Northern District of Georgia
Press releases recorded for this federal judicial district.
Drug Traffickers Sentenced for Distributing Multi-Kilogram Quantities of Cocaine and Marijuana Near Chamblee Charter High SchoolRead the Press Release
ATLANTA - Walter Ray Hamilton and James Robert Jones, a/k/a Sean Jones, were sentenced for conspiracy to distribute cocaine and marijuana for their roles in a drug trafficking organization that operated out of a house located approximately 350 feet from Chamblee Charter High School, in Chamblee, Georgia. The organization used the house in this residential neighborhood to distribute multi-kilogram quantities of cocaine and marijuana.
“This Atlanta-based organization brought the scourge of dangerous drugs to our community, and set up its base of operations down the street from a school,” said U. S. Attorney John Horn. “In doing so, they brought drug trafficking to the doorstep of what should have been a safe place for our children.”
“These cocaine and marijuana distributors were blinded by greed and power. They also had the audacity to conduct their unlawful activities in close proximity to an educational facility, which cannot and will not be tolerated. Now, they stand powerless and will spend well-deserved time in prison. This case would not have been possible without the spirited level of cooperation between all law enforcement agencies involved,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division.
“The US Postal Inspection Service is charged with defending the nation’s mail system from illegal use. We remain steadfast in our resolve to seek justice to the end and to keep communities safe. This goal is achieved through collaborative investigative efforts with other law enforcement agencies,” said Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division.
According to U.S. Attorney Horn, the charges and other information presented in court: In June 2014, agents from the DEA and U.S. Postal Inspection Service, investigating a drug trafficking organization that shipped drugs through the mail from Texas to Atlanta, identified a house in Chamblee that the organization was using as a drug storage and distribution hub. Hamilton lived in the house and was frequently visited by other members of the organization, including Jones, who brought packages to the house. On two separate occasions following package deliveries, agents stopped cars leaving the house and seized multiple kilogram quantities of cocaine and marijuana.
On a third occasion, agents observed several organization members, including Hamilton and Jones, gather at the house and drive away together in a caravan of four cars. Agents stopped the caravan, but Jones sped away in his car while agents pursued him with the help of aerial surveillance. Jones ultimately abandoned his car and was arrested after a brief foot chase.
Agents seized 55 kilograms of marijuana, cash, and other drug trafficking materials from the four cars, then returned to the house and seized an additional four kilograms of marijuana, scales, a money counter, and other drug packaging materials from inside.
During the course of the investigation, law enforcement seized approximately four kilograms of cocaine, six kilograms of methamphetamine, 75 kilograms of marijuana, seven handguns, a bullet proof vest, $65,200 in cash, and a stolen BMW with altered vehicle identification numbers.
Walter Ray Hamilton, 35, of Stone Mountain, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to six years, three months in prison to be followed by six years of supervised release for charges of conspiracy to possess with the intent to distribute controlled substances, and maintaining a place for distributing drugs within 1,000 feet of a school. Hamilton was convicted on these charges on June 30, 2016, after he pleaded guilty.
James Robert Jones, a/k/a Sean Jones, 43, of Dallas, Georgia, was also sentenced by U.S. District Judge Mark H. Cohen to five years, ten months in prison to be followed by three years of supervised release for charges of conspiracy to possess with the intent to distribute controlled substances. Jones was convicted on this charge on August 1, 2016, after he pleaded guilty. Both Hamilton and Jones were sentenced on November 2, 2016.
Two other members of the organization have already been sentenced. They are as follows:
- Kevin Michael Johnson, 41, of Lilburn, Georgia, previously was sentenced to six years, six months in prison to be followed by four years of supervised release for conspiracy to possess with the intent to distribute controlled substances in connection with his role as leader of the organization. Johnson was convicted on January 5, 2016.
- Eric Swiney, 41, of Forest Park, Georgia, previously was sentenced to five years, ten months in prison to be followed by four years of supervised release for conspiracy to possess with the intent to distribute controlled substances in connection with his arrest with four kilograms of cocaine after leaving the organization’s house in Chamblee. Swiney was convicted on February 9, 2016.
This case was investigated by the Drug Enforcement Administration and United States Postal Inspection Service, with invaluable support provided by the Georgia State Patrol.
Assistant United States Attorney Garrett L. Bradford prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
- Kevin Michael Johnson, 41, of Lilburn, Georgia, previously was sentenced to six years, six months in prison to be followed by four years of supervised release for conspiracy to possess with the intent to distribute controlled substances in connection with his role as leader of the organization. Johnson was convicted on January 5, 2016.
Justice Department’s Nationwide Election Day ProgramRead the Press Release
ATLANTA – U.S. Attorney John Horn announced that Assistant U.S. Attorney (AUSA) William Toliver will lead the efforts of the Northern District of Georgia Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.
AUSA Tolliver has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said U.S. Attorney Horn. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Horn stated that AUSA/DEO Toliver will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (404)581-6001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (404) 679-9000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division,” said U.S. Attorney Horn.
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.
Marietta Man Charged with Robbing Six Area Banks at GunpointRead the Press Release
ATLANTA - Kevin Ray Williamson, has been arraigned on federal armed bank robbery charges relating to a series of bank robberies that began on February 4, 2016, and continued until September 8, 2016. Williamson was indicted by a federal grand jury on October 25, 2016.
“Williamson is alleged to have committed a series of armed bank robberies that kept bank employees and citizens on edge for over eight months,” said U. S. Attorney John Horn. “The arrest and indictment in this case put an end to an active, eight-month crime spree, and hopefully returned a sense of safety to the community in Marietta, where most of the robberies occurred.”
“The FBI is proud of the outstanding work of its many agents, task force officers, and analytical personnel in getting the person believed to be responsible for these armed serial bank robberies identified and safely apprehended. These robberies were particularly egregious in that many of the victim tellers had to endure having a handgun pointed directly at them. The FBI will continue to make those who bring this type of violent crime into our communities a priority matter,” said George Crouch, Acting 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 is alleged to have 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 the demanded U.S. currency was placed.
- On April 1, 2016, Williamson is alleged to have entered a Regions Bank in Marietta, Georgia, 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.
- 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 is alleged to have entered a BB&T Bank in Marietta, Georgia. 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 also captured on surveillance video.
- On July 13, 2016, Williamson is alleged to have entered a PNC Bank in Marietta, Georgia. 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 is alleged to have entered Fidelity Bank located in Atlanta, Georgia. 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 is alleged to have entered Renasant Bank located in Johns Creek, Georgia. He displayed a handgun and demanded money from several drawers.
Kevin Ray Williamson, 51, of Marietta, Georgia, was arraigned before U.S. Magistrate Judge Janet F. King on October 26, 2016. Williamson was indicted by a federal grand jury on October 25, 2016.
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 United States Attorney Suzette A. Smikle 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.
Veterinary Clinic Owner Pays Civil Penalty to Settle Alleged Controlled Substances Act ViolationsRead the Press Release
ATLANTA – Veterinarian Michael Paul Good, owner of Town & Country Veterinary Clinic, located in Marietta, Georgia, has agreed to pay a civil settlement of $90,000 to resolve allegations that he violated the recordkeeping requirements of the Controlled Substances Act. Dr. Good also has agreed to additional oversight from the DEA.
“The illegal diversion of controlled substances from legitimate medical purposes is a problem facing our district and the nation,” said U.S. Attorney John Horn. “To prevent the diversion of controlled substances, all DEA registrants, including veterinarians, must keep careful track of their controlled substances inventory. The failure to do so may result in the imposition of significant civil monetary penalties.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented, “The owner of Town & Country Veterinary Clinic spun a web of deception when it failed to maintain accurate recordkeeping of its inventory. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. The pursuit of civil penalties is a proactive step that DEA Diversion and its federal, state and local partners can take to discourage other negligent medical entities from engaging in such behavior.”
The government alleges that Dr. Good, among other violations, failed to keep accurate records of controlled substances, failed to report thefts or losses of controlled substances, and failed to maintain controlled substances records properly at Town & Country Veterinary Clinic in Marietta, Georgia. The claims settled are allegations only, and there has been no determination of liability.
Congress enacted the Controlled Substances Act, 21 U.S.C. §§ 801-904, to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. Under the Controlled Substances Act, individuals and entities registered with the DEA are required to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed. Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation.
This case was investigated by the Tactical Diversion Squad from the Drug Enforcement Administration, with assistance from the Georgia Drugs and Narcotics Agency and the Georgia Veterinary Board.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eight-Time Convicted Felon Sentenced to over 9 Years in Prison for Gun PossessionRead the Press Release
ATLANTA - Daniel Allen Days has been sentenced to nine years, seven months in prison for possession of five firearms as an eight-time convicted felon. Days used a straw purchaser to obtain firearms, which he then planned to sell in New Jersey.
“Despite his eight prior felony convictions, Days was in possession of multiple firearms in order to illegally traffic the weapons to New Jersey,” said U. S. Attorney John Horn. “This case shows both the dangers of having a repeat felon like Days in illegal possession of a firearm, and also how the use of straw purchasers contributes to the illegal trafficking of guns that head north from Georgia.”
“Days is the poster child for tough federal sentencing for gun possession by convicted felons,” said George Crouch, Acting Special Agent in Charge (A/SAC), FBI Atlanta. “While serving this lengthy sentence, he will no longer pose a threat to anyone.”
According to U.S. Attorney Horn, the charges and other information presented in court: On February 11, 2015, Days was pulled over in a vehicle carrying five firearms, including an assault rifle with a high-capacity magazine in the trunk. Days was transporting the firearms to New Jersey for sale. Days had trafficked firearms to New Jersey on two prior occasions, but was thwarted on his third attempt after FBI surveillance exposed that he used a straw purchaser to obtain firearms earlier that day. Text messages on Days’ cell phone showed he sent photos of numerous firearms, including multiple rifles with high-capacity magazines, to potential buyers.
Daniel Allen Days, 39, of Atlanta, Georgia, was sentenced by U.S. District Judge Amy Totenberg to nine years, seven months in prison to be followed by three years of supervised release. Days was convicted of these charges on July 27, 2016, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Doctor Sentenced to Prison for Health Care FraudRead the Press Release
ATLANTA – Robert E. Windsor, an Atlanta-area physician, has been sentenced to federal prison for filing over $1.1 million in false claims for surgical monitoring services that he did not perform.
“Patients rightly expect that their physicians will protect their health and safety,” said U.S. Attorney John A. Horn. “Windsor violated that basic trust and placed numerous surgery patients at risk at a time when they were most vulnerable and in need of care. For over three years, he claimed that he had monitored the neurological health of patients during surgery when he actually had an unqualified medical assistant do the work. Windsor then billed health insurers over $1 million for the services he never performed.”
“It is incomprehensible the lengths that some people will go to defraud our health care system,” said George Crouch, Assistant Special Agent in Charge, FBI Atlanta. “But even more reprehensible is the willingness of health care providers like Dr. Windsor, to thoughtlessly put patients’ health at risk to profit from the system.”
“In my many years of investigating health care fraud, Dr. Windsor’s utter disregard for patient safety and his extreme greed stand out. His arrogance in billing for fraudulent services performed by an unqualified employee on patients undergoing surgery is truly shocking,” said Derrick L. Jackson, Special Agent in Charge for the HHS Office of Inspector General. “Our agents, working with our law enforcement partners, strive to protect the well-being of patients and the government health programs designed to serve them.”
“This sentencing highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”
According to U.S. Attorney Horn, the charges and other information presented in court: Robert E. Windsor, a licensed Georgia physician, entered into a contract with American Neuromonitoring Associates, P.C. (ANA), a Maryland corporation, to provide a medical service called intra-operative monitoring. During this medical procedure, a physician monitors a patient’s nerve and spinal cord activity during surgery to reduce potential adverse effects to the patient. The monitoring physician observes the surgery online and communicates with the surgeon in the operating room who is performing the surgery.
Windsor was responsible for providing a monitoring report at the conclusion of each surgery, and ANA and its sister company would then bill patients and health insurance companies for the monitoring. Windsor was paid a fee for each surgery monitored.
Between January 2010 through July 2013, Windsor had an unqualified medical assistant monitor surgeries for him, using Windsor’s log-in credentials to make it appear as if he was monitoring the surgeries when he was not. The medical assistant was not a doctor and was not permitted to perform the monitoring services. Windsor submitted monitoring reports falsely stating that he had conducted the monitoring, which ANA and its sister company relied on in billing health insurers for his services. On several occasions, Windsor billed ANA for monitoring services he supposedly performed when he was actually on a plane traveling internationally.
