patrick Davis Gegenheimer have been sentenced to 10 years in federal prison for attempting to commit an armed carjacking in a busy Sam’s Club parking lot in Chamblee, Georgia.
“Khan and Gegenheimer showed no regard for life when they brazenly attempted to carjack an innocent shopper,” said U.S. Attorney Byung J. “BJay” Pak. “These criminals will no longer threaten the safety of our citizens, but will now serve lengthy prison sentences that reflect the serious and violent nature of their crimes.”
“This case is the product of a concerted collaborative effort on the part of ATF, the U.S. Attorney’s Office and the Chamblee Police Department to identify, investigate, and prosecute the perpetrators of this violent crime.” said Special Agent in Charge Arthur Peralta. “Khan and Gegenheimer chose to commit this act and use a gun. These sentences ensure that they will not have an opportunity to terrorize anyone for a long time.”
“We want to thank our partner law enforcement agencies for their efforts that resulted in the removal of two dangerous individuals from society,” said Chamblee Police Chief Donny Williams. “The reckless disregard for the safety of innocent bystanders demonstrated the necessity of a severe penalty in this instance. I am proud of the quick response of our officers on the street. They didn’t give up searching for these dangerous individuals when it appeared they had gotten away, and that made the difference.”
According to U.S. Attorney Pak, the charges and other information presented in court: On September 1, 2017, Khan and Gegenheimer approached a shopper as he was loading goods into his minivan in the parking lot of a Sam’s Club in Chamblee, Georgia. Khan aimed a pistol at the shopper and demanded his car keys. After the shopper complied, Khan ordered the victim to get into the minivan. At that point, the shopper grabbed the pistol and wrestled it away from Khan. The pistol discharged during the struggle, injuring Khan’s hand. Khan and Gegenheimer then fled the parking lot, however, Chamblee police officers found and arrested the defendants a few minutes later.
Arsalan Khalid Khan, 27, of Cumming, Georgia, and Patrick Davis Gegenheimer, 24, of Atlanta, Georgia were each sentenced to 10 years in prison, to be followed by five years of supervised release by U.S. District Judge Timothy C. Batten, Sr. The defendants were convicted of these charges on March 19, 2018, after pleading guilty to aiding and abetting each other in using a firearm to commit a violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Chamblee Police Department.
Assistant U.S. Attorney William G. Traynor 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.
Defendant sentenced to prison for Ponzi scheme in which over 160 investors lost approximately $11 millionRead the Press Release
ATLANTA - Billy Wayne McClintock has been sentenced to prison for his role in a Ponzi scheme that garnered approximately $20 million and cost over 160 investors in excess of $11 million.
“McClintock and his co-conspirator promised investors a profitable and successful return on their investments, when in fact they were compensating investors with funds raised from other investors,” said U.S. Attorney Byung J. “BJay” Pak. “Investors should be cautious when offers that sound too good to be true are wrapped with promises of high rates of returns.”
“The victims who invested in this scheme may never be made whole again, but hopefully they can take some solace in the FBI’s commitment to hold McClintock, and anyone else who is motivated by greed, accountable for their actions,” said J. C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “Unfortunately this case is a sad reminder to investors to be very careful where they entrust their hard earned money.”
According to U.S. Attorney Pak, the charges and other information presented in court: McClintock and a co-conspirator, Diane Alexander, operated a Ponzi scheme until being shut down by the U.S. Securities and Exchange Commission in the fall of 2012. McClintock and Alexander began the scheme as early as 2003, when McClintock signed up the first investors. McClintock was portrayed as the U.S. National Director of the “Trust,” a European based entity that purportedly engaged in various banking activities. Alexander first participated as an investor, and then became McClintock’s salesperson, portrayed as a “Regional Director” (although there is no evidence of any other directors).
McClintock and Alexander ultimately raised over $20 million from approximately 220 people nationwide for loans to the Trust. They offered 38 percent annual returns and told potential investors that their funds were sent to Europe for use in a variety of banking activities that purportedly generated profits sufficient to pay the promised returns. McClintock and Alexander also offered referral fees to investors as an incentive to recruit new investors.
In reality, McClintock pooled money from investors in U.S. bank accounts and used it to pay the promised returns and referral fees. In addition, McClintock and Alexander used investor funds for their personal benefit. McClintock took approximately $1.5 million in investor funds, withdrawing $285,000 in cash and also using funds to purchase a car, gold coins, solar panels for his home, costumes for a musical show, and other personal uses, including payment of property taxes.
There was no evidence that any money went to or came back from Europe, or of any real returns or profits from any actual investment, much less in amounts necessary to meet promises made to investors. When their scheme was terminated, over 160 investors incurred losses in excess of $11 million.
Billy Wayne McClintock, 76, of Bradenton, Florida has been sentenced to 10 years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $10,100,111.76. McClintock was found guilty by a jury on January 25, 2018.
This case was investigated by the Federal Bureau of Investigation.
Douglas W. Gilfillan, Chief of the Cyber and Intellectual Property Section, and Assistant U.S Attorney Alex R. Sistla prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Charges filed against second defendant for insider trading related to the Equifax data breachRead the Press Release
ATLANTA - Sudhakar Reddy Bonthu, a former software development manager for Equifax, was arraigned today on federal charges of insider trading for allegedly using information entrusted to him to purchase put options and turn a profit when the news of the data breach was made public. A grand jury previously indicted Jun Ying, a former chief information officer of Equifax U.S. Information Solutions, on charges of insider trading relating to the data breach. Ying pleaded not guilty on March 15, 2018.
“Bonthu allegedly took advantage of his position to profit while members of the public were unaware of the data breach at Equifax,” said U.S. Attorney Byung J. “BJay” Pak. “The integrity of the stock markets are jeopardized when greedy individuals who are entrusted with nonpublic information use the knowledge for their benefit.”
“Company insiders must follow the same rules that govern investors, otherwise their actions undermine the public’s confidence in the nation’s stock markets,” said J. C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “To maintain a fair and equitable stock market for everyone, the FBI will do everything in its power to hold those accountable who would choose to take advantage of their inside knowledge.”
“As alleged in our complaint, Bonthu used confidential information to determine that his company had suffered a massive data breach and then illegally profited from it,” said Richard R. Best, Director of the Securities and Exchange Commission’s Atlanta Regional Office. “Corporate employees cannot take advantage of their access to sensitive information and unlawfully benefit from it.”
