Northern District of Georgia
Press releases recorded for this federal judicial district.
Former Worksource DeKalb Supervisor Charged with BriberyRead the Press Release
ATLANTA - Roderick L. Wyatt, 61, of Stone Mountain, Ga., has been charged with accepting bribe payments in exchange for approving the enrollment of almost 20 students to a local college, through a federal workforce program in DeKalb County. The federal indictment alleges that Wyatt agreed to accept payments from the college president for each student sent to the college through Worksource DeKalb, a federally funded program.
“Wyatt allegedly sold his supervisory position with WorkSource DeKalb for cash. In doing so, he allegedly accepted a “bounty” for each student sent to a specific college,” said U. S. Attorney John A. Horn.
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to Workforce Innovation and Opportunity Act grants issued by the U.S. Department of Labor. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
Public corruption is the FBI’s top criminal investigative priority because it takes a significant toll on the public’s pocketbooks by siphoning off tax dollars,” said FBI Special Agent in Charge David J. LeValley. “This case is another example of our commitment to combat corruption by investigating public officials who choose to abuse federally funded programs.”
According to United States Attorney Horn, the charges, and other information presented in court: the Workforce Innovation and Opportunity Act is a federal public law designed to improve and modernize America’s workforce development system by providing dislocated and low-income individuals with the skills and education needed to obtain employment and by providing employers with trained and qualified workers to fill employment vacancies.
WorkSource DeKalb (formerly DeKalb Workforce Development) was a DeKalb County department funded exclusively by the federal Workforce Innovation and Opportunity Act. WorkSource DeKalb (“WSD”) served the unemployed and underemployed citizens of DeKalb County by providing work readiness programs, services, and activities necessary to obtain sustainable wages. Using federal funds, WSD paid the cost for unemployed and underemployed individuals to attend pre-screened schools or programs where the individuals gained the technical or vocational skills needed to obtain employment in fields such as nursing, truck driving, or welding. After reviewing the unemployed individuals’ career aspirations and educational interests, WSD staff members recommended the individuals to particular pre-screened schools or programs.
From 2013 to April 2017, Wyatt served as a WSD Employment and Training Supervisor. As a supervisor, Wyatt reviewed and approved the school/program recommendations made by WSD staff members.
In 2014, the president and founder of a pre-screened school that offered its students nursing assistant and medical technician certifications approached Wyatt and offered to pay him for each individual that WSD referred to the College. In 2014 and 2015, Wyatt approved the enrollment of approximately 19 students to the College. The College’s president paid Wyatt $100 for each student approved to attend his school. In total, the College received approximately $82,000 in federal funds under the Workforce Innovation and Opportunity Act. The name of the college has not been identified in the Information or any of the court pleadings.
This case is being investigated by the Department of Labor - Office of the Inspector General and Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Tyler Mann 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.
Roswell Woman Indicted on Federal Charges for Counterfeit Oxycodone Pills Containing Fentanyl and Synthetic OpioidsRead the Press Release
ATLANTA - Cathine Lavina Sellers of Roswell, Georgia, has been arraigned on federal charges of possession with the intent to distribute fentanyl, and two synthetic opioids, furanyl-fentanyl and U-47700. A search warrant affidavit in the case alleges that Sellers was selling counterfeit 30mg Roxicodone (oxycodone) pills out of her residence in Roswell.
In conjunction with this arrest, the U.S. Attorney’s Office and Atlanta DEA are issuing a public warning regarding these counterfeit pills through their public affairs offices as well as through the North Georgia Heroin Working Group, https://www.justice.gov/usao-ndga/heroinopioid-working-group. A similar warning was issued just last month when fake Percocet pills caused numerous overdoses in the Macon, Georgia area. Five overdose deaths have been linked to the fake Percocet pills.
“This defendant allegedly sold counterfeit pills that were deliberately designed to look like normal Roxicodone tablets when they were actually laced with fentanyl and two synthetic opioids,” said U. S. Attorney John Horn. “These pills are especially dangerous because they may be more than 50 times more potent than normal oxycodone. Anyone who consumes these pills faces a substantially higher risk of overdose.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Combating the explosion of synthetic drugs continue to be one of DEA’s top priorities. Substances like U-47700, also known as “Pink,” which is a synthetic opioid 7.5 times stronger than morphine, continues to wreak havoc on our society. DEA will continue to work tirelessly with our law enforcement partners and the U.S. Attorney’s Office to bring dangerous ‘pill pushers’ to justice.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: On June 13, 2017, Sellers allegedly sold approximately 100 pills for $1,400 in cash from her Roswell townhouse to a confidential source working with the DEA. A field test of the pills was positive for the presence of furanyl-fentanyl, which is an analog of fentanyl, similar to morphine but more potent.
Later that night, DEA agents searched Sellers's home and retrieved the money from the earlier transaction. There, DEA agents found more pills, similar to those purchased, which also contained furanyl-fentanyl, concealed in a dietary supplement bottle. Agents also found a loaded Glock handgun and two magazines. DEA agents arrested Sellers that night.
An affidavit submitted by a Sandy Springs Police officer, who is sworn as a DEA task force officer, recounts a conversation between Sellers and the confidential source during which Sellers acknowledged that the counterfeit pills contained fentanyl. Sellers said that several customers had returned the counterfeit pills because they were too strong, but later came back to get the pills.
investigation revealed that Sellers and her boyfriend have been selling the counterfeit pills for some time before DEA arrested her. The counterfeit pills are described as similar in appearance to a legitimate 30mg Roxicodone tablet, except that they are a slightly lighter color of blue than the regular pills.
Cathine Lavina Sellers, 38, of Roswell, Georgia, is charged with possession with the intent to distribute a controlled substance, involving fentanyl, a Schedule II controlled substance, and furanyl-fentanyl and U-47700, both of which were designated by DEA as a Schedule I controlled substance on an emergency basis in 2016. Sellers was indicted by a federal grand jury on July 11, 2017.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration together with the Sandy Springs Police Department.
Assistant U.S. Attorney John DeGenova is prosecuting the case.
The U.S. Attorney’s Office in Atlanta has convened a regional working group to address the threats from opioid abuse and addiction, and more information about the working group can be found at https://www.justice.gov/usao-ndga/heroinopioid-working-group and https://www.facebook.com/NDGAHWG . The U.S. Attorney’s Office further 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.
Justice Department Seeks to Shut Down Atlanta-Area Tax Return PreparerRead the Press Release
The United States filed a civil injunction suit seeking to bar Marjorie St. Jean and her company MarjorieStjeanLLC, from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The complaint filed in the U.S. District Court for the Northern District of Georgia, also requests that the court order St. Jean and MarjorieStjeanLLC to disgorge the fees that they obtained through the preparation of allegedly false returns. According to the complaint, St. Jean of McDonough, Georgia, currently owns and operates a tax preparation store called Precise Tax Services. This tax preparation store is located at 7206 Tara Blvd. in Jonesboro, Georgia, according to the complaint.
The government alleges that St. Jean prepares and files tax returns that unlawfully increase her customers’ refunds, and she profits through excessive, often undisclosed preparation fees—at the expense of her customers and the U.S. Treasury. The complaint alleges that St. Jean and her company, MarjorieStjeanLLC, engage in fraudulent activity, including:
• Falsely claiming Fuel Tax Credits;
• Falsely claiming the Earned Income Tax Credit;
• Fabricating businesses and related business income and expenses;
• Fabricating deductions, particularly for unreimbursed employee business expenses; and
• Charging deceptive and unconscionable fees.
According to the complaint, St. Jean was previously an employee of LBS Tax Services, where she worked at a tax preparation store owned and operated by Douglas Mesadieu. A federal court previously barred Mesadieu from preparing federal tax returns for others and owning and operating a tax preparation business, finding that “Mesadieu and his companies have been unjustly enriched by fraudulently inflating the EITC on the tax returns they prepared for customers in order to increase a taxpayer’s tax refund.” Since September 2014, the United States has filed 15 similar lawsuits in Florida and North Carolina against the former LBS Tax Services franchisor, Walner Gachette, and former LBS franchisees and managers, many of whom allegedly rebranded as new businesses and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained numerous permanent injunctions and money judgments requiring defendants to disgorge millions in ill-gotten tax preparation fees.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Mexican citizen charged with selling guns to Guatemalan citizen who was trafficking methRead the Press Release
GAINESVILLE, Ga. - Miguel Angel Rosas-Ramirez and Eduardo Estrada Medina have been arraigned on federal firearm and drug charges. A federal indictment charges that Rosas-Ramirez, a citizen of Mexico, used an unlawfully obtained concealed carry permit to purchase multiple firearms, which his alien status prohibits under federal law, and that he then sold the guns to others, including Estrada. The indictment further charges that Estrada, a citizen of Guatemala, illegally reentered the United States after being deported, purchased several weapons from Rosas-Ramirez, and trafficked in methamphetamine.
“Guns are an all-too-frequent part of the illegal drug business, and the majority of these guns arrive in drug dealers’ hands from illegal firearm trafficking as alleged in this case,” said U. S. Attorney John Horn. “This case is even more troubling because one of the alleged gun purchasers already had been deported once as a result of illegal drug trafficking, and yet found his way back to the United States and to the dangerous combination of methamphetamine and guns.”
“ATF’s involvement in securing this indictment is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity. Criminals must understand that there are serious repercussions for illegal trafficking of narcotics and illegal possession of firearms and that ATF will contribute all necessary time and effort to ensure that the individuals responsible are brought to justice,” said Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges, and other information presented in court, Rosas-Ramirez falsely claimed to be a U.S. citizen in order to obtain a Georgia Weapons Carry Permit. He then allegedly used the permit to illegally purchase over 100 firearms in the past year, several of which have been recovered in the hands of illegal aliens who were themselves trafficking drugs. The indictment charges that Eduardo Estrada Medina, who was also known as Miguel Angel Donis-Gonzalez, not only possessed firearms that Rosas-Ramirez purchased, but also had 8.8 kilograms of suspected methamphetamine, over $140,000 cash, and other drug paraphernalia in his home. Medina was deported in January 2013 after he was convicted of drug trafficking. He then illegally re-entered the United States.
Medina faces charges of unlawful possession of firearms by an alien, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking activity, possession of an unregistered silencer, and unlawful possession of firearms by a felon. Rosas-Ramirez has been charged with unlawful possession of firearms by an alien, unlawful dealing in firearms, unlawful claim to U.S. citizenship, and 18 counts of fraudulent statements to licensed gun dealers in connection with firearms purchases.
Miguel Angel Rosas-Ramirez, 24, a Mexican citizen living in Statham, Georgia, and Eduardo Estrada Medina, a/k/a Miguel Angel Donis-Gonzalez, 28, a Guatemalan citizen in the United States living in Winder, Georgia, were arraigned before U.S. Magistrate Judge J. Clay Fuller. A federal grand jury indicted the pair on June 27, 2017.
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 defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Jennifer Keen 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.
Cobb County man sentenced to prison for failing to register as a sex offenderRead the Press Release
ATLANTA - Frederick Laron Summerset has been sentenced to two years in prison for failing to register as a convicted sex offender when he moved from Minnesota to Cobb County, Georgia in 2016.
“This defendant was convicted of violating the Sex Offender Registration and Notification Act,” said U. S. Attorney John Horn. “The purpose of this Act is to prevent convicted sex offenders, like Summerset, from living or working around children. It also allows citizens to remain informed about sex offenders who might live near them.”
"Many parents want to know when a sex offender moves into their area. When a convicted sex offender does not register their address, it denies the community their right to know. Also it hinders law enforcement’s ability to ensure that the sex offender is not in violation of other provisions of the Sex Offender Act,” said Beverly Harvard, U.S. Marshal for the Northern District of Georgia.
According to U.S. Horn, the charges and other information presented in court: Summerset was convicted in Minnesota in November 2011 of committing a sex offense against a child. As a result of this conviction, he was required to register for life as a convicted sex offender. When he was released from prison in Minnesota in August 2014, he initially registered as required. However, by March 2016, he had left Minnesota. He was eventually located in Cobb County, Georgia. He admitted that he had moved at the beginning of 2016 and did not register as a sex offender with the Cobb County Sheriff’s Office because he suspected that Minnesota had a warrant for his arrest.
Frederick Laron Summerset, 34, of Hastings, Minnesota, was sentenced to two years in prison to be followed by five years of supervised release. Summerset was convicted of these charges on April 19, 2017, after he pleaded guilty.
This case was investigated by the U.S. Marshals Service.
Assistant U.S. Attorney Paul R. Jones 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.
Hospice to pay $2.4 Million to resolve False Claims Act AllegationsRead the Press Release
ATLANTA – Compassionate Care Hospice Group, Inc., (“CCH Group”) has agreed to pay $2.4 million to resolve allegations that CCH Group and its subsidiary Compassionate Care Hospice of Atlanta, LLC, (“CCH Atlanta”) submitted or caused the submission of false claims to Medicare and Medicaid by engaging in improper financial relationships with contracted physicians. CCH Group is a Florida corporation with its principal place of business in Parsippany, New Jersey, and subsidiaries and affiliates in numerous states.
“Kickbacks should never play a role in medical decision-making,” said U.S. Attorney John Horn. “When healthcare providers are paid for referrals, the costs of health services inevitably rise and ultimately are borne by taxpayers.”
“The False Claims Act settlement in this case should be a deterrent to those who would so selfishly circumvent our federal healthcare programs to their benefit,” said FBI Special Agent in Charge David J. LeValley. “Rest assured the FBI is committed to diligently investigating those who would defraud our federally funded healthcare programs, depriving those who truly depend on them.”
“It is paramount to our health care system that those seeking health care advice know that providers and treatments recommended to them are not influenced by illegal remuneration or arrangements,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG is committed to working with our law enforcement partners to combat this sort of activity.”
“Our office’s Medicaid Fraud Control Unit will continue to work with our federal partners to go after any action that compromises the integrity of our health care systems,” said Georgia Attorney General Chris Carr. “This type of scheme obscures the proper relationship among those providing health care services to Medicaid members, and it diminishes the quality of health care options available to our citizens. We won’t stand for it.”
The government alleges that, between April 3, 2007 and April 29, 2011, CCH Group and CCH Atlanta paid illegal remuneration to five physicians in order to induce the providers to refer patients to CCH Atlanta for hospice services and certify individuals as eligible for hospice services. The government also alleges that CCH Atlanta and CCH Group submitted or caused the submission of claims to Medicare and Medicaid for services provided to the individuals who had been referred by the physicians because of the kickbacks. The illegal remuneration took the form of (1) payments to a medical director in exchange for referrals and (2) sham contracts with associate medical directors in exchange for referrals.
The settlement resolves allegations filed by Cathy Morris and Josie King, former CCH Atlanta employees, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States & State of Georgia ex rel. Morris & King v. Compassionate Care Hospice Group of Atlanta, LLC, et al., No. 1:10-cv-3450 (N.D. Ga.). Ms. Morris and Ms. King will receive a share of the settlement.
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. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Georgia State Attorney General’s Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorneys Lena Amanti and Neeli Ben-David and Georgia State Assistant Attorney General Sara Vann.
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.
Prospect Mortgage, LLC agrees to pay $4.157 Million to resolve False Claims Act allegations arising from the FHA Mortgage Lending Practices of two of its branchesRead the Press Release
ATLANTA – John A. Horn, U.S. Attorney for the Northern District of Georgia, and Brian J. Stretch, U.S. Attorney for the Northern District of California, announced that the United States has settled civil mortgage fraud claims against Prospect Mortgage Company, LLC (“Prospect”) stemming from Prospect’s participation in the Direct Endorsement Lender Program, which is administered by the Federal Housing Administration (“FHA”) and the U.S. Department of Housing and Urban Development (“HUD”).
“To participate in the FHA program, Prospect had to comply with HUD underwriting and quality control requirements and certify that these requirements had been satisfied with respect to each FHA loan it originated,” said John A. Horn, U.S. Attorney for the Northern District of Georgia. “Prospect failed to adhere to these requirements at two Southeastern branches and when many of these loans later defaulted, the United States suffered substantial losses.”
“Prospect’s knowing failure to comply with material HUD loan origination requirements not only resulted in major losses to the public fisc, but also served to undermine the FHA program,” said Brian Stretch, U.S. Attorney for the Northern District of California. “Today’s settlement demonstrates the Department of Justice’s resolve and commitment to hold lenders, large and small, accountable for this type of fraudulent conduct.”
“Ensuring the fiscal integrity of FHA programs is at the core of our mission,” said Acting HUD Inspector General Helen M. Albert. “We will continue to work with our law enforcement partners to identify and root out those that seek to compromise such programs that are directly intended to assist the American public,” he concluded.
In this settlement, Prospect has agreed to pay the United States $4.157 million to resolve an investigation conducted by the U.S. Attorneys’ Offices for the Northern Districts of Georgia and California into whether Prospect violated the False Claims Act by falsely certifying compliance with critical underwriting and quality control (“QC”) requirements when originating loans insured by the FHA and HUD. As revealed by an Atlanta HUD-Office of Inspector General (“OIG”) audit, two Prospect branches – one in Florida and another in North Carolina – originated many of these loans without adhering to the requisite HUD requirements. As a result, the United States suffered substantial losses when the loans defaulted and ripened into claims by Prospect for insurance payments from the United States.
Prospect participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”). As a DE Lender, Prospect had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DE Lender approves a mortgage loan for FHA insurance, and the loan later defaults, the holder of the loan may submit an insurance claim to the Government to recover its losses on the loan. Under the DE Program, the Government does not review a loan before endorsement for FHA insurance. Instead, FHA and HUD rely upon DE Lenders like Prospect to follow program rules, which require, among other things, that a lender: (1) adhere to HUD underwriting guidelines; (2) maintain a QC program that can identify and correct deficiencies in their underwriting practices; and (3) self-report to HUD materially deficient loans identified by their QC program.
Between December 2007 and December 2009, Prospect had a 12.29 percent default rate – well in excess of the national average – within HUD’s Atlanta Home Ownership Center (“HOC”). HUD determined that approximately 76% of these defaults were attributable to two particular Prospect branches located in Florida and North Carolina. The Government’s investigation revealed that the majority of the audited loans from these branches were not compliant with HUD underwriting requirements relating to Prospect’s assessment of borrower: (1) assets; (2) income; and (3) credit, which are essential considerations in determining whether a loan will be repaid, as opposed to going into default or serious delinquency.
As part of the settlement, Prospect has acknowledged among other things, the following conduct that occurred in the two Prospect branches at issue:
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Prospect endorsed for FHA insurance loans that had not been originated in accordance with HUD requirements concerning a DE Lender’s assessment of assets, income, and credit.
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Prospect falsely certified that the non-compliant loans that it originated had been underwritten in accordance with HUD underwriting requirements.
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As evidenced by its 12.29% default rate within the Atlanta HOC, and the fact that 76% percent of such defaults were attributable to one branch office in Florida and another in North Carolina, Prospect failed to adhere to HUD quality control guidelines.
The investigation of this case was a coordinated effort between the U.S. Attorneys’ Offices for the Northern Districts of Georgia and California, HUD, and HUD-OIG.
This resolution with Prospect is the latest in a string of civil fraud cases pursued by the United States in recent years alleging fraudulent lending practices by residential mortgage lenders.
Assistant U.S. Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Former Cartersville Police Officer charged with obstructing an FBI Drug Trafficking InvestigationRead the Press Release
ROME Ga. - Bryson-Taylor Wayne Banks, 31, of Cartersville, Georgia, has been arraigned on multiple federal charges, including unlawfully accessing a law enforcement database and disclosure of confidential information. Banks was a Cartersville Police Officer who was assigned to a DEA task force and allegedly used his access to law enforcement databases to alert an informant and drug traffickers to an active federal investigation.
“The defendant allegedly used his position to tip off drug traffickers to an active FBI investigation,” said U.S. Attorney John A. Horn. “His conduct is shocking, especially from someone sworn to uphold the law. Leaks of sensitive investigative information undermined the hard work of law enforcement officers and put them in real danger.”
“The federal investigation and its subsequent federal charges in this matter was unfortunate but necessary. A separate extensive and intensive federal investigation was clearly being negatively impacted by someone who was believed to be a law enforcement officer with inside information. The resulting investigation alleged that this officer was Cartersville P.D. Officer Banks who will now have to answer to these very serious allegations in a U.S. District Court,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said of the case, "This Cartersville police officer, assigned to the DEA Task Force, was sworn to uphold the law and protect the public from harm. Instead, he violated his oath by unlawfully accessing a law enforcement database and disclosing confidential information. Thanks to the dedicated law enforcement officers and the U.S. Attorney’s Office who worked tirelessly to make this investigation a success.”
“The Cartersville Police became aware of these allegations, and immediately initiated an internal investigation. Within two weeks, of the start of the investigation, Officer Bryson Taylor Banks was terminated for issues related to conduct, over two years ago. The Cartersville Police Department has been in full cooperation with all agencies involved pertaining to this investigations conclusion,” said Lieutenant Michael Bettikofer, Public Information Officer, Cartersville Police Department.
According to U.S. Attorney Horn, the charges, and other information presented in court: From October 2008 until August 2015, Banks served as a Cartersville Police Officer. As a law enforcement officer, Banks used a confidential informant who provided Banks with inside information about several drug traffickers.