In total, after collecting reimbursements from insurers, ANA paid Windsor over $1.1 million for monitoring services he did not perform. Investigators uncovered Windsor’s fraud through analysis of Medicare billing data and complaints to the HHS-OIG Hotline at 800-HHS-TIPS.
Robert E. Windsor, 55, of Cumming, Georgia, was sentenced by U.S. District Court Judge Amy Totenberg to three years, two months in prison and three years of supervised release. He was ordered to serve 200 hours of community service, and to pay $1,169,580 in restitution to health insurers.
This case was investigated by the Federal Bureau of Investigation; the Department of Defense, Defense Criminal Investigative Service; and the Department of Health and Human Services, Office of the Inspector General.
Assistant United States Attorneys Stephen H. McClain and Nathan P. Kitchens prosecuted the case. Former Assistant United States Attorney Jamie L. Mickelson prosecuted the case prior to Windsor’s guilty plea.
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/.
Ex-Georgia DOT Supervisor sentenced to 4.5 Years in Federal Prison for bribery for allowing dumping that resulted in environmental damageRead the Press Release
ATLANTA - George H. Bell, former Georgia Department of Transportation (“G-DOT”) Assistant Area Maintenance Foreman, was sentenced today to four and a half years’ imprisonment for accepting bribe payments in exchange for allowing more than 2,600 dump truckloads of unsuitable dirt to be dumped in DeKalb County, resulting in substantial environmental damage and more than $1.5 million in clean-up costs.
“For less than $15,000 in bribes, Bell abused his supervisory position with the G-DOT by allowing others to dump massive amounts of unsuitable dirt throughout DeKalb County,” said U.S. Attorney John A. Horn. “Bell’s greed and willingness to compromise the trust of his public office has left all Georgians with environmental damage and a clean-up tab of more than $1.5 million.”
“This case serves as a reminder that public corruption has consequences. The consequences for Mr. Bell in betraying the public’s trust and violating established regulations and policy is a lengthy federal prison sentence. The consequences for the public in which Mr. Bell was supposed to have been serving is $1.5 million in unanticipated and non-budgeted clean-up costs,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.
“It is paramount that public officials committing crimes be held accountable for their actions. The investigation and prosecution of public corruption is a priority for the Georgia Bureau of Investigation. The GBI will continue to work with our state and federal partners to ensure that public corruption cases are aggressively pursued,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“Georgia DOT has cooperated fully with all agencies involved in the investigation to ensure that those responsible for illegal actions are held accountable,” said Commissioner Russell McMurry. “We are appalled by the corrupt actions of this individual that in no way reflect the hard work and commitment displayed by more than 4,100 GDOT employees. We have worked diligently to correct the damage to the impacted sites.”
According to U.S. Attorney Horn, the charges and other information presented in court: Bell worked for G-DOT for approximately 15 years. By the end of his career, Bell served G-DOT in a supervisory role as an Assistant Area Maintenance Foreman. In that capacity, Bell oversaw various maintenance projects under the control of G-DOT, including repairs of Georgia roadway system and general maintenance activities.
From approximately April to December 2014, Bell accepted cash bribe payments from the owners of a dirt hauling company (“Dirt Company”). In exchange for those bribe payments, Bell allowed the Dirt Company to dump unsuitable dirt at various G-DOT locations in DeKalb County, Georgia. Unsuitable dirt is dirt that has been removed during construction or landscaping projects that cannot be built upon in the future. In this case, the dirt contained construction debris, including nails, concrete and asphalt fragments, and various pieces of metal.
In April 2014, the Dirt Company asked Bell if G-DOT would accept multiple loads of dirt. Bell allowed the unsuitable dirt to be dumped at G-DOT site, but then charged the Dirt Company $600 to dump the dirt. Bell used G-DOT personnel and equipment to spread the dirt after the Dirt Company had dumped it. After that, Bell and the Dirt Company agreed that the Dirt Company would pay Bell $5 per load (if the Dirt Company spread the dirt itself) and $7 per load (if Bell used G-DOT personnel and equipment to spread the dirt). For several months thereafter, Bell accepted bribe payments from the Dirt Company in exchange for allowing it to dump illegally unsuitable dirt at G-DOT locations. In total, the Dirt Company paid Bell almost $15,000 in bribe payments.
Bell allowed the Dirt Company to dump over 2,600 dump truck loads of unsuitable dirt at the G-DOT sites located at: (1) Stone Mountain Highway and Hugh Howell Road, in Stone Mountain; (2) North Decatur Road and I-285, in DeKalb County; (3) 805 George Luther Drive, in DeKalb County; and (4) Chamblee Dunwoody Road and I-285, in DeKalb County. Overall, Bell permitted over 30,000 cubic yards of dirt to be dumped at the G-DOT sites. Unfortunately, Bell also allowed the Dirt Company to dump some dirt in a protected wetland and at a location where the dirt entered Stone Mountain Lake. Based on the massive amount of unsuitable dirt that Bell allowed to be dumped, the clean-up costs associated with his criminal acts exceeded $1.5 million.
On April 15, 2016, Bell, 50, of Lithonia, Georgia, pleaded guilty to conspiring to accept bribes. He was sentenced to four years, six months in prison, followed by three years of supervised release and was ordered to pay $1,553,184 in restitution.
This case was investigated by the Federal and Georgia Bureaus of Investigation.
Assistant United States Attorney Jeffrey W. Davis and former Assistant United States Attorney Jamie L. Mickelson 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.
Tenet Healthcare Corporation will pay over $513 Million for defrauding the United States and making illegal payments in exchange for patient referrals – two Tenet Subsidiaries agree to plead guiltyRead the Press Release
ATLANTA – A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals
In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.
“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney John Horn. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals. In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”
“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force. This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”
“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone. In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”
“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman. “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”
“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens. “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars. This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”
“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge George Crouch. “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts. In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet. The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans. The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”
“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson. “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals. Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care. These women were thereby placed at increased risk during one of the most vulnerable points in their lives. HHS-OIG will continue to protect patients by exposing such illegal arrangements.”
Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.
Tenet Health System Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.
In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.
As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.
According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice. The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
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Randy S. Chartash, Chief of Economic Crime, and Stephen H. McClain, Deputy Chief of Economic Crime, of the U.S. Attorney’s Office of the Northern District of Georgia, and Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink, and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section represented the government in the criminal prosecution.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
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
College Park Men Convicted in a String of Drug Store RobberiesRead the Press Release
ATLANTA - Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, and Dave Montonio Sturgis, Jr., have been convicted in federal district court in connection with a string of armed, drug store robberies in Atlanta and Cobb County, Georgia, in May and June 2015.
“These armed robbers stormed into businesses terrorizing the employees inside,” said U.S. Attorney John Horn. “Through the hard work of the local police, the GBI and the FBI, law enforcement stopped this violent robbery crew, helping to make our community safer.”
“The armed robbery convictions of these two men in federal court signal not only a victory for those many agents and officers working long hours on this matter, but also for those citizens terrorized by their violent robberies. These convictions hold both Joyner and Sturgis fully accountable for their unbridled criminal conduct that spanned several metro Atlanta jurisdictions and their future now rests with a federal judge as they await sentencing,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.
“This conviction illustrates the great work of law enforcement in investigating and prosecuting armed robberies in Georgia. The Georgia Bureau of Investigation remains committed to working with our local and federal partners to pursue these vicious crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“I am pleased with the efforts of several law enforcement agencies working together to bring two violent criminals to justice,” said Randy Johnson, Chief of the Lawrenceville Police Department. Johnson emphasized the need for agencies to work together and share information in order to stop violent crime – “Criminals do not recognize jurisdictional limits, nor do they confine their activities to a single jurisdiction,” he said. He also praised the work of Lawrenceville Police detective Justin Hipps, who recognized the similarity in crimes occurring across metro-Atlanta. Detective Justin Hipps first noticed the robberies were related and put together a task force to solve the incidents. “Detective Hipps did a great job to bring agencies together to share information. We are proud of his tenacious efforts in investigating these crimes,” said Johnson.
According to U.S. Attorney Horn, the charges and other information presented at trial: Joyner and Joseph Stowers, who pleaded guilty prior to the trial, robbed CVS and Walgreens drug stores in Marietta, Smyrna, and Atlanta in May and June 2015. During the robberies, the men were dressed in black, hooded sweatshirts, their faces were masked, and they brandished semiautomatic pistols. They burst into the drug stores near closing time or, in the case of 24-hour stores, after midnight, when the stores were empty. They terrorized the employees by rounding them up and taking them to the store office, demanding that the manager open the store safe while the other employees were kept face-down on the floor. In some robberies, the robbers were limited to taking cash from cash registers. They also took the wallets and cell phones of several employees during the robberies, and then fled.
Joyner was convicted of robbing a CVS in Marietta on May 27, 2015; a CVS in Atlanta on June 4, 2015; and a CVS in Smyrna also on June 4th.
Sturgis joined the robbery crew in mid-June as the driver, and he also went inside the stores before the robberies to scout the target locations. Joyner and Sturgis were convicted of robbing a Walgreens in Smyrna on June 16, 2015; a Walgreens in Marietta on June 18, 2015; and a CVS also in Marietta on June 19, 2015.
Joyner and Sturgis were also convicted on September 27, 2016, of aiding and abetting each other in the brandishing of firearms in the robberies on June 16, 18, and 19, 2015. FBI agents and task force officers arrested Joyner and Sturgis outside of another CVS in Marietta on June 24, 2015.
Sentencing for Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, 25, of College Park, Ga., and Dave Montonio Sturgis, Jr., 25, of College Park, Ga., has not yet been scheduled.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Lawrenceville, Smyrna, Marietta, and Cobb County police departments.
Assistant U.S. Attorneys Mary Webb and William Traynor 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
Branch Banking & Trust Company, N.A. agrees to pay $83 Million to Resolve False Claims Act Liability arising from FHA-Insured Mortgage LendingRead the Press Release
ATLANTA – Branch, Banking & Trust Company (“BB&T”) has agreed to pay the United States $83 million to resolve allegations that it violated the False Claims Act by falsely certifying that it had complied with critical underwriting and quality control (“QC”) requirements when originating “FHA loans” – i.e., loans insured by the Federal Housing Administration (“FHA”), which is part of the U.S. Department of Housing and Urban Development (“HUD”). In truth, BB&T, over an extended period of time, had failed to comply with key HUD underwriting and QC requirements. HUD only extends insurance to loans where the borrower is creditworthy and demonstrates the ability to repay the loan based upon the FHA’s underwriting standards.
“While profiting from the FHA program, BB&T exposed the taxpayers to losses by failing to comply with HUD guidelines, and then took the additional step of falsely certifying that it had complied with such guidelines” said John A. Horn, the U.S. Attorney for the Northern District of Georgia. “This settlement recovers substantial losses caused by BB&T’s decision to place its own profits above its commitment to adhere to HUD underwriting and quality control requirements.”
“The FHA program depends on Direct Endorsement Lenders endorsing only eligible loans for FHA mortgage insurance, and complying with HUD’s quality control requirements,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Lenders like BB&T that participate in the FHA program must make adherence to the FHA program rules a priority. The Department has and will continue to hold accountable those lenders that prioritize profits over program compliance.”
“Lenders are required to apply FHA’s standards to each mortgage loan we insure and to honestly certify to us that they’ve done so,” said Associate General Counsel Dane M. Narode for HUD’s Program Enforcement. “Today’s settlement reminds all lenders that sound underwriting is the bedrock of a healthy housing market and the financial futures of homeowners we support.”
“Today’s settlement agreement resolves allegations that BB&T, entrusted by American taxpayers to comply with FHA regulations, failed to conform with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD. “This settlement demonstrates a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
Between January 2006 and January 2012, BB&T participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”). As a DE Lender, BB&T had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DE Lender such as BB&T 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 it is endorsed for FHA insurance. Instead, FHA and HUD rely upon DE Lenders to follow program rules, which require 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, or otherwise.
The settlement announced today resolves allegations that BB&T failed to comply with FHA origination, underwriting, and QC requirements. As part of the settlement, BB&T admitted to the following facts:
- Between January 1, 2006 and September 30, 2014, BB&T certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to HUD’s QC requirements. BB&T significantly increased its loan volume between 2006 and 2009 – more than doubling all loan originations, while increasing the number of FHA insured loans six fold. This increase in volume was accompanied by an increase in the number of loans internally rated “Serious-Marketability” – the most significant BB&T QC defect rating, and a defect that rendered a loan ineligible for FHA insurance. Between 2007 and 2011, the percentage of loans underwritten by BB&T each year that were rated Serious-Marketability by its QC department always exceeded 30 percent, and exceeded as much as 50 percent in 2010 and 2011. BB&T nevertheless endorsed many of these loans for FHA insurance and, if they defaulted, sought payment from HUD for the insured loans.