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. 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 consumers.
Sudhakar Reddy Bonthu was a software development manager for Equifax’s Global Consumer Services team in August 2017. In that role, he was entrusted with information that allegedly resulted in him concluding that Equifax was the victim of a data breach. On August 25, 2017, Bonthu and other Equifax employees were asked to assist in responding to the breach, although he was not directly informed that Equifax had been breached. On August 25, 2017, Bonthu was informed that the target date for announcing the breach publicly was September 6, 2017. Around August 30, 2017, Bonthu learned that approximately 100 million individuals’ information was exposed as part of the breach and that the data included names and Social Security numbers. The next day, Bonthu received an email related to his work on the breach with a file attached named “EFXDatabreach.postman_collection.” “EFX” is the stock ticker symbol for Equifax.
On September 1, 2017, Bonthu bought 86 put options in Equifax stock that expired on September 15, 2017. Those put options allowed him to profit if the value of Equifax stock dropped within that two-week period. Equifax publicly disclosed the data breach on September 7, 2017, and its stock fell the next day. Bonthu then exercised his put options, realizing a profit of more than $75,000.
Sudhakar Reddy Bonthu, 44, of Atlanta, Georgia was arraigned on a criminal information before U.S. Magistrate Judge Alan J. Baverman, after waiving his right to be indicted by a federal grand jury.
Members of the public are reminded that an information and an indictment only contain charges. A 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, with assistance from the U.S. Securities and Exchange Commission.
Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Assistant U.S. Attorney Lynsey M. Barron 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.
Tax preparers plead guilty to conspiring to defraud the government of more than $3,500,000Read the Press Release
ATLANTA - Joseph Racine and Arnouse Merlien have pleaded guilty to conspiracy to violate the federal income tax laws by purposely misrepresenting to the IRS that their clients were qualified to receive certain tax credits and deductions on their federal tax returns. Racine is the owner of JSR Westend Tax Services, located in Atlanta, Georgia and JSR Tax Services, located in Greenacres, Florida.
“These defendants defrauded taxpayers of over $3,500,000 by falsely claiming tax credits and expenses on tax returns,” said U.S. Attorney Byung J. “BJay” Pak. “Tax preparers and others who steal from the public fisc by deliberately devising schemes to cheat the system will be vigorously prosecuted.”
“The IRS uses all of its investigative resources to uncover abusive tax return preparers who knowingly file fraudulent tax returns for the benefit of themselves and others,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “The IRS is actively pursuing these bad return preparers and are holding them accountable for their criminal actions.”
According to U.S. Attorney Pak, the charges and other information presented in court: In December 2016, Internal Revenue Service - Criminal Investigation (IRS-CI) identified JSR Westend Tax Services as potentially filing fraudulent returns for tax years 2013 through 2015. The 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. The investigation further revealed that the fraud perpetrated by Racine and Merlien resulted in losses to the U.S. Government in excess of $3,500,000.
Sentencings for Joseph Racine, 37, and Arnouse Merlien, 40, both of Boynton Beach, Florida, have been scheduled for September 6, 2018, before U.S. District Judge Leigh M. May.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Michael Herskowitz is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia couple sentenced to prison for scheme to steal tax refunds using stolen identitiesRead the Press Release
ATLANTA - Raphael Menard and Leshanda Hunte have been sentenced to federal prison for running a tax refund scheme using the stolen identities of disabled and elderly taxpayers and causing more than a $250,000 loss to the government.
“Menard and Hunte preyed on elderly and disabled citizens who were the most vulnerable and the least likely to report the defendants’ crimes,” said U.S. Attorney Byung J. “BJay” Pak. “As those who perpetrate these types of crimes become more creative, citizens must closely monitor their own personal information to avoid becoming another victim of their schemes.”
“The defendants purposefully targeted our more vulnerable citizens and used that to their advantage in perpetrating the fraud scheme,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “The defendants’ lack of compassion and disregard for this segment of the citizenry continues to drive our commitment to investigating these matters as we partner with the United States Attorney’s Office in the reduction of identity theft crimes in the area.”
According to U.S. Attorney Pak, the charges and other information presented in court: Starting in 2011, Menard and Hunte ran a fraud scheme that involved filing fraudulent federal income tax returns in the names of other people. This scheme netted over $250,000 for the defendants. Menard and Hunte targeted disabled and elderly victims who did not file income tax returns and would not report the theft of their identities to the IRS. Some of the tax returns were filed using the identities of people who had recently died.
Menard and Hunte shared responsibility for perpetrating their illegal scheme and used the ill-gotten proceeds to finance a lavish personal lifestyle, including travel and large retail purchases. The scheme unraveled after employees at Chase Bank noticed the suspicious deposits and froze the couple’s joint accounts. This led Hunte to go to the bank and demand the release of the stolen money, telling bank employees that she was a tax preparer and the refunds belonged to her clients. In reality, none of the victims knew Hunte or Menard, and the defendants were not registered tax preparers.
On October 31, 2012, Hunte brought a relative to the bank who presented fake identification in the name of one of Hunte’s victims, causing the bank to release over $8,500 in cash to Hunte. Two days later, Menard attempted to pull off the same scheme, but was arrested after bank employees spotted the fake identification. Menard’s arrest led to the seizure of the money that remained in the defendants’ bank accounts and launched an IRS investigation that uncovered the extent of their scheme.
Raphael Menard, 33, of Marietta, Georgia has been sentenced to three years, 10 months in prison to be followed by three years of supervised release. Menard pleaded guilty to conspiracy and theft of government money on January 10, 2018.
Leshanda Hunte, 34, of Marietta, Georgia has been sentenced to two years, six months in prison to be followed by two years of supervised release. Hunte was found guilty of conspiracy and theft of government money by a jury on February 16, 2018.
Menard and Hunte were ordered to pay restitution to the government in the amount of $206,564.04.
This case was investigated by the Internal Revenue Service Criminal Investigation Division.
Assistant U.S. Attorneys Trevor Wilmot and Samir Kaushal 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 CFO charged with embezzling more than $1 million from employee-owned companyRead the Press Release
ATLANTA - Carrie N. Harris, a former Chief Financial Officer and Treasurer for an employee-owned construction company based in Lithonia, Georgia has been arraigned on federal charges for embezzling more than $1 million from her employer to pay for her personal expenses. Harris was indicted by a federal grand jury on June 12, 2018.