In 2014, however, Banks allegedly began giving the informant information from a confidential law enforcement database, which allowed the informant to warn drug traffickers about the presence of law enforcement. Furthermore, in 2014 and 2015, the FBI was investigating a drug trafficking organization, which included an inmate in a Georgia state prison who was using contraband cellular telephones to coordinate drug deals. In July 2015, the FBI obtained court authorization to wiretap two of the inmate’s cellular telephones. On multiple occasions, the inmate was intercepted discussing drug trafficking activities with fellow drug trafficker Tomas Pineda Mendoza.
On the morning of August 11, 2015, the FBI informed Banks of its wiretap investigation of the inmate, including the fact that the inmate was arranging for the distribution of two kilograms of methamphetamine to Mendoza to occur at 2:00 p.m. that same day. Following this conversation, Banks allegedly warned his informant to advise Mendoza not to pick up drugs that day, and if he did, he would go to jail. Banks then disclosed the FBI wiretap of the inmate’s phones to his informant. Later that day, the FBI intercepted communications which revealed that the inmate had learned of the wiretap. The inmate then discontinued the use of his telephones, and the FBI investigation was compromised.
Banks has been charged as follows:
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Unlawful Notification of Electronic Surveillance;
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Unlawful Disclosure of Wire, Oral, or Electronic Communications;
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Use of a Communication Facility in Causing or Facilitating the Commission of Felonies Under the Controlled Substances Act;
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Misprision of a Felony;
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Unlawfully Accessing a Law Enforcement Database; and
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Disclosure of Confidential Information.
The indictment also alleges that in July 2015, Banks sent his informant a photograph of another law enforcement confidential informant. Banks advised his informant to stay away from that individual because they worked with law enforcement.
Bryson-Taylor Wayne Banks, 31, of Cartersville, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson. Banks was indicted by a federal grand jury on June 27, 2017.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. 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.
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Man who spent eight years as a fugitive convicted of drug traffickingRead the Press Release
ATLANTA - Blas Aleman has been sentenced to 17 years, 11 months in federal prison after being convicted of conspiracy to possess with the intent to distribute cocaine and methamphetamine. Aleman participated in the drug conspiracy in 2008, and after that time was believed to be on the run in Mexico. In March 2016, following his apprehension in Mexico, Aleman was extradited to the United States to face the federal drug trafficking charge.
“We will pursue international drug traffickers who distribute their illegal narcotics in this country and take refuge outside of the United States,” said U. S. Attorney John Horn. “Thanks to the diligence of our federal and state law enforcement partners, this drug trafficker has been brought to justice after spending almost eight years as a fugitive.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This cocaine trafficker eluded justice and ran to what he considered a place of refuge (Mexico). With patience, investigative skill and relentless pursuit, this fugitive was captured. This is a shining example of how DEA and its law enforcement partners will work tirelessly to pursue the far stretching tentacles of drug traffickers who seek to run from justice.”
“This is yet another case where federal law enforcement was and will continue to be relentless in finding those who cause drugs to be brought into our neighborhoods,” said Beverly Harvard, U.S. Marshal for the Northern District of Georgia.
According to U.S. Attorney Horn, the charges and other information presented in court: In or around early 2008, in Marietta, Georgia, Aleman met with, and recruited, an individual to become a courier for his drug trafficking organization. Aleman then purchased a car in Smyrna, Georgia, and had it registered and insured in the courier’s name. In early May 2008, Aleman traveled with the courier to Guerrero, Mexico, and oversaw the delivery of the car to his fellow drug traffickers.
While in Mexico, Aleman was responsible for hiding 11.8 kilograms of cocaine and 1.3 kilograms of methamphetamine inside of an after-market compartment installed in the vehicle. Aleman then returned the car to the courier at a hotel on the Mexican side of the U.S. border. Aleman ordered the courier to drive across the U.S. border and to deliver the drugs to Aleman’s conspirators in Atlanta, where the drugs would be further distributed. Although the courier crossed the U.S. border without being detected, he was stopped by a police officer in Mississippi for a traffic violation while traveling eastbound on Interstate 20. During a search of the car, law enforcement discovered the hidden compartment containing the drugs.
In June 2008, a grand jury in the Northern District of Georgia returned an indictment charging Aleman, the courier, and three other conspirators with drug conspiracy in relation to the narcotics seized from the car. The U.S. Marshals Service soon determined that Aleman was in rural Mexico and believed to be in hiding. After a multi-year effort by the U.S. Department of Justice, Aleman was extradited to the United States to face the federal drug charge in March 2016.
U.S. District Judge William S. Duffey, Jr. sentenced Blas Aleman, 38, of Guerrero, Mexico, to 17 years, 11 months in prison to be followed by five years of supervised release. The Court also ordered that Aleman be deported from the United States once he completes his prison term. Aleman was found guilty by a jury on April 13, 2017, following a four-day trial.
This case was investigated by the Drug Enforcement Administration and the U.S. Marshals Service.
Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendant sentenced to two years for mailing hoax anthrax threatsRead the Press Release
ATLANTA – Travis Ball has been sentenced to two years in prison for mailing hoax anthrax threats. Ball sent letters to the State Bar of Georgia, the Atlanta Journal-Constitution, and the Church of Jesus Christ of Latter-day Saints (“LDS”) threatening harm to members of each organization.
“Ball’s threatening letters, which contained a substance he claimed was anthrax, were meant to instill fear in the recipients and diverted critical resources from actual emergencies,” said U. S. Attorney John Horn. “This hoax and the defendant’s subsequent prosecution serve as a reminder that we take threats seriously, and will use every resource available to protect the citizens of this district.”
“The sentencing in federal court of Mr. Ball to two years in a federal prison is commensurate with the wasted resources and concern generated by his hate filled hoax anthrax letter campaign while already incarcerated on a prior arson conviction. While Mr. Ball’s criminal conduct clearly illustrates his lack of concern and compassion for others, it also illustrates an unwillingness to be rehabilitated,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“Any type of criminal activity perpetrated from behind the walls of our facilities will not be tolerated, and we are grateful to our Federal partners for their assistance in bringing this case to a close,” said GDC Commissioner Gregory C. Dozier.
According to U.S. Attorney Horn, the charges, and other information presented in court: On April 7, 2016, while incarcerated in Coffee Correctional Facility in Nicholls, Georgia, Ball mailed letters that were later received by the State Bar of Georgia, the Atlanta Journal-Constitution, and the Church of Jesus Christ of Latter-day Saints (“LDS”) in Salt Lake City, Utah. The letters stated, “have some anthrax” and contained a granular substance. The letter to the State Bar of Georgia threatened to kill all lawyers while the letter to the LDS Church threatened to kill Mormons and burn their churches. At the time he mailed the letters, Ball was in state custody for a prior arson conviction.
Travis Ball, 50, was sentenced by U.S. District Judge William S. Duffey, Jr. on June 23, 2017 to two years in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $10,704. Ball was convicted of these charges on March 1, 2017, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and Georgia Department of Corrections, Criminal Investigation Division.
Assistant U.S. Attorney Jolee Porter is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendant sentenced to Federal Prison for trafficking 59 pounds of “Ice”Read the Press Release
ATLANTA - Rigoberto Fernandez-Gonzalez, a/k/a Juan Garcia, has been sentenced to 22 years in federal prison for possessing with the intent to distribute 59 pounds of methamphetamine, or “ice,” and for possession of a firearm in furtherance of a drug trafficking offense.
“This defendant sought to unleash an enormous quantity of narcotics into the community without regard for the damage it would have caused,” said U. S. Attorney John Horn. “Thanks to the swift actions of law enforcement, he was stopped in his tracks.”
“This investigation is evidence of ATF’s commitment to combating firearms crimes and drug trafficking. ATF’s Frontline strategy utilizes every available resource to make our communities safer places to live,” said ATF Special Agent in Charge Wayne Dixie.
According to U.S. Attorney Horn, the charges and other information presented in court: In early 2016, law enforcement learned that Rigoberto Fernandez-Gonzalez was involved in manufacturing methamphetamine. On March 8, 2016, officers with the Fulton County Sheriff's Office executed a search warrant at a residence in Fairburn, Georgia. Law enforcement suspected that Fernandez-Gonzalez used this location as a clandestine laboratory for the conversion of liquid methamphetamine to crystalline form. Inside the home, officers discovered a makeshift laboratory, consisting of a single propane burner and large pot, along with various chemicals, car batteries, digital scales, plastic containers, and three to four gallons of liquid methamphetamine – all materials commonly used in the conversion of methamphetamine.
When officers arrived, they found Fernandez-Gonzalez actively converting liquid methamphetamine. He had already converted a massive quantity to crystalline form as well. Officers seized 59 pounds of “ice,” later determined to be 99% pure. In addition, officers recovered two loaded firearms, at least one of which was stolen.
Rigoberto Fernandez-Gonzalez, a/k/a Juan Garcia, 47, a Mexican national, was sentenced by U.S. District Court Judge Mark H. Cohen, to 22 years in prison, to be followed by five years of supervised release. In addition, the Court ordered Fernandez-Gonzalez to be turned over to Immigration officials for removal proceedings, after serving his custodial sentence, and ordered forfeiture of the recovered firearms and ammunition. He was sentenced on June 20, 2017. Fernandez-Gonzalez pleaded guilty to possession with intent to distribute more than 500 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense on March 27, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Kelly K. Connors 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.
Two Doctors and Clinic Owners sentenced for operating Pill Mills in Metro AtlantaRead the Press Release
ATLANTA - A pain clinic owner, an office manager who was also the wife of the owner, and two doctors have been sentenced for illegally prescribing painkillers to known addicts and drug dealers at three pain clinics in metropolitan Atlanta. Godfrey and Bona Ilonzo, as well as Dr. Nevorn Askari and Dr. William Richardson, were sentenced to terms in prison between four and 12 years for federal drug and money laundering charges for their respective roles in operating the AMARC “pill mills.”
“The roots of our current heroin and fentanyl crisis are found in the opiate abuse epidemic,” said U.S. Attorney John Horn. “Like many other states, Georgia continues to experience the devastating toll of this epidemic on its citizens. Yet, these defendants willingly exploited desperate drug addicts by feeding their addictions in order to turn a profit.”
“These drug traffickers, dressed in white lab coats, can no longer cause damage to those addicted to pain medicine. These rogue “medical field” employees will now have plenty of time to reflect on the damages they have caused while serving their sentences in federal prison. DEA and our state and local partners remain committed to keeping our communities safe,” said Dan Salter, Special Agent in Charge of the Drug Enforcement Administration, Atlanta Field Division.
“The diversion of dangerous prescription drugs is a public health epidemic that is crippling communities throughout the country,” said Acting Special Agent in Charge James E. Dorsey. “It makes matters much worse when the individuals responsible for medical care are also illegally supplying lethal drugs. IRS Criminal Investigation will continue to work with our partners to dismantle these deadly drug trafficking organizations and seek justice for the harm caused to the community”
According to U.S. Attorney Horn, the charges and other information presented in court: In May 2009, agents of the Tactical Diversion Squad of the DEA learned that doctors at the AMARC clinic in Atlanta, Georgia, were prescribing pain pills outside the bounds of legitimate medical practice to drug addicts and drug dealers. Subsequently, DEA, working with IRS and officers from other state and local agencies, learned that Godfrey Ilonzo financed and operated at least eight clinics in the Atlanta area under the “AMARC” name, including the pain clinic in Atlanta and two other pain clinics under different names; one in Tyrone, Georgia, and one other in Atlanta.
Bona Ilonzo (Godfrey Ilonzo’s wife) served as the office manager at the main AMARC pain clinic. At various times, Askari and Richardson served as the primary doctors for the AMARC pain clinics. Law enforcement also learned that Rosemary Ofume and Donatus Iriele operated Medicine Center Pharmacy in Atlanta, and illegitimately dispensed pain pills to AMARC customers.
The Ilonzos asked Dr. Askari and Dr. Richardson to prescribe Oxycodone pills and other opiates to addicts and distributors. Many of those customers traveled to the AMARC clinics from counties throughout Georgia and from other states (including Alabama and Ohio). Customers waited for hours at one AMARC pain clinic and paid cash to receive prescriptions for Oxycodone/Hydrocodone, Xanax, and Soma (the “holy trinity”) for resale on the street. Askari and Richardson issued prescriptions for medically inappropriate and potentially lethal combinations of Oxycodone, Alprazolam, Hydrocodone, and other controlled substances without conducting adequate medical examinations. After seeing a patient once, Askari would repeatedly “pre-sign” prescriptions for the same amounts and types of controlled substances without ever seeing the patient again in-person, while falsely indicating in the patient’s file that she had conducted an in-person examination of the patient.
After customers received illegitimate prescriptions from AMARC, clinic staff told customers to fill their prescriptions across the street at a pharmacy operated by Ofume and Iriele. Employees at the AMARC clinics and pharmacy received discounts and special treatment, including free office visits and reduced prices for pills dispensed at the pharmacy.
During the course of the conspiracy, the AMARC clinics generated more than $3 million dollars from unlawful prescriptions. Godfrey and Bona Ilonzo used that money to recruit additional physicians and patients to the AMARC pain clinics, open additional clinics under the “AMARC” name, purchase property, and send their children to expensive private schools.
Godfrey and Bona Ilonzo, Drs. Askari and Richardson, Rosemary Ofume, and Donatus Iriele have all pleaded guilty or have been convicted at trial. U.S. District Judge Steve C. Jones imposed sentences on the four AMARC defendants as follows:
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Godfrey Ilonzo, 66, of Alpharetta, Georgia, was sentenced on June 14, 2017,
to 12 years in prison, followed by three years of supervised release. Godfrey Ilonzo had pleaded guilty to charges related to a drug trafficking conspiracy and money laundering conspiracy on February 16, 2017.
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Bona Ilonzo, 54, of Alpharetta, Georgia, was sentenced on June 14, 2017, to eight years in prison, followed by three years of supervised release. Bona Ilonzo had pleaded guilty to charges related to a drug trafficking conspiracy on February 16, 2017;
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Dr. Nevorn Askari, 61, of Monroe, Georgia, was sentenced on June 13, 2017, to five years and six months in prison, followed by three years of supervised release. Dr. Askari pleaded guilty on February 16, 2017, to her involvement in this drug trafficking conspiracy; and,
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Dr. William Richardson, 63, of Atlanta, Georgia, was sentenced on June 13, 2017, to four years and six months in prison, followed by three years of supervised release. Dr. Richardson pleaded guilty on February 1, 2017, for his involvement in this drug trafficking conspiracy.
Both Dr. Askari and Dr. Richardson voluntarily surrendered their medical licenses to the Georgia Composite Board of Medicine.
As part of their sentences, Judge Jones also ordered Godfrey and Bona Ilonzo to forfeit approximately $20,000 in seized funds, and he entered personal money judgements of $1.5 million against each of them.
On March 24, 2017, after a three-week jury trial, Rosemary Ofume and Donatus Iriele were convicted on federal drug and money laundering charges for illegally dispensing controlled narcotics to AMARC customers. Sentencing for Ofume and Iriele is scheduled for July 20, 2017, before Judge Jones.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Laurel Boatright, Cassandra Schansman, and Michael Brown 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.
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Marietta Man Sentenced to 25 years in Prison for Robbing Six area Banks at GunpointRead the Press Release
ATLANTA - Kevin Ray Williamson has been sentenced to 25 years in federal prison for a string of six armed bank robberies that began on February 4, 2016, and continued until September 8, 2016.
“Williamson’s violent crime spree put citizens in our community on edge for months, especially bank employees just doing their jobs,” said U. S. Attorney John Horn. “Thankfully, an observant citizen brought his criminal conduct to an abrupt end.”
“The lengthy sentence handed down in federal court removes a violent serial offender from our streets. The details of the robberies committed by Mr. Williamson illustrate a total lack of regard for his victims, many of whom will, for many years, be dealing with the emotional trauma of having a gun pointed at them by an armed bank robber,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: On February 4, 2016, Williamson entered a Fifth Third Bank located in Marietta, Georgia. Williamson pointed a handgun at a bank teller and demanded money from her cash drawer. Bank surveillance video captured the robbery and showed Williamson carrying a messenger/computer type bag in which he demanded the money be placed. During this robbery, Williamson threatened to “empty the clip” of his gun if his demands were not met.
The defendant also committed the following robberies in the Metro-Atlanta area:
- On April 1, 2016, Williamson entered a Regions Bank in Marietta while armed with a handgun. Williamson approached the bank’s counter and pointed his handgun at the teller, opened his messenger bag and demanded cash. The teller complied with Williamson’s demands and handed cash to him. Williamson threatened to shoot the teller if he did not receive the money he demanded. The surveillance photographs from the bank security system show that the person who robbed the Regions Bank was the same person who robbed the Fifth Third Bank in February 2016.
- On May 25, 2016, Williamson entered a BB&T Bank in Marietta. Williamson approached a bank teller, displayed a black handgun, and demanded cash. The teller complied with the robber’s demands and gave cash to Williamson. This robbery was captured on surveillance video.
- On July 13, 2016, Williamson entered a PNC Bank in Marietta. Bank surveillance images show that as in the other robberies, Williamson was carrying a messenger/computer type bag and approached a bank teller, opened the bag and pointed a black handgun. The teller complied with Williamson’s demands and gave him cash.
- On August 22, 2016, Williamson entered Fidelity Bank located in Atlanta. Inside the bank, the robber pointed a gun at a teller, stated that he was robbing the bank and demanded money. The teller complied and gave Williamson cash.
- On September 8, 2016, Williamson entered Renasant Bank located in Johns Creek, Georgia. He displayed a handgun and demanded money from several drawers. Williamson told the teller that she would die if he did not receive more than $5,000.
Williamson wore mostly the same clothes and similar disguises at each bank - a beard, a khaki baseball cap, a dark colored suit, a dark green polo shirt, and sunglasses. His robbery spree ended when a witness at the September 2016 robbery saw him drive away in an Infiniti coupe that was traced back to him.
On February 10, 2017, Kevin Ray Williamson, 52, of Marietta, Georgia, pleaded guilty to six counts of armed bank robbery and one count of using a firearm in furtherance of a crime of violence. Williamson has been sentenced to 25 years in federal prison, and ordered to pay $30,867 in restitution.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Suzette A. Smikle 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.
Eleven Individuals Charged following Investigation of Drug Money Laundering in the Money Remitter IndustryRead the Press Release
ATLANTA - Eleven defendants have been charged with laundering drug money to Mexico through metro-Atlanta area money remitters during a three-year long federal investigation focused on money laundering by money remittance businesses.
“Using money remitters to launder illegal drug proceeds is just one more way drug cartels fuel their criminal enterprises,” said U. S. Attorney John Horn. “The business model of many Mexican cartels requires a means to get their cash profits across the border and into the hands of the supervisors and sellers. This investigation shows that they may have found an effective means through unscrupulous money remitters. We hope these cases will help to close this pipeline.”
“The criminal network uncovered by this investigation laundered millions of dollars in illegal drug proceeds back to Mexico and provided direct support to the drug trafficking organizations plaguing the region with dangerous illicit narcotics and the violence associated with drug trafficking activities,” said ICE Homeland Security Investigations Atlanta Special Agent in Charge Nick Annan. “HSI will continue to focus investigative efforts on dismantling and bringing to justice members of drug trafficking organizations and all those complicit in their activities.”
“Narcotics traffickers will attempt to create elaborate financial networks in an effort to launder illegal drug proceeds,” stated Acting Special Agent in Charge James E. Dorsey. “IRS Criminal Investigation will continue to work with our law enforcement partners to peel back every intricate layer used to launder those proceeds and expose everyone involved.”
According to U.S. Attorney Horn, the indictments, and other information presented in court: In 2014, federal law enforcement agents began investigating individuals in the metro-Atlanta area that were suspected of laundering drug proceeds to Mexico. Federal agents utilized cooperating sources to infiltrate these individuals’ networks and determined that the money launderers frequently used small businesses to send funds out of the country via money remittance services. These small businesses allow customers to wire funds to individuals in other countries without using traditional bank accounts.
Investigators determined that managers and employees of a number of metro-Atlanta money remitters were knowingly helping the money launderers send drug proceeds to Mexico. During the course of the investigation, cooperating sources and an undercover law enforcement officer brought money that was represented as coming from drug sales to different remitters. The cooperating sources or undercover law enforcement officer made clear that the money came from the sale of illegal narcotics. In exchange for a kickback, managers and employees of nine different businesses allegedly agreed to launder purported drug funds to Mexico by breaking the transactions into smaller amounts and by listing fake sender names, addresses, and telephone numbers.
The investigation revealed that these nine money remitters allegedly transmitted more than $40 million over a roughly four-year timeframe. Federal agents determined that these remitters transmitted thousands of wires to individuals in Mexico that listed fake addresses and telephone numbers, which is how the bulk of the undercover proceeds were laundered.
The indictments allege that the defendants tried to conceal the source of the funds by circumventing the Bank Secrecy Act, which requires financial institutions - including money remitters - to monitor their clients for suspicious conduct and to obtain valid identification for high dollar remittances. The defendants allegedly kept their transfers under certain dollar amounts to avoid raising suspicion. Several of the defendants allegedly served as the Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) Compliance Officers for their respective stores and were responsible for detecting and reporting these types of illicit financial transactions.