- The monthly reviews and reports that BB&T’s QC department shared with management alerted BB&T to deficiencies in many of its FHA loans. A 2010 BB&T internal memorandum stated that “increased volume of FHA requests and changes to regulatory requirements have resulted in origination, processing and underwriting errors. Some employees are not applying current and accurate FHA guidelines.” A proposal to improve BB&T’s underwriting of FHA loans with additional training as well as a testing and certification process for underwriters was prepared in 2010, but neither recommendation was implemented until after 2014.
- Additionally, between 2006 and 2014, BB&T’s QC process did not satisfy certain FHA requirements. Although loan volume more than doubled from 2006 to 2009, the number of QC employees remained the same. The QC department requested additional employees in 2009, yet new employees were not added until 2013. Because BB&T’s QC department did not have adequate staff, it instituted a cap on the number of loans it reviewed. As a result, between 2009 and 2014, the QC department did not always review the number of loans necessary to comply with HUD’s loan review sampling requirements. Additionally, BB&T did not perform reviews of its lender branch offices, as required by HUD, before beginning the reviews again in late 2014.
- Finally, since at least 2006, HUD has required self-reporting. However, despite internal ratings showing that 30 percent or more of the loans underwritten by BB&T between 2007 and 2011 had Serious-Marketability findings, and were thus ineligible for FHA insurance, BB&T did not self-report any loans containing material underwriting defects until 2013.
BB&T’s conduct caused FHA to insure hundreds of loans that were not eligible for insurance and, as a result, FHA suffered substantial losses when it later paid insurance claims on those loans.
Assistant United States Attorneys David A. O’Neal and Paris A. Wynn handled this matter for the U.S. Attorney’s Office.
The investigation of the allegations in the Government’s complaint was a coordinated effort between the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of Georgia, HUD, and HUD’s Office of Inspector General. The claims asserted against BB&T are allegations only, and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Justice Department Awards nearly a Half-Million Dollars to DeKalb Police Task Force in Project Safe Neighborhoods ProgramRead the Press Release
ATLANTA – The Office of Justice Programs’ Bureau of Justice Assistance awarded grants totaling $499,899 to create safer neighborhoods through a reduced in gang violence and gun crime. The awards are funded under the 2016 Violent Gang and Gun Crime Reduction (Project Safe Neighborhoods) Program. The goal of PSN is to create safer neighborhoods by focusing on in gang violence and gun crime.
“Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities,” said U.S. Attorney General Loretta E. Lynch. “These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes. By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope.”
“The PSN grant will enable the DeKalb Task Force to implement a multi-faceted approach to reduce gang violence and gun-related crimes,” said U.S. Attorney John Horn. “The Task Force’s collaborative approach, which relies on the expertise of our federal, state and local law enforcement partners as well as key community leaders, will help communities that struggle with gang and gun violence to implement meaningful and proven anti-gang and anti-violence measures.”
The program’s effectiveness is based on a cooperative approach and unified strategies led by the U.S. Attorney, a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners. The partners work to implement gang crime and gun violence enforcement, intervention, and prevention initiatives, using data and research with a local research partner.
The U.S. Attorney’s Office DeKalb PSN Task Force will implement a highly refined and proven strategy to mitigate gun and gang violence within three target areas in DeKalb County including Brookhaven, Chamblee, and the South DeKalb County area. The grant funds also will help the task force agencies exchange intelligence information with other agencies in the Atlanta area.
The 2016 DeKalb PSN Task Force is comprised of the DeKalb County, Brookhaven, and the Chamblee Police Departments. The Task Force will develop and enhance initiatives focusing on crime suppression, education, and prevention. The law enforcement partners will form a Gang Task Force that will work jointly in each of the three jurisdictions. In conjunction with the DeKalb County District Attorney’s Office, training will be conducted for officers on gang recognition and on best practices for compiling evidence for successful gang prosecutions.
Additionally, Rehoboth Baptist Church in Tucker, Georgia, will provide training on a variety of topics to youth in the target areas, and will conduct community outreach to build strong and lasting relationships within the communities. The outreach programs are designed to closely implement the recommendations of the President’s 21st Century Task Force on Policing, and specifically the Implementation Guide issued by the Department of Justice last year.
The efforts of the PSN Task Force will be guided by data collected by members of the task force, and analyses of that data conducted by Applied Research Services, Inc., a national consulting firm based in Atlanta that has extensive experience and a proven track record with PSN initiatives.
“We're excited and honored to participate with all partners involved in this grant to assist us in the reduction of violent crime and making our areas safer for our residents and businesses,” said Gary Yandura, Chief of Police, City of Brookhaven, Georgia.
“We look forward to working with our partners in this initiative to make our communities safer,” said Donny Williams, Chief of Police, Chamblee, Georgia, Police Department.
“We are grateful for the U.S. Attorney's Office for the Northern District of Georgia and their desire to improve our neighborhoods through local partnerships,” said Dr. Troy Bush, Senior Pastor, Rehoboth Baptist Church. “This grant and the partnership of federal, state, and local law enforcement along with community partners invests resources in one of the greatest law enforcement needs we have—crime prevention. This initiative is a strategic and timely effort that will make our neighborhoods and communities safer.”
Each applicant addressed the required PSN design features in its application: (1) Partnerships; (2) Strategic Planning, Crime Analysis, and Research Integration; (3) Training; (4) Outreach; and (5) Accountability and Data-Driven efforts.
In addition to the three participating police departments, the DeKalb County District Attorney’s office and Peace Baptist Church in Decatur, Georgia, made invaluable contributions to the grant application.
The Office of Justice Programs (OJP) provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: The Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.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.
Three Top Corporate Executives Convicted by Federal Jury in Conspiracy to Bribe Dekalb County and Georgia World Congress Center Public OfficialRead the Press Release
ATLANTA - Anthony Lepore, John Rife, and Brian Domalik, the former President, Regional Vice President, and Division Manager for Rite Way Service, Inc., were convicted by a federal jury yesterday on conspiracy, bribery and honest services fraud charges after a nearly two-week jury trial. The charges were brought in connection with a multi-year scheme to bribe a public official who was employed with DeKalb County government and the Georgia World Congress Center Authority.
“This case highlights how public corruption offenses harm our communities —you have greedy company executives who seek an unfair advantage over their competitors, and a crooked public official who is willing to sell their power for personal gain,” said U.S. Attorney John Horn. “The victims are spread throughout the community, from the citizens who often end up paying more for government services provided by the corrupt company and suffer the loss of honest government, as well as other companies that try to make their living ethically. The people of DeKalb County and the State of Georgia deserved better.”
“This case and the resulting convictions of these three corporate executives not only illustrates the problems regarding public corruption, but also law enforcement’s very focused and deliberate efforts in addressing it. The FBI, along with its law enforcement partners and federal prosecutors, will not tolerate those who interfere with or unduly influence the established and proper procedures of our public officials and the offices that they represent. We ask anyone with information regarding public corruption matters to immediately contact their nearest FBI field office,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Lepore was the President and CEO of Rite Way Service, Inc., an Alabama-based company that sought to do business with both DeKalb County and the Georgia World Congress Center Authority (GWCCA), a state government entity that manages the Georgia World Congress Center, the Georgia Dome, Atlanta’s Centennial Olympic Park, and other properties. Rife was the Rite Way Regional Vice President who oversaw the company’s Georgia Division, based in Norcross, Georgia. Domalik was the Division Manager in charge of Rite Way’s Georgia Division between 2010 and 2014.
Beginning in the summer of 2005, Lepore, Rife, and Domalik’s predecessor as Division Manager of Rite Way’s Georgia Division, Cecil Clark, conspired to bribe Patrick Jackson, a public official who was simultaneously working full time as a contracting official for DeKalb County and the GWCCA, in connection with janitorial services contracts with those government entities. The government contracts were worth millions of dollars. The bribes amounted to over $100,000 in payments for Jackson’s rent, utilities, and a garage lease for a luxury apartment over a 6-year period in downtown Atlanta, as well as cash payments, over $24,000 in furniture for the apartment, a $5,100 deposit for event space for a party that that Jackson threw at the Waverly Renaissance Hotel, and other benefits. Domalik joined the conspiracy in late 2010, when Clark resigned from Rite Way, and continued the scheme with Lepore and Rife through 2012.
In exchange for the payments and other benefits from Rite Way, Jackson used his official position as a public official to help Rite Way win, maintain and increase profits from multi-year janitorial services contracts with DeKalb County and the GWCCA worth millions of dollars.
Jackson, 55, of Loganville, Georgia, was indicted by a federal grand jury on September 9, 2014 on one count of conspiracy to commit honest services fraud, and nine counts of honest services fraud. Jackson pleaded guilty to one count of conspiracy, and on August 12, 2015, he was sentenced to four years, three months in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.
Clark, 55, of Jonesboro, Georgia, agreed to waive indictment and pleaded guilty to a Criminal Information charging him with conspiracy to commit bribery on May 26, 2015. Clark was sentenced on September 30, 2015 to serve one year, five months in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.
Lepore, 64, of Birmingham, Alabama, Rife, 66, of Cumming, Georgia, and Domalik 49, of Kennesaw, Georgia, were each convicted on one count of conspiracy, ten counts of honest services fraud, and five counts of bribery.
A sentencing date has not yet been scheduled.
This case is being investigated by Special Agents of the Federal Bureau of Investigation. Valuable assistance was also provided by Special Agents of the Georgia Bureau of Investigation.
Assistant United States Attorneys Kamal Ghali and David M. Chaiken are prosecuting the case. Former Assistant United States Attorney Jamie L. Mickelson previously 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.
Government Intervenes in Suit Against Energy & Process Corporation Alleging Use of Defective Steel Rebar and Quality Control Failures in Connection with Construction of Nuclear Processing FacilityRead the Press Release
ATLANTA – The government has intervened in a False Claims Act lawsuit against Energy & Process Corporation (“E&P”), of Tucker, Georgia, alleging that E&P 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 processing facility, the Justice Department announced today.
“To ensure that the nuclear facility would be safe, the Government paid E&P a sizable premium for exhaustive quality control procedures,” said U.S. Attorney John Horn of the Northern District of Georgia. “This lawsuit alleges that E&P intentionally failed to perform the quality control work, and then concealed its failing by providing false certifications to the government. In intervening in this lawsuit, the U.S. Attorney’s Office seeks to ensure that entities that defraud the Government are identified and held responsible.”
“The Department of Justice is committed to ensuring that construction suppliers who are paid a premium to meet high safety standards actually supply the goods and perform the work for which they are paid,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “When contractors cut corners, they not only cheat American taxpayers, but they also can put public safety at risk, particularly when their misconduct affects a facility that houses and processes nuclear materials.”
The lawsuit alleges that, although the DOE – in connection with the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE’s Savannah River Site near Aiken, South Carolina – paid E&P a premium to supply rebar meeting the stringent quality assurance standards promulgated by the United States Nuclear Regulatory Commission (“NRC”), E&P failed to perform most of the necessary quality assurance work, and then concealed this failing by falsely certifying that the quality assurance requirements had been met. As a result, one-third of the rebar supplied by E&P and used in the construction was found to be defective.
The lawsuit was filed by Deborah Cook, a former employee of the prime contractor building the DOE 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 act permits the government to intervene in such lawsuits, as it has done in this case. Defendants found liable under the act are subject to treble damages and penalties.
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 DOE’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.
This matter is being handled by Assistant United States Attorneys Paris A. Wynn and Gabriel Mendel.
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.
Last of Group of Griffin Unlicensed Gun Dealers SentencedRead the Press Release
NEWNAN, Ga. - Tony Anthony Goodman has been sentenced on charges of dealing firearms without a license, felon in possession of a firearm, possession of sawed off shotguns, and possessing with intent to distribute cocaine and the drug commonly known as “Molly.”
“Goodman repeatedly broke the law by possessing and distributing drugs and firearms, even after having been convicted of a felony on a previous occasion,” said U. S. Attorney John Horn. “Guns that are trafficked illegally often turn up in other criminal offenses and place citizens and police alike in danger.”
“The criminal history of the defendant, Tony Goodman, shows a complete and utter disregard for the lives of others residing in our community,” said ATF Acting Special Agent in Charge James Deir. “ATF will continue to work with our state and local partners to protect the public by investigating and prosecuting violent habitual criminals who unlawfully use firearms to terrorize our communities and reduce our overall quality of life.”