“Harris allegedly abused her position as the Chief Financial Officer for an employee-owned company, stealing more than $1 million to enrich herself,” said U.S. Attorney Byung J. “BJay” Pak. “As thieves get more and more creative, employers must build in checks and balances to avoid turning over the ‘keys’ to the kingdom.”
“Theft of assets from an employee-owned company jeopardizes the benefits of workers,” said Isabel Colon, Regional Director of Employee Benefits Security Administration’s Atlanta Regional Office. “This case reaffirms the U.S. Department of Labor’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs.”
“Harris is accused of abusing the trust of the company which hired her, causing significant losses to her fellow employees,” said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners will hold anyone accountable who chooses to line their pockets at the expense of the companies they work for.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Between 2008 and 2013, Harris allegedly used her position as the Chief Financial Officer and Treasurer of an employee-owned construction company to steal more than $1 million by issuing over 100 checks to pay for her personal expenses, including nearly $250,000 in flights, cruises, and other vacation expenses, more than $100,000 in cash withdrawals, and more than $100,000 in retail purchases. She caused the checks to be issued to pay for these expenses by using the President’s signature without authorization. The checks she allegedly issued to pay her personal expenses ranged from $4,500 to $17,000. Harris allegedly concealed her fraud from the company by falsifying entries on the company’s check register and general ledger.
Carrie N. Harris, 53, of Jackson, Georgia was arraigned before U.S. Magistrate Judge Linda T. Walker on federal charges of wire fraud, bank fraud, and aggravated identity theft. 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 Department of Labor – Employee Benefits Security Administration and 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.
Former employee of U.S. government contractor in Afghanistan sentenced to federal prison for accepting kickbacks from subcontractorRead the Press Release
ATLANTA - A former employee of a U.S. government contractor in Afghanistan was sentenced today for accepting illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.
U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, Atlanta Resident Agency; Special Agent in Charge Robert E. Craig of DCIS’ Mid-Atlantic Field Office; Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); Acting Special Agent in Charge J.C. Hacker of the FBI Atlanta Resident Agency and Special Agent in Charge Wendell W. Palmer of Air Force Office of Special Investigations (OSI), made the announcement.
Christopher McCray, 55, of Jonesboro, Georgia and Chattanooga, Tennessee, was sentenced in Atlanta by U.S. District Judge Mark H. Cohen of the Northern District of Georgia to five months in federal prison, with five months home detention, three years of supervised release, and 200 hours of community service. McCray pleaded guilty to one count of accepting illegal kickbacks on March 5, 2018. He was charged in an indictment filed on April 25, 2017 in the Northern District of Georgia with one count of conspiracy to accept kickbacks and 14 counts of accepting illegal kickbacks.
As part of his plea, McCray admitted that he was employed as the country manager for a subcontractor of an American company that was moving cargo for the Army and Air Force Exchange Service from Bagram Airfield to military bases through Afghanistan. When the prime contractor needed McCray’s employer to take a much bigger role in the distribution, McCray had the chance to influence the choice of the necessary Afghan trucking company as a subcontractor to his employer. McCray’s employer entered into a subcontract with an Afghan company but before the choice of the subcontractor was made, the Afghan trucking company secretly agreed to kick back to McCray 15 percent of the revenues it would receive on the contract, he admitted. McCray thereafter remained as the only representative of his employer in Afghanistan for the duration of the subcontract and was responsible for checking the accuracy of the invoices submitted to McCray’s employer and the quality of the Afghan company’s work, all while secretly receiving the kickbacks, he admitted.
McCray received the secret payments from December 2012 to May 2014. He and the Afghan trucking company also maintained a separate set of invoices, which showed the amounts charged to McCray’s employer and the amounts kept by the Afghan company and the amounts sent to McCray. McCray was first paid in cash, then by wires sent to his bank in Atlanta and then by Western Union payments sent to his mother, who would deposit the funds, mostly in cash, into McCray’s bank accounts, he admitted.
DCIS, SIGAR, Army CID-MPFU, the FBI and Air Force OSI investigated this matter. Trial Attorney James Gelber of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Pearce of the Northern District of Georgia 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.
Final gang member sentenced for violent extortion of Gwinnett County business ownersRead the Press Release
ATLANTA – Jong Sung (“John”) Kim has been sentenced to federal prison after being convicted by a jury on two counts of interfering with commerce by extortion. Kim served as a lieutenant for Eugene Chung, the former leader of a gang that specialized in the violent collection of debts from business owners in the Korean community in Gwinnett County. As a result of Kim’s conviction, immigration proceedings will commence against him to determine whether he will be removed from the country. Eugene Chung, Athith (“Andy”) Vorasith, Thomas Jungwon (“Tommy”) Lee, and Ye El (“David”) Choi were previously sentenced for their crimes.
“These gang members were professionals at extortion, maiming, injuring, and threatening to kill anyone who did not bend to their demands,” said U.S. Attorney Byung J. “BJay” Pak. “Legitimate business owners were paralyzed with fear at the thought of this gang visiting them. The community is much safer now that Kim and his fellow gang members are off the street.”
“The Korean community in Gwinnett County is safer now that these gang members are off the streets,” said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “It would not have been the case had brave community members not been willing to take a stand and work with federal agents and prosecutors in order to put a stop to the violence and terror they had sown in the community.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Members of Kim’s gang conspired with each other and others to extort money and property from legitimate business people, using threats, force, violence, and firearms in furtherance of their criminal enterprise. In about July 2009, Chung and his crew visited the Gah Bin Korean bar and restaurant in Gwinnett County, Georgia, and demanded a monthly share of the restaurant’s profits from the bar’s owner (referred to as “Victim # 1” in the indictments) in exchange for “protection.” Chung promised that, unless Victim #1 made the demanded payments, Chung and his crew would assault Victim #1, harass his customers and employees, and otherwise damage the restaurant. To reinforce their threats, Chung told Victim #1 that his crew routinely carried firearms and terrorized other Korean businesses in the community.
Over the next four months, Chung and his criminal associates strong-armed Victim #1 into making monthly protection payments, ranging from $400 to $800. On December 16, 2009, after Victim #1 missed making a monthly payment, Chung, Vorasith, and Kim showed up at Gah Bin, assaulted Victim #1 in one of the restaurant’s karaoke rooms, and demanded payment. Chung threatened to kill Victim #1 if he did not pay. Chung pulled out a semi-automatic pistol, pointed it at Victim #1, and threatened to pull the trigger. Vorasith punched Victim #1 in the face, breaking his nose and knocking him unconscious.