Federal agents conducted search warrants at several metro-Atlanta area money remitters and arrested nine defendants. The following individuals were arraigned before U.S. Magistrate Judge Russell G. Vineyard:
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Oscar Gustavo Perez-Bernal, 34, of Atlanta, Georgia. Oscar Perez-Bernal was the manager and BSA/AML Compliance Officer at La Tienda and Cocina Linda Vista, which were both located in Chamblee, Georgia. From 2013 to 2017, these two stores allegedly transmitted over $16.9 million.
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Itzayana Guadalupe Perez-Bernal, a/k/a Lupe, 24, of Norcross, Georgia. Itzayana Perez-Bernal was an employee at La Tienda.
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Norma Dominguez, 57, of Atlanta, Georgia. Dominguez was the manager and BSA/AML Compliance Officer at La Veracruzana, which was located in Chamblee, Georgia. From 2013 through mid-2017, this store allegedly transmitted over $5.7 million.
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Norma Carrera, 39, of Atlanta, Georgia. Carrera was the manager and BSA/AML Compliance Officer at Hilos y Estambres Teresita, which was located in Chamblee, Georgia. From 2014 through mid-2017, this store allegedly transmitted over $6.1 million.
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Victor Perez, 30, of Lawrenceville, Georgia. Perez was the manager and BSA/AML Compliance Officer at Intercargo, which had offices in Lawrenceville, Georgia and Marietta, Georgia. From 2013 through 2015, this store allegedly transmitted over $7 million.
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Merli Sandy Tejeda-Bermudez, a/k/a Jorhley Adadlay-Bermudez, 30, of Duluth, Georgia. Tejeda-Bermudez was the manager and BSA/Compliance Officer at Mundo Cargo and RR Latinas, which were both located in Lawrenceville, Georgia. From 2015 through mid-2017, this store allegedly transmitted over $1.5 million.
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Daniel Castaneda-Garcia, 31, of Atlanta, Georgia. Castaneda-Garcia was the manager and BSA/AML Compliance Officer at Taqueria el Dany, which was located in Lawrenceville, Georgia. In 2015, this store allegedly transmitted over $300,000.
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Susan Fiorella Ayala-Chavez, a/k/a Pitus, 30, of Lawrenceville, Georgia. Ayala-Chavez was an employee at the Rainforest Chevron gas station in Lawrenceville, Georgia. From 2014 through mid-2017, this store allegedly transmitted over $3 million.
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Lidia Pineda-Altamarino, a/k/a Lily, 32, of Lawrenceville, Georgia.
The following individuals have been charged with money laundering, but have not yet been apprehended:
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Norma Eriza-Gomez, 41, of Mexico
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Marina Eriza-Gomez of Mexico.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigation. The Gwinnett County Sheriff’s Department, Georgia State Patrol, and Powder Springs Police Department provided valuable assistance throughout the course of the investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Alison B. Prout are prosecuting the case. The Justice Department’s Money Laundering and Asset Recovery Section provided significant assistance.
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.
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Rapper “Trill Castro” and a Fairburn Man Sentenced for Lying to Firearms Dealers to Purchase Multiple FirearmsRead the Press Release
ATLANTA – Jaleel Akeem Wulu, also known as “Trill Castro,” and Javaree Malique Williams have been sentenced for lying to a federal firearms licensee during the purchase of a firearm, and conspiracy to commit that offense. The conspiracy involved multiple illegal firearms purchases from several firearms dealers.
“Firearms trafficking continues to pose an ever-increasing risk to the safety and security of our communities,” said U.S. Attorney John A. Horn. “These two defendants made it possible for multiple firearms to be transferred out of Georgia into other states and ultimately into the hands of criminals, jeopardizing the safety of any number of citizens.”
“One of ATF’s top priorities is to deny criminals access to firearms and protect the rights of law abiding citizens. These two offenders illegally trafficked firearms that subsequently could have been used against our citizens and our communities; ATF takes this very seriously,” said ATF Special Agent in Charge Wayne Dixie.
According to U.S. Attorney Horn, the charges, and other information presented in court: On March 22, 2017, Wulu and Williams pleaded guilty to the offense of conspiring to make false statements to purchase multiple firearms from several federally licensed firearms dealers, and a second charge of lying to a federally licensed firearms dealer to purchase a firearm. Specifically, Williams admitted to ATF agents that beginning in or about December 2014, through November 28, 2015, he purchased 26 firearms, all but one of which he sold to Wulu. Wulu gave Williams the money for his firearms purchases, and he sometimes traveled to Atlanta to accompany Williams to the firearms dealer locations to choose the guns. Wulu was then an aspiring rapper known as “Trill Castro,” who made music video recordings in the Atlanta, Georgia, area.
During the investigation, law enforcement officers recovered multiple firearms in Maryland and Ohio, which were purchased by Williams for Wulu. Wulu had lived in both these states during the conspiracy. Several of the guns were also recovered at crime scenes fairly close to the date that Williams and Wulu purchased them, including the following recoveries:
- On November 15, 2015, Maryland State Patrol (MSP) officers recovered a Glock, .40 caliber pistol in Millersville, Maryland, that Williams purchased in Georgia from Adventure Outdoors on August 12, 2015. MSP officers stopped a driver for speeding and arrested him after discovery of the firearm and illegal drugs in the vehicle;
- On January 27, 2016, the Prince George’s, Maryland, County Police Department (MCPD) recovered a Taurus, .40 caliber pistol in Forestville, Maryland, that Williams purchased in Georgia from Team 88 Enterprises 86 days earlier on November 2, 2015. The MCPD had stopped a vehicle and illegal drugs were recovered during a search of the car. A firearm was found hidden in the passenger’s sweatshirt and both of the occupants of the car were arrested;
- On February 5, 2016, the Prince George’s Community College Campus Police recovered a Taurus, 9mm caliber pistol in Largo, Maryland, that Williams purchased from Team 88 Enterprises in Georgia on November 2, 2015. College campus police had responded to a fight in the school campus parking lot and arrested the subject who possessed the firearm purchased by Williams;
- Also on February 5, 2016, the Cleveland, Ohio, Police Department recovered an Extar, .223 caliber pistol from Wulu in Warrensville, Ohio, that Williams purchased from Team 88 Enterprises in Georgia on November 28, 2015. Local police had responded to Wulu’s residence after family members reported that he was a danger to himself. Wulu was in possession of the firearm and his family requested that police take custody of it;
- On July 11, 2016, the MCPD recovered a Taurus, 9mm pistol that Williams purchased from Adventure Outdoors on August 12, 2015. The firearm was recovered from a suspect arrested during the MCPD’s investigation of a burglary of an apartment; and
- On July 13, 2016, MCPD recovered another Taurus, 9mm pistol that Williams purchased from Arrowhead Pawn on July 31, 2015, in Jonesboro, Georgia. The MCPD were conducting a burglary interdiction operation when they encountered a 17-year-old suspect gambling in public and in possession of the concealed firearm and arrested him.
Jaleel Akeem Wulu, also known as “Trill Castro,” age 23, of Bowie, Maryland, and Javaree Malique Williams, age 24, of Fairburn, Georgia, each received sentences of two years in prison, to be followed by three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Richard S. Moultrie, Jr., 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.
Doctor Pleads Guilty to Falsifying Medical Examination Records for Commercial Truck DriversRead the Press Release
ATLANTA - Dr. Anthony Lefteris has pleaded guilty to multiple counts of falsifying documents and to entering false information into the records of the U.S. Department of Transportation (“USDOT”) for selling false medical certifications used to obtain commercial driver’s licenses.
“Dr. Lefteris was entrusted to examine commercial vehicle drivers to make certain that they were physically fit to drive safely,” said U. S. Attorney John Horn. “Instead, he failed to perform the required examinations and falsified the results of his tests, ultimately making our roads less safe for the rest of us.”
“As evidenced by the guilty plea entered into today by Dr. Anthony Lefteris for falsifying U. S. Department of Transportation medical applications for commercial driver's licenses, we remain unwavering in our commitment to ensuring the safety of the traveling public on our Nation's roadways,” said Marlies Gonzalez, Regional Special Agent-in-Charge for the USDOT OIG. “Working with our departmental, law enforcement and prosecutorial partners, we will continue to identify, pursue, and bring to justice individuals who jeopardize the integrity of DOT's safety programs.”
“I am extremely proud of the men and women of the Motor Carrier Compliance Division for their role in this complicated and intricate case. We are honored to have such a strong working relationship with our federal partners and look forward to a continued partnership to ensure a safer environment for the motoring citizens of our state,” said Colonel Mark W. McDonough, Commissioner, Georgia Department of Public Safety.
According to U.S. Attorney Horn, the charges and other information presented in court: One mission of the USDOT is to promote the safety of America's roadways through the promulgation and implementation of medical regulations, guidelines, and policies for the physical qualification of commercial motor vehicle drivers. When individuals seek to obtain or renew a state issued commercial driver’s license, they must submit to a medical examination performed by a medical examiner listed on the National Registry of Certified Medical Examiners. They must also be medically certified as physically qualified to drive a commercial motor vehicle. These medical examinations ensure that these drivers do not suffer from ailments that would otherwise affect their ability to drive a commercial vehicle safely.
Lefteris was a USDOT medical examiner who admitted he failed to perform certain procedures during medical examinations. Some of the procedures he failed to perform were required vision and hearing examinations, and urinalyses. He then completed USDOT medical examination forms for drivers he examined on which he falsely included figures and information representing the results for procedures he did not perform.
Lefteris also issued USDOT Medical Examiner’s Certificates to drivers certifying them as physically fit to drive even though he did not conduct a complete examination. Lefteris subsequently transmitted his results to the USDOT, fraudulently certifying that the medical examinations were conducted in accordance with federal regulations. In return, the drivers paid him cash, sometimes $65 per certification.
Sentencing for Anthony Lefteris, 72, of Atlanta, Georgia, is scheduled for August 28, 2017, at 2:00 p.m. before U.S. District Judge Leigh Martin May.
This case is being investigated by the U.S. Department of Transportation and the Georgia Department of Public Safety Motor Carrier Compliance Division.
Assistant U.S. Attorney Tracia King is prosecuting the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Members of Credit Card Theft Ring at Atlanta Hartsfield-Jackson Airport arrestedRead the Press Release
ATLANTA - Quentin Pickett and Cornelius Henderson have been arraigned on federal charges of wire fraud, wire fraud conspiracy, and aggravated identity theft. Pickett, Henderson, and three other individuals were indicted for, among other things, stealing credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and using them to obtain cash advances throughout metro-Atlanta.
“Identity theft is a serious crime and the stakes only become higher when thieves organize themselves to execute larger-scale, systemic frauds,” said U. S. Attorney John Horn. “These defendants allegedly sought to exploit the airport’s baggage loading processes and prey on unsuspecting citizens who depend on the mail to receive their new cards.”
“Pickett and others devised a scheme to steal U.S. mail by taking advantage of the access given to them by their employer,” said David M. McGinnis, Inspector in Charge, Charlotte Division. “Postal Inspectors are committed to protecting the sanctity of the US Postal Service and will hold those accountable that steal from innocent victims and profit from these illicit schemes.”
“Pickett and his conspirators were creative in their scheme to steal victims’ credit cards and defraud them,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service will continue to arrest criminals who use their trustworthy positions to violate unsuspecting victims such as those in this case. We will work closely with prosecutors to ensure these criminals are put behind bars.”
According to U.S. Attorney Horn, the charges, and other information presented in court: From December of 2015 until April of 2017, Pickett, Henderson and their co-defendants allegedly stole credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility. Henderson had access to the airport’s baggage loading areas, where he allegedly stole mail that contained credit cards. The stolen credit cards were being shipped via the U.S. Postal Service to the rightful accountholders, who were located throughout the United States. The indictment alleges that after stealing the credit cards, Pickett, Henderson, and their co-defendants used them to, among other things, obtain cash advances at ATMs and purchase high dollar electronics at a store.
Pickett, Henderson, and three other defendants were indicted on May 23, 2017. The other defendants are as follows:
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Brandon Foster, 24, of Stockbridge, Georgia, who was employed as a bank teller and allegedly used his employment to execute or attempt to execute cash advances using the stolen credit cards.
- LaSuhn Turner, 25, of Stockbridge, Georgia, who allegedly obtained cash advances at ATMs using the stolen credit cards.
- Treyevon Herring, 22, of Forest Park, Georgia, who was employed at a private mail sorting facility where he allegedly stole mail that contained credit cards.Pickett, 24, of Jonesboro, Georgia, and
- Cornelius Henderson, 23, of Riverdale, Georgia, were arraigned today before U.S. Magistrate Judge Justin S. Anand.
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 Postal Inspection Service and U.S. Secret Service.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at (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.
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Federal Prisoner and Fiancée Plead Guilty to Running an inmate Taxi ServiceRead the Press Release
ATLANTA – Federal inmate Deldrick D. Jackson and his fiancée Kelly M. Bass pleaded guilty to conspiring to assist inmates to escape from the United States Penitentiary in Atlanta, Georgia. Jackson and Bass conspired to provide escaped inmates with transportation to and from USP Atlanta in exchange for a fee.
“Although hard to believe, federal inmate Deldrick Jackson and his fiancée Kelly Bass ran a for-profit taxi service that transported escaped federal prisoners to local hotels and restaurants,” said U. S. Attorney John Horn. “Their guilty pleas represent the end of the road for their scheme.”
“These guilty pleas in federal court sends a very clear message that those assisting in the escape of federal inmates and the movement of contraband items into these prisons will be facing federal charges along with the inmates involved. Much of the criminal activities seen in this investigation relied largely on the federal inmates’ access to illegally obtained smart phones, a fact that the FBI has seen before in other similar cases. The FBI will continue to work with its various law enforcement partners in ensuring that inmates stay in prison and cell phones and other contraband items stay out,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office
According to U.S. Attorney Horn, the charges, and other information presented in court: the U.S. Penitentiary in Atlanta, Georgia, (“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.
In May 2010, Jackson was convicted in federal court of conspiring to distribute cocaine and conspiring to launder money. From July 2016 to April 2017, Jackson was assigned to USP Atlanta. Prison visitation records showed that Bass is Jackson’s fiancée.
From approximately November 2016 to April 2017, Jackson and Bass conspired to provide escaped inmates with transportation from USP Atlanta to nearby restaurants, hotels, or residences in exchange for a fee. For example, on January 28, 2017, Bass picked up Jackson and other escaped inmates from outside USP Atlanta, drove them to a nearby hotel, and hours later, returned Jackson and the other inmates to USP Atlanta. The escaped inmates paid Jackson and Bass for the rides via a cell phone payment app. Financial records show that Bass received approximately $4,000 from accounts associated with USP Atlanta inmates or the inmates’ families.
On April 13, 2017, Jackson again escaped from USP Atlanta, after which Bass picked him up and drove him to a local fast food restaurant. Soon afterward, law enforcement officers stopped Bass’s SUV and arrested Bass and Jackson. After searching the SUV, officers recovered two cell phones, 83 packs of cigarettes, and eight bottles of Canadian whiskey.
On April 25, 2017, a federal grand jury indicted Deldrick D. Jackson, 41, of DeKalb County, Georgia, and Kelly M. Bass, 38, also of DeKalb County, on conspiratorial and substantive escape charges. Bass pleaded guilty to both counts of the Indictment.
On May 16, 2017, Jackson pleaded guilty to one count of conspiring to escape from federal custody.
The Federal Bureau of Investigation and Atlanta Police Department are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Inmate Sentenced to additional prison time for escaping from Atlanta’s Federal Penitentiary Prison CampRead the Press Release
ATLANTA – Federal inmate Justin B. Stinson has been sentenced to an additional one year and three months in prison for escaping from the United States Penitentiary’s minimum-security camp in Atlanta, Georgia.
“Stinson’s escapes were specifically designed to smuggle contraband back inside the prison camp,” said U. S. Attorney John A. Horn. “Prison contraband presents significant security risks to both inmates and guards while adding to the illicit economy.”
“Prison can be viewed by inmates as being either retributive or rehabilitative. For federal inmate Stinson, whose initial prison sentence began only in 2015, prison clearly shows no sign of being rehabilitative. While smuggled contraband within our prisons remains a concern for all of law enforcement due to its destabilizing influence on the inmate population, the FBI will continue to take a particularly keen interest in those inmates and others responsible for smuggling smart phones into a prison environment because of the vast harm and continued criminal conduct that they afford the inmates,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: the United States Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. The Federal Bureau of Investigation (“FBI”) and the Atlanta Police Department (“APD”) have been engaged in an investigation to combat instances when USP Atlanta inmates temporarily escape from the prison camp to obtain contraband to smuggle back into the prison or to visit nearby restaurants, hotels, and residences.
In March 2015, Stinson was sentenced to four years, three months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. From August 2016 to February 2017, Stinson was assigned to serve his time at USP Atlanta’s minimum-security camp.
On February 3, 2017, law enforcement officers conducted surveillance along the USP Atlanta’s prison fence line near New Town Circle. Just after 9:00 p.m., Stinson escaped from USP Atlanta by climbing through a hole in one prison fence and then climbing over USP Atlanta’s outer prison fence. Thereafter, Stinson retrieved a large black duffel bag from the occupant of a stopped car on New Town Circle and began walking back toward USP Atlanta. The FBI then arrested Stinson from a location outside of USP Atlanta’s confines. The FBI also recovered from Stinson a cellular telephone, a pair of scissors, two 1.75 liters of Jose Cuervo tequila, two cartons of Newport cigarettes, four boxes of Black and Mild cigars, and various food items.
On April 20, 2017, Stinson, 37, pleaded guilty to one count of escaping from federal custody. Stinson was sentenced to a one year and three month term of imprisonment (to be served after his current four year, three month prison term).
The Federal Bureau of Investigation and the Atlanta Police Department investigated this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy Lee 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
West African computer hacker sentenced to Federal PrisonRead the Press Release
ATLANTA - Eric Donys Simeu, a/k/a Martell Collins, a citizen of Cameroon extradited from France, has been sentenced to four years, ten months in federal prison for a series of “phishing campaigns” which targeted clients of Global Distribution Systems.
“This case shows the global reach of our cyber investigation and prosecution capabilities,” said U.S. Attorney John Horn. “The great work of our domestic and international law enforcement partners brought a cybercriminal operating from the streets of West Africa to justice for seeking to harm one of our district’s corporate citizens, among others.”
“The sentencing of international cyber hacker Eric Donys Simeu to federal prison, as well as his arrest abroad and the resulting and protracted international extradition that brought him back to the U.S., is a direct result of the hard work and persistence of numerous FBI investigators and federal prosecutors working with their international partners. The cooperation between law enforcement, both domestic and international, and the victim companies targeted, as seen in this case, is an example of what it takes to investigate, apprehend, and present for prosecution those international criminals who feel that they are beyond the reach of U.S. law enforcement,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“This sentencing sends a strong message that DSS is committed to making sure those who commit cybercrimes, identity theft and fraud, face consequences for their criminal actions,” said Richard Ingram, Special Agent in Charge, U.S. Department of State’s Diplomatic Security Service, Washington, D.C. Field Office. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and presence around the world are essential to our success in partnering with international law enforcement, investigating, apprehending and returning offenders to the United States to face justice.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Eric Simeu was responsible for a series of “phishing campaigns” which targeted customers of Global Distribution System (“GDS”) companies from approximately July 2011 to September 2014. The GDS companies impacted by Simeu’s criminal conduct included Travelport, which maintains a major presence in Atlanta, and Sabre, which is headquartered in Southlake, Texas.
A “phishing campaign” is the act of sending targeted emails to individuals for the purpose of acquiring usernames and passwords. The emails masquerade as an official communication from a legitimate company to gain the trust of the recipient and deceive them into providing protected information.
GDS companies provide travel booking services to travel agencies and travel-related websites. Airline tickets that are issued from sources other than air carriers themselves are generally processed through a GDS company. Customers of GDS companies, such as representatives from a travel agency or travel-related website, are issued unique login credentials that are used to authenticate their identity and facilitate the issuance of airline tickets on GDS servers.
Simeu’s phishing campaigns targeted customers of Travelport and Sabre, causing phishing emails to be delivered to their customers for the purpose of obtaining and stealing their unique log-in credentials. Simeu and others used the stolen log-in credentials to access the servers of Travelport and Sabre and cause the issuance of fraudulent airline tickets. Simeu and others then sold these airline tickets to customers, mostly in West Africa, for fractions of the actual cost, or used them for personal travel. The value of the fraudulently issued airline tickets exceeded $2 million.
On September 3, 2014, Eric Donys Simeu, 32, was arrested by French law enforcement pursuant to a federal criminal complaint issued out of the Northern District of Georgia. At the time of his arrest, Simeu was traveling from Casablanca, Morocco, to Paris, France, on a fraudulently issued airline ticket in the name of his alias, Martell Collins, utilizing a fraudulent United Kingdom passport under the same name. A federal grand jury in the Northern District of Georgia returned an indictment against Simeu on September 23, 2014, and Simeu was extradited from France on May 19, 2016. Simeu had been in French custody since his arrest in September 2014, pending completion of extradition proceedings.
Simeu pled guilty to conspiracy to commit wire fraud on December 13, 2016. On May 25, 2017, U.S. District Court Judge William S. Duffey, Jr., sentenced Simeu to four years, ten months in prison, and ordered him to pay $162,146 in restitution to Travelport.