According to U.S. Attorney Horn, the charges and other information presented in court: Goodman had at least eight prior felony convictions between 1984 and 1997 on charges including forgery, drug dealing, burglary, aggravated assault, possession of a firearm during the commission of a crime, and possession of a firearm by a convicted felon. From 1997 until he was paroled in 2012 Goodman was in the custody of the Georgia Department of Corrections. Between January and February, 2015, Goodman sold twelve separate firearms to an undercover ATF officer. At the time of his arrest on March 18, 2015, Goodman was found in possession of two additional firearms along with various narcotics packaged for distribution.
Goodman was originally indicted on March 4, 2015, along with co-defendants David Combs, Demetrice Coggins, and Shedrick Howard. Howard pled guilty to four counts of being a felon in possession of 10 separate firearms and was sentenced to eight years, three months in federal prison on October 13, 2015. Combs pled guilty to two separate counts of being a felon in possession of firearms and was sentenced on January 7, 2016, to two years, ten months in federal prison. Coggins pled guilty to one count of being a felon in possession of a firearm and was sentenced on September 22, 2015, to one year and a day in federal prison.
Tony Anthony Goodman, 51, of Griffin, Georgia, has been sentenced by United States District Judge Timothy C. Batten, Sr., to 17 years in prison to be followed by three years of supervised release. Goodman was found guilty after a bench trial presided over by Judge Batten on May 9, 2016.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Matthew S. Carrico 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.
Operators of Atlanta Stores Sentenced for Stealing Millions of Dollars in an Extensive Food Stamp Fraud SchemeRead the Press Release
ATLANTA – Local grocery store operators Rodney Byrd and Reginald Byrd have been sentenced for conspiring to commit food stamp fraud. The defendants utilized a series of stores in the Atlanta area to unlawfully purchase over $5.7 million in vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (“SNAP”).
“These defendants brazenly stole millions of dollars from government programs designed to help the poor and needy,” said U. S. Attorney John Horn. “Their sentences show that people who line their pockets with money from government programs will go to prison.”
“The prosecution of these individuals sends a strong message that we will not tolerate fraudulent abuse of our federally funded Food and Nutrition Service programs. Rodney Byrd and his brother, Reginald Byrd, created and managed businesses for the sole purpose of profiting financially from the benefits of families that needed assistance from the Supplemental Nutrition Assistance Program (SNAP) as well as the Georgia Women, Infants, and Children (WIC) program. We will continue to maintain our aggressive approach to investigate those that are trying to fraudulently take advantage of such programs. We would like to thank the U.S. Attorney’s Office, the Internal Revenue Service, the Georgia Department of Public Health as well as the Georgia Department of Human Services, Office of Inspector General for assisting us with this investigation,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.
“Americans expect and deserve a government that ensures their tax dollars are managed efficiently and with integrity”, said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The SNAP and WIC programs cannot succeed without strong public confidence, so good stewardship of tax dollars is one of our most important objectives. Today’s sentencing of Rodney and Reginald Byrd is critical to preserving benefits for the vast majority of participants who play by the rules and need help to ensure their families have access to adequate and nutritious food.”
According to U.S. Attorney Horn, the charges and other information presented in court: Rodney Byrd owned and operated several metropolitan Atlanta area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP.
As a result, tens of thousands of WIC vouchers totaling millions of dollars were deposited into bank accounts under the control of Rodney Byrd. A large number of these vouchers were for prescribed infant formula that is supposed to be given to malnourished infants or infants who cannot use traditional formula. Instead of selling products such as this to needy recipients, the defendants and their co-conspirators unlawfully purchased the vouchers for cash. This scheme resulted in an estimated loss to the government of $5,747,817.18.
U.S. District Judge Leigh Martin May sentenced Rodney Byrd, 41, of Atlanta, Georgia to four years in prison and Reginald Byrd, 40 of Atlanta, Georgia to one year and one day in prison. Both defendants were also sentenced to three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $5,747,817.18. The defendants were convicted of conspiracy to commit WIC and SNAP fraud on July 17, 2015, when they pled guilty to these charges.
This case was investigated by the United States Department of Agriculture, Office of the Inspector General and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Investment Advisor Sentenced for Defrauding Investors of over $3.2 MillionRead the Press Release
ATLANTA – Buford investment advisor Blake Bancroft Richards has been sentenced for stealing over $3.2 million from his clients. The defendant used client funds to make personal loan payments, take personal trips, and pay other personal expenses.
“Investors trusted Richards to invest their money as he promised,” said U.S. Attorney John Horn. “Instead, he stole their savings and repeatedly lied to them about his investments and self-dealing. Investors need to be careful and thoroughly vet those whom they entrust their hard-earned money.”
“The pain and suffering to the victims of this crime can never be appeased,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “The trust that was violated by Richards has caused life-long damage to these individuals.”
According to U.S. Attorney Horn, the charges and other information presented in court: Richards worked as an investment advisor for LPL Financial, Inc., in Buford, Georgia. From 2008 through 2013, Richards defrauded his clients of money entrusted to him for investment purposes. He falsely represented that he would invest the money in life insurance, fixed income assets, variable annuities, and stocks. Instead, he deposited the money into bank accounts he controlled and used the money to make his own loan payments, pay real estate taxes, take personal trips, and pay other personal expenses.
To conceal his theft, Richards manufactured certificates and provided investors with fictitious account statements. When investors asked for their money, Richards made payments from his personal account or made excuses about why he could not return their money. During the five years of his scheme, Richards defrauded his clients, including close friends and family, of over $3.2 million.
Blake Bancroft Richards, 39, of Buford, Georgia was sentenced by U.S. District Judge Leigh Martin May to five years in prison to be followed by three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $3,749,485.80. Richards was convicted on these charges on June 15, 2016, after he pleaded guilty to wire fraud.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy 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
Loganville Man Sentenced for Naturalization Fraud in Connection with Past as a Concentration Camp Prison Guard During Bosnian WarRead the Press Release
ATLANTA - Mladen Mitrovic has been sentenced to four years, nine months, in prison after being convicted earlier this year of naturalization fraud. The evidence at his trial showed that Mitrovic provided false and fraudulent information in his naturalization application to hide his work as a prison guard in a concentration camp that was part of the infamous “ethnic cleansing” that occurred during the Bosnian War in 1992.
“Mitrovic believed he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U. S. Attorney John Horn. “Our immigration system endeavors to flag those who have committed human rights violations, especially for those who seek refugee status from persecution. Mitrovic’s application turned this humanitarian process on its head. It’s incredibly fitting that he ultimately was discovered by a refugee from Mitrovic’s own abuses.”
“The defendant tried to game our country’s immigration process to conceal his record of flagrant human rights violations,” said Assistant Attorney General Caldwell. “Together with our partners at the U.S. Attorney’s Office and HSI, however, the Criminal Division was able to ensure that both his immigration crimes and his human rights abuses saw the light of day. Cases like this demonstrate how we ensure that the United States does not become a safe haven for human rights violators.”
“Human rights violators who think they can conceal their past to escape accountability in the United States are sorely mistaken,” said Nick S. Annan, Special Agent in Charge of ICE Homeland Security Investigations Atlanta. “This individual tried to cheat our nation's immigration system by lying about his actions during the Bosnian Civil War. Today's result shows that HSI is firmly committed to investigating and identifying criminals who seek to exploit our nation's welcoming policy toward legitimate war refugees.”
According to U.S. Attorney Horn, the charges and other information presented in court: In 1996, Mitrovic was permitted to immigrate to the United States based on his statements in his refugee application that he feared persecution if he remained in Bosnia. In 2002, he naturalized as an American citizen. The evidence presented at trial also demonstrated that on his naturalization application, Mitrovic stated, among other things, that he had never persecuted anyone because of their race, religion or membership in a social group; he had never committed a criminal offense for which he had not been arrested; and he had never provided any false or misleading information to obtain an immigration benefit, such as refugee status.
In reality, as the trial evidence established, during the Bosnian War, Mitrovic had been a guard in one of the prison camps that the Bosnian Serb Army (VRS) opened in May 1992 to “ethnically cleanse” northwest Bosnia of non-Serb minorities. At trial, one victim testified that Mitrovic had used a sharp military knife to carve a Christian cross into his chest, saying from that moment on, he “was going to be a Serb.” Others testified that Mitrovic and other soldiers beat non-Serb prisoners into unconsciousness or threatened to kill them with automatic rifles. Bosnian government documents also showed that in February 1996, Mitrovic applied for and was later awarded veterans’ benefits for his military service in the VRS during the Bosnian War. Trial evidence showed that Mitrovic failed to disclose any of this conduct or military service on his refugee and naturalization applications.
U.S. authorities began investigating based on information provided by a former prisoner from the prison camp where Mitrovic had served. That individual, who also came to the United States as a refugee, thought that Mitrovic had died during the war. But in 2011, he learned that Mitrovic was living in the Atlanta area and he contacted U.S. immigration authorities. At the sentencing hearing, that prisoner and another former prisoner, also a refugee in the United States, addressed the court. One said that he would never forget how people looked after Mitrovic and other soldiers had beaten and tortured them. At trial, the other prisoner testified how shocked and frightened he had been when Mitrovic, a friend before the war, threatened to kill him with an automatic rifle.
Mladen Mitrovic, 55, of Loganville, Georgia, was found guilty by a jury on May 26, 2016. He has been sentenced to four years and nine months in prison, to be followed by two years of supervised release. The court also granted a motion to revoke Mitrovic’s citizenship, but the revocation order will not go into effect until after a federal court of appeals reviews Mitrovic’s conviction and sentence. The Department of Homeland Security will initiate administrative proceedings for the purpose of removing Mitrovic from the United States after his appeal is completed.
This case was investigated by the Department of Homeland Security.
Assistant U.S. Attorneys William Traynor and Jessica Morris, and Christina Giffin, Assistant Deputy Chief of the Human Rights and Special Prosecutions Section of the Justice Department, prosecuted the case.
If you have information about individuals suspected of engaging in human rights abuses or war crimes, please call the ICE HSI tip line at 866-DHS-2-ICE, or complete its online tip form, https://www.ice.gov/webform/hsi-tip-form#wcm-survey-target-id. Information may also be provided to the U.S. Department of Justice, Human Rights and Special Prosecutions Section by sending an email to [email protected] or calling 1-800-813-5863. Tips may be reported anonymously.
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.
Investment Advisor Pleads Guilty to Stealing from ClientsRead the Press Release
ATLANTA - Robert A. Gist, who defrauded investors by lying about their investments, has pleaded guilty to a charge of mail fraud. The defendant used investors’ money to pay his personal expenses and to fund operations of a company in which he had a personal interest.
“Firms that offer to manage investments for clients have an ethical and fiduciary responsibility to do what they promise,” said U.S. Attorney John Horn. “Sadly, we see outliers like this who steal from their clients. Investors must be careful to do their homework before trusting a financial services firm with their hard-earned money.”
“The number of times we investigate cases like this is overwhelming and discouraging,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “The heartless disregard for the victim’s hard-earned investments cannot be tolerated and we will continue to relentlessly pursue individuals like Mr. Gist.”
According to U.S. Attorney Horn, the charges and other information presented in court: Gist was a registered broker who controlled the investment firm, Gist, Kennedy & Associates, and had more than 30 clients who invested more than $5 million with him. Gist obtained investment funds from his clients by misrepresenting that he would make certain conservative investments for them in corporate bonds and other securities. Instead, he took the funds from his clients and used them for personal expenses, to fund the operations of ENCAP Technologies (an industrial coating company), and to pay other clients purported dividends and proceeds from the investments he falsely claimed to have made for those other clients. Gist perpetrated the fraud by preparing and mailing false account statements to his clients that falsely showed the conservative investments and returns he was supposed to make but never did. The victims lost all of their investments.
Sentencing for Robert A. Gist, 65, of Atlanta, Georgia, is scheduled for December 1, 2016, at 10:00 a.m., before U.S District Judge Eleanor L. Ross.
This case is being investigated by the Federal Bureau of Investigation. Considerable assistance was provided by the Atlanta office of the United States Securities and Exchange Commission.
Assistant United States Attorney Christopher J. Huber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Man Sentenced to 57 Months in Prison for Immigration Fraud for Failing to Disclose Role in Bosnian Prison CampRead the Press Release
A Loganville, Georgia, man was sentenced to serve 57 months in prison for obtaining his U.S. citizenship by providing false and fraudulent information on his naturalization application.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Horn of the Northern District of Georgia and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Atlanta made the announcement.