Shortly after the December 16th assault, the FBI opened an investigation, and Victim #1 resumed making protection payments under FBI surveillance, including two payments that were made to Kim for Chung. These payments were the basis of Kim’s counts of conviction.
On September 17, 2013, a federal grand jury in Atlanta returned a 13-count indictment charging Chung, Vorasith, Kim, Choi, and Lee with extortion, drug trafficking, and firearms offenses. After extensive pretrial litigation, each of the five defendants was convicted and sentenced as follows:
●Jong Sung (“John”) Kim, 53, of Suwanee, Georgia, was sentenced on June 12, 2018, to one year, six months in prison, to be followed by three years of supervised release, and 160 hours of community service. He was convicted by a jury on March 2, 2017, on two counts of interfering with commerce by extortion. Kim was acquitted on two other extortion counts, including a conspiracy count.
●Eugene Thomas Chung, 44, of Duluth, Georgia, was sentenced on May 19, 2017, to 10 years, six months in prison, to be followed by three years of supervised release. Chung was also ordered to pay restitution of $8,500 to Victim # 1. Chung pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion.
●Athith (“Andy”) Vorasith, 37, of Auburn, Georgia, was sentenced on July 11, 2016 to seven years, three months in prison, to be followed by three years of supervised release. Vorasith was also ordered to pay restitution of $8,500 to Victim # 1. He pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion.
●Thomas Jungwon (“Tommy”) Lee, 37, of Duluth, Georgia, was sentenced on May 16, 2017, to one year, 10 months in prison, followed by three years of supervised release. He pleaded guilty on February 16, 2017, via plea agreement, to one count of interfering with commerce by extortion.
●Ye El (“David”) Choi, 34, of Norcross, Georgia, was sentenced on June 16, 2017, to one year, three months in prison, to be followed by three years of supervised release. He pleaded guilty on February 13, 2015, via plea agreement, to one count of conspiracy to interfere with commerce by extortion.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney John S. Ghose, former Assistant U.S. Attorney Ryan Scott Ferber, and former Emory Law School Extern Joshua E. Orlan 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.
Mexican cartel leader Edgar Valdez-Villareal, a/k/a “La Barbie,” sentenced to federal prison for drug trafficking and money launderingRead the Press Release
ATLANTA - Edgar Valdez-Villareal, a/k/a La Barbie, who was born in the U.S. and rose to be a high-level leader of Mexico’s Beltran-Leyva Cartel, has been sentenced to 49 years and one month in federal prison on charges of cocaine trafficking and money laundering.
“Valdez-Villareal imported tons of cocaine into the U.S. while ruthlessly working his way up the ranks of one of Mexico’s most powerful cartels, leaving in his wake countless lives destroyed by drugs and violence,” said U.S. Attorney Byung J. “BJay” Pak. “He will now go to federal prison for nearly the rest of his life. The highest levels of Mexican drug cartel should know that, like La Barbie, they will be held accountable for their crimes.”
“Edgar Valdez-Villareal a/k/a “La Barbie” was once a powerful and high-ranking member of the Mexico-based Sinaloa and Arturo Beltran-Leyva Drug Cartels,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Valdez-Villareal engaged in two decades of drug trafficking crimes and reigned with immeasurable acts of violence and intimidation. His ruthless and violent drug trafficking activities posed a significant threat to the quality of life in our country and elsewhere. The lengthy sentence he received makes the U.S. a safer place. DEA wants to thank its local, state, federal, regional, national and foreign (especially the government of Mexico) law enforcement partners, and the U.S. Attorney’s Office for the Northern District of Georgia for making this extraordinary case a success.”
According to U.S. Attorney Pak, the charges and other information presented in court: As early as the year 2000, Valdez-Villareal began his drug trafficking career as a marijuana distributor in Laredo, Texas. He soon developed cocaine customers in New Orleans and Memphis, and his activities escalated into regular shipments of 150-180 kilograms of cocaine to distributors in multiple cities. Valdez-Villareal eventually entered into a relationship with Arturo Beltran-Leyva, who was then associated with the Sinaloa Cartel and Joaquin Guzman-Loera, a/k/a “El Chapo,” in Mexico. With their support, Valdez-Villareal began coordinating shipments of cocaine into Mexico from Colombia and other South American countries using speedboats and airplanes, while also paying bribes to local law enforcement officials. The cocaine was then transported across the border into the U.S. to Valdez-Villareal’s distributors. At the same time, Valdez-Villareal became a top-level enforcer for the cartel and coordinated a war against his rivals, the Gulf Cartel and Zetas in Mexico.
In 2004, Valdez-Villareal and his partners sought out a more formalized distribution organization for their cocaine customers in Memphis and Atlanta. Valdez-Villareal obtained cocaine from Colombia, exported the cocaine from Mexico to customers located in the U.S. in tractor trailer loads of up to 300 kilograms twice per week, then arranged for currency to be smuggled back across the border to the organization’s supervisors in Mexico. In Atlanta alone, the organization distributed a total of 1,500 kilograms of cocaine in just six months in 2005. DEA agents were able to build the case against Valdez-Villareal using wiretaps, seizures of over 100 kilograms of cocaine and $4 million of drug proceeds, and witness testimony.
Edgar Valdez-Villareal, a/k/a La Barbie, 44, of Laredo, Texas has been 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, by U.S. District Judge William S. Duffey, Jr. Valdez-Villareal was convicted of conspiracy to import cocaine, conspiracy to distribute cocaine, and conspiracy to launder money on January 6, 2016, after he entered a guilty plea.
This case was investigated by agents with 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 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.com.
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.
Signature Healthcare to pay more than $30 million to resolve False Claims Act allegations related to rehabilitation therapyRead the Press Release
ATLANTA – Signature HealthCARE, LLC (“Signature”), a Louisville, Kentucky based company that owns and operates approximately 125 skilled nursing facilities, including facilities in Georgia, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, and skilled. Under the settlement agreement, Signature has agreed to pay more than $30 million.