This case was investigated by the Federal Bureau of Investigation and U.S. Department of State’s Diplomatic Security Service.
Assistant U.S. Attorney Steven D. Grimberg and Trial Attorney Peter Roman with the U.S. Department of Justice Computer Crime and Intellectual Property Section prosecuted the case. The Justice Department’s Office of International Affairs provided valuable assistance.
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.
Lawrenceville man sentenced to 28 years in prison for attempting to arrange sex with a childRead the Press Release
ATLANTA - Leonard Nathaniel Peragine, Jr., has been sentenced to over 28 years in federal prison for using the Internet to entice a child for sexual activity, and for distributing and possessing child pornography as part of that enticement.
“Peragine intentionally searched online for sexual opportunities with children, and fortunately his efforts connected him to an undercover FBI agent instead,” said U.S. Attorney John Horn. “Such conduct is as dehumanizing as it is dangerous. Sexual predators may feel the anonymity of the internet keeps them safe from detection, but this case shows that these predators will be found and prosecuted.”
“The federal investigation into Mr. Peragine Jr. clearly identified his predatory intentions and the resulting lengthy prison sentence handed down reflects the threat he posed to the community. The FBI will continue to work hard toward protecting our nation’s children from such individuals that are so clearly focused on doing them harm,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Peragine responded to a classified advertisement that purported to offer sexual access to a child. While arranging to have sex with the child, Peragine sent child pornography videos to the undercover agent that depicted adult men committing sex acts on prepubescent children.
Peragine later spoke with who he thought was the child and asked the child whether she had seen the videos, and whether she wanted to try those activities with him. After the child said she might be interested, Peragine arranged to meet on September 29, 2015, at a location in Suwanee, Georgia. When Peragine showed up for the meeting, he was arrested and searched by the FBI. Condoms were found in his car, and additional child pornography was located on his cell phone.
Later investigation revealed other instances where Peragine sexually abused girls aged one, six, and eight, and a 14-year-old boy.
Leonard Nathaniel Peragine, Jr., 34, of Lawrenceville, Georgia, was indicted on October 27, 2015. He pleaded guilty, without a plea agreement, on October 25, 2016. He was sentenced to 28 years, four months in prison, to be followed by a lifetime of supervised release on May 31, 2017, by U.S. District Court Judge William S. Duffey, Jr. Peragine still faces outstanding state charges, in Lumpkin County, Georgia, of aggravated child molestation and other related offenses.
This case was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney John S. Ghose.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. 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.
Gun traffickers arrested for allegedly using the Dark Net to export guns across the worldRead the Press Release
ATLANTA – Gerren Johnson and William Jackson have been arraigned on federal charges of dealing in firearms without a license, smuggling goods from the United States to other countries, and illegal delivery of firearms to a common carrier. The defendants allegedly exported guns illegally to buyers all over the world.
“Johnson and Jackson are charged with using underground Internet websites to illegally sell firearms to individuals in over a dozen foreign countries,” said U.S. Attorney John Horn. “Relying on the anonymity of the Internet, these defendants hoped to circumvent federal firearms laws.”
“Organized criminal groups often rely on the availability of weapons to carry out their activities; thus, the market for illegal firearms around the world. ATF will aggressively and acutely target any individuals who seek to diminish the general welfare of our communities with illegal firearms trafficking,” said Wayne Dixie, Special Agent in Charge, ATF Atlanta Field Division.
According to U.S. Attorney John Horn, the charges and other information presented in court: In June 2013, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and other agencies began investigating an international firearms trafficking scheme in which individuals utilized a Dark Net website called Blackmarket Reloaded (BMR). The individuals used the usernames CherryFlavor and WorldWide Arms. The investigation revealed that firearms posted for sale on this website were sold to persons outside the United States, and were shipped to buyers from the United States hidden inside electronic items. Some of the countries to which packages were shipped include Canada, the United Kingdom and Australia.
Federal search warrants, coupled with trace interviews, allegedly connected all firearms recovered from original purchasers in the Atlanta area, to the defendants. The defendants had been acquiring firearms legally from the OutDoorTraders website, and later reselling the firearms on underground websites including BMR, Utopia, and Agora Market.
Also, shipping information for over 50 suspected parcels was disseminated to investigators in Austria, Australia, Belgium, Canada, the United Kingdom, Ireland, Denmark, France, Germany, the Netherlands, and Sweden. Intelligence analysis, as well as a massive audit of internationally-shipped parcels originating from several suspect U.S. Post Offices, resulted in the identification of the individuals in the CherryFlavor group. Three defendants; Sherman Jackson, Brendan Person, and Gerren Johnson, were located in Atlanta, Georgia. A fourth defendant, William Jackson, lived in East Point, Georgia.
Gerren Johnson, 28, of Austell, Georgia, was arraigned on May 24, 2017, before U.S. Magistrate Judge Linda T. Walker. William Jackson, 29, East Point, Georgia, was arraigned on May 30, 2017, before U.S. Magistrate Judge Justin Anand. Both were indicted by a federal grand jury on May 3, 2017. Sherman, Jackson and Brendan Person previously were arrested, and both have entered pleas of guilty.
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 defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Tracia King and Stephanie Smith are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Dealer and Title Clerk Sentenced in Odometer Fraud SchemeRead the Press Release
Two Georgia residents were sentenced in Atlanta, Georgia today for their roles in a conspiracy to alter odometers of used motor vehicles, the Justice Department announced.
Rojen Burnett, 35, of Conyers, Georgia, and Amber McLaughlin, 33, of Duluth, Georgia, each were sentenced to 12 months in prison and three years of supervised release by Chief U.S. District Court Judge Thomas W. Thrash, Jr.
Burnett owned and operated Lifestyle Auto Broker LLC, a Georgia corporation that bought and sold used motor vehicles; McLaughlin was a former customer service specialist at the Motor Vehicle Department of the Georgia Department of Revenue. In 2012 and 2013, Burnett bought high-mileage used motor vehicles, altered the mileage on the titles, rolled-back the odometers, obtained new titles with false low mileages, and sold the vehicles to unsuspecting dealers. The dealers, in turn, sold them to consumers. McLaughlin helped Burnett commit odometer fraud by fraudulently issuing new Georgia titles with false low mileages in exchange for cash.
“Buying a car or truck is one of the biggest financial decisions that consumers make,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Odometer fraudsters victimize consumers by making them pay substantially more for a used car that is less safe and less reliable than the consumer wanted or needed. The Justice Department will hold these fraudsters accountable for their crimes.”
The defendants’ scheme included at least 310 vehicles whose odometers were rolled back and sold. Burnett and McLaughlin were also ordered to pay $399,363 and $176,725, respectively, in restitution to the victims of their fraud, who are the current owners of the cars with rolled-back odometers.
This case was investigated by National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) and the Georgia Department of Revenue. NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals having information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
This case is being prosecuted by Senior Litigation Counsel Allan Gordus and Trial Attorney Kerala Thie Cowart of the Civil Division’s Consumer Protection Branch with assistance from Assistant U.S. Attorneys Brian Pearce and Nathan Kitchens of the U.S. Attorney’s Office for the Northern District of Georgia.
More information on odometer fraud is available at: http://www.nhtsa.gov/Odometer-Fraud. Tips on detecting and avoiding odometer fraud are available at: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
For more information about the U.S. Attorney’s Office for the Northern District of Georgia, visit its website at https://www.justice.gov/usao-ndga.
Seven Members of Armed Robbery Crew Sentenced for their roles in Virginia-Highland Wells Fargo Bank RobberyRead the Press Release
Seven members of an Atlanta-based robbery crew have been sentenced for their roles in the February 2015 armed robbery of the Wells Fargo bank at the intersection of Virginia and North Highland Avenues in Atlanta, Georgia.
“This robbery crew targeted a bank at one of the busiest pedestrian thoroughfares in the city, at the height of the morning rush hour,” said U.S. Attorney John Horn. “The robbers stormed the bank, pointed loaded firearms directly at bank employees and customers, threatened to kill them, and stole over $20,000 from the bank’s safe and cash drawers. The robbers compounded their violence by leading law enforcement on a high-speed chase throughout metro Atlanta at speeds topping 170 miles per hour. The convictions and lengthy sentences for the members of this crew puts an end to their ability to inflict further violence and mayhem in our district.”
“I can’t imagine the terror those innocent victims inside the bank felt,” said David J. LeValley, Special Agent in Charge of the FBI Atlanta Field Office. “We are extremely fortunate that no one was physically hurt or killed in this rage of violence. Rarely do we see so much havoc created in such a short period of time in a very busy area. These seven suspects disregard for employees and customers of the bank, and motorists on our public streets is reprehensible. The lengthy sentences they received will not only stop them, but also send a message to anyone else who might think about committing this type of violence.”
According to U.S. Attorney Horn, the charges, and other information presented in court: On February 27, 2015, Bruce Brown, Kayode Philip Adeleye, and Ryan Vincent Hill arrived at a Wells Fargo Bank branch in Atlanta, Georgia, wearing hoods, masks, and gloves. Brown, Adeleye, and Hill entered the bank while Brown and Adeleye each brandished a loaded handgun. Brown stationed himself at the front door while Adeleye jumped over the teller counter and Hill walked behind that counter.
Adeleye pointed his gun into the back of one of the tellers and threatened to kill him if he did not open the bank’s safe. Adeleye forced another teller to the ground while pointing his gun at him and instructing him to lie face down. After one of the tellers opened the bank safe and cash drawers, Adeleye and Hill stole $22,343.40 in U.S. currency, and fled with Brown. The robbers escaped in a rental sport-utility vehicle bearing stolen tags. They later switched vehicles, twice, with help from Xavier Cornelius Shields, Connie Cristobul Montoya, and Joe Francisco Montoya.
The robbery crew consisted of seven individuals, all from metro Atlanta, which was led by Hill and Adeleye. Hill and Adeleye, along with Brown committed the armed robbery at gunpoint. Shields, C. Montoya, and J. Montoya assisted with the robbery by driving switch cars and acting as lookouts. Paris Lashay Paggett assisted with the concealment of evidence after the fact.
Using various investigative means, law enforcement located the fleeing robbers while they were still in transit. Officers and agents from the Atlanta and DeKalb County police departments, the Georgia State Patrol, and the FBI pursued the robbers as they traveled in a Mercedes AMG sports car leased and driven by Hill. The robbers led law enforcement on a high-speed chase through various highways and streets at speeds reaching up to 170 miles per hour. Law enforcement was unable to apprehend the robbers during the chase, but they did recover most of the stolen money, and several other items of evidence, at a residence in Ellenwood, Georgia, shortly after the robbery.
In the weeks that followed, the FBI, APD, and the Georgia Bureau of Investigation worked together to locate and develop evidence that identified the robbers. On June 17, 2015, a grand jury in the Northern District of Georgia returned an eight-count superseding indictment charging Hill, Adeleye, Brown, Shields, C. Montoya, J. Montoya, Paggett, and Tekevious Nicole Brandon with various offenses in connection with their roles in the robbery conspiracy. Hill, Adeleye, Brown, Shields, C. Montoya, and J. Montoya were charged with conspiracy to interfere with commerce by robbery and armed bank robbery. Hill, Adeleye, and Brown were also charged with brandishing a firearm during a crime of violence. Adeleye, C. Montoya, and J. Montoya were also charged with illegal possession of a firearm. Paggett and Brandon were charged as accessories after the fact.
Seven of the eight defendants pleaded guilty or were convicted at trial, and U.S District Judge Amy Totenberg imposed sentences on the three principal members of the crew as follows:
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Ryan Vincent Hill, 28, of Atlanta, Georgia, was sentenced on May 9, 2017, to 17 years and one month in prison, followed by three years of supervised release. Hill had pled guilty to counts one (conspiracy) and two (armed bank robbery) on August 3, 2016. Hill proceeded to trial on count three (brandishing a firearm during a crime of violence). The jury convicted him on January 26, 2017.
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Kayode Philip Adeleye, 34, of McDonough, Georgia, was sentenced on March 28, 2017, to 16 years in prison, followed by five years of supervised release. Adeleye had pled guilty to counts two (armed bank robbery) and three (brandishing a firearm during a crime of violence) on July 27, 2016.
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Bruce Brown, 27, of East Point, Georgia, was sentenced on May 10, 2017, to 11 years and two months in prison, followed by three years of supervised release. Brown had pled guilty to counts one (conspiracy), two (armed bank robbery), and three (brandishing a firearm during a crime of violence) on January 4, 2017.
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Xavier Cornelius Shields, 24, of Decatur, Georgia, was sentenced on March 24, 2017, to six years and eleven months in prison, followed by two years of supervised release. Shields had pled guilty to count one (conspiracy) on July 26, 2016.
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Connie Cristobul Montoya, 39, of Mableton, Georgia, was sentenced on March 30, 2016, to 6 years and 6 months in prison, followed by three years of supervised release. C. Montoya had pled guilty to count one (conspiracy) on November 30, 2015.
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Joe Francisco Montoya, 36, of Mableton, Georgia, was sentenced on November 12, 2015, to approximately seven months in prison, followed by ten months of supervised release. J. Montoya had pled guilty via criminal information to misprision of a felony on August 26, 2015.
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Paris Lashay Paggett, 26, of College Park, Georgia, was sentenced on May 10, 2017, to three years of probation. Paggett had pled guilty via criminal information to misprision of a felony on December 2, 2016.
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Tekevious Nicole Brandon, 36, of Atlanta, Georgia, had her charges dismissed on December 9, 2016, after successfully completing pretrial diversion under the conditions set forth in the parties’ pretrial diversion agreement.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Atlanta Police Department, the DeKalb County Police Department, and the Georgia State Patrol.
Assistant U.S. Attorneys John S. Ghose and Richard S. Moultrie, Jr. 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.
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Florida Woman Sentenced to Federal Prison for Causing the Death of One Victim and Hospitalization of Others by Injecting them with Liquid SiliconeRead the Press Release
ATLANTA - Deanna Roberts has been sentenced to eleven years and three months in federal prison for illegally injecting persons with liquid silicone and for introducing liquid silicone that was obtained by fraud into interstate commerce. One woman died approximately 36 hours after Roberts performed the injection, after the silicone migrated to her lungs, heart, brain, and other organs. Other victims who received silicone injections by Roberts were hospitalized with respiratory problems when the silicone moved to their lungs. Even after Roberts became aware that the victim died and others had been hospitalized, Roberts continued to obtain silicone illegally so that she could administer silicone to others.
“The defendant was aware that silicone injections she was administering were causing serious harm, even requiring hospitalization, yet she continued to inject paying customers with it knowing the risks that were involved,” said U. S. Attorney John Horn. “Even after Roberts knew that the victim in this case died from the injections she gave her, she did not stop. This case is a shocking reminder that citizens should seek care only from experienced and licensed health care professionals.”
“The FDA has not approved any liquid silicone products to be injected into the body for tissue augmentation, and serious harm, including death, can occur following such injections,” said Justin D. Green, Special Agent in Charge, FDA’s Office of Criminal Investigations’ Miami Field Office. “We will continue to aggressively pursue and bring to justice those who endanger the U.S. public health by offering this hazardous procedure.”
According to U.S. Attorney Horn, the charges and other information presented in court: Liquid silicone is strictly regulated by the Food and Drug Administration and may be legally injected directly into the human body only as a treatment for certain eye conditions. In April 2004, Roberts began ordering liquid silicone from a business in Arizona. In order to purchase liquid silicone from the business, Roberts submitted an affidavit to the company in which she falsely swore that she did not intend to inject the silicone into humans. Rather, she claimed that she intended to supply the silicone to a customer for use in lubricating medical equipment. Between April 2004 and December 2015, Roberts purchased at least 178 gallons of liquid silicone.
Roberts injected the silicone she illegally obtained into the hips, buttocks, and other body parts of her victims. Roberts falsely claimed to them that she was a licensed medical practitioner and that the silicone she used was medical grade. Roberts charged between $300 and $1000 for each silicone treatment that she administered.
During the evening of November 16, 2015, Roberts injected liquid silicone into the buttocks of L.H. The next day L.H. complained of tightness in her chest and shortness of breath, symptoms that are consistent with the presence of liquid silicone in the lungs. During the early morning hours of November 18, 2015, L.H. died. Dr. Geoffrey Smith, Associate Medical Examiner for DeKalb County, performed an autopsy on L.H. Based upon the autopsy Dr. Smith determined that L.H. died from complications due to silicone polymer embolization. Dr. Smith found that L.H.’s lungs were heavily congested with liquid silicone.In addition, Dr. Smith found liquid silicone in L.H.’s liver, kidney, heart, brain, and spleen. Dr. Smith noted that each of L.H.’s buttocks had 10 injection sites. From a microscopic examination of tissue surrounding one of the injection sites, Dr. Smith determined that a blood vessel had been punctured. The evidence, therefore, established that the defendant punctured the blood vessel with one of the silicone injections and that the silicone was carried by the blood stream to L.H.’s lungs and other organs causing her death.
Also on November 16, 2015, the defendant illegally injected liquid silicone into the buttocks of victim J.T. In November 2014, the defendant injected liquid silicone into the buttocks of victim V.M. and in October 2014, the defendant injected liquid silicone into the face of victim S.P. However, J.T., V.M., and S.P. did not die nor were they hospitalized from their injections.
In 2006, Roberts administered silicone injections to victim J.H.’s lips on three occasions. Also in 2006, Roberts hired J.H. to drive her to Florida where she would administer silicone injections. J.H. worked for Roberts as a driver for about four months. J.H. testified that Roberts was aware that at least one person was hospitalized after Roberts injected her with silicone. J.H. also testified that Roberts claimed that the victim was hospitalized, not because she suffered complications from the silicone injections, but because she was HIV positive. However, J.H. was aware that the victim was not HIV positive.
In 2006, Roberts injected victim S.W. with liquid silicone. Shortly thereafter, S.W. began to feel tightness in her chest and discomfort in her lungs. The next day she passed out at work. S.W. was taken to the hospital and spent the next 31 days there recovering from problems with her lungs. When she was released, S.W. had to use oxygen to assist her in breathing.
In October 2009, Roberts administered silicone injections into victim A.S.’s buttocks at A.S.’s house in Florida. A.S. immediately felt her heart rate accelerate, so she asked Roberts to stop. Roberts then took A.S. to the emergency room. A.S. was admitted to the hospital with respiratory problems and the next day she was placed on a ventilator. A.S. stayed in the hospital 2-3 weeks. While A.S. was in the hospital, Roberts called her to check on her condition. At the same time, Roberts inquired about when she could come by to pick up the payment that A.S. owed her for the silicone injections. While A.S. was still hospitalized, Roberts came to the hospital to pick up a check to pay for the injections. During the visit, A.S. overheard a nurse tell Roberts that A.S. was being treated for silicone poisoning. Since 2013, A.S. has had problems because the silicone that Roberts injected into her buttocks has been coming out of her body. Because of this, A.S. spent another eight weeks in the hospital and has had surgery in an attempt to remove the silicone. As a result, her buttocks are now deformed.
Roberts administered silicone injections to victim D.R., on multiple occasions between 2005 and 2010. In June 2010, Roberts administered silicone injections to D.R.’s breasts and face at the defendant’s house in Florida. Later that day D.R. began to feel nauseous. The following day she went to the emergency room and was admitted to the hospital for treatment for acute respiratory failure. She had to be resuscitated and was placed on a respirator. After spending a month in the hospital, D.R. was released to a rehabilitation facility where she spent several weeks before she could return to her home.
D.R.’s friend, K.M. was present the day the defendant administered the silicone injections that hospitalized her. After D.R. was hospitalized, K.M. informed the defendant that D.R. was in the hospital.
Deanna Roberts, 47, of Sanford, Florida, was sentenced to eleven years and three months in prison to be followed by three years of supervised release. Roberts was convicted on these charges on March 31, 2017, after she pleaded guilty.
This case was investigated by the Food and Drug Administration, Office of Criminal Investigations, the Doraville Police Department, and the Atlanta Police Department.
Assistant U.S. Attorneys William L. McKinnon, Jr. and Erin E. Sanders 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.
Defense Contractor Resolves Criminal, Civil and Administrative Liability Related to Food ContractsRead the Press Release
Agility Public Warehousing Co. KSC (Agility), a Kuwaiti company, has agreed to globally resolve criminal, civil, and administrative cases arising from allegations that Agility overcharged the United States when performing contracts with the Department of Defense (DOD) to supply food for U.S. troops from 2003 through 2010. As part of the global resolution, Agility has agreed to pay $95 million to resolve civil fraud claims, to forgo administrative claims against the United States seeking $249 million in additional payments under its military food contracts, and to plead guilty to a criminal misdemeanor offense for theft of government funds. DOD’s Defense Logistics Agency (DLA) will also release a claim of $27.9 million against Agility and lift its suspension of Agility, as the company has been suspended from federal government contracting for the last seven years after being indicted. An administrative agreement entered between DLA and Agility requires oversight of an Agility entity by an independent corporate monitor and the maintenance of an ethics and compliance program with a number of detailed requirements.
“The Department of Justice will hold accountable contractors that seek to profit unfairly at the expense of U.S. troops and taxpayers,” said Deputy Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Those who expect to do business with the government must do so fairly and honestly, abiding by the contract terms to which they agreed.”