Mladen Mitrovic, 55, who is originally from Bosnia and Herzegovina, was sentenced on Aug. 26, 2016, by U.S. District Judge Amy Totenberg of the Northern District of Georgia. The court also granted a motion to revoke Mitrovic’s citizenship, although the revocation order will not take effect until after a federal court of appeals has reviewed his conviction and sentence. Mitrovic was convicted on May 26, 2016, of failing to disclose his role as a prison guard in a Bosnian Serb Army detention camp as part of the “ethnic cleansing” that occurred during the Bosnian War from 1992 through 1995.
“The defendant tried to game our country’s immigration process to conceal his record of flagrant human rights violations,” said Assistant Attorney General Caldwell. “Together with our partners at the U.S. Attorney’s Office and HSI, however, the Criminal Division was able to ensure that both his immigration crimes and his human rights abuses saw the light of day. Cases like this demonstrate how we ensure that the United States does not become a safe haven for human rights violators.”
“Mitrovic believed he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U. S. Attorney Horn. “Our immigration system endeavors to flag those who have committed human rights violations, especially for those who seek refugee status from persecution. Mitrovic’s application turned this humanitarian process on its head, and it’s incredibly fitting that he ultimately was discovered by a refugee from Mitrovic’s own abuses.”
“Human rights violators who think they can conceal their past to escape accountability in the United States are sorely mistaken,” said Special Agent in Charge Annan. “This individual tried to cheat our nation’s immigration system by lying about his actions during the Bosnian Civil War. Today's result shows that HSI is firmly committed to investigating and identifying criminals who seek to exploit our nation's welcoming policy toward legitimate war refugees.”
According to evidence presented at trial, in 1996, Mitrovic was permitted to immigrate to the United States based on his statements in his refugee application that he feared persecution if he remained in Bosnia. In 2002, he naturalized as an American citizen. The evidence presented at trial also demonstrated that on his naturalization application, Mitrovic stated, among other things, that he had never persecuted anyone because of their race, religion or membership in a social group; he had never committed a criminal offense for which he had not been arrested; and he had never provided any false or misleading information to obtain an immigration benefit, such as refugee status.
In reality, as the trial evidence established, during the Bosnian War, Mitrovic had been a guard in one of the prison camps that the Bosnian Serb Army (VRS) opened in May 1992 to “ethnically cleanse” northwest Bosnia of non-Serb minorities. At trial, one victim testified that Mitrovic had used a sharp military knife to carve a Christian cross into his chest, saying from that moment on, he “was going to be a Serb.” Others testified that Mitrovic and other soldiers beat non-Serb prisoners into unconsciousness or threatened to kill them with automatic rifles. Bosnian government documents also showed that in February 1996, Mitrovic applied for and was later awarded veterans’ benefits for his later military service in the VRS during the Bosnian War. Trial evidence showed that Mitrovic failed to disclose any of this conduct or military service on his refugee and naturalization applications.
U.S. authorities began investigating based on information provided by a former prisoner from the prison camp where Mitrovic had served. That individual, who came to the United States as a refugee, thought that Mitrovic had died during the war. But in 2011, he learned that Mitrovic was living in the Atlanta area and he contacted U.S. immigration authorities. At the sentencing hearing, that prisoner and another former prisoner, also a refugee in the United States, addressed the court. One said that he would never forget how people looked after Mitrovic and other soldiers had beaten and tortured them. At trial, the other testified how shocked and frightened he had been when Mitrovic, a friend before the war, threatened to kill him with an automatic rifle.
HSI investigated this case. Assistant Deputy Chief Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys William Traynor and Jessica Morris of the Northern District of Georgia prosecuted the case.
If you have information about individuals suspected of engaging in human rights abuses or war crimes, please call the HSI tip line at 866-DHS-2-ICE, or complete its online tip form. Information may also be provided to the Human Rights and Special Prosecutions Section by sending an email to [email protected] or calling 1-800-813-5863. Tips may be reported anonymously.
Former Employee Sentenced for Embezzling over $1.2 Million from Accounting Firm and ClientRead the Press Release
ATLANTA - Pamela B. Lewis has been sentenced for stealing over $1.2 million from her employer, an accounting firm, and her employer's client.
“Small firms depend on their accounting personnel to safeguard the financial health of the company and its clients,” said U.S. Attorney John Horn. “Lewis violated this trust and helped herself to $1.2 million held in the firm’s accounts over eleven years.”
“This is a devastating loss not only for the small business owner, but also for the owner’s client,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “We will continue to diligently investigate anyone who callously preys on innocent victims like this.”
According to U.S. Attorney Horn, the charges and other information presented in court: Lewis worked as an accounting clerk for a family-owned accounting firm located in Snellville, Georgia. From 2002 through 2013, Lewis forged the signature of the sole authorized account holder and owner of the firm on checks she wrote to herself from the company account. Between 2006 and 2013, Lewis also forged the signature of a trustee on checks she wrote to herself from a client's trust account. To conceal her theft, Lewis used her position as an accounting clerk to create false accounting entries, disguising the forged checks as legitimate business expenses or voided checks. During that time, Lewis embezzled over $1.2 million from her employer and her employer's client.
Pamela Lewis, 60, of Tucker, Georgia was sentenced by U.S. District Judge Mark H. Cohen to three years, one month in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,230,674.94. Lewis was convicted on these charges on April 21, 2016, after she pleaded guilty to wire fraud.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy 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.
Members of a Mexican Drug-Trafficking Organization Convicted and Sentenced to Federal PrisonRead the Press Release
ATLANTA – Genaro Anguiar-Guizar has been sentenced to 17 years and six months in prison for his leadership role in a cocaine and methamphetamine trafficking conspiracy. Anguiar-Guizar is the last of five defendants to be convicted and sentenced for charges including conspiracy to possess with intent to distribute methamphetamine and cocaine.
“This Atlanta based drug trafficking organization used a network of couriers and stash houses to smuggle cocaine and methamphetamine from Mexico to our community,” said U.S. Attorney John Horn. “Atlanta remains a hub for the importation of illegal drugs from Mexico after it crosses the border, and this case reflects our continued efforts to combat the influence and activity of these cartels in our city.”
“ICE Homeland Security Investigations will continue to focus investigative efforts on dismantling and bringing to justice members of drug trafficking organizations that choose to participate in the supply and sale of illicit narcotics like methamphetamine and cocaine. These individuals and organizations show a complete disregard for the violence and destruction that often accompany the use of highly addictive drugs,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “The boldness of this criminal group reflected a callous disregard for public safety that seriously underestimated the dedication of HSI and its local law enforcement partners to identify and seek prosecution of those engaged in this criminal conspiracy.”
According to U.S. Attorney Horn, the charges, and other information presented in court: the Anguiar-Guizar drug-trafficking organization imported large quantities of drugs into the U.S. from Mexico, initially storing them at a local auto body repair shop. From this location, the drugs were later parceled out to local residences for storage and distribution. Co-conspirators procured and guarded the residences, and also transported the narcotics and the drug money in secret traps located within vehicles.
During the course of the investigation, law enforcement seized nearly 19 kilograms of crystal methamphetamine and 69 grams of pure liquid methamphetamine from a residence in Jonesboro, Georgia, as well as nearly 30 kilograms of cocaine from a vehicle and residence in Morrow, Georgia.
Genaro Anguiar-Guizar, 35, of Buenavista, Michoacan, Mexico, was convicted on June 1, 2016, after he pleaded guilty. He was sentenced to 17 years, six months in prison, to be followed by 15 years of supervised release, and ordered to pay $11,601.00 in restitution. Four other members of the organization have already been sentenced. They are as follows:
- Irma Ruelas, 36, of Morrow, Georgia, previously was sentenced to five years and three months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Ruelas was convicted on July 19, 2014.
- Julian Esparza-Tovar, 32, of Morrow, Georgia, previously was sentenced to five years and three months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Esparza was convicted on July 11, 2014.
- Veronica Hernandez, 44, of Morrow, Georgia, previously was sentenced to 12 years and seven months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Hernandez was convicted on June 19, 2014.
- Manuel Guizar-Sanchez, 23, of Jonesboro, Georgia, previously was sentenced to five years and ten months of imprisonment, followed by three years of supervised release on the charge of possession with intent to distribute methamphetamine. Guizar was convicted on December 4, 2013.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance of Clayton County Police Department.
Assistant United States Attorneys Tasheika Hinson and Ryan M. Christian 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.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.
Justice Department sues Georgia for Unnecessarily Segregating Students with DisabilitiesRead the Press Release
ATLANTA – The United States Attorney’s Office and the Justice Department announced today that it has filed a lawsuit against the state of Georgia alleging that its treatment and segregation of students with disabilities in the Georgia Network for Educational and Therapeutic Support (GNETS) Program violates the Americans with Disabilities Act (ADA).
“This complaint alleges that many children in the GNETS program are consigned to dilapidated buildings that were formerly used for black children during segregation, or to classrooms that are locked apart from mainstream classrooms, with substantially fewer opportunities of participating in extracurricular activities like music, art, and sports,” said U.S. Attorney John Horn. “The law mandates that all children, including those with behavior-related disabilities, must have equal opportunities for education, and several existing programs within our Georgia schools show that with appropriate support and services, these students can enjoy far greater integration with their peers.”
“Seventeen years ago, the Supreme Court made clear that states must serve people with disabilities, including children with disabilities, in the most integrated setting appropriate to their needs,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Georgia has relegated thousands of students with behavior-related disabilities to separate, segregated, and unequal settings, failing to comply with the Americans with Disabilities Act. The Justice Department seeks to make the promise of community integration a reality for all of the state’s students. Students with disabilities in Georgia are entitled to access the services and supports that they need in the most integrated setting appropriate, where they can interact with and learn alongside their non-disabled peers and access educational opportunities that are equal to those available to other students in general education classrooms.”
The lawsuit, filed in U.S. District Court of the Northern District of Georgia, alleges that Georgia’s administration of its mental health and therapeutic educational services for students with behavior-related disabilities unnecessarily segregates students with disabilities in GNETS when they could appropriately be served with their peers in general education settings. The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including children with behavioral disabilities – in the most integrated setting appropriate to their needs. The department’s complaint seeks declaratory and injunctive relief.
Approximately 4,600 students with disabilities are currently in GNETS. In July 2015, the department issued an extensive findings letter, notifying the state that it was violating the ADA by unnecessarily providing mental health and therapeutic educational services to students with behavior-related disabilities in segregated settings, denying them opportunities for meaningful interaction with their peers without disabilities. The department found that most students in GNETS spend their entire school day, including meals, exclusively with other students with disabilities. Specifically, more than two-thirds of GNETS students are assigned to attend school in regional GNETS centers that exclusively serve students with disabilities in buildings that are often located far from students’ homes. Other students are assigned to regional GNETS classrooms located within general school buildings, but often in separate wings or isolated sections of the buildings.
The lawsuit further alleges that as a result of the state’s unnecessary segregation, students in GNETS lack equal access to academic and extracurricular opportunities enjoyed by their peers outside the GNETS Program. Mental health and therapeutic educational services and supports are available in Georgia to a limited number of students with disabilities in integrated educational settings. The students who receive such services, many of whom have disabilities similar to GNETS students, are able to interact to the fullest extent possible with their non-disabled peers, participate in curriculum that corresponds to appropriate grade-level standards and partake in a wide range of extracurricular activities.
The ADA prohibits discrimination on the basis of disability by public entities, including state and local governments. The ADA requires public entities to ensure that individuals with disabilities are provided services in the most integrated setting appropriate to their needs. The Justice Department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability and to conduct compliance reviews regarding the programs and services offered by public entities. Visit www.ada.gov and www.justice.gov/crt to learn more about the ADA and other laws enforced by the Civil Rights Division. For more information on the Civil Rights Division’s Olmstead enforcement, please visit: www.ada.gov/olmstead/.
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 Sues Georgia for Unnecessarily Segregating Students with DisabilitiesRead the Press Release
The Lawsuit is the First Challenge to a State-Run School System for Segregating Students with Disabilities
The Justice Department announced today that it has filed a lawsuit against the state of Georgia alleging that its treatment and segregation of students with disabilities in the Georgia Network for Educational and Therapeutic Support (GNETS) Program violates the Americans with Disabilities Act (ADA).
The lawsuit, filed in U.S. District Court for the Northern District of Georgia, alleges that Georgia’s administration of its mental health and therapeutic educational services for students with behavior-related disabilities unnecessarily segregates students with disabilities in GNETS when they could appropriately be served with their peers in general education settings. The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including children with behavioral disabilities – in the most integrated setting appropriate to their needs. The department’s complaint seeks declaratory and injunctive relief.