The government’s investigation concerning Signature’s policies and practices, including whether unrealistic financial goals and scheduling therapy to achieve the highest reimbursement level regardless of the clinical needs of its patients, resulted in Signature providing and billing for unreasonable, unnecessary, and unskilled services for Medicare patients.
“Our most vulnerable citizens are put at risk when healthcare providers put their financial interests above their patients’ needs and valuable federal funds are diverted from where they are surely needed,” said U. S. Attorney Byung J. “BJay” Pak. “This settlement demonstrates our commitment to pursuing healthcare providers who provide unnecessary care to advance their bottom line.”
“Today’s settlement demonstrates our continuing efforts to protect patients and taxpayer by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Nursing home facilities provide important services to our elderly, and those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services.”
“Corporate goals should never get in the way of providing necessary quality healthcare,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG will continue to protect taxpayer dollars and vulnerable recipients of government healthcare programs.”
The message is clear, if you take advantage of programs like Medicare you will be held accountable,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The settlement resolves an investigation conducted by the U.S. Attorney’s Office for the Northern District of Georgia and allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlement also resolves allegations that Signature submitted forged certifications of patient need for skilled nursing care to the State of Tennessee’s Medicaid program.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Department of Justice Civil Division’s Commercial Litigation Branch, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti (Northern District of Georgia), Assistant U.S. Attorney Jason Ehrlinspiel (Middle District of Tennessee), and Christelle Klovers (Commercial Litigation Branch).
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.
Attachments:
Signature Healtcare Settlement AgreementSignature HealthCARE to Pay More Than $30 Million to Resolve False Claims Act Allegations Related to Rehabilitation TherapyRead the Press Release
Signature HealthCARE, LLC (Signature), a Louisville, Kentucky based company that owns and operates approximately 115 skilled nursing facilities, including 7 in middle Tennessee, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, the Department of Justice announced today. The settlement also resolves allegations that Signature submitted forged pre-admission certifications of patient need for skilled nursing to the state of Tennessee’s Medicaid program. Under the settlement agreements, Signature has agreed to pay more than $30 million. As part of the resolution, the State of Tennessee will receive a portion of the overall settlement.
“Today’s settlement demonstrates our continuing efforts to protect patients and taxpayer by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Nursing home facilities provide important services to our elderly, and those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services.”
The government alleged that Signature engaged in various practices that resulted in the submission of claims for unreasonable, unnecessary, and unskilled services to Medicare patients, including: (1) presumptively placing patients in the highest therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) providing the minimum number of minutes required to bill at a given reimbursement level while discouraging the provision of additional therapy beyond that minimum threshold; and, (3) pressuring therapists and patients to complete the planned minutes of therapy even when patients were sick or declined to participate in therapy.
“Health care providers who engage in deceptive practices place patients at unnecessary risk and contribute to the financial distress of our federal healthcare programs,” said U.S. Attorney Cochran for the Middle District of Tennessee. “Our dedicated teams of civil enforcement attorneys will work tirelessly with the relators who report fraud such as this and with our law enforcement partners who investigate healthcare fraud. When we determine that companies are cheating the taxpayers, we will hold them accountable as we have in this case.”
“Our most vulnerable citizens are put at risk when healthcare providers put their financial interests above their patients’ needs and valuable federal funds are diverted from where they are surely needed,” said U. S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “This settlement demonstrates our commitment to pursuing healthcare providers who provide unnecessary care to advance their bottom line.”
“Signature was charged with illegally boosting profits by providing excessive amounts of therapy to patients whether they needed it or not,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services, Office of Inspector General. “The decision to provide therapy should never be based on corporate financial considerations rather than a patient’s medical needs.”
The settlement resolves allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Offices for the Middle District of Tennessee and the Northern District of Georgia, the Office of Inspector General of the Department of Health and Human Services, the Tennessee Bureau of Investigation. Department of Defense, Office of Inspector General, the Defense Criminal Investigative Service, and the Department of Health and Human Services, Office of the Inspector General. Trial Attorneys Christelle Klovers and Denise Barnes of the Civil Division of the Department of Justice, Assistant United States Attorney Sarah K. Bogni of the Middle District of Tennessee, and Assistant United States Attorney Lena Amanti of the Northern District of Georgia represent the United States. Assistant Attorney General Philip Bangle represents the State of Tennessee.
The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Mableton man charged in “sextortion” of young girlsRead the Press Release
ATLANTA - Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo,” has been arraigned on federal charges for producing and distributing child pornography after he allegedly lured more than 100 young girls into sending him explicit photographs and videos. In retaliation against the girls who opposed his demands, Jenkins made violent threats against the victims, posted pornographic pictures of them on social media, and sent sexually-explicit photos to their friends and family.
“Jenkins allegedly used various social media sites to lure young girls into sending him child pornography,” said U.S. Attorney Byung J. “BJay” Pak. “He is accused of acting as a predator who terrorized his young victims by threatening to post their photographs online, unless they sent him more sexually-explicit videos and pictures. Parents and children should continually be aware of the masked dangers predators pose on social media.”
“Homeland Security Investigations will continue to fight child sexual exploitation as one of its highest priorities and will track any individual who chooses to prey on the most vulnerable in our society with every tool at our disposal,” said Atlanta Homeland Security Investigations Special Agent in Charge Nick S. Annan. “This case should also serve as a reminder to all that online predators are always searching for new victims.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning in 2015, Jenkins allegedly used different identities to contact girls between the ages of 12 and 16 years. To lure the girls, he would send them a pornographic photo and persuade them to send a sexually-explicit photo of themselves in return. After a girl sent him a photo, Jenkins would threaten her into sending him more photos and videos. Jenkins instructed the girls on what body parts to show, what poses to make, and what objects to insert into their bodies. Jenkins further humiliated his victims by coercing them to send him videos of them drinking their own urine or licking toilets. He also forced his victims to watch him masturbate.
When a girl blocked Jenkins online, he sent her explicit photos to her parents and friends. On one occasion, he posted a compromising photo of a girl to her high school Twitter page. Jenkins also posted his victim’s nude photos and contact information online with messages for men to contact the girls directly for more photos. In total, Jenkins sextorted more than 100 girls.
Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo,” 23, of Mableton, Georgia was charged with 13 counts of producing child pornography and five counts of distributing child pornography. Jenkins was indicted by a federal grand jury on May 23, 2018. The court ordered that Jenkins be kept in custody until trial.
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 Division.