“Today’s global resolution represents a fair and just outcome of criminal, civil, and administrative cases that have been pending since 2009,” said U.S. Attorney John Horn for the Northern District of Georgia. “Agility has admitted to criminal conduct, has given up claims it valued at up to $249 million, and must pay $95 million to the government. The agreements require Agility to take responsibility for its criminal wrongdoing and take affirmative steps to prevent it from engaging in this conduct again, and the government recovers significant funds that were alleged to have been wrongly paid.”
“This settlement marks the conclusion of a lengthy investigation that demonstrates the Defense Criminal Investigative Service’s (DCIS) commitment to ensuring that tax dollars spent to support Department of Defense programs and missions are protected from fraud and abuse throughout the procurement process, but especially during overseas combat operations which are the most vulnerable,” said Special Agent in Charge John F. Khin of , DCIS-Southeast Field Office. “This extremely complex investigation required DCIS agents and our partners to tenaciously sort through and piece together an unprecedented volume of information and documents, and persevere through many years of exhaustive work, to bring this case to a resolution.”
“We are very pleased with this resolution, and are gratified that the public can now see what we’ve been aggressively investigating,” said Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU). “Companies that do business with the government must comply with all of their obligations, and if they overcharge for supplying our men and women in uniform who are bravely serving this nation, they must be held accountable for their actions.”
“In simple terms, defense contractor based fraud is theft directly from the American people,” said Special Agent in Charge David J. LeValley of FBI Atlanta Field Office. “The FBI is pleased with the persistence and determination of its investigators, law enforcement partners, and federal prosecutors who saw this investigation through to its successful conclusion.”
The civil claims and criminal charges resolved today arise out of allegations originally raised in a civil whistleblower suit against Agility and another Kuwaiti company, The Sultan Center Food Products Company, K.S.C. (TSC). Kamal Mustafa Al-Sultan, a former vendor of Agility, filed the lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act (FCA), 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. Mr. Al-Sultan will receive $38.85 million as a result of the civil action he filed, which is captioned U.S. ex rel. Kamal Mustafa Al-Sultan v. Agility Public Warehousing Co., K.S.C. et al., No 1:05-cv-2968-GET (N.D. Ga.).
In its civil complaint, the United States alleged that Agility and TSC knowingly overcharged the Department of Defense for locally available fresh fruits and vegetables that Agility purchased through TSC, and falsely charged the full amount of TSC’s invoices despite agreeing that Agility would pay 10 percent less than the amount billed. The United States also alleged that Agility failed to disclose and pass through rebates and discounts it obtained from U.S.-based suppliers, as required by its contracts.
The criminal Information to which Agility has agreed to plead guilty alleges conduct that was part of the pending indictment. Specifically, it alleges that in connection with one of its contracts, Agility concealed consolidation fees that should have been paid by Agility, plus an additional markup to the company, in the product price billed to the United States. As a result of Agility’s price manipulation, the United States paid an inflated price for food. The criminal Information to which Agility is pleading guilty charges Agility for one inflated invoice in an amount of less than $1,000, although the United States asserts that Agility engaged in this price manipulation whenever it used this consolidator.
Following Agility’s criminal Indictment by a grand jury, on Nov. 16, 2009, DLA suspended Agility from government contracting due to the criminal Indictment. This suspension was subsequently extended to Agility’s more than 300 affiliated entities. As a result, Agility and its affiliates have forgone the opportunity to obtain billions of dollars in revenue associated with DOD contracts since 2009. Although Agility’s suspension will be lifted, it will be required to use an independent monitor. Moreover, the agreement requires Agility to maintain an ethics and compliance program with a number of detailed requirements.
Since 2006, Agility has filed a number of contract claims seeking additional payments of $249 million alleging that DLA owed Agility payments for its performance under a series of military contracts, which DLA contested in protracted litigation. Today’s agreement requires Agility to release all claims against DLA related to the contracts.
The resolution of the criminal and civil matters in the U.S. District Court for the Northern District of Georgia were the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia and the Civil Division’s Commercial Litigation Branch. The claims resolved by the settlements are allegations only, except to the extent the conduct was admitted as part of the defendant’s guilty plea, and there has been no determination of liability.
The criminal and civil cases were investigated by the DCIS, U.S. Army’s Criminal Investigative Command’s MPFU, Defense Contract Audit Agency, and the FBI.
Defense Contractor Agility Resolves Criminal, Civil and Administrative Cases totaling Hundreds of Millions of DollarsRead the Press Release
ATLANTA – Agility Public Warehousing Co. KSC (Agility), a Kuwaiti company, has agreed to globally resolve criminal, civil, and administrative cases arising from allegations that Agility overcharged the United States when performing contracts with the Department of Defense (DOD) to supply food for U.S. troops from 2003 through 2010. As part of the global resolution, Agility has agreed to pay $95 million to resolve civil fraud claims, to forego administrative claims against the United States seeking $249 million in additional payments under its military food contracts, and to plead guilty to a criminal misdemeanor offense for theft of government funds. DOD’s Defense Logistics Agency (DLA) will also release a claim of $27.9 million against Agility and lift its suspension of Agility, as the company has been suspended from federal government contracting for the last seven years after being indicted. An administrative agreement entered between DLA and Agility requires oversight of an Agility entity by an independent corporate monitor and the maintenance of an ethics and compliance program with a number of detailed requirements.
“Today’s global resolution represents a fair and just outcome of criminal, civil, and administrative cases that have been pending since 2009,” said U.S. Attorney John Horn. “Agility has admitted to criminal conduct, has given up claims it valued at up to $249 million, and must pay $95 million to the government. The agreements require Agility to take responsibility for its criminal wrongdoing and take affirmative steps to prevent it from engaging in this conduct again, and the government recovers significant funds that were alleged to have been wrongly paid.”
“The Department of Justice will hold accountable contractors that seek to profit unfairly at the expense of U.S. troops and taxpayers,” said Deputy Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Those who expect to do business with the government must do so fairly and honestly, abiding by the contract terms to which they agreed.”
“In simple terms, defense contractor based fraud is theft directly from the American people. The FBI is pleased with the persistence and determination of its investigators, law enforcement partners, and federal prosecutors who saw this investigation through to its successful conclusion,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“This settlement marks the conclusion of a lengthy investigation that demonstrates the Defense Criminal Investigative Service's (DCIS) commitment to ensuring that tax dollars spent to support Department of Defense programs and missions are protected from fraud and abuse throughout the procurement process, but especially during overseas combat operations which are the most vulnerable,” said John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office. “This extremely complex investigation required DCIS agents and our partners to tenaciously sort through and piece together an unprecedented volume of information and documents, and persevere through many years of exhaustive work, to bring this case to a resolution.”
“We are very pleased with this resolution, and are gratified that the public can now see what we've been aggressively investigating,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU). “Companies that do business with the government must comply with all of their obligations, and if they overcharge for supplying our men and women in uniform who are bravely serving this nation, they must be held accountable for their actions.”
According to U.S. Attorney Horn, the charges and other information presented in court: the civil claims and criminal charges resolved today arise out of allegations originally raised in a civil whistleblower suit against Agility and another Kuwaiti company, The Sultan Center Food Products Company, K.S.C. (TSC). Kamal Mustafa Al-Sultan, a former vendor of Agility, filed the lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act (FCA), 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.
In its civil complaint, the United States alleged that Agility and TSC knowingly overcharged the Department of Defense for locally available fresh fruits and vegetables that Agility purchased through TSC, and falsely charged the full amount of TSC’s invoices despite agreeing that Agility would pay 10 percent less than the amount billed. The United States also alleged that Agility failed to disclose and pass through rebates and discounts it obtained from U.S.-based suppliers, as required by its contracts.
The criminal information to which Agility has agreed to plead guilty alleges conduct that was part of the pending indictment. Specifically, it alleges that in connection with one of its contracts, Agility concealed consolidation fees that should have been paid by Agility, plus an additional markup to the company, in the product price billed to the United States. As a result of Agility’s price manipulation, the United States paid an inflated price for food. The criminal information to which Agility is pleading guilty charges Agility for one inflated invoice in an amount of less than $1,000, although the United States asserts that Agility engaged in this price manipulation whenever it used this consolidator.
Following Agility’s criminal indictment by a grand jury, on November 16, 2009, DLA suspended Agility from government contracting due to the criminal indictment. This suspension was subsequently extended to Agility’s more than 300 affiliated entities. As a result, Agility and its affiliates have foregone the opportunity to obtain billions of dollars in revenue associated with U.S. Department of Defense contracts since 2009. Although Agility’s suspension will be lifted, it will be required to use an independent monitor. Moreover, the agreement requires Agility to maintain an ethics and compliance program with a number of detailed requirements.
Since 2006, Agility has filed a number of contract claims seeking additional payments of $249 million alleging that DLA owed Agility payments for its performance under a series of military contracts, which DLA contested in protracted litigation. Today’s agreement requires Agility to release all claims against DLA related to the contracts.
The resolution of the criminal and civil matters in the U.S. District Court for the Northern District of Georgia were the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice’s Civil Division. The claims resolved by the settlements are allegations only, except to the extent the conduct was admitted as part of the defendant’s guilty plea, and there has been no determination of liability.
The criminal and civil cases were investigated by the DCIS, U.S. Army’s Criminal Investigative Command’s MPFU, Defense Contract Audit Agency, and the FBI.
Assistant U.S. Attorneys Steven D. Grimberg, Glenn D. Baker, Nathan P. Kitchens, and Kamal Ghali prosecuted the criminal case. Assistant U.S. Attorney Amy Berne prosecuted the civil case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang Leader Sentenced to more than a decade in Prison for Violent Extortion of Business OwnersRead the Press Release
ATLANTA – Eugene Chung has been sentenced to ten years, six months in prison on federal extortion charges. Chung was the leader of a Gwinnett County, Georgia, gang that specialized in the violent collection of debts from business owners in the Korean-American community. Chung and his gang also shook down business owners for “protection payments” and engaged in other criminal conduct including drug trafficking, firearms offenses, and gambling. Chung earlier pled guilty to two counts of interfering with commerce by extortion. Four other members of Chung’s gang were also convicted of federal extortion offenses.
“Chung carefully cultivated his reputation for violence, and profited from that reputation by victimizing our Korean-American community,” said U.S. Attorney John Horn. “He bragged that he and his associates were ‘professionals’ at extortion and that harming their victims was one more way to get people to pay. The community is safer now that he and his fellow gang members are off the streets.”
“Mr. Chung counted on the silence of his many victims within the Korean community as he beat and extorted them. This case, and sentencing of Mr. Chung to federal prison, came about from brave and informed community members who understood their rights and were willing to stand up for those rights by working with our federal agents and federal prosecutors in order to put a stop to Mr. Chung and his gang. The FBI thanks those individuals for their efforts as they now enjoy a safer community due primarily to their own actions and willingness to get involved,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In about July 2009, Chung and his crew visited a Korean 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 the restaurant, 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 semiautomatic 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 16 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.
On March 10, 2010, Victim #1 introduced an FBI undercover agent to Chung, Vorasith, and Lee. The undercover agent (referred to as “the patron” in the indictments) posed as a wealthy businessman who was said to be Victim #1’s uncle and who purported to be interested in buying large quantities of marijuana. During the recorded meeting, Chung explained to the patron that he ran a marijuana distribution business and offered a menu of other illegal services as well, including gambling, extortion, and debt collection services.
Chung offered to help the patron if he ever needed money collected and stated, “If you need us to beat up anybody, we’re professionals at that.” Chung added that he and his associates were “best at making people crippled,” and said they could also make people “permanently limp, blind, or deaf.” Upon hearing that the patron supposedly was owed $200,000 by a businessman in Houston, Texas, who was behind in payments (and who was actually an undercover FBI Special Agent as well), Chung offered to collect the debt.
In July 2010, Chung and Lee had a series of recorded in-person meetings and telephone calls with the patron in which they planned to forcibly collect the debt from the Texas businessman. Chung offered to get 20 to 30 guys ready for the job, and he said that the businessman was “sure to pay” because his crew was “really good at collecting money” and the businessman would be “scared.” Chung accepted a $2,000 advance payment.
When the patron asked Chung not to break the businessman’s legs, Chung quipped that that sometimes “happens,” but usually was not necessary because his guys were good at making victims think they were going to be killed. Chung further observed that “people in Atlanta know if you don’t pay you get killed,” and that if the businessman did not pay, they would show up at his office in Texas.
On July 21, 2010, Chung, Vorasith, Choi, and Lee rode together with the patron to Atlanta Hartsfield-Jackson Airport where they believed the Texas businessman was catching a connecting flight. Chung, Vorasith, Choi, and Lee approached the businessman, who was sitting at a restaurant table in the airport’s atrium. While being recorded, Chung and his crew surrounded the table. Chung ordered the businessman to repay the patron and threatened to visit the businessman and his wife at their home in Texas if he did not pay. Chung told the businessman if “you don’t pay,” Chung’s crew “can’t eat.” The businessman handed $5,000 to the patron as well as his Rolex watch. Chung later obtained the businessman’s telephone number from the patron.
In September 2010, Chung left several recorded voice messages in which he threatened the businessman and his family. Chung eventually spoke with the businessman by telephone and reiterated those threats. A few days after that, Chung and Vorasith accepted a $1,000 payment for their efforts in attempting to collect the debt.
Chung, Choi, and Lee also sold drugs and guns to undercover agents throughout 2010 and 2011.
On September 17, 2013, a federal grand jury in Atlanta returned a 13-count indictment charging the defendants with extortion, drug trafficking, and firearms offenses. Each of the five defendants was convicted and sentenced (or is awaiting sentencing) as follows:
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Ye El (“David”) Choi, 33, of Norcross, Georgia, pleaded guilty on February 13, 2015, via plea agreement, to one count of conspiracy to interfere with commerce by extortion. On June 16, 2017, Choi will be sentenced by U.S. District Judge Timothy C. Batten, Sr.
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Athith (“Andy”) Vorasith, 36, of Auburn, Georgia, pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion. On July 11, 2016, Vorasith was sentenced 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.
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Eugene Thomas Chung, 43, of Duluth, Georgia, pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion. On May 19, 2017, Chung was sentenced to ten 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.
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Thomas Jungwon (“Tommy”) Lee, 36, of Duluth, Georgia, pleaded guilty on February 16, 2017, via plea agreement, to one count of interfering with commerce by extortion. On May 16, 2017, Lee was sentenced to a time-served sentence, which amounted to one year, ten months in prison, followed by three years of supervised release, to include 160 hours of community service.
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Jong Sung (“John”) Kim, 52, of Suwanee, Georgia, went to trial and 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. Kim will be sentenced by U.S. District Judge Batten on June 5, 2017.
This case was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney John S. Ghose, former Assistant U.S. Attorney Ryan Scott Ferber, First Assistant U.S. Attorney Kurt R. Erskine, and Emory Law School Extern Joshua E. Orlan.
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.
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Convicted Russian Cyber Criminal Roman Seleznev faces charges in AtlantaRead the Press Release
ATLANTA – Roman Seleznev, of Vladivostok, Russia, has been arraigned on federal cyber fraud charges associated with the 2008 hack and theft of banking credentials from RBS Worldpay, a payment processing company located in Atlanta, Georgia. Seleznev was indicted by a federal grand jury on December 22, 2014.
“In 2008, an American credit card processor was hacked in what was then the most sophisticated and organized computer fraud attack ever conducted,” said U. S. Attorney John Horn. “Using banking credentials stolen during the hack, a team of hackers and cashers in 280 cities around the world stole over $9 million dollars in only 12 hours from 2,100 ATMs worldwide. The defendant is alleged to have stolen over $2,000,000 as part of that scheme.”
“We must continue to impose real costs on criminals who believe they are protected by geographic boundaries and can prey on the American people and institutions with impunity. This arraignment highlights the benefits of global cooperation among the United States and international law enforcement. It further demonstrates the FBI’s long-term commitment to identifying and pursuing cyber criminals world-wide, and serves as a strong deterrent to others targeting America’s financial institutions,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice,” said Kenneth Cronin, Special Agent in Charge of the Secret Service's Atlanta Field Office. “Our longstanding role in transnational cyber investigations and network intrusions was crucial in combatting this complex hacking ring and today’s arraignment proves that there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”
According to U.S. Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Georgia.
The group used sophisticated hacking techniques to compromise the data encryption that was then used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cashout, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Roman Seleznev, 32, a Russian national from Vladivosotk, was arraigned before U.S. Magistrate Judge Linda Walker. He is alleged to have been responsible for cashing out $2,178,349 associated with five hacked debit card numbers.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cashout, including Russian nationals Viktor Pleschuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukranian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
On April 21, 2017, Seleznev was sentenced by the U.S. District Court for the Western District of Washington to 27 years in prison for other computer hacking crimes that caused more than $169 million in damage to small businesses and financial institutions. Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices.
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 United States Secret Service.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case. Assistance was provided by the U.S. Attorney’s Office for the Western District of Washington, the Justice Department’s Office of International Affairs, and the Criminal Division’s Computer Crime and Intellectual Property Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Three Defendants sentenced for stealing over $4.3 Million in U.S. Government FundsRead the Press Release
ATLANTA - Prentice L. Johnson, Renina Letricia Wortham, a/k/a Renina Simmons-Wortham, and Enobahkare Malik Peterson have each been sentenced to two years, four months in federal prison for theft of government funds associated with the theft of a multi-million dollar U.S. Treasury check.
“The defendants wrongly assumed no one would miss a multi-million dollar U.S. Treasury check that was not made out to them,” said U.S. Attorney John Horn. “Quick work by federal agents stopped their attempts to negotiate the check before the defendants were able to abscond with millions in taxpayer funds.”
“TIGTA and its law-enforcement partners will investigate individuals who attempt to steal the revenue generated by the American taxpayer, and will do everything within their power to ensure that those involved are prosecuted to the fullest extent of the law,” said Special Agent in Charge Ruben Florez of TIGTA’s Atlanta Field Division. “TIGTA would like to thank the U.S. Secret Service and IRS Criminal Investigations for their assistance in this case.”
“The United States Secret Service and our law enforcement partners will continue to take an aggressive approach to arrest individuals who violate their positions of trust in an attempt to illegally enrich themselves,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals and their conspirators that stealing from the American people will not go unpunished.”
“Individuals who attempt to commit refund fraud and theft with this degree of dishonesty and deceit will face consequences for their actions,” stated James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “IRS Criminal Investigation will continue to do our part in protecting the sanctity and integrity of the tax system.”
“The collaborative investigative efforts prevented these criminals from further exploiting and causing considerable financial damage and inconvenience to the victim,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “U.S. Postal Inspectors are charged with defending the nation’s mail system and will pursue those who insist on defrauding unwitting victims in furtherance of their deceptive schemes.”
According to U.S Attorney Horn, the charges and other information presented in court: Johnson, who worked as a payroll manager at a private company, stole a U.S. Treasury check in the amount of $4,368,869.30 that he found at his employer in late August 2016. The check was a refund check from the IRS, made out to Johnson’s employer. Shortly before stealing the check, Johnson became aware that his employer was laying him off. The employer had not notified Johnson of the layoff, but he saw that his upcoming paycheck contained payment for unused vacation time, which gave away the fact that he was about to lose his job.
After stealing the $4.3 million check, Johnson asked Wortham, who is his half-sister, to help him negotiate it. Wortham, in turn, recruited Peterson to help her negotiate the check. Because the check was so large, Peterson contacted two associates for assistance, rather than trying to negotiate it himself. At the time, Peterson had no idea that the associates, through counsel, were then engaged in negotiations with federal authorities to resolve unrelated federal criminal charges. In turn, counsel contacted federal law enforcement.
Federal agents confirmed with the U.S. Treasury that the check was genuine, and then acted quickly to stop payment on the check and prevent any losses to the U.S. Treasury. Agents also orchestrated a series of undercover operations in order to identify those responsible. The cooperators had identified Peterson to agents, but the identity of the person he recieved the check from was still a mystery.
In an interview with the CEO of the company that was the payee on the check, agents learned: 1) that Johnson was a recently terminated employee of the company; 2) that Johnson had learned of his impending layoff before the company notified him; and 3) that Johnson would have had physical access to the check.
On October 27, 2016, federal agents supervised the cooperators as they met with Peterson and Wortham at a restaurant. For security reasons, Wortham did not bring the check to the meeting. Wortham introduced herself as “Nina,” and explained that she worked as a chef at a catering business. Using this information in a series of public records searches, agents positively identified her as Wortham within a few minutes. Wortham told the cooperators that she had obtained the check from a family member, and that the cooperators, Wortham, and her family member would share the proceeds of the check. Wortham also claimed at the meeting that there were approximately 22 additional checks, with the $4.3 million check being the smallest. Later, in a confession made after her arrest, Wortham admitted that there was only one check, and that she made up the story about having 22 additional checks in order to give her coconspirators a reason not to steal from her.
The next day, on October 28, 2016, federal agents again supervised one of the cooperators as he met with Wortham at a coffee shop. Wortham explained that she felt good about the plan the cooperators had explained to her for cashing the check. Wortham handed over the check to the cooperator, who promised to “get the deal rolling,” and follow up with her after 7-10 days with debit cards for a new bank account with the funds from the check in it.