Approximately 4,600 students with disabilities are currently in GNETS. In July 2015, the department issued an extensive findings letter, notifying the state that it was violating the ADA by unnecessarily providing mental health and therapeutic educational services to students with behavior-related disabilities in segregated settings, denying them opportunities for meaningful interaction with their peers without disabilities. The department found that most students in GNETS spend their entire school day, including meals, exclusively with other students with disabilities. Specifically, more than two-thirds of GNETS students are assigned to attend school in regional GNETS centers that exclusively serve students with disabilities in buildings that are often located far from students’ homes. Other students are assigned to regional GNETS classrooms located within general school buildings, but often in separate wings or isolated sections of the buildings.
“Seventeen years ago, the Supreme Court made clear that states must serve people with disabilities, including children with disabilities, in the most integrated setting appropriate to their needs,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Georgia has relegated thousands of students with behavior-related disabilities to separate, segregated and unequal settings, and placed other students at serious risk of entering such settings, failing to comply with the Americans with Disabilities Act. The Justice Department seeks to make the promise of community integration a reality for all of the state’s students. Students with disabilities in Georgia are entitled to access the services and supports that they need in the most integrated setting appropriate, where they can interact with and learn alongside their non-disabled peers and access educational opportunities that are equal to those available to other students.”
“This complaint alleges that many children in the GNETS Program are consigned to dilapidated buildings that were formerly used for black children during segregation, or to classrooms that are locked apart from mainstream classrooms, with substantially fewer opportunities of participating in extracurricular activities like music, art and sports,” said U.S. Attorney John A. Horn of the Northern District of Georgia. “The law mandates that all children, including those with behavior-related disabilities, must have equal opportunities for education, and several existing programs within our Georgia schools show that with appropriate support and services, these students can enjoy far greater integration with their peers.”
The lawsuit further alleges that as a result of the state’s unnecessary segregation, students in GNETS lack equal access to academic and extracurricular opportunities enjoyed by their peers outside the GNETS Program. Mental health and therapeutic educational services and supports are available in Georgia to a limited number of students with disabilities in integrated educational settings. The students who receive such services, many of whom have disabilities similar to GNETS students, are able to interact to the fullest extent possible with their non-disabled peers, participate in curriculum that corresponds to appropriate grade-level standards and partake in a wide range of extracurricular activities.
The ADA prohibits discrimination on the basis of disability by public entities, including state and local governments. The ADA requires public entities to ensure that individuals with disabilities are provided services in the most integrated setting appropriate to their needs. The Justice Department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability and to conduct compliance reviews regarding the programs and services offered by public entities. Visit www.ada.gov and www.justice.gov/crt to learn more about the ADA and other laws enforced by the Civil Rights Division. For more information on the Civil Rights Division’s Olmstead enforcement, please visit: www.ada.gov/olmstead/.
GNETS Complaint
Inmate Sentenced for Operating a Fake Jury Duty Money Laundering Scheme from Georgia State PrisonRead the Press Release
ATLANTA - Autry State Prison inmate Reginald Perkins has been sentenced to 12 years and seven months in prison for laundering $1 million in fraud proceeds arising from a “jury duty” telemarketing scam conducted by inmates at Georgia Department of Corrections (GDOC) prisons.
“Prisons should be the one place where we have confidence that multi-million-dollar telemarketing schemes are not being conducted,” said U. S. Attorney John Horn. “Cases like this show how much needs to be done to make sure that those who are convicted and sentenced to prison are not still victimizing citizens from behind bars. We are working with state and federal law enforcement to eradicate the illegal use of cell phones and fraud in our Georgia state prisons, and will continue to prosecute offenders, whether they are in or out of prison.”
“This case showcases the criminal possibilities available to inmates with cell phones/smart phones and, with today’s sentencing of Mr. Perkins, it also illustrates the punishment available to those inmates who obtain and use them. The FBI will continue to work with its various law enforcement partners in not only addressing these types of inmate based crimes but also in preventing inmates access to these cell phones that provide the means to do so much harm to the unsuspecting public,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Perkins laundered fraud proceeds while incarcerated at Jimmy Autry State Prison in Pelham, Georgia, which is a Georgia Department of Corrections medium security prison and houses approximately 1,700 adult male inmates.
While Perkins was serving his sentence at Autry, inmates regularly obtained cellular telephones. For example, from 2014 to 2015, officials seized more than 23,500 cellular telephones from inside Georgia state prisons. Many of the seized cellular telephones possessed Internet capabilities and the latest smartphone features. The possession of cellular telephones by inmates creates a significant risk to prison security and to public safety, as inmates used contraband cellular telephones to commit various criminal acts while incarcerated.
Inmates used contraband cellular telephones from inside Autry to access Internet websites to identify the names, addresses, and telephone numbers of potential fraud victims. Using the cellular telephones, inmates called the victims whose names and numbers had been obtained. During these calls, the inmates made certain false representations to the victims, including: (a) that the inmates were law enforcement officials; (b) that the victims had unlawfully failed to appear for jury duty; (c) that because the victims had failed to appear for jury duty, warrants had been issued for the victims’ arrest; and (d) that the victims had a choice of being arrested on the warrants or pay fines to have the arrest warrants dismissed. To make the calls seem real, the inmates created fictitious voicemail greetings on their contraband cellular telephones, identifying themselves as members of legitimate law enforcement agencies.
For those victims who wanted to pay a fine, the inmates instructed them to purchase pre-paid cash cards and provide the account number of the cash card or wire money directly into a pre-paid debit card account held by the inmates. Based on these false representations, the victims electronically transferred money to the inmates because they believed that the funds would be used to pay the fine for failing to appear for jury duty and would result in the dismissal of the arrest warrant.
Perkins admitted that he would take the account number of the pre-paid cash card and contacted his co-conspirators, who were not incarcerated, to have those individuals transfer the money from the cash card purchased by the victims to a pre-paid debit card possessed by the co-conspirators. Next, the co-conspirators withdrew the victim’s money, which had been transferred to the pre-paid debit card they controlled, via an automated teller machine or at a retail store. Typically, the co-conspirators then laundered the stolen money by purchasing a new cash card so that the victims’ funds could be transferred back to the inmates. Perkins worked with about 100 individuals outside of the prison and laundered approximately $1 million in proceeds from fraud and other illegal schemes.Reginald Perkins, 36, of Atlanta, Georgia, has been sentenced to 12 years, seven months in prison to be followed by three years of supervised release. Perkins was convicted on these charges on March 22, 2016, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Christopher J. Huber 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.
Ex-Auburn, Georgia, Police Officer Pleads Guilty to Extortion and Drug Trafficking ChargesRead the Press Release
ATLANTA - Charles F. Hubbard has pleaded guilty to extortion and drug trafficking conspiracy charges. The defendant was an officer with the Auburn, Georgia, Police Department who used his law enforcement position and his patrol car to intercept and steal drugs and money.
“Hubbard assisted drug traffickers for his own financial gain,” said U. S. Attorney John Horn. “He used his position as a police officer to perpetrate his scheme while betraying his community and the honest law enforcement officers who serve honorably every day.”
“It is deeply disappointing when an officer betrays his oath.” said Jack Killorin, Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area. “What should be heartening to the community is that a task force of Federal, State and local police responded by upholding theirs.”
According to U.S. Attorney Horn, the charges and other information presented in court: Hubbard, while an officer with the Auburn Police Department, conspired with at least five other people to steal money and transport drugs. For example, in January 2015, one of Hubbard’s conspirators ordered six kilograms of cocaine. Hubbard used his Auburn police vehicle to intercept the drugs. Afterward, federal court authorized wiretaps exposed Hubbard agreeing to conduct a traffic stop on an individual carrying drugs in exchange for a $5,000 payment.
Then, on April 4, 2016, wearing clothing identifying himself as a police officer, and using his official police vehicle, Hubbard seized the confidential source's money. Hubbard provided the confidential source with a receipt purporting to be from the “East Metro Drug Task Force,” a non-existent entity, so that the seizure would look official. Hubbard then released the confidential source and met with two conspirators to split the money. Hubbard was taken into custody and, upon searching his vehicle, law enforcement officers found additional unused blank property sheets in the name of the non-existent East Metro Task Force that Hubbard had manufactured.
Sentencing for Charles F. Hubbard, 51, of Loganville, Georgia, is scheduled for November 7, 2016, before U.S. District Judge Leigh Martin May.
This case is being investigated by the Drug Enforcement Administration, the Atlanta-Carolinas HIDTA, and the Georgia State Patrol.
Assistant United States Attorneys Elizabeth M. Hathaway and Vivek Kothari 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.
Redmond Regional Medical Center Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Redmond Regional Medical Center (Redmond), a health care provider located in Rome, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“Medical providers have an obligation under the ADA to provide effective communication to the deaf or hard of hearing,” said U.S. Attorney John Horn. “Failure to provide effective communication could create a terrifying experience for the patient and compromised medical care.”
The U.S. Attorney’s Office initiated an investigation after receiving complaints alleging that Redmond failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainants, who are all deaf or hard of hearing and rely on American Sign Language as their primary means of communication, were either patients or the primary caregivers of patients at Redmond. Two of the complainants are a deaf mother and daughter who went to the Redmond ER when the daughter developed a rash on her leg. They allege she was treated without effective communication and then discharged. Two days later, they returned to the Redmond ER after her symptoms worsened. The daughter was diagnosed with a staph infection and had to undergo a surgical procedure with a four-day stay at the hospital. During this procedure and stay, they allege that they requested but were denied interpretive services. The third complainant is a deaf woman who made three separate visits to the Redmond ER, and alleged that on each visit she requested, but was denied interpretive services.
Under the settlement agreement, Redmond agreed to ensure effective communication to patients who are deaf or hard of hearing. Among other things, Redmond has agreed to provide mandatory in-service training to all its personnel and provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf or hard-of-hearing patients and companions. Redmond also agreed to pay $50,000 to the complainants.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf or hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant United States Attorney Emily Shingler and Assistant United States Attorney Aileen Bell Hughes are representing the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Craigslist Seller Sentenced for Five Armed RobberiesRead the Press Release
ATLANTA - Lavunte Collins has been sentenced on five counts of armed robbery and one count of brandishing a firearm in furtherance of a crime of violence in connection with his robbery of a string of victims that he lured through Craigslist.
“This case highlights the dangers of meeting strangers for commercial transactions of any kind,” said U.S. Attorney John A. Horn. “The victims only expected to purchase electronic devices, but may now suffer from the trauma of these encounters for years. To avoid becoming a victim of these crimes, we urge members of the public to arrange meetings with online vendors in public places, such as local police departments.”
“Today’s sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges, and other information presented in court: Between May 6, 2013, and May 20, 2013, Collins robbed five sets of victims of their phones, wallets, and cash after arranging to meet the victims through Craigslist. In each case the victims arranged to meet Collins to buy an iPhone and recounted a similar story to law enforcement. Specifically, they contacted a Craigslist vendor offering iPhones and other devices for sale. The vendor directed the victims to meet at a residence and upon their arrival at the agreed upon location, Collins entered, or attempted to enter, the victims’ car. Collins then robbed the victims at gunpoint and fled on foot.
All five robberies also occurred within a two-mile radius of Collins’ residence in Stone Mountain, Georgia. During one of the incidents, the buyer-victim’s wife and young child were inside the car as the robbery happened, increasing the victims’ trauma.
Lavunte Collins, 23, of Stone Mountain, Georgia, was sentenced by U.S. District Chief Judge Thomas W. Thrash Jr., to 13 years and six months in prison to be followed by five years of supervised release, and ordered him to pay restitution to the victims. The defendant was convicted on these charges on May 25, 2016, after he pleaded guilty. Collins is currently serving a five-year state sentence for an unrelated robbery.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance of the DeKalb County Police Department.
Assistant U.S. Attorneys Jessica C. Morris and Kim Dammers 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.
Major Cyber-Criminal Extradited from Czech Republic to Face Charges in AtlantaRead the Press Release
ATLANTA - Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R., 31, of Nikolaev, Ukraine, was arraigned today before Catherine M. Salinas, United States Magistrate Judge, on federal charges of conspiracy to commit bank fraud, bank fraud, conspiracy to commit wire fraud, and wire fraud. Levitskyy was indicted by a federal grand jury on October 13, 2015.