Assistant U.S. Attorneys Paul R. Jones and L. Skye Davis are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Drug traffickers sentenced for distributing 100 kilograms of methamphetamine per week in the Atlanta areaRead the Press Release
ATLANTA - Victor Aguirre-Rodriguez was sentenced today to federal prison for his role in a Mexican methamphetamine and cocaine trafficking organization that distributed approximately 100 kilograms of methamphetamine per week (valued at $1.75 million per week) in the Atlanta area. Aguirre-Rodriguez was convicted by a federal jury on February 16, 2018.
“Aguirre-Rodriguez was a member of an illegal organization that flooded the Atlanta area with $1.75 million of methamphetamine per week while hiding on the other end of a cell phone in Mexico,” said U.S. Attorney Byung J. “BJay” Pak. “These high-level traffickers are not protected by technology or their distance from Atlanta when they send poison into our community.”
“These arrests and convictions are an excellent example of how DEA is committed to working with our state and local partners to eliminate drug trafficking in our local communities, no matter where these criminals try to hide,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The DEA and its law enforcement partners will work tirelessly to continue to bring justice to those responsible for putting this poison on our streets.”
“The impact of taking down these traffickers is immense,” said Atlanta Police Chief Erika Shields. “We’re glad our joint efforts led to shutting down this high-level operation that was dumping millions of dollars of methamphetamine and cocaine onto our streets. Our relationship with our federal and state partners proves once again to be vital in stopping drug traffickers and detouring others from coming to our city.”
According to U.S. Attorney Pak, the charges and other information presented in court: Victor Aguirre-Rodriguez was a member of a Mexico-based drug-trafficking organization (“DTO”) with a foothold in the Atlanta area that was seeking to establish a large-volume cocaine distribution chain to the U.S. Aguirre-Rodriguez began negotiating on behalf of the DTO via telephone from Mexico with Colombian cocaine suppliers.
Unbeknownst to Aguirre-Rodriguez, the U.S. Drug Enforcement Administration (“DEA”) had infiltrated the Colombian suppliers. As the cocaine negotiations continued, Aguirre-Rodriguez invited the Colombians to expand their business model to include the distribution of methamphetamine. The DTO had been distributing approximately 100 kilograms of methamphetamine per week in the Atlanta area at $17,500 per kilogram, and planned to reinvest those profits into its cocaine distribution line.
DEA agents within the Colombian group agreed to purchase the methamphetamine. Aguirre-Rodriguez and DEA agents set up an initial deal for ten kilograms of methamphetamine in exchange for $175,000. Agents planned to drop off a car at Best Friend Park in Gwinnett County, Georgia, where a DTO member would then pick up the car, load it with the ten kilograms of methamphetamine, and return the drug-laden car in exchange for the cash.
The Georgia State Patrol, working in conjunction with the DEA, intercepted the car and seized all ten kilograms of methamphetamine. DEA agents then arrested the driver, Joaquin Tirado. Agents also executed a federal search warrant for the DTO’s suspected drug stash house in Norcross, Georgia, where an additional seven kilograms of methamphetamine were seized and Nolver Noel Molina-Gonzalez, who was guarding the house, was arrested. DEA agents arrested a third DTO member, Jose Luis Guillen-Torres, a/k/a Primo, who was on his way to collect the $175,000 payment.
At the time of these arrests, Aguirre-Rodriguez could not be located and the DEA issued a worldwide notice for law enforcement to be on the lookout for him. Three years passed before Aguirre-Rodriguez was arrested on cocaine charges in Chicago, Illinois.
Members of the organization who have been sentenced by U.S. District Judge Thomas W. Thrash, Jr. are:
●Victor Aguirre-Rodriguez, 41, of Nayarit, Mexico was sentenced to 20 years in prison, to be followed by 10 years of supervised release. Aguirre-Rodriguez was convicted by a jury of conspiracy to possess with intent to distribute and possession with intent to distribute methamphetamine.
●Jose Luis Guillen-Torres, a/k/a/ Primo, 30, of Guerrero, Mexico was previously sentenced to 24 years and four months in prison, to be followed by five years of supervised released. Guillen-Torres pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on June 4, 2013.
●Joaquin Tirado, 29, of Los Angeles, California was previously sentenced to 15 years in prison, to be followed by 10 years of supervised released. Tirado pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking on June 3, 2013.
●Nolver Noel Molina-Gonzalez, 34, of Guerrero, Mexico was previously sentenced to eight years and one month in prison, to be followed by five years of supervised released. Molina-Gonzalez pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on June 13, 2013.
This case is being investigated by the U.S. Drug Enforcement Administration and the Atlanta Police Department, with valuable assistance from the Georgia State Patrol.
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. Attorneys Ryan M. Christian and Garrett L. Bradford 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.
Former Cox Communications vice president sentenced for embezzling millions of dollarsRead the Press Release
ATLANTA – Janet West, a former vice president at Cox Communications, was sentenced to two years, one month in federal prison for her part in an embezzlement scheme that cost the company millions of dollars.
“This greedy defendant misused her high-ranking position to deceive and steal millions of dollars from her employer,” said U.S. Attorney Byung J. “BJay” Pak. “She then used the money to fund her own lifestyle, including paying for two houses she owned. Whether the defendant is in the public or the private sector, unauthorized use of funds belonging to others for personal gain is a crime.”
According to U.S. Attorney Pak, the charges and other information presented in court: West was in charge of a nationwide field marketing plan to bring gigabit speed connections to markets throughout the U.S. Beginning in 2011, West directed her assistant to make payments, on the assistant’s corporate credit card, to a third-party company for supposed marketing services. In reality, a significant portion of the marketing services never occurred and the majority of the payments for the services were covertly transferred back to the defendant. The defendant caused Cox Communications to make payments to the third party, totaling $2.4 million.
West repeatedly falsified conflict of interest certifications with Cox Communications, failing to disclose the payments she made to herself. The defendant used the embezzled funds for her own personal benefit, including making payments on two houses she owned in Arizona.
Janet West, 49, of Paradise Valley, Arizona, was sentenced two years, one month in prison, to be followed by three years of supervised release. West was also ordered to forfeit her interest in the two properties and to pay full restitution to the victim.
This case was investigated by the Federal Bureau of Investigation.
Thomas J. Krepp, Chief of the Data Analytics Unit – Criminal Division, and Assistant U.S Attorney Kelly K. Connors 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.