Based on Wortham’s claim that the check had come from a relative, agents performed intensive public record searches to identify her family members, taking special notice of any who had a connection with the company to which the check was made. Through analysis of public records, agents learned that Wortham and Johnson had both lived with and had close associations with the same woman, who later turned out to be their mother. Later, in her confession, Wortham confirmed that Johnson had been the relative she referred to in the undercover meeting, and that he was the source of the check.
On Friday, November 10, 2016, the cooperator had one last undercover meeting with Wortham, ostensibly to provide her with the checkbook and debit cards to the new account, which had purportedly been funded with the stolen IRS check. However, agents had already sworn out criminal complaints against, and obtained arrest warrants for, all 3 defendants. Wortham was arrested at the November 10, 2016 meeting, and Johnson and Peterson turned themselves in shortly thereafter, after learning of their warrants.
The three defendants were sentenced by U.S. District Judge Timothy H. Batten as follows:
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Prentice L. Johnson, 54, of Lawrenceville, Georgia, was sentenced to two years, four months in prison to be followed by 3 years of supervised release. Johnson pleaded guilty on January 30, 2017, pursuant to a plea agreement.
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Renina Letricia Wortham, a/k/a Renina Simmons-Wortham, 39, of Lithonia, Georgia was sentenced to two years, four months in prison to be followed by three years of supervised release. Wortham pleaded guilty on January 30, 2017, pursuant to a plea agreement.
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Enobahkare Malik Peterson, 41, of Atlanta, Georgia was sentenced to two years, four months in prison to be followed by three years of supervised release. Peterson pleaded guilty on January 26, 2017, pursuant to a plea agreement.
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Citizens who have information about stolen or fraudulently obtained federal funds are encouraged to report their tips to the Treasury Inspector General for Tax Administration hotline at (800) 366-4486, or online at .
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, U.S. Secret Service, Internal Revenue Service Criminal Investigation, and U.S. Postal Inspection Service, with assistance from the United States Treasury, Office of Inspector General.
Assistant United States Attorney Alana R. Black 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
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Firearms Dealer, Store and Employees Indicted for Violations of Federal Firearms LawsRead the Press Release
ATLANTA - Dawn Anderson, a/k/a Prestige, Ashlie Onyedika, Shawn Lewis, and Distincvision, LLC, d/b/a Liquidation Outlet Center, have been arraigned on violations of federal firearms laws. Anderson and Distincvision, LLC, d/b/a Liquidation Outlet Center (“LOC”) have been charged with the failure of a federally licensed firearms dealer to keep proper records. Onyedika, Lewis, and LOC have been charged with selling firearms to a convicted felon.
“Anderson is charged with failing to keep proper records of firearm sales while clerks in her store sold guns to a convicted felon,” said U.S. Attorney John Horn. “Firearms dealers who disregard laws governing the sale of firearms violate their obligation to keep guns out of the hands of felons and present a threat to the safety of the community.”
“ATF’s mission and priority is to deny criminals access to firearms and protect the rights of law abiding citizens. Several employees of the Liquidation Outlet Center violated federal law by selling firearms to a convicted felon. ATF takes this crime very seriously, and the perpetrators will be prosecuted to the full extent of the law,” said Wayne Dixie, Special Agent in Charge Atlanta Field Division.
According to U.S. Attorney Horn, the charges, and other information presented in court: The indictment alleges that on June 30, 2016 and August 4, 2016, LOC clerks Ashlie Onyedika and Shawn Lewis knowingly sold two firearms to a convicted felon while they were working at LOC. On December 2, 2016, Dawn Anderson, the owner of LOC, allegedly sold a pistol to an individual without recording the actual buyer's name, age, and residence, as required by law.
Dawn Anderson, a/k/a Prestige, 50, Ashlie Onyedika, 25, Shawn Lewis, 45, and Distincvision, LLC, d/b/a Liquidation Outlet Center, all of Atlanta, Georgia, were arraigned by U.S. Magistrate Judges Linda T. Walker and Catherine M. Salinas. Anderson, Onyedika, Lewis, and LOC were indicted by a federal grand jury on May 9, 2017.
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 a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Katherine M. Hoffer and Jolee Porter 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.
Atlanta man sentenced to Federal Prison for unlawfully possessing a sawed-off shotgunRead the Press Release
ATLANTA - Edward Tororis Carter has been sentenced to two years and nine months in federal prison for unlawfully possessing a sawed-off shotgun. The defendant sold seven firearms to an undercover federal agent, including the twelve-gauge shotgun.
“Carter indiscriminately sold firearms to any buyer without regard for their potential use,” said U.S. Attorney John Horn. “In his quest to make money, the defendant never considered that the outcome might have been deadly.”
“An individual brazen enough to sell weapons such as a sawed-off shotgun to buyers on the street poses a clear and present danger to our community. This sentence demonstrates ATF’s continued dedication to identify these individuals and remove them from our neighborhoods,” said ATF Special Agent in Charge Wayne Dixie.
According to U.S. Attorney Horn, the charges and other information presented in court: In 2014, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) commenced an investigation of a convicted felon who was attempting to purchase firearms for subsequent sale and distribution. The investigation led federal agents to make several undercover firearms purchases from Carter who conducted the actual hand-to-hand firearms transactions.
Between May 2014 to August 2014, an undercover federal agent purchased seven firearms from Carter, including one sawed-off shotgun with a barrel length of only twelve inches and total length of only twenty-five inches. At the time of the sawed-off shotgun sale, in response to a comment about the gun, Carter said that the firearm was “ready to go,” suggesting that it was ready to be concealed and put to deadly use.
Edward Tororis Carter, 30, of Atlanta, Georgia, has been sentenced to two years and nine months in prison to be followed by three years of supervised release. Carter was convicted on these charges on December 22, 2016, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Ryan M Christian prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Prisoner and his Fiancée Indicted for running an Inmate Taxi ServiceRead the Press Release
ATLANTA – Federal inmate Deldrick D. Jackson and Kelly M. Bass have been arraigned on charges of conspiring to assist inmates to escape from the U.S. Penitentiary in Atlanta and for escaping and assisting in the escape from prison.
“Jackson and Bass allegedly ran a scheme that resulted in inmates escaping from Atlanta’s federal prison camp into the community,” said U. S. Attorney John Horn. “Inmates who escape from custody present a threat to the safety of the citizens in the area. Safety concerns also arise when inmates return with contraband to feed a thriving black market.”
“The federal indictment of both federal inmate Jackson and his girlfriend Kelly Bass not only illustrates very clearly the problems at the federal camp of the U.S. Penitentiary Atlanta but also the efforts underway by the FBI, working with the Atlanta Police and its other law enforcement partners, to remedy the matter. Federal inmates walking away from federal detention facilities is escape, plain and simple, and the federal indictment of these two reflects this,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The Atlanta Police Department’s number one priority is the safety of our communities. The department is always willing to cooperate with other agencies to reduce the threat to neighborhoods that escaped inmates present. U.S. Attorney John Horn and his staff deserve a lot of credit and thanks for making these types of cases a top priority and sending a message that any prison escapes will be prosecuted and result in additional charges,” said Atlanta Police Chief Erika Shields.
According to U.S. Attorney Horn, the charges, and other information presented in court: the United States Penitentiary in Atlanta (“USP Atlanta”) also operates a satellite prison camp for minimum-security male inmates. In May 2010, Jackson was convicted of conspiring to distribute cocaine and conspiring to launder money. From July 2016 to April 2017, Jackson was assigned to the USP Atlanta minimum security camp. According to prison visitation records, Jackson listed Bass as his fiancée.
The indictment alleges that from approximately November 2016 to April 2017, Jackson and Bass conspired to provide inmates who escaped from USP Atlanta’s camp with transportation in exchange for a fee. For example, on January 28, 2017, Bass allegedly picked up Jackson and other escaped inmates from outside USP Atlanta, drove them to a nearby hotel, and hours later, returned Jackson and the other inmates to USP Atlanta. Financial records show that Bass received approximately $4,000 from accounts associated with USP Atlanta inmates or the inmates’ families during this six-month period.
On April 13, 2017, Jackson allegedly escaped from USP Atlanta’s camp again, after which Bass picked him up and drove him away from the prison. Law enforcement officers then stopped Bass’s SUV and arrested Bass and Jackson. After searching the SUV, officers recovered two cell phones, a box filled with packs of cigarettes, and several bottles of alcohol, which is consistent with contraband that is smuggled back into the prison.
On April 25, 2017, a federal grand jury indicted Deldrick D. Jackson, 41, of DeKalb County, Georgia, and Kelly M. Bass, 38, also of DeKalb County, on conspiratorial and substantive escape charges.
This case is being investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Men Charged with Sex Trafficking minors in Georgia, Florida, and TennesseeRead the Press Release
ROME, Ga. – Brian Hernandez Acosta and his brother, Nilageo Alvarez Acosta, have been arraigned on charges of conspiracy to commit sex trafficking of a minor, sex trafficking of a minor, and transportation of a minor for prostitution. A third man, Jaime Adam Riano, was arraigned on the same charges on April 13, 2017.
“These men allegedly preyed on vulnerable young girls by sexually exploiting them for quick money,” said U.S. Attorney John A. Horn. “This case highlights the danger that lurks on social media sites, where the defendants allegedly pursued some of the child victims.”
“These federal charges are a reminder that sex trafficking of minors continues to be a very real problem and that it is not confined to urban areas. This case further illustrates how law enforcement, working together across many jurisdictions and state lines, remains responsive in addressing this heinous crime problem that will forever scar those being exploited,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“We are thankful for the work and success of all involved in this investigation that has ended the elaborate criminal enterprise these predators operated. The scope of their operation is a reminder that sex trafficking is a real danger for the young people in our communities,” said Chief Jason Parker, Dalton Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: Hernandez Acosta, Alvarez Acosta, and Riano allegedly conspired to traffic minor girls for commercial sex throughout North Georgia as well as in Florida and Tennessee. Beginning in or around November 2015, and continuing until December 2016, the defendants caused at least five girls between 16 and 17 years old to engage in prostitution, including by using force, fraud, and coercion.
Hernandez Acosta, after pursuing some of the girls on Facebook, allegedly posted provocative photographs of them in the adult entertainment and escort sections of Backpage.com, a classified advertisement website, to solicit men to have sex with the minors for money. The advertisements used fake names for the minors and falsely listed the minors as between ages 19 and 21 years, when in fact, they were all underage. Hernandez Acosta and Alvarez Acosta forced one 16-year-old girl to have sex with the men after driving her from Florida to Georgia to engage in prostitution, and after falsely offering the girl a place to live. Riano often drove this 16-year-old victim to the locations where she engaged in commercial sex acts. Another 16-year-old high school student was driven to a residence in the Atlanta area to have sex with a man for $150, which was paid directly to Hernandez Acosta. The defendants operated a high-volume, low-cost business, requiring the young girls to have sex with multiple men each night and kept nearly all of the money they earned.
Hernandez Acosta, 26, of Dalton, Georgia, Alvarez Acosta, 31, of Tampa, Florida, and Riano, 29, of Stone Mountain, Georgia, were indicted April 11, 2017.
This case is being investigated by the Federal Bureau of Investigation and the Dalton Police Department. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Georgia Bureau of Investigation, and the Murray County Sheriff's Office have also provided assistance.
Assistant U.S. Attorneys Suzette A. Smikle and Dash A. Cooper 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.
Georgia Woman Sentenced to Prison for Her Role in a Stolen Identity Refund Fraud SchemeRead the Press Release
An Atlanta, Georgia resident was sentenced to 24 months in prison today for her role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to documents and information provided to the court, Shamil Dean, 36, allowed bank accounts that she controlled to be used to receive more than $135,000 in fraudulent refunds. These refunds were generated from tax returns filed with the Internal Revenue Service (IRS) in the names of individuals whose identities were stolen.
In addition to the term of prison imposed, Dean was ordered to serve one year of supervised release. Dean will also be ordered to pay restitution to the IRS, in the amount to be determined by the court within 90 days. Dean pleaded guilty in February to aggravated identity theft.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys David Zisserson and Charles M. Edgar Jr. of the Tax Division and Assistant U.S. Attorney Alana Black of the Northern District of Georgia, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Georgia Man Pleads Guilty to Stealing Deceased Father’s Social Security BenefitsRead the Press Release
ATLANTA - Timothy S. Lenon has pleaded guilty to one count of theft of government funds for stealing over $300,000 in Social Security benefits. Lenon received and subsequently spent his deceased father’s Social Security benefits for over 20 years after his death, and did the same with his father’s New York City pension.
“Lenon pocketed his deceased father’s Social Security payments for over 20 years, using the money to pay his own personal expenses,” said U. S. Attorney John Horn. “His theft ultimately diverted these scarce resources from those citizens who truly needed them to live.”
“The Social Security Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits. I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future,” stated Special Agent-in-Charge Margaret Moore-Jackson.
According to U.S. Attorney Horn, the charges and other information presented in court: The defendant's father died on January 16, 1994. At the time of his death, he received Social Security retirement benefits and New York City pension benefits that were deposited directly into his bank account. The defendant never notified Social Security that his father died and never closed his father's bank account.
Two years after his father's death, Lenon contacted Social Security and changed the address on his father's account in order to maintain the appearance that his father was still alive. As a result, his father's benefits continued to be deposited into his bank account until April 2014. Bank records showed that Lenon used the money in his father's account to live beyond his means. Social Security money paid for multiple credit cards in both his and his partner’s names, dozens of monthly Amazon purchases, utility bills for himself and his family, and phone bills. In total, the defendant stole over $309,000 from Social Security.
When law enforcement questioned the defendant, he claimed that he thought the bank account was closed after his father's death. Later, he told law enforcement that he never touched the money in the account. Eventually, he admitted that he spent some funds from the account, but continued to minimize the magnitude of his theft by claiming that he only spent money out of the account for a two-year period. The evidence, however, directly contradicted his version of events and showed that he spent all the money in the account.
Additionally, the defendant did not notify the New York City pension system of his father's death, and therefore, his father's pension benefits continued to be direct deposited into his father's account from 1994 until 2008. In total, the New York City pension system deposited over $157,000 into his father's account. Lenon also spent all of this money.
Sentencing for Timothy S. Lenon, 57, of Philadelphia, Pennsylvania, is scheduled for July 19, 2017 at 11:00 a.m., before U.S. District Judge Charles A. Pannell Jr.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury Convicts Four Former Georgia Department of Corrections Officers of Bribery and Drug TraffickingRead the Press Release
NEWNAN, Ga. - Jeremy Fluellen, Chelsey Mayweather, Tramaine Tucker, and Christopher Williams have been convicted by a federal jury after a week-long trial, on fifteen counts of cocaine and methamphetamine distribution, and seven counts of extortion under color of official right. Prior to trial, 44 other corrections officers pleaded guilty in a series of cases related to this investigation at Georgia Department of Corrections institutions across the state.
“It’s troubling that so many officers from state correctional institutions across Georgia were willing to sell their badges for personal payoffs from purported drug dealers,” said U. S. Attorney John Horn. “They not only betrayed the institutions they were sworn to protect, but they also betrayed the ideals that honest, hard-working correctional officers uphold every day. They directly contributed to the hurtful criminal activity both inside and outside the prisons they served.”
“The federal convictions of these four State of Georgia corrections officers, brought about as part of a larger FBI investigation sends a much needed message that there is a cost if you sell your badge. These guards abdicated their responsibilities within the Georgia Department of Corrections at a time when corrections facilities in Georgia and elsewhere across the nation are being inundated with smuggled contraband smart phones that end up posing a larger problem to the public as well as the correction facility itself. Because of the vast harm that it creates in terms of public safety and the public’s trust of law enforcement, the FBI will continue to make public corruption its number one criminal program across the board, to include those that begin within the confines of a prison,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“We are pleased to see that justice has been served on these individuals for their role in jeopardizing the safe and secure operations of our facilities,” said GDC Commissioner Gregory C. Dozier. “Ridding our prisons of corrupt staff and shedding light on those who choose a path of dishonor continues to be one of our top priorities.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The Georgia Department of Corrections (“GA DOC”) is the agency responsible for overseeing the operations of the Georgia state prison system and its more than 50,000 inmates. During a federal investigation of GA DOC employees and inmates, the FBI uncovered that correctional officers were smuggling contraband (including controlled substances and cellular telephones) into state prisons. Inmates used many of those contraband cell phones to commit wire fraud, money laundering, identity theft, and drug trafficking.
The operation also revealed that numerous GA DOC officers were willing to use their law enforcement uniforms and credentials to protect what they believed were drug deals involving multiple kilograms of methamphetamine and cocaine. In a series of undercover operations, more than 45 correctional officers used their law enforcement status to protect drug deals in exchange for thousands of dollars in cash bribe payments. During the undercover deals, the correctional officers generally wore their GA DOC uniforms or had their GA DOC badges in an effort to avoid law enforcement scrutiny.
After a weeklong trial, a federal jury returned the following guilty verdicts against defendants on all counts charged against them:
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Jeremy Fluellen, 28, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison and on the GA DOC tactical unit (also known as the COBRA Squad), was convicted of two counts of attempted distribution of cocaine, and two counts of extortion under color of official right;
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Chelsey Mayweather, 25, of Milledgeville, Georgia, formerly a Correctional Officer at Baldwin State Prison, was convicted of two counts of attempting to distribute cocaine and/or methamphetamine, and two counts of extortion under color of official right;
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Tramaine Tucker, 28, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison and Riverbend Correctional Facility, was convicted of two counts of attempting to distribute cocaine and/or methamphetamine, and one count of extortion under color of official right; and
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Christopher Williams, 26, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison, was convicted of nine counts of attempting to distribute cocaine and/or methamphetamine, and two counts of extortion under color of official right.
Previously, numerous others were also charged as part of the overall investigation of the GA DOC. In total, this extensive operation has resulted in charges against approximately 130 prison employees, inmates, and non-incarcerated co-conspirators.
Sentencings for Jeremy Fluellen, Chelsey Mayweather, Tramaine Tucker, and Christopher Williams will occur July 25, 2017, at 9:30 a.m., before U.S. District Judge Timothy C. Batten, Sr.
These cases are being investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Georgia Department of Corrections Office of Professional Standards.
Assistant U.S. Attorneys John S. Ghose and Vivek Kothari 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.
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Identity Thief sentenced for using a new form of fraud “Synthetic Identities”Read the Press Release
ATLANTA – Creating “synthetic identities” from phony Social Security numbers is one of the fastest growing forms of identity theft in the United States, and the U.S. Attorney’s Office for the Northern District of Georgia is prosecuting increased numbers of these cases to stay in front of this trend.
One recent case involves Kelvin Lyles, who has been sentenced to three years and ten months in federal prison for wire fraud. Lyles used so-called “synthetic identities,” which are fake identities created by establishing a credit history for false Social Security numbers with the credit reporting agencies. Using this method, Lyles defrauded credit card companies out of over $350,000.
“Synthetic identity theft is an unfortunate new form of criminal fraud,” said U. S. Attorney John Horn. “Identity thieves continue to invent new methods, and this is one more avenue of approach in their attempt to take what is not theirs. We will keep current with these latest trends and do all we can to keep our citizens safe from identity thieves.”
“As synthetic identity theft continues to become one of the fastest-growing consumer fraud schemes, the US Postal Inspection Service will remain steadfast to investigate emerging criminal trends to bring these offenders to justice,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to go after those who utilize the U.S. mail for fraudulent financial gain.”
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2013 until December 2015, Lyles obtained and created synthetic identities to obtain credit cards in the names of fictional individuals. Lyles then used online credit card processing services to charge transactions to the credit cards, directing all the stolen funds obtained to himself.
In December 2015, law enforcement executed a search warrant at Lyles’s residence and discovered information for over 300 synthetic identities, fake driver’s licenses, a fake social security card, and numerous credit cards held in the names of individuals other than Lyles. In total, Lyles attempted $435,862.10 in fraudulent credit card transactions and succeeded in obtaining approximately $350,000.
In recent months, the U.S. Attorney’s Office has prosecuted other defendants committing similar kinds of synthetic identity fraud:
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On January 5, 2017, Robert F. Dixon, Jr., of Chamblee, Georgia, was sentenced by U.S. District Judge Leigh Martin May to two years, ten months in federal prison to be followed by three years of supervised release for wire fraud conspiracy, wire fraud, and misuse of a Social Security number. Dixon was ordered to pay restitution in the amount of $403,734.55.
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On November 17, 2016, Karen A. Bradley, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to one year, six months in federal prison to be followed by three years of supervised release for wire fraud conspiracy and misuse of a Social Security number. Bradley was ordered to pay restitution in the amount of $244,232.31.
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On September 1, 2016, Landerick C. Mitchell, of North Charleston, South Carolina, was sentenced by U.S. District Judge Leigh Martin May to six months in federal prison to be followed by three years of supervised release for wire fraud conspiracy and misuse of a Social Security number. Mitchell was ordered to pay restitution in the amount of $23,328.86.
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On January 10, 2017, Maurice R. Lambert, of Atlanta, Georgia, pleaded guilty to access device fraud and misuse of a Social Security number. He is scheduled to be sentenced by U.S. District Judge Eleanor L. Ross on May 25, 2017.
While these cases pertain to criminals using synthetic identities, law-abiding citizens also risk being tricked into purchasing a synthetic identity, primarily in the form of a so-called “Consumer Profile Number” or “CPN.” A CPN is a nine-digit number that some credit repair agencies claim can be used as a replacement for a Social Security number in credit and loan applications. Falsely stating in a credit or loan application that a CPN is a Social Security number risks violating federal law. Citizens should be extremely skeptical of any claims from credit repair services that ask them to use a CPN in place of their actual social security number when applying for credit or loans.