“In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted. A team of hackers and cashers, stationed in 280 cities around the world, stole over $9 million dollars in 12 hours from 2100 ATMs worldwide,” said U. S. Attorney John Horn. “Our pursuit of the perpetrators of this international scheme has continued for over seven years and demonstrates that we will persevere in seeking justice for international cyber- criminals for as long as it takes.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The arrest and extradition of Evgeny Levitskyy is the result of a multi-national effort led by the FBI, clearly showing the benefits of global cooperation among US and international law enforcement. It 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 and citizens. This arrest and extradition also highlights the benefits of forward-deploying FBI cyber special agents to foreign countries, who forge and maintain key relationships to facilitate opportunities such as this. We must continue to impose real costs on criminals who believe they are far enough away to hack into US companies to steal money or intellectual property without consequences. Levitskyy’s arrest and extradition removes a cashing leader from the resources available to the cyber-criminal underground, thereby deteriorating the capabilities of cyber-criminal groups seeking to monetize cyber-attacks.”
Michael Breslin, Special Agent in Charge of the United States Secret Service's Criminal Investigative Division, stated: “Based on our longstanding role in transnational cyber investigations and network intrusions, the Secret Service worked in conjunction with our law enforcement partners to provide critical evidence to further this investigation. Our partnerships in law enforcement, the private sector, and academia are our greatest resources in combatting these sophisticated and complex crimes and today’s arraignment is proof that our strong commitment endures across all borders.”
According to United States 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, Ga. The group used sophisticated hacking techniques to compromise the data encryption that was 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 cash out, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Levitskyy, a Ukrainian national, is alleged to have been responsible for cashing out nearly $500,000 associated with a single hacked debit card number.
The charges in this case carry a maximum sentence of 30 years in prison and a fine of up to $1,000,000 on each count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cash out, including Russian nationals Viktor Pleshchuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukrainian 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.
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 United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali are prosecuting the case. Assistance was provided by the Justice Department’s Office of International Affairs, the Criminal Division’s Computer Crime and Intellectual Property Section, the Republic of Slovenia’s Ministry of Interior Criminal Police Directorate (“MNZ”), and the Czech Republic’s Policie Ceske Republiky (“PCR”).
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 Indicted for Armed Robbery of Dunbar Armored, Inc., CourierRead the Press Release
ATLANTA - Artaigaous Norwood, Joquize Norwood, and Detravius Brown, have been arraigned on federal charges of conspiracy to commit armed robbery, armed robbery, and use of a fire Three Defendants Indicted for Armed Robbery of Dunbar Armored, Inc., Courier arm in furtherance of a crime of violence. Artaigaous Norwood was also charged with possessing a firearm after having previously been convicted of a felony offense.
“The brazen nature of this armed robbery created an extraordinarily dangerous situation.” said U.S. Attorney John Horn. “The indictment alleges that these defendants, with their guns drawn, put the lives of the victim, other innocent bystanders, and their own lives, at risk.”
“The federal indictments and resulting arraignments of these three alleged armed robbers is a direct result of many long days and nights of hard work by FBI agents and Task Force Officers from Atlanta P.D. Because of the threat posed to the public by these types of aggressive armed robberies, I am thankful that this investigation moved as quickly as it did without anyone getting hurt,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This is just another example of how partnership works to keep City of Atlanta citizens safe,” said Atlanta Police Chief George Turner. “Brazen attacks like this on hard-working people will not be tolerated and we will continue to work with our federal partners to ensure the individuals responsible are held accountable.”
According to U.S. Attorney Horn, the charges, and other information presented in court: On Saturday, May 14, 2016, at around 8:40 a.m., defendants Artaigaous and Joquize Norwood are alleged to have robbed a courier for Dunbar Armored, Inc., at gunpoint as he attempted to make a cash delivery to a business in Atlanta, Georgia. The defendants approached the victim with their guns drawn just after the victim exited the armored vehicle. One defendant grabbed the bag containing cash from the victim while the other took the victim’s firearm, holstered at his side. Cell phone evidence and video surveillance showed that a third man, defendant Detravius Brown, acted as a lookout during the robbery.
Artaigaous Norwood, 43, and Joquize Norwood, 21, of Atlanta, Georgia, along with Detravius Brown, 23, of Mableton, Georgia, were arraigned on July 21, 2016 before U.S. Magistrate Judge John K. Larkins III. The defendants were indicted by a federal grand jury on July 12, 2016, after being charged by Criminal Complaint on June 13, 2016.
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 with the assistance of the Atlanta Police Department.
Assistant United States Attorney Jessica C. Morris is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Store Manager Sentenced for $5.1 Million Food Stamp FraudRead the Press Release
MACON, Ga. - Michael Paul Atkinson, Jr., has been sentenced for conspiracy to commit wire fraud in connection with the federal food stamp program, known as the Supplemental Nutrition Assistance Program (SNAP).
“The defendant used the food stamp program as an ATM,” said U.S. Attorney John Horn. “Food stamps provide needed assistance to the most vulnerable citizens in our society. Schemes like these unfortunately divert critical resources away from the people who need them most.”
“USDA-OIG stands firm in its mission to safeguard program benefits. The prosecution of Atkinson serves as a message to those who operate businesses for the purposes of defrauding USDA programs and taxpayers that USDA-OIG will work with its federal, state and local law enforcement partners to vigorously investigate and prosecute you,” stated Karen Citizen-Wilcox, Special Agent-in-Charge, USDA OIG-Investigations.
“The American tax system is designed to provide vital government services to our people,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Every dollar that Michael Paul Atkinson diverted through fraudulent and criminal activity is a dollar taken away from a child in need or a vulnerable adult. We are proud to work hand-in-hand with our law enforcement partners to ensure that fraudulent benefit schemes are investigated thoroughly and any avenues allowing exploitation of these programs are shut down.”According to U.S. Attorney Horn, the charges and other information presented in court: Atkinson operated Mid Way Market in Macon, Georgia, from 2010 through March 2015. During that time, Atkinson paid beneficiaries in cash to redeem SNAP benefits and allowed beneficiaries to use those benefits to purchase non-allowed items. In addition, Atkinson taught other workers at Mid Way how to process fraudulent claims. As a result of the fraudulent scheme, the SNAP program paid over $5.1 million in redemptions to Mid Way that should not have been paid.
Atkinson also agreed that his home was subject to forfeiture because it was purchased with proceeds from the fraud. His house has been forfeited to the United States.
Michael Paul Atkinson, Jr., 37, of Hampton, Georgia, has been sentenced to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,141,520.28. Atkinson was convicted on these charges on March 31, 2016, after he pleaded guilty.
The U.S. Attorney’s Office for the Middle District of Georgia is recused from this case. It was prosecuted by the U.S. Attorney’s Office for the Northern District of Georgia.
This case was investigated by the United States Department of Agriculture, Office of Inspector General and Internal Revenue Service Criminal Investigation.
Special Assistant United States Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Georgia Couple Sentenced to Prison in a Stolen Identity Tax Refund Fraud Scheme involving IRS “Get Transcript” DatabaseRead the Press Release
ATLANTA – Anthony and Sonia Alika of Austell, Georgia, have been sentenced to prison for their role in a stolen identity tax refund fraud scheme.
“This fraud conspiracy featured a literal highlight reel of our current economic crime threats, including cyber intrusions, identity theft, phony tax returns and money laundering, all to the order of millions of dollars,” said U.S. Attorney Horn. “These schemes create nightmares for citizens who endure the process of repairing their credit and IRS returns, and this case reflects law enforcement’s commitment to punish these criminals and do all we can to prevent further victims.”
“Anthony and Sonia Alika, driven by greed and a fast buck, lined their pockets by laundering more than $1 million stolen from the U.S. Treasury in the form of fraudulent income tax returns filed using data illegally obtained from the IRS Get Transcript database,” said Principal Deputy Assistant Attorney General Ciraolo. “The sentences imposed today send a clear message to those pursuing similar criminal schemes. The department, working with the IRS and its other law enforcement partners, will aggressively prosecute and seek substantial prison terms for individuals who engage in stolen identity refund fraud.”
“Today’s sentencing of Anthony Alika and Sonia Alika is a victory for the many American taxpayers who have been victims of sophisticated stolen identity refund fraud schemes,” said Chief Richard Weber of IRS Criminal Investigation. “The Alikas demonstrated a blatant disregard for the integrity of the U.S. tax system and caused immeasurable hardship to innocent victims. We continue to work hard to protect the sanctity and integrity of the tax system while working for justice for those individuals whose identities were stolen.”
In January, Anthony Alika and Sonia Alika were charged with laundering the proceeds from their stolen identity refund fraud scheme. The indictment alleged that Anthony Alika, along with Rapheal Atebefia, were members of a conspiracy which obtained means of identification of actual individuals, including their names and social security numbers and used this information to access the IRS’s “Get Transcript” database.
The indictment further alleged that Anthony Alika, Atebefia, and others obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities, filed false income tax returns using the stolen identities and information obtained from the Get Transcript database and directed the IRS to deposit the tax refunds onto these cards. Get Transcript is an online service the IRS offers to allow taxpayers to order copies of their past tax returns.
To conceal their fraud, Anthony Alika, Atebefia and others were alleged to have used the prepaid debit cards to purchase money orders which were subsequently deposited into bank accounts. The Alikas and Atefibia then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports (CTRs).
As part of his guilty plea, Anthony Alika admitted that during 2015, he received money orders from several individuals and deposited them into bank accounts in his and his wife’s name. Anthony Alika structured the cash withdrawals from his bank accounts in amounts less than $10,000 to evade the bank reporting requirements. Anthony Alika admitted that the funds used to purchase the money orders were the proceeds of illegal activity, including the filing of fraudulent tax returns using stolen identities. Anthony Alika admitted that he laundered over $1.5 million. Sonia Alika admitted as part of her guilty plea that between February and June 2015, she withdrew more than $250,000 from multiple bank accounts she controlled in amounts less than $10,000 to prevent the bank from filing CTRs.
U.S. District Chief Judge Thomas W. Thrash Jr. for the Northern District of Georgia, sentenced Anthony Alika, 42, of Austell, Georgia, to serve six years, eight months in prison, followed by three years of supervised release, and was ordered to pay $1,963,251.75 in restitution to the Internal Revenue Service (IRS). Sonia Alika, 27, also of Austell, Georgia, was sentenced to one year, nine months in prison, followed by three years of supervised release, and to pay $245,790.08 in restitution to the Internal Revenue Service (IRS). In April, Anthony Alika pleaded guilty to one count of conspiracy to commit money laundering and Sonia Alika pleaded guilty to one count of illegal structuring of cash withdrawals to evade bank reporting requirements.
On June 22, 2016, Rapheal Atebefia, 33, of Austell, Georgia, was sentenced to serve one year, three months in prison followed by three years of supervised release for his role in the scheme.
Many tax fraudsters depend for their success on filing a fraudulent return with a stolen identity before their victims file their genuine returns. Filing early and avoiding use of obvious usernames and passwords for online tax websites are two ways to help protect yourself.
IRS-Criminal Investigation and the U.S. Postal Service Investigative Service investigated the case.
Assistant U.S. Attorney Brian Pearce and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr., of the Tax Division prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
ICYEAGLE, a Dark Web Vendor of Stolen Information, Charged in AtlantaRead the Press Release
ATLANTA - Aaron James Glende has been arraigned on federal charges of bank fraud, access device fraud, and aggravated identity theft. The indictment alleges he advertised criminal services on AlphaBay Market, a hidden services marketplace.
“Glende allegedly sold stolen bank account information on a website designed to traffic criminal goods and services, including weapons, stolen credit cards, and illegal narcotics,” said U. S. Attorney John Horn. “As cyber criminals increasingly trade financial information for cash, citizens must be vigilant with their account information.”
“The threat posed by cyber criminals is a persistently increasing problem for everyday citizens here in the U.S. and abroad. This investigation and resulting arrest clearly illustrates that the FBI, however, will not cease in its effort to identify, locate, arrest and seek prosecution of these criminals regardless of how deep in the digital underground they reside,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: From about November 5, 2015, Aaron Glende, a.k.a. IcyEagle, began advertising criminal services on a TOR hidden services marketplace known as AlphaBay Market (“AlphaBay”). The AlphaBay website contained a number of features designed to assist prospective buyers who wished to purchase criminal services.
For example, the AlphaBay sales listings contained categories corresponding to various types of criminal services; those categories included “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.” Moreover, the website had a search functionality that allowed users to search for items by name. Much like Amazon or eBay, users of the website could rate sellers and search for certain sellers by name, but purchases were made using Bitcoin.