Defendants sentenced for illegally purchasing 36 guns and smuggling them from Georgia to Trinidad and TobagoRead the Press Release
ATLANTA - Errol Alfred, a/k/a “Major,” and Kerry Fernandez, a/k/a “Trini,” have been sentenced for their respective roles in illegally purchasing and trafficking at least 36 firearms from Georgia to Trinidad and Tobago during a one-year period. Jordan Dunham, a co-defendant in the case, has also been sentenced for illegally purchasing some of the shipped firearms for the two men.
“Our office is committed to identifying and stopping the flow of firearms into the illegal black market,” said U.S. Attorney Byung J. “BJay” Pak. “These individuals had no regard for the safety of the citizens here or abroad when they smuggled their illegally purchased firearms for personal gain.”
“The unlawful acquisition and trafficking of firearms is a serious crime that feeds and intensifies the violence that plagues so many communities here and abroad,” said Special Agent in Charge Arthur Peralta. “This investigation illustrates the collective resolve of ATF and its law enforcement partners to stem the flow of illegal firearms within the U. S. or anywhere these criminals choose to operate.”
“In this case, the Commerce Department’s Bureau of Industry and Security, Office of Export Enforcement, Atlanta Resident Office worked closely with the U.S Attorney’s Office for the Northern District of Georgia and ATF to disrupt a smuggling scheme to illegally export firearms,” said Robert Luzzi, Special Agent in Charge, Office of Export Enforcement. “We will continue to aggressively pursue arrests and convictions that, as in this case, ultimately shut down such illegal export schemes.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between August 2013 and September 2014, Alfred and Fernandez purchased at least 36 firearms from a local firearms licensee for the purpose of shipping the firearms to Trinidad and Tobago for resale. To avoid detection by law enforcement, Alfred and Fernandez used “straw purchasers” to buy many of the firearms on their behalf. Alfred subsequently hid the illegally purchased guns in shipping barrels (unbeknownst to the shipping company), and Alfred and Fernandez then smuggled the weapons to Trinidad, where an unknown associate sold the firearms for profit.
The defendants were sentenced for the following offenses:
●Errol Alfred, a/k/a “Major,” 40, of Atlanta, Georgia was sentenced to five years in federal prison, to be followed by three years of supervised release on May 30, 2018. Alfred pleaded guilty to conspiring to smuggle firearms out of the U.S., submitting false or misleading export information, delivery of firearms to a common carrier for international shipment without written notice, fifteen counts of making a false statement during the purchase of a firearm, and two counts of access device fraud on February 6, 2018.
●Kerry Fernandez, a/k/a “Trini,” 34, of Atlanta, Georgia was sentenced to two years and three months in prison, to be followed by three years of supervised release on April 19, 2018. Fernandez pleaded guilty to conspiring to smuggle firearms out of the U.S, and making a false statement during the purchase of a firearm on June 22, 2017.
●Jordan Dunham, 26 of Norcross, Georgia was sentenced to six months in prison, to be followed by three years of supervised release on April 19, 2018. Dunham pleaded guilty to two counts of making a false statement during the purchase of a firearm on August 17, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bureau of Industry and Security, Office of Export Enforcement.
Assistant U.S. Attorney Skye Davis 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.
Roswell woman sentenced for distributing counterfeit oxycodone pills containing fentanyl & synthetic opioidsRead the Press Release
ATLANTA - Cathine Lavina Sellers was sentenced to three years in federal prison for possession with intent to distribute fentanyl and two synthetic opioids, furanyl-fentanyl and U-47700.
“This drug dealer deliberately disguised pills to make them look like oxycodone tablets, laced them with deadly fentanyl and two synthetic opioids, and then sold the fake pills out of her residence in Roswell,” said U.S. Attorney Byung J. “BJay” Pak. “These counterfeit pills posed a particular danger to our communities, as they are comparably 50 times more potent than prescription oxycodone and present a substantially higher risk of overdose.”
“The dangerous substance fentanyl is 50 to 100 times more potent than morphine and 30 to 50 times more potent than heroin,” said “Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Furanyl-fentanyl was designed by foreign chemists, as an effort to subvert the controlled substances laws, but nonetheless is extraordinarily powerful. These dangerous substances, when added to street pills, have caused scores of deaths across this nation. DEA’s job is to protect its citizens from these substances. The true spirit of federal, state and local law enforcement cooperation led to the successful prosecution of this case.”
According to U.S. Attorney Pak, the charges and other information presented in court: On June 13, 2017, Sellers sold approximately 100 pills for $1,400 in cash from her Roswell townhouse to a confidential source working with the DEA. Later that night, DEA agents searched Sellers’s townhouse and retrieved the money from the earlier transaction, and they found approximately 100 more counterfeit pills concealed in a dietary supplement bottle. Agents also found a loaded Glock handgun and two magazines. DEA agents arrested Sellers that night. A DEA lab test revealed the counterfeit pills contained furany-fentanyl, U-47700 and fentanyl; none of these substances are present in legitimate oxycodone tablets. The counterfeit pills are similar in appearance to a legitimate 30mg Roxicodone tablet, except they are a slightly lighter color of blue than the regular pills.
Cathine Lavina Sellers, 39, of Roswell, Georgia has been sentenced to three years in prison to be followed by three years of supervised release. Sellers was convicted on these charges on January 30, 2018, after she pleaded guilty.This case is being investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney John T. DeGenova 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.
Operator of bogus charity pleads guilty to defrauding multiple companiesRead the Press Release
ATLANTA – Kai Brockington pleaded guilty in federal court to mail fraud and tax fraud for running a bogus charity that duped multiple large corporations into sending him hundreds of thousands of dollars.
“Brockington defrauded a number of companies that were seeking to better their communities through charitable donation matching programs,” said U. S. Attorney Byung J. “BJay” Pak. “Rather than using the money to provide healthcare for low- income individuals, he selfishly spent the money on himself and his family.
“Legitimate charities rely on the generosity of donors to carry out their humanitarian missions. Because of his audacity to seek personal benefit, Brockington’s undermined the benevolent intentions of every charity,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI hopes his upcoming sentencing will send a message to anyone with similar intentions.”
“It is our mission to deter the illegal use of the mail for any criminal activity,” said Craig Goldberg, Postal Inspector in Charge of the Denver District. “We are committed to working together with our law enforcement partners to bring to justice those who would attempt to mask their criminal activity through the use of the mail.”