Kelvin Lyles, 43, of Atlanta, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to three years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $353,937.23. Lyles pleaded guilty pursuant to a plea agreement on January 18, 2017.
This case was investigated by the U.S. Postal Inspection Service.
Special Assistant United States Attorney Diane Schulman and Assistant United States 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.
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Decatur Man Loses U. S. Citizenship and Faces Deportation after being Convicted of making False Statements in order to obtain His CitizenshipRead the Press Release
ATLANTA - Ismail Ali Khan has been sentenced to five years, seven months in federal prison after being convicted of conspiring to import illegally and distribute male enhancement pills that contained the drug found in Viagra. Khan was also convicted and sentenced for falsely stating on his application to become a naturalized U.S. citizen that he had never committed a crime for which he had not been arrested.
“This defendant endangered the health of countless individuals by illegally importing and distributing drugs that can be obtained in the United States only with a prescription written by a licensed, medical professional,” said U. S. Attorney John Horn. “What’s more, this defendant became a naturalized U.S. citizen by giving a false statement to the government about his criminal history, while he was engaged in this illicit drug scheme. Khan’s willful criminal pursuit earned him more than a prison sentence. It cost him his citizenship and deportation after prison.”
“American consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Justin Green, Special Agent in Charge, FDA Office of Criminal Investigations, Miami Field Office. “FDA remains committed to pursuing those who endanger the U.S. public health by distributing fraudulent and potentially dangerous products.”
According to U.S. Attorney Horn, the charges and other information presented in court: The defendant and others imported from China male enhancement pills with names such as, “Maxman,” “Herb Viagra,” “Rock Hard Weekend,” “Stiff Nights,” “Happy Passengers,” “Hard Ten Days” “Zhen Gongfu,” and they distributed the pills throughout the United States. These pills contained the same drug that is the active ingredient in Viagra. If the pills had been properly labeled, the Food and Drug Administration (FDA) and U.S. Customs and Border Protection would have stopped them from entering the U.S. because Viagra is available in this country only when prescribed by a licensed physician and dispensed by a pharmacist.
In order to evade import restrictions, the defendant and his co-conspirators directed their suppliers to mislabel the boxes containing the pills to make it appear that the boxes contained items that can be legally imported into the U.S., such as beauty products, pottery, coffee, and tea.
The defendant and his co-conspirators received the illegally imported pills at multiple addresses in the Atlanta, Georgia, area. They rented storage units at different locations where they repackaged the pills for distribution to wholesale and retail locations in the Atlanta area and throughout the U.S. In order to evade detection by law enforcement authorities, they moved their illegal operations regularly, used aliases, false addresses, and fake business names, and misrepresented the nature of their business when renting storage units and mailboxes.
Over the course of a conspiracy that lasted from early 2011 until May 2014, Khan and his co-conspirators illegally imported and distributed more than $1.5 million worth of illegal drugs that came from China.
On August 12, 2013, while this drug conspiracy was ongoing, Khan submitted an application to Citizenship and Immigration Services to become a naturalized United States citizen. The application included the following question: “Have you ever committed a crime for which you have not been arrested?” Khan falsely answered, “No.” On January 6, 2014, and again on March 14, 2014, Khan was interviewed by a representative of Citizenship and Immigration Services. Both times the representative asked Khan whether he had ever committed a crime for which he had not been arrested. On both occasions, Khan falsely stated that he had not. Khan became a naturalized United States citizen on March 14, 2014.
Ismail Ali Khan, 29, of Decatur, Georgia, was sentenced to five years and seven months in prison, to be followed by three years of supervised release. At the sentencing hearing, Judge Steve C. Jones ordered that Khan’s status as a naturalized U.S. citizen be revoked and Khan’s certificate of naturalization was declared void. Judge Jones also ordered that Khan be immediately deported to India, Khan’s native country, once he completes his prison term. At that time, supervised release will not be enforced. Khan was found guilty by a jury on February 13, 2017.
This case was investigated by the Office of Criminal Investigations, Food and Drug Administration and Homeland Security Investigations.
Assistant U.S. Attorneys William L. McKinnon, Jr. and Trevor Wilmot prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
IRS Employee Indicted for Stealing Taxpayers’ IDs and Filing Fraudulent ReturnsRead the Press Release
A federal grand jury sitting in the Northern District of Georgia indicted an Internal Revenue Service (IRS) employee today for wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to the indictment, since November 2010, Stephanie Parker of Atlanta, Georgia, worked at the IRS and had access to taxpayers’ personal identifying information, such as social security numbers and dates of birth. The indictment alleges that between September 2012 and April 2013, Parker exploited her IRS accesses to steal such personal information, which she then used to file tax returns seeking refunds in the names of other individuals. Parker allegedly directed the fraudulently obtained refunds into nominee bank accounts and used some of those funds to purchase money orders.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Parker faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and a statutory minimum sentence of two years in prison for the aggravated identity theft counts. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Michael Boteler and Melanie Smith of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Energy & Process Corp. agrees to pay $4.6 Million for alleged False Claims Regarding Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
ATLANTA – Energy & Process Corporation (“E&P”), of Tucker, Georgia, has agreed to pay the United States $4.6 million to resolve allegations that it violated the False Claims Act by knowingly failing to perform mandatory quality assurance procedures and, as a result, supplying the Government with defective steel reinforcing bars (“rebar”) for use in constructing a U.S. Department of Energy (“DOE”) nuclear processing facility – i.e., the Mixed Oxide Fuel Fabrication Facility (“MOXX Facility”) – at the Savannah River Site, which is near Aiken, South Carolina. The MOXX Facility has never been operational or processed nuclear materials, and currently remains under construction.
“Our complaint alleges that after actively touting its experience with nuclear construction and quality assurance work, and then being hired to perform such work in connection with an important project, E&P chose to forego the agreed to quality assurance work, and then compounded this failure by falsely certifying to the Government that it had performed the quality assurance work.” said U.S. Attorney John Horn. “This settlement recovers substantial losses caused by E&P’s decision to cavalierly place its own profits above its commitment to adhere to important nuclear safety and quality control requirements.”
“Compliance with contract requirements is expected by all who contract with the U.S. government, but is especially critical in connection with the construction of a nuclear facility,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The Government alleges that, although the DOE – in connection with construction of the MOXX Facility – paid E&P to supply rebar meeting the stringent quality assurance standards of the U.S. Nuclear Regulatory Commission (“NRC”), E&P failed to perform most of the necessary quality assurance work, and then concealed its failing by falsely certifying that it had completed the work. As result of E&P’s failure to perform the requisite quality assurance work, one-third of the rebar supplied by E&P for use in the MOXX Facility was incorrectly bent, and therefore outside of safety specifications. After discovering the deficiency, the DOE undertook costly and time-consuming measures and successfully remediated the potential hazards associated with E&P’s rebar to ensure the safe operation of the MOXX Facility.
The settlement resolves allegations filed by Deborah Cook, a former employee of the prime contractor building the facility, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case. The lawsuit was filed in the Northern District of Georgia and is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.). Ms. Cook will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina, and the Department of Energy’s Office of Inspector General.
Assistant United States Attorneys Paris A. Wynn and Gabriel Mendel handled this matter for the U.S. Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Energy & Process Corp. Agrees to Pay $4.6 Million for Alleged False Claims Regarding Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
The Justice Department announced today that Energy & Process Corporation (E&P) of Tucker, Georgia, has agreed to pay $4.6 million to resolve the government’s lawsuit filed under the False Claims Act alleging that it knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a Department of Energy (DOE) nuclear waste treatment facility.
“Compliance with contract requirements is expected by all who contract with the U.S. government, but is especially critical in connection with the construction of a nuclear facility,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The lawsuit alleged that the DOE paid E&P a premium to supply rebar that met stringent regulatory standards for the Mixed Oxide Fuel Fabrication and Reactor Irradiation Services facility in the DOE’s Savannah River site near Aiken, South Carolina, but that E&P failed to perform most of the necessary quality assurance measures, while falsely certifying that those requirements had been met. The lawsuit further alleged that one-third of the rebar supplied by E&P and used in the construction was found to be defective. E&P subsequently replaced some of the defective rebar. The $4.6 million to be paid by E&P to resolve the government’s False Claims Act lawsuit is in addition to the replacement costs incurred by E&P.
“Our complaint alleges that after actively touting its experience with nuclear construction and quality assurance work, and then being hired to perform such work in connection with an important project, E&P chose to forego the agreed to quality assurance work, and then compounded this failure by falsely certifying to the Government that it had performed the quality assurance work,” said U.S. Attorney John A. Horn for the Northern District of Georgia. “This settlement recovers substantial losses caused by E&P’s decision to cavalierly place its own profits above its commitment to adhere to important nuclear safety and quality control requirements.”
The allegations resolved by this settlement arose in part from a whistleblower lawsuit filed under the False Claims Act by Deborah Cook, a former employee of the prime contractor that subcontracted with E&P in the course of building the DOE facility. Under the False Claims Act, private citizens can sue for false claims on behalf of the government and share in any recovery. The act permits the government to intervene and file its own complaint in such lawsuits, as it did in this case. Cook’s share of the settlement has not been determined.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Northern District of Georgia and the District of South Carolina and the Department of Energy’s Office of Inspector General.
The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.).
The claims asserted against E&P are allegations only, and there has been no determination of liability.
Inmate Pleads Guilty to Escaping from Atlanta’s Federal PenitentiaryRead the Press Release
ATLANTA – Federal inmate Justin B. Stinson has pleaded guilty to escaping from the United States Penitentiary minimum security camp in Atlanta, Georgia.
“Stinson escaped from Atlanta’s federal prison solely to smuggle contraband back inside it,” said U. S. Attorney John A. Horn. “This case shines a light on a recurring problem with prisoners leaving the camp, which creates safety concerns in the surrounding neighborhoods as well as within the camp itself when inmates return with contraband to feed a thriving black market.”
“The safety of our communities is the department’s number one priority, and escaped inmates clearly have the ability to threaten the well-being of unsuspecting residents, including the numerous children who live in proximity to the prison. The department is extremely grateful to U.S. Attorney John Horn and his staff for making this case a priority, and sending a strong message to other inmates who may be inclined to attempt escape that additional sentencing will be forthcoming,” said Chief of Police Erika Shields, Atlanta Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: the United States Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. In March 2015, Stinson pleaded guilty to Possession of a Firearm by a Convicted Felon in a Florida federal court. From August 2016 to February 2017, Stinson was assigned to serve his time at USP Atlanta’s minimum security camp.
On February 3, 2017, law enforcement officers conducted surveillance along the USP Atlanta’s prison fence line near New Town Circle. Just after 9:00 p.m., Stinson escaped from USP Atlanta by climbing through a hole in one prison fence and then climbing over USP Atlanta’s outer prison fence. Thereafter, Stinson retrieved a large black duffel bag from the occupant of a stopped car on New Town Circle and began walking back toward USP Atlanta. The FBI then arrested Stinson from a location outside of USP Atlanta’s confines. The FBI also recovered from Stinson a cellular telephone, a pair of scissors, two 1.75 liters of Jose Cuervo tequila, two cartons of Newport cigarettes, four boxes of Black and Mild cigars, and various food items.
On February 14, 2017, Stinson, 37, was indicted by a federal grand jury on escape and contraband smuggling charges. Stinson pleaded guilty to one count of escape.
The sentencing hearing for Stinson has been scheduled for June 28, 2017, at 2:30 p.m., before U.S. District Judge Charles A. Pannell, Jr.
This case is being investigated by the Federal Bureau of Investigation and the Atlanta Police Department.
Assistant United States Attorneys Jeffrey W. Davis and Timothy Lee 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.
Fourth Defendant Convicted for Role in Georgia-Based Mexican Sex Trafficking RingRead the Press Release
The Department of Justice announced today that Severiano Martinez-Rojas, also known as “Negro” and “Gato,” of Tenancingo, Tlaxcala, Mexico, has pleaded guilty in federal court to one count of sex trafficking and admitted his participation in the sex trafficking of three victims.
“The defendants preyed on vulnerable young women, placing them in fear and forcing them to sell their bodies to complete strangers all so the defendants could make money,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Today’s conviction demonstrates the Civil Rights Division’s unwavering commitment to bringing human traffickers to justice and the significant impact of our U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative, aimed at dismantling transnational trafficking organizations.”
“This defendant’s guilty plea represents another success in this District’s sustained commitment to bilateral anti-trafficking coordination with our Mexican Federal law enforcement counterparts in locating and bringing to justice traffickers who lure victims into prostitution with false promises of a better life and then seek to evade accountability for their crimes,” said U.S. Attorney John A. Horn of the Northern District of Georgia. “Human trafficking remains a top priority of this office, and we will continue to aggressively target and prosecute these horrific crimes.”
“Human Trafficking is often transnational in nature and, as a result, U.S. law enforcement, through its legal attaches and U.S. embassies, count on its partnerships abroad to ensure that individuals such as Martinez-Rojas are not afforded a sanctuary from justice,” said Special Agent in Charge David J. LeValley of the FBI Atlanta Field Office. “This case illustrates the FBI’s commitment toward identifying, apprehending, and repatriating to the U.S. those involved in these types of human trafficking rings that cross international borders.”
“Human trafficking is quite simply, a form of modern-day slavery, and the sexual abuse of the victims in this particular case only adds to the heinous nature of the crime,” said Special Agent in Charge Nick Annan of ICE Homeland Security Investigations in Atlanta. “Over the past two years HSI has rescued nearly 1,000 trafficking victims nationwide with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
According to the charges and other information presented in court, Martinez-Rojas and his co-defendants used false promises of love, legitimate work and a better life to induce three women to unlawfully enter the United States between 2006 and 2008. Once the women arrived in Atlanta, Georgia, the defendants used violence, threats, intimidation, and other means to compel the young women to engage in prostitution in Georgia and Alabama for the defendants’ profit. The defendants operated a high volume, low cost business, requiring the women to have sex with multiple men a night, sometimes as many as 20 men.
Martinez-Rojas was indicted on May 14, 2013, but remained a fugitive until his arrest in Mexico as part of a coordinated bilateral law enforcement action in November 2015. He is the fourth member of an Atlanta-based Mexican sex trafficking ring convicted for their roles in compelling young women from Mexico and Guatemala to engage in prostitution. A date for sentencing has not yet been determined.
Co-defendants Arturo Rojas-Coyotl, also known as “Taco” and “Jonathan,” and Odilon Martinez-Rojas, also known as “Chino” and “Saul,” pleaded guilty to sex trafficking and alien harboring in October 2014 and were sentenced on January 27, 2015, to prison terms of 16 years and 21 years and 10 months, respectively. The defendants were also ordered to pay $180,000 in restitution to the victims. A third co-defendant, Daniel Garcia-Tepal, also pleaded guilty to alien harboring on April 4, 2014, and received a sentence of time served.
Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers.
The case is being investigated by the Federal Bureau of Investigations and the Department of Homeland Security’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorney Richard S. Moultrie, Jr., of the Northern District of Georgia, and Deputy Director Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Fourth Defendant Convicted for Role in Atlanta-Based Mexican Sex Trafficking RingRead the Press Release
ATLANTA – Severiano Martinez-Rojas, also known as “Negro” and “Gato,” of Tenancingo, Tlaxcala, Mexico, has pleaded guilty in federal court to one count of sex trafficking and admitted his participation in the sex trafficking of three victims.
“This defendant’s guilty plea represents another success in this District’s sustained commitment to bilateral anti-trafficking coordination with our Mexican Federal law enforcement counterparts in locating and bringing to justice traffickers who lure victims into prostitution with false promises of a better life and then seek to evade accountability for their crimes,” said U.S. Attorney John A. Horn. “Human trafficking remains a top priority of this office, and we will continue to aggressively target and prosecute these horrific crimes.”
“The defendants preyed on vulnerable young women, placing them in fear and forcing them to sell their bodies to complete strangers all so the defendants could make money,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Today’s conviction demonstrates the Civil Rights Division’s unwavering commitment to bringing human traffickers to justice and the significant impact of our U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative, aimed at dismantling transnational trafficking organizations.”
“Human Trafficking is often transnational in nature and, as a result, U.S. law enforcement, through its legal attaches and U.S. embassies, count on its partnerships abroad to ensure that individuals such as Martinez-Rojas are not afforded a sanctuary from justice. This case illustrates the FBI’s commitment toward identifying, apprehending, and repatriating to the U.S. those involved in these types of human trafficking rings that cross international borders,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“Human trafficking is quite simply, a form of modern-day slavery, and the sexual abuse of the victims in this particular case only adds to the heinous nature of the crime,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick Annan. “Over the past two years HSI has rescued nearly 1,000 trafficking victims nationwide with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
According to U.S. Attorney Horn, the charges and other information presented in court: Martinez-Rojas and his co-defendants used false promises of love, legitimate work, and a better life to induce three women to unlawfully enter the United States between 2006 and 2008. Once the women arrived in Atlanta, Georgia, Martinez-Rojas and his co-defendants used violence, threats, intimidation, and other means to compel the young women to engage in prostitution in Georgia and Alabama for the defendants’ profit. The defendants operated a high volume, low cost business, requiring the women to have sex with multiple men a night, sometimes as many as 20 men.
Martinez-Rojas was indicted on May 14, 2013, but remained a fugitive until his arrest in Mexico as part of a coordinated bilateral law enforcement action in November 2015. He is the fourth member of an Atlanta-based Mexican sex trafficking ring convicted for their roles in compelling young women from Mexico and Guatemala to engage in prostitution. A date for sentencing has not yet been determined.
Co-defendants Arturo Rojas-Coyotl, also known as “Taco” and “Jonathan,” pleaded guilty to sex trafficking and alien harboring in October 2014, and was sentenced to 16 years in federal prison. Odilon Martinez-Rojas, also known as “Chino” and “Saul,” pleaded guilty to sex trafficking and alien harboring in October 2014, and was sentenced to 21 years and 10 months in prison. Both defendants were also ordered to pay $180,000 in restitution to the victims. A third co-defendant, Daniel Garcia-Tepal, also pleaded guilty to alien harboring on April 4, 2014, and received a sentence of time served.
Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers.
The case is being investigated by the Federal Bureau of Investigations and the Department of Homeland Security’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorney Richard S. Moultrie, Jr., of the Northern District of Georgia, and Deputy Director Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
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.
Even Though Tax Day is behind us, a Reminder to be Vigilant about Tax FraudRead the Press Release
ATLANTA – The deadline for individuals to file their tax returns passed yesterday. Most will breathe a sigh of relief that their tax returns were filed on time. However, some may encounter an unexpected impediment – an unscrupulous return preparer who took advantage of them, or their identity was stolen and a tax refund has already been claimed in their name by a thief.
The U.S Attorney’s Office for the Northern District of Georgia, along with IRS-Criminal Investigations and other law enforcement partners, is actively engaged in combating tax preparing cheats and identity thieves. The following cases highlight some of the work done by the U.S. Attorney's Office and its law enforcement partners in recent months relating to tax fraud.
Frazier B. Todd, Jr., Cozzie Walker and Roberta Sheffield
Frazier B. Todd, Jr. was sentenced to eighteen years, six months in prison on March 29, 2017, in connection with his conviction for preparing over $5.5 million in fraudulent tax returns on behalf of clients. Todd was found guilty following a four-day jury trial in December, 2016. Todd owned and operated Diverse Resource Business and Tax Firm in Union City, Georgia, along with Cozzie Walker and Robert Sheffield. Walker and Sheffield were also charged in the case and previously pleaded guilty.
“Mr. Todd represents a small but very harmful segment of the tax return preparation industry that takes advantage of our tax system,” said U.S. Attorney John Horn. “By falsely claiming that his clients were entitled to the American Opportunity Tax Credit and other tax credits, Todd and other fraudulent return preparers like him cause real financial damage to the government’s fiscal health and our economy as a whole. We urge the citizens in our district to be careful about who they entrust with the preparation of their tax returns.”
“IRS Criminal Investigation has a zero-tolerance policy for refund fraud. Return Preparer fraud is a top priority for the agency and our special agents work year round to bring return preparers who lack integrity and engage in illegal activities to justice,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “The prison time received by Frazier Todd and his co-conspirators should serve as a strong warning that tough punishments await those who embark on a similar criminal path.”
According to U.S. Attorney Horn, the charges and other information presented in court: Todd conspired with Cozzie Walker and Roberta Sheffield to exploit the American Opportunity Tax Credit (“AOTC”), a refundable tax credit for certain college expenses such as tuition and related costs. Marketing the AOTC as a “stimulus” available to almost anyone, Todd and his business partners prepared false tax returns for thousands of clients, many of whom were disabled, elderly, or low-income.
Todd was also convicted for a much broader fraud scheme in which he exploited not only the AOTC but other tax credits as well to maximize his clients' refunds. For example, he filed dozens of corporate tax returns falsely claiming that the businesses purchased tens of thousands of gallons of gasoline for "off-highway business use," and were entitled to the Fuel Tax Credit. He also falsely claimed that clients had installed solar panels on their homes in order to claim the Residential Energy Credit, which is designed for taxpayers who make green energy upgrades to their homes.On December 8, 2016, a jury found Todd guilty of conspiracy to commit mail and wire fraud, obstructing the internal revenue laws, and ten counts of presenting false claims for refund to the IRS. Cozzie Walker pleaded guilty on March 2, 2016, to conspiracy to commit mail and wire fraud. Roberta Sheffield pleaded guilty on March 21, 2016, to conspiracy to commit mail and wire fraud, and 14 counts of presenting false claims for refund to the IRS.
During his sentencing hearing before U.S. District Court Judge Mark H. Cohen, Todd, 58, of Atlanta, Georgia, was ordered to serve eighteen years, six months in prison, followed by three years of supervised release, and pay restitution to the IRS in the amount of $3,631,466. Judge Cohen stated that the conduct of Todd and his co-conspirators was “an abuse of the tax credit system” in this country. The sentencings of Cozzie Walker, 42, of Atlanta, Georgia, and Roberta Sheffield, 43, also of Atlanta, Georgia, are scheduled for May 16, 2017, before Judge Cohen.
Assistant United States Attorneys Lynsey M. Barron and Steven D. Grimberg prosecuted the case.
Tauya Muteke
Frazier Todd, Jr. is not the first return preparer to be sentenced to prison this year. On January 9, 2017, Tauya Muteke, 35, of Douglasville, Georgia, was sentenced to four years, nine months in prison, followed by one year of supervised release, after a jury convicted him on August 19, 2016, on two counts of preparing and filing false income tax returns and one count of failure to appear for trial. Muteke owned and operated Icon Tax Service, a tax preparation business located in Norcross, Georgia. According to U.S. Attorney Horn, the charges and other information presented in court: Muteke prepared and filed tax returns that made up businesses and falsified business expenses to make it appear as if the businesses had lost money, resulting in larger refunds for his clients. Muteke was originally scheduled to go to trial in March 2010, but three weeks before his trial date Muteke fled to Johannesburg, South Africa, and did not return to the United States for five years. He was arrested upon his return on July 13, 2015.
Assistant United States Attorneys Bernita B. Malloy and Christopher C. Bly prosecuted the case.
Kim A. Earlycutt, Shannon King and Marcia Farmer
The United States Attorney’s Office is also actively prosecuting numerous tax fraud cases. For example, on March 1, 2017, Kim A. Earlycutt, 54, of Covington, Georgia, and Shannon King, 37, of Lithonia, Georgia were indicted by a federal grand jury in the Northern District of Georgia and charged with conspiracy and filing false claims with the United States. In a related case, Marcia Farmer, 50, of Snellville, Georgia, pled guilty to a criminal information charging her with conspiracy to file false claims on October 28, 2016. According to U.S. Attorney Horn, the charges and other information presented in court: the three alleged co-conspirators obtained identity documents of foreign nationals, which they then used to manufacture and file false and fraudulent tax claim forms. These fraudulent tax returns were submitted to the IRS, resulting in more than $5 million in fraudulent refunds being paid.
Members of the public are reminded that the indictment against Earlycutt and King 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.
Assistant U.S. Attorney Christopher H. Huber is prosecuting these cases.
All of the above cases were investigated by the Internal Revenue Service Criminal 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.
Former Recruiters charged with False Invoicing SchemeRead the Press Release
ATLANTA –Dereck Cyrus and Chuck Sandford have been arraigned on conspiracy and mail fraud charges for running a false invoicing scheme that caused the restaurant chain Panda Express to send them over a million dollars in fraudulent payments.
“These defendants allegedly used a false invoicing scheme to line their own pockets,” said U. S. Attorney John Horn. “Businesses should carefully vet vendors that they do business with to make sure they do not fall victim to these schemes.”
“Corporate based fraud schemes do have victims and those victims feel its impact. The federal grand jury indictment and resulting arrests in this matter clearly illustrates the FBI’s commitment toward providing an avenue of relief to companies being targeted by these types of fraud schemes,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Cyrus and Sandford both owned companies that provided recruitment services to corporations. Cyrus’s company was named “Diversified Recruiters,” and Sandford’s recruitment company was named “Chuck Sandford Consultants” (CSC). Cyrus also worked as an in-house recruiter for Panda Express in 2012 and early 2013.
Beginning in about January 2013, Cyrus and Sandford allegedly submitted fraudulent Diversified Recruiters and CSC invoices to the Panda Express accounts payable department that falsely claimed that they had found qualified job candidates for positions at Panda Express restaurants throughout the United States. In actuality, the vast majority of the job candidates were either fictitious or had never been recruited by Cyrus or Sandford. Based upon these misrepresentations, the accounts payable department issued payments to Diversified Recruiters and CSC, which Cyrus and Sandford used for their own personal benefit.
After Cyrus stopped working for Panda Express in March 2013, he allegedly continued to send fraudulent Diversified Recruiters and CSC invoices to the accounts payable department, falsely claiming he was still a company employee. Sandford also allegedly paid Cyrus a kickback after the accounts payable department issued payments for the fraudulent CSC invoices. All told, Cyrus and Sandford allegedly netted well over one million dollars during the course of this scheme.
Dereck Cyrus, 52, of Lithonia, Georgia, Chuck Sandford, 74, of Marietta, Georgia, were arraigned before U.S. Magistrate Judge Alan J. Baverman.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta area Brothers Sentenced for Corporate Hijacking SchemeRead the Press Release
ATLANTA - Antonio Sandridge and Rodney Sandridge have been sentenced to more than two years in federal prison for mail fraud conspiracy. The defendants, who are brothers, operated a fraud ring where they hijacked corporate identities and used them to fraudulently order over $500,000 in electronics. Both defendants were previously convicted of similar conduct in 2006.
“These defendants manipulated public records and hijacked corporate identities to order expensive electronics for themselves,” said U. S. Attorney John Horn. “Worse, they preyed on small businesses, so the losses suffered by these victims were potentially devastating.”
"The Sandridge brothers made their living by victimizing small businesses,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. sentences imposed today should be a reminder that the Secret Service, in conjunction with our law enforcement partners and the United States Attorney’s Office, will continue to arrest and prosecute criminals who repeatedly take advantage of innocent victims and companies.”
“The Atlanta Police Department strives to protect our citizens and businesses every day. We are extremely proud of the investigative work that went into building a strong case against these career criminals and the outstanding cooperation with both the U.S. Secret Service and the U.S. Attorney’s office to get a conviction,” said Erika Shields, Chief of Atlanta Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: From 2012 until February 2014, the Sandridges engaged in a scheme where they stole the identities of dormant Georgia corporations by filing new registration information for existing companies on the Georgia Secretary of State’s website, unbeknownst to the actual owners of the corporations. The false registration would list new company officers and a new corporate address, which was a virtual office space under the conspirators’ control.
After stealing the corporate identity of Georgia companies, the Sandridge brothers and co-conspirators would use fake credit applications to order laptops and other electronics from victim vendors in the names of the hijacked companies. The computer equipment was purchased on credit with payment due in the weeks following delivery, and the delivery address was a virtual office space controlled by the conspirators. When victim vendors shipped computer equipment to the virtual office space, Rodney Sandridge picked up the fraudulently ordered electronics, and Antonio Sandridge immediately sold the electronics to third-party resellers.
In total, over $540,000 in computer equipment was ordered from 16 victim companies, and the victims received little more than a couple hundred dollars, if anything, for the orders despite repeated efforts to collect payment.
In 2006, the U.S. District Court for the Northern District in Georgia sentenced the Sandridges to prison on federal conspiracy charges based on their participation in a nearly identical scheme from 2001 to 2005.
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Antonio Sandridge, 49, of Tucker, Georgia, was sentenced by U.S. District Court Judge Leigh Martin May to two years and three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $85,736.
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Rodney Sandridge, 51, of Duluth, Georgia, was also sentenced by Judge May to three years and six months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $389,123.
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Antonio and Rodney Sandridge were convicted on these charges on November 22, 2016 and January 20, 2017, respectively, after they pleaded guilty.
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This case was investigated by the U.S. Secret Service and the Atlanta Police Department. Assistant United States Attorneys Samir Kaushal and Nathan P. Kitchens 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.
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U.S. Attorney’s Office and ATF Combat Gun Trafficking in Atlanta, including a spike in Thefts from Licensed Firearms DealersRead the Press Release
ATLANTA – The U.S. Attorney’s Office and the ATF continue to combat gun trafficking in Atlanta, including eight federal cases involving 32 defendants prosecuted in the past four months. In particular, ATF reported a dramatic increase in thefts of firearms from federally licensed firearms dealers in Georgia, facilitating the trafficking of these illegally obtained guns to criminals within and outside the state.
For example:
- In 2013, for example, the ATF received reports of 25 burglaries of licensed gun dealers in Georgia resulting in thefts of 338 guns.
- In 2014, the ATF received reports of 34 burglaries of licensed gun dealers in Georgia with a loss of 307 guns.
- In 2015, the ATF received reports of 33 burglaries of licensed gun dealers in Georgia resulting in thefts of 429 guns.
- In 2016, ATF investigated burglaries of 50 federally licensed firearms dealers in Georgia, with a staggering theft of more than 1,000 firearms.
“These stolen guns are trafficked all over the country as well as internationally, and are falling into the hands of convicted felons who use them to terrorize local communities,” said U.S. Attorney John Horn. “Frequently, traffickers who are prohibited from purchasing firearms enlist people with no criminal history – called “straw purchasers” – to buy the guns for them. In this way, relatives, spouses, friends, and associates of gun traffickers may find themselves ensnared in criminal conduct and facing lengthy prison sentences. The illegal trafficking of firearms fuels an entire cycle of criminal conduct that affects our entire community.”
“The primary goal of ATF’s firearms trafficking strategy is to prevent violent crime by disrupting and dismantling the firearms trafficking organizations and networks responsible for supplying violent offenders with crime guns,” said Special Agent in Charge Wayne Dixie. “Our top priority in the Atlanta Field Division of ATF is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice.”
Recognizing the unique threat posed to public safety by this spike in illegal firearms activity, the U.S. Attorney’s Office, in collaboration with the ATF and local law enforcement partners, has identified and prosecuted those individuals responsible for this spike in firearms offenses. The district’s recent prosecutions include the following cases and involve the following facts based on the charges and other information presented in court:
- United States v. Terry Brown, et. al.: on March 22, 2017, Brown, who led a criminal ring comprising seven defendants that stole 131 firearms from seven gun stores, was sentenced to six years, six months of imprisonment by U.S. District Judge Harold L. Murphy; the defendants’ scheme involved the trafficking of firearms stolen from federally licensed firearms dealers located across the state of Georgia, including dealers in the cities of Dalton, Tallapoosa, Warner Robbins, Athens, Thomson, Monroe, and LaGrange, Georgia; Co-defendants Jameel Drinkard, Eric Moore, and Jacquez Miller previously received sentences of imprisonment of eight years, four years, and one year, three months respectively, while the final defendants’ cases remain pending;
- United States v. Jaleel Wulu and Javaree Williams: on March 22, 2017, the defendants pleaded guilty to making false statements to purchase multiple firearms from several federally licensed firearms dealers and conspiring to do so; the men illegally purchased guns from licensed firearms dealers located in the cities of Atlanta, Sandy Springs, and Mableton, Georgia. Defendant Williams admitted to purchasing several firearms for Defendant Wulu – an aspiring Atlanta rapper known as “Trill Castro;” multiple guns purchased by the men were recovered at crime scenes in the state of Maryland;
- United States v. Jordan Brown, et. al.: on March 7, 2017, four defendants were charged with stealing 105 guns from a licensed gun dealer in Cumming, Georgia, by ramming a pickup truck through the side of the store at approximately 5:15 a.m. on December 31, 2016; an employee inside the store at the time fired a shot at the ceiling of the store in an attempt to thwart the burglary; local law enforcement officers arrested the defendants following a car chase;
- United States v. Alfred, et. al.: on March 1, 2017, a federal grand jury charged three defendants in a superseding indictment with trafficking 36 firearms from Georgia to the country of Trinidad and Tobago by using straw purchasers to illegally buy the guns and then secretly shipping the firearms aboard an international air carrier;
- United States v. Robbins, et. al.: on February 27, 2017, Robbins, one of three defendants charged with making false statements to federally licensed firearms dealers to purchase guns, pleaded guilty to this offense; the defendants’ illegal gun purchases resulted in the trafficking of 10 firearms to an individual unlawfully present in the United States; the co-defendants’ charges remain pending;
- United States v. Fisher-Bland, et. al.: on February 21, 2017, six defendants were charged with trafficking 33 firearms from Georgia to Rochester, New York, utilizing straw purchasers to make the illegal gun purchases; two of the defendants travelled from New York to Georgia to illegally purchase and transfer the firearms interstate as part of the scheme;
- United States v. Rawls: on December 20, 2016, Rawls, who illegally purchased firearms that law enforcement officers later recovered at multiple crime scenes in the states of Massachusetts and Rhode Island, pleaded guilty to making false statements to a licensed gun dealer and illegally transferring firearms to an out-of-state resident; this prosecution resulted from a collaboration by ATF field offices in Atlanta, Massachusetts, and Rhode Island; and
- United States v. Coffey, et. al.: on December 16, 2016, six defendants were charged with stealing and trafficking 129 firearms across three states – Georgia, North Carolina, and South Carolina; the defendants are alleged to have used a torch to burn a hole through a loading dock bay door of one of the guns stores to gain entry.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bureau of Industry and Security, Office of Export Enforcement, Georgia State Patrol, Atlanta Police Department, Henry County Police Department, Alpharetta Police Department, Cumming Police Department, City of Milton, Georgia, Police Department, Forsyth County Sheriff’s Office, members of the ATF-RAGE unit in and near August, Georgia, the North Carolina Police Departments of Charlotte-Mecklenburg and Rocky Mount, Rock Hill, South Carolina, Police Department, Rochester, New York, Police Department, Holly Springs Police Department, Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robins Police Department, LaGrange Police Department, and the Pearl, Mississippi Police Department
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Pharmacists Convicted for Illegally Dispensing to Patients of a Pill MillRead the Press Release
ATLANTA - Rosemary Ofume and Donatus Iriele, the husband and wife owners of Medicine Center Pharmacy in Atlanta, Georgia, have been convicted after a three-week jury trial on federal drug and money laundering charges for illegally dispensing controlled narcotics to customers of the “pill mill” pain clinic across the street. They were convicted of a drug trafficking conspiracy, three counts of illegally dispensing controlled substances without a legitimate medical purpose and outside the usual course of professional practice, and a money laundering conspiracy, in connection with their operation of Medicine Center Pharmacy, in Atlanta, Georgia. Additionally, Iriele was convicted individually of five counts of concealment money laundering and laundering more than $10,000 of criminally derived property.
“Like the rest of the country, the state of Georgia continues to experience the devastating impact of the opiate epidemic,” said U.S. Attorney John Horn. “These defendants used their pharmacy to supply pills to patients of a known "pill mill." Physicians, pharmacists and other medical professionals that prey on drug addicts, and feed their addictions in order to make a profit, are simply drug dealers in white coats.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “It is a sad commentary when trusted individuals in the medical community hide behind the veil of legitimacy to commit criminal acts. These pharmacists can no longer fill the opiate cravings of pill-seeking addicts with impunity. Owners and operators of pill mills spin a broad web of deception, reeling in casts of thousands who are addicted to pharmaceutical drugs. This investigation was a success because of the spirited level of law enforcement cooperation.”
“The reckless illegal dispensing of controlled substances results in addiction and death,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “The abuse of Oxycodone and other controlled substances has become an epidemic which is destroying lives and communities throughout the country. Rosemary Ofume, Donatus Iriele and others who operate pill mills in the Northern District of Georgia can expect to be investigated, prosecuted, and sent to prison in the same way as other drug traffickers who push poison in our communities.”
“These convictions have removed a huge tumor from the cancer that illicit drug distribution has become during our lifetime. The hard work invested in this case by all parties, from the U.S. Attorney’s office to the boots on the ground front-line drug agents and everyone in-between proves what dedication, persistence and cooperation can accomplish. It’s proof positive that just because you have a license to practice pharmacy, you aren’t entitled to put illicitly prescribed drugs on the street and contribute to the skyrocketing opioid addiction and overdose death rates. All health care professionals are on notice to remember: you are to do no harm. And if you intentionally ignore this charge, you are going to be treated the same as a street-corner drug dealer in this war on opioid abuse,” said Rick Allen, Director, Georgia Drugs & Narcotics Agency.
According to U.S. Attorney Horn, the charges and other information presented in court: In May 2009, agents of the DEA, working with agents for the IRS, began investigating the AMARC pain clinic, located in Atlanta, Georgia, and nearby Medicine Center Pharmacy, after receiving information that the clinic and pharmacy were illegitimately prescribing and dispensing pain pills to drug addicts and drug dealers.
The investigation revealed that Godfrey Ilonzo financed and operated at least eight clinics in the metro Atlanta area under the “AMARC” name, including the Lakewood pain clinic and one in Tyrone, Georgia. Bona Ilonzo (Godfrey Ilonzo’s wife) served as the office manager at the Lakewood AMARC pain clinic. At various times, Dr. Nevorn Askari and Dr. William Richardson served as the primary doctors for the AMARC pain clinics. Rosemary Ofume and Donatus Iriele operated the Medicine Center Pharmacy across the street from one of the pain clinics. Both Godfrey and Bona Ilonzo, as well as Drs. Askari and Richardson, previously pleaded guilty to charges related to their conduct at the clinic.
Ofume and Iriele worked together with the Ilonzos and Drs. Askari and Richardson to facilitate the dispensing of Oxycodone pills and other opiates to addicts and distributors. After customers received prescriptions from Askari and Richardson for medically inappropriate and potentially lethal combinations of opiates and other controlled substances, clinic staff told customers to fill their prescriptions across the street at “Rosemary’s pharmacy” (Medicine Center Pharmacy operated by Ofume and Iriele). Many of those customers traveled to the AMARC clinics and Ofume/Iriele’s pharmacy from counties throughout Georgia and from other states (including Alabama and Ohio).
Customers waited for hours at the Lakewood AMARC pain clinic and paid cash to receive prescriptions for Oxycodone or Hydrocodone, Xanax, and Soma (the “holy trinity” for resale on the street) before purchasing the pills at high prices from Ofume and Iriele’s pharmacy. Employees at the AMARC clinics and Ofume and Iriele’s pharmacy received discounts and special treatment, including free office visits and reduced prices for pills dispensed at the pharmacy. Ofume lied to pharmaceutical distributors in order to procure astronomical quantities of Oxycodone and other prescription pain pills that were then dispensed to customers having obvious signs of addiction or drug diversion. Significantly, in 2009, Medicine Center Pharmacy purchased eleven times more Oxycodone than the average pharmacy in the state of Georgia.
During the course of the conspiracy, Ofume and Iriele generated more than $5.1 million dollars from unlawful prescriptions issued by doctors affiliated with the AMARC clinics (constituting more than 90% of the pharmacy’s revenue). Iriele used pharmacy proceeds to purchase three luxury vehicles for his and Ofume’s personal use. Iriele and Ofume also laundered pharmacy proceeds by purchasing vehicles in the United States for individuals in Nigeria while concealing that those customers then deposited local Nigerian currency into Iriele’s own Nigerian bank account.
Previously, in 2007, the Georgia Board of Pharmacy revoked Iriele’s pharmacy licensed (and temporarily suspended Ofume’s pharmacy license) after finding that Ofume and Iriele had failed to account for more than 600,000 controlled substances pills at their pharmacies and had dispensed controlled substances pursuant to more than 1,400 forged prescriptions.
Previously, Godfrey Ilonzo, 66, of Alpharetta, Georgia, and Bona Ilonzo, 54, of Alpharetta, Georgia, the husband-wife owners of the illegal pain clinic, and two doctors who worked at the clinic, pleaded guilty to federal drug and money laundering charges in connection with in the drug trafficking conspiracy.
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Godfrey Ilonzo pleaded guilty on February 16, 2017, to drug trafficking conspiracy and money laundering conspiracy.
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Bona Ilonzo pleaded guilty on February 16, 2017, to a drug trafficking conspiracy;
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Dr. Nevorn Askari, 61, of Monroe, Georgia, pleaded guilty on February 16, 2017, to a drug trafficking conspiracy;
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Dr. William Richardson, 63, of Atlanta, Georgia, pleaded guilty on February 1, 2017, to a drug trafficking conspiracy.
A federal grand jury returned a second superseding indictment against the defendants on September 5, 2013. The sentencings of Godrey and Bona Ilonzo, Dr. Askari, and Dr. Richardson are scheduled to take place throughout the day on May 16, 2017, before U.S. District Court Judge Steve C. Jones.
Based on the convictions, Ofume and Iriele will be ordered to forfeit to the United States $16,767 in cash seized from the pharmacy, $133,892.74 in funds seized from the pharmacy’s bank account, a 2009 BMW X5, a 2008 Mercedes Benz ML550, a 2007 BMW X5, and Rosemary Ofume’s Georgia Pharmacist license. In addition, the government also intends to seek money judgments equal to the amount of proceeds defendants obtained from their illegal drug trafficking and the amount of money laundered.
The sentencings of Ofume and Iriele are scheduled for June 13, 2017, at 10:00 a.m., before U.S. District Court Judge Jones.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Laurel Boatright, Cassandra Schansman, and Michael Brown 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.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.
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