“Conspiring to defraud the government with an elaborate scheme to falsify charitable deductions is unlawful,” stated Gabriel L. Grchan, Acting Special Agent in Charge of the IRS Criminal Investigation St. Paul Field Office. “Mr. Brockington’s plea serves as an important reminder that the U.S. Attorney's Office and IRS Criminal Investigation are committed to bringing to justice those who commit and undertake such fraudulent schemes. Corporate officials hold positions of trust not only in their companies, but also in the eyes of the public. IRS CI will do everything we can to hold individuals accountable to the same tax laws that they are subject to, ensuring that our tax system is fair to everyone."
According to U.S. Attorney Pak, the charges, and other information presented in court: Brockington was the primary operator of “Our Genesis Project,” a non-profit entity that supposedly provided healthcare to underprivileged recipients. In reality, Our Genesis Project never conducted actual charitable work. Beginning in 2013, Brockington caused employees of several large companies to falsely tell their employers that they had donated money to Our Genesis Project. These large companies had programs that permitted their employees to donate money to a charity and request that the company match those donations.
From 2013 through 2017, these large companies donated approximately $668,000 to Our Genesis Project through charitable matching programs. Instead of using the donations for charitable endeavors, Brockington spent the funds on himself and his family members to purchase jewelry, expensive clothing, trips to Italy and Disney World, as well as making renovations to his family home and paying for other living expenses.
During this time period, Brockington repeatedly filed false tax returns with the IRS. This included false federal income tax returns that failed to account for the money he was earning from this scheme, as well as charity returns that falsely claimed Our Genesis Project was donating these funds for community grants, community activities, and community expenses. Additionally, Brockington filed for personal bankruptcy in 2015 and failed to disclose the substantial sums of money he earned from this fraud scheme.
Kai Brockington, 36, of Dallas, Georgia, pleaded guilty on May 23, 2018 to mail fraud and willfully filing a false federal income tax return. His sentencing is scheduled for August 22, 2018.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case. Assistant U.S. Attorney Timothy C. Rank, of the District of Minnesota, provided invaluable assistance during the course of the investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta man for indicted for assaulting a federal officer, drug trafficking and firearm violationsRead the Press Release
ATLANTA - Wendell Lamar Senior, a/k/a “Dareal Chico,” has been indicted by a federal grand jury for assaulting a federal officer, possessing marijuana with intent to distribute, possessing firearms in furtherance of a drug trafficking crime, and possessing firearms while under indictment.
“The accusations in this case are especially egregious, as the defendant allegedly shot at a house occupied by a woman and her children, struck a federal law enforcement officer while eluding authorities, and abducted two children prior to his eventual arrest,” said U.S. Attorney Byung J. “BJay” Pak. “This case is an excellent example of federal and local law enforcement officers working together to apprehend a violent and dangerous criminal.”
“This case is not only an example of the threat alleged violent offenders pose to the public while on the run, but also the threat they pose to the FBI agents and task force officers who try to apprehend them,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Despite that threat, the FBI’s Atlanta Metro Major Offender (AMMO) Task Force is determined to protect our citizens by removing the most violent criminal offenders from our streets.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: On February 16, 2018, a state grand jury in Fulton County indicted Senior for aggravated assault in connection with a shooting of an apartment occupied by a woman and her three children. March 26, 2018, FBI agents accompanied Atlanta Police Department officers to arrest Senior, at which time, he allegedly jumped from a two-story window, struck an FBI Task Force Officer, and fled.
On April 11, 2018, local law enforcement officers saw Senior driving two children to a gas station after he abducted them. The police arrested Senior inside the gas station, while rescuing the children from the car. The officers recovered marijuana, a scale, $2,050 in cash, and two firearms inside the vehicle. At the time of arrest, Senior was under indictment for the assault charge in Fulton County and possession with intent to distribute marijuana in Cherokee County.
Wendell Lamar Senior, a/k/a “Dareal Chico,” 27, of Atlanta, Georgia was indicted on May 22, 2018, by a federal grand jury for assaulting a federal officer, possessing marijuana with intent to distribute, possessing firearms in furtherance of a drug trafficking crime, and possessing firearms while under indictment. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorney Joseph A. Plummer is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
The U.S. Attorney’s Office in Atlanta also recommends that 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.
Illegal alien sentenced to 20 years for trafficking guns and methamphetamineRead the Press Release
GAINESVILLE, Ga. - Eduardo Estrada Medina, a/k/a Miguel Angel Donis-Gonzalez was sentenced to 20 years in prison for trafficking firearms and methamphetamine. Medina, a citizen of Guatemala, illegally re-entered the U.S. after being deported, purchased several weapons and trafficked in methamphetamine.
“Medina was previously deported in 2013 as a result of his drug offenses, but returned to the U.S. to continue trafficking drugs and guns,” said U. S. Attorney Byung J. Pak. “The illegal drug business and guns are frequent companions in crime, but we will continue to relentlessly pursue criminals like Medina who blatantly disregard our laws and threaten our communities with these kind of criminal activities.”
“This sentence is a direct message to criminals that ATF will not allow egregious violations of our laws to go unpunished,” said Assistant Special Agent in Charge John Schmidt of the ATF Atlanta Field Division. “If you traffic guns and drugs, you will be targeted, and we will ensure that you are prosecuted and removed from our streets.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On June 6, 2017, Medina was arrested at his residence when ATF agents observed him take possession of a firearm that was transferred to him by an individual the agents knew to be prohibited from possessing firearms. The agents obtained and executed a federal search warrant at Medina’s residence, finding 8.8 kilograms of methamphetamine, $160,000 cash, a heat sealer, a money counter, three ledgers, baggies, scales, phones, and eight guns in his bedroom. Medina was deported in January 2013 after he was convicted of drug trafficking. He then illegally re-entered the U.S.
Eduardo Estrada Medina, a/k/a Miguel Angel Donis-Gonzalez, 29, of Winder, Georgia was sentenced to 20 years in federal prison, to be followed by five years of supervised release on May 21, 2018. Medina pleaded guilty on February 28, 2018 to possession with intent to distribute methamphetamine and possession of a firearm in the furtherance of a drug trafficking crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Jennifer Keen and Stephanie Gabay-Smith prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends that 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.