On May 4, 2016, Glende, using the online nickname “IcyEagle,” allegedly advertised the sale of stolen bank account information on the AlphaBay Market under the “Fraud” category. In a listing entitled “High Balance SunTrust Logins 30K-150K Available,” using his online nickname, IcyEagle, Glende wrote that “I bring you freshly hacked Sun Trust Bank Account Logins. The accounts are notorious for having weak security.” The listing identified the sales price as $66.99 USD and indicated that IcyEagle had sold 11 of the high-balance account logins since November 11, 2015.
On March 19, 2016, Glende allegedly advertised the sale of “Hacked SunTrust Bank Account Logins $100-$500 Balances.” The listing indicated that the sales price was $9.99 USD, that he had sold 32 since November 5, 2015, and noted that “this listing is for active SunTrust bank account balances of $100-$500.”
On multiple dates in March and April 2016, an FBI agent, acting in an undercover capacity, accessed the AlphaBay website. While on the website, the agent purchased SunTrust account information from Glende using Bitcoin. A review of the information purchased from Glende confirmed that it contained usernames, passwords, physical addresses, email addresses, telephone numbers, and bank account numbers that belonged to five different SunTrust Bank customers.
Aaron James Glende, 35, of Winona, Minnesota, was arraigned before U.S. Magistrate Judge Janet F. King. Glende was indicted by a federal grand jury on June 28, 2016.
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. Assistance was provided by Homeland Security Investigations, the U.S. Postal Investigation Service, and the Winona, Minnesota Police Department.
Assistant United States Attorneys Samir Kaushal and Kamal Ghali 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.
Girls’ Softball Coach Sentenced to Prison for Distributing Child PornographyRead the Press Release
ATLANTA - Nicholas Mazza has been sentenced to seven years, three months in federal prison for distributing child pornography. The defendant is a former girls softball coach who had over 140,000 videos and pictures of sexual abuse of young girls when he was arrested. Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.
“It is incomprehensible that anyone could enjoy watching a child as young as three years old being sexually abused,” said U.S. Attorney John Horn. “Mazza had a massive collection of child pornography, and it is especially disturbing that this defendant worked around children. This sentence is a stark reminder of the importance of these investigations to the safety of our children.”
“Child pornography is one of the most heinous crimes HSI investigates due to the irrevocable harm it inflicts physically and emotionally upon innocent children,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “This crime is an outrage in all cases; however, it was especially so in this instance given the massive quantity of illegal images recovered and the subject’s proximity to children. ICE Homeland Security Investigations is committed to investigating and seeking prosecution of child sex offenders as one of the agency’s highest priorities.”
According to U.S. Attorney Horn, the charges and other information presented in court: Mazza used a peer-to-peer file sharing program to search for and download child pornography files on the Internet. In October 2014, special agents with Homeland Security Investigations downloaded 14 videos of child pornography that Mazza kept in a folder that made the files available to other persons using the same peer-to-peer file sharing program. While downloading the files, the agents were able to capture the Internet Protocol address of the computer, which identifies the physical location of the computer. The agents obtained a federal search warrant for the house associated with that Internet Protocol address, and they carried it out in early November 2014. The agents took multiple computers, hard drives, and thumb drives.
A computer forensics analysis of all of those items showed that the defendant possessed more than 143,000 images and videos of child pornography involving almost exclusively young girls. The files included the sexual abuse of children as young as three years old, and many files depicted sadistic abuse of the children. Prior to his indictment in this case, Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.
Mazza, 67, of Powder Springs, Georgia, was sentenced to seven years, three months in prison to be followed by ten years of supervised release. Mazza was convicted on these charges on May 10, 2016, after he pleaded guilty. He was sentenced on July 15, 2016, by U.S. District Judge Leigh May.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States 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.
Defendant Receives Lengthy Sentence for Cell Phone Insurance FraudRead the Press Release
ATLANTA - Laquitta S. Brackins has been sentenced to federal prison for conspiracy to commit mail and wire fraud by defrauding a cell phone insurance provider. Brackins, along with a co-conspirator, filed thousands of false insurance claims on cell phones that did not belong to them and received over $1.6 million worth of cell phones from those claims.
“Cell phone insurance fraud drives up costs for all cell phone consumers,” said U.S. Attorney John Horn. “These defendants submitted thousands of fraudulent claims in the hope they could profit before anyone noticed.”
According to U.S. Attorney Horn, the charges and other information presented in court: Brackins and co-conspirator Nicholas L. Johnson defrauded Asurion Protection Services, LLC, and its cellular service provider clients, by submitting fraudulent cell phone insurance claims. Together, they obtained over $1.6 million worth of cell phones.
As part of the conspiracy, Brackins recruited cell phone subscribers from the Atlanta area and also traveled out of state to find individuals willing to allow her to use their cell phone contracts in her scheme. The defendants also used false identification documents and forged cell phone bills to file fraudulent claims with Asurion. Under Asurion’s insurance program, subscribers receive replacement phones to replace lost or stolen phones covered by the insurance. Brackins was linked with over 3,600 fraudulent submissions and she received over 2,900 phones as a result. After the defendants received the fraudulent phones, they and others involved in the scheme sold the phones to electronic wholesalers in the Atlanta area. Once she was indicted, Brackins fled and lived under false names at various hotels. She continued the scheme, having fraudulently obtained phones sent to her at the hotels.
Laquitta S. Brackins, 35, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,617,629. Brackins was convicted on these charges on April 19, 2016, after she pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
Judge Jones previously sentenced Nicholas L. Johnson, 33, of Atlanta, Georgia, on March 29, 2016, to one year, nine months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $191,093. Johnson was convicted of these charges on January 4, 2016, after he pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Christopher J. Huber and Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Cumming Police Officer Charged with Accepting Bribe for Unlawfully Accessing a Law Enforcement DatabaseRead the Press Release
ATLANTA – Former Cumming, Georgia, Police Officer Nathan VanBuren has been arraigned after being charged with wire fraud and computer fraud.
“This former police officer allegedly used his position to access sensitive information in exchange for money,” said U. S. Attorney John Horn. “This type of conduct unfortunately impairs the hard work of the police as well as the community’s trust in law enforcement.”
“Investigations into allegations of public corruption involving police officers is a disheartening, but very necessary duty of the FBI. People have a right to demand that their public safety officers possess integrity and a sense of fairness as they carry out their duties. The FBI asks that anyone with information regarding such matters to contact their nearest FBI field office,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a citizen’s home in Cumming, Georgia. The citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren allegedly asked the citizen for a loan because his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In reality, VanBuren’s salary was not being garnished and his son was not ill. The citizen reported VanBuren’s actions and agreed to cooperate with law enforcement.
While cooperating with law enforcement, the citizen provided VanBuren $5,000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked whether VanBuren would search a sensitive police database to determine whether an individual was an undercover police officer. In exchange for $1,000, VanBuren unlawfully accessed the law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.
Nathan VanBuren, 34, of Cumming, Georgia, was arraigned before United States Magistrate Judge Janet F. King. He was indicted by a federal grand jury on June 29, 2016.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. The Cumming Police Department and Forsyth County, Georgia, Sheriff’s Office assisted with the investigation.
Assistant United States Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Georgia Tech Employees Charged with FraudRead the Press Release
ATLANTA - James G. Maloney has been charged with committing and conspiring to commit mail and wire fraud against the United States and Georgia Tech. James J. Acree and James D. Fraley, III were also charged with participating in the conspiracy.
“The defendants in this case were successful members of the scientific and research communities who allegedly allowed their judgment to be clouded by greed,” said U. S. Attorney John Horn.
“The allegations contained in the charging federal indictment are disheartening in that these three defendants offered so much to a technical program that very much needed their skills and intellect. The allegations, however, assert that they chose instead to engage in fraud driven by financial greed,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This case was enabled by the outstanding teamwork with the Federal Bureau of Investigations, Air Force Office of Special Investigations, and US Attorney's office,” OSI Special Agent Natalie Spaur said. “In addition, it demonstrates the focus of law enforcement agencies to protect the public's critical resources.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The defendants were employed by Georgia Tech and were members of the research faculty at the Georgia Tech Research Institute (GTRI), where they were assigned to the Advanced Concepts Laboratory. The defendants are experts in electromagnetic analysis and measurements and worked on projects funded by the United States Department of Defense, various intelligence agencies, and private industry. The defendants are charged with conspiring to defraud the United States and Georgia Tech by engaging in Georgia Tech Procurement Card (“PCard”) fraud and by engaging in fraudulent consulting activity.
PCard Fraud
As part of his duties and responsibilities at GTRI, Fraley had access to a Georgia Tech PCard. Fraley was supposed to use his PCard to purchase materials and supplies for official Georgia Tech business purposes. Neither he nor anyone else was allowed to charge personal purchases on a PCard. Nevertheless, Maloney, Acree, and Fraley allegedly charged more than $250,000 worth of personal expenses on Fraley’s PCard, including two four-wheelers and a trailer, two Sony 52-inch flat-screen televisions, Apple computers, iPads, OtterBox protective cases, iPods, Kindle E-readers, Leica and Nikon digital cameras, video cameras, a mini micro pinhole video camcorder pen, a night vision monocular, two pairs of binoculars, Bose headphones, a 3D printer, sports watches with heart-rate monitors, sunglasses, materials used to perform defendants’ private consulting contracts, computer monitors and solar panels for a private hunting club, a personal video network for home use, and an uninterruptible power supply for a tennis ball machine.
According to documents filed in court, Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties they owned together in the name of a Georgia corporation called J’s Services. Some of the payments for the benefit of J’s Services were charged to the United States on one of the contracts that Maloney controlled at GTRI. In addition, Fraley used his PCard to make PayPal payments to friends and relatives who “kicked back” some of the money to him. To make their personal PCard charges look like legitimate Georgia Tech business expenses, the defendants provided and caused others to provide false information and fraudulent documents to Georgia Tech and the United States.
After the defendants learned that they were being investigated by Georgia Tech’s Internal Auditing Department, they met to discuss their PCard fraud, get their stories straight, and plan a cover-up. Fraley recorded these conversations on his phone and later turned the recordings over to the FBI.
Fraudulent Consulting Activity
While employed full-time by Georgia Tech, Maloney, Acree, and Fraley allegedly moonlighted as consultants on various projects for which they were paid a total of more than $600,000. In competing for and performing this outside consulting work, the defendants allegedly diverted customers and revenue away from GTRI for their own personal gain and benefit. In addition, Maloney and Fraley allegedly caused and directed some of the Georgia Tech employees and students they supervised at GTRI to help perform this consulting work. And Maloney and Fraley allegedly caused those Georgia Tech employees and students to bill their time for such work to the United States on one of the government contracts that Maloney controlled at GTRI.
James G. Maloney, 50, of Marietta, Georgia, was arraigned before United States Magistrate Judge Janet F. King. Maloney was indicted by a federal grand jury on June 28, 2016. James D. Fraley, III, 38, of Acworth, Georgia, and James J. Acree, 50, of Atlanta, Georgia, also appeared before Judge King, waived indictment, and indicated that they intend to plead guilty to a criminal information charging them with participating in the conspiracy.
This case is being investigated by the Federal Bureau of Investigation and the Air Force Office of Special Investigations.
Assistant United States Attorneys J. Russell Phillips and Stephen H. McClain 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
Serial Robber Sentenced to Lengthy Prison TermRead the Press Release
ATLANTA - Avery Frazier has been sentenced to 20 years in federal prison for a series of violent armed robberies of title loan stores in Rockdale County, and Cobb County, Georgia.
“Frazier repeatedly traumatized hard working people at gunpoint,” said U. S. Attorney John Horn. “He sowed fear throughout our communities, robbing multiple title loan stores over time. Thankfully, a quick police response helped identify his vehicle and, ultimately, led to his arrest.”
“The FBI is proud of the role that it played in bringing Mr. Frazier forward for federal prosecution. The lengthy prison sentence in this case is reflective of the serious nature of the repeated violent robberies committed and the emotional victimization left in his wake,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Frazier’s actions during these robberies were terrifying to his victims,” stated City of Conyers Chief of Police Gene Wilson. “We appreciate how the FBI and the US Attorney’s Office took this case to its conclusion and this sentence will help keep the citizens safe for a long time to come. Because this case was prosecuted in federal court, Frazier got the sentence he deserved.”According to U.S. Attorney Horn, the charges and other information presented in court: Between 2013 and 2014, 34 robberies of title loan stores occurred in different areas of the metropolitan Atlanta area. In each, the robber had a similar method of operation. He would wear a mask, enter a title loan store brandishing a firearm at employees, and demand the business’s cash. He would then force employees to move to the rear of the store. Eventually, he started forcing the employees to remain in a bathroom or storage room until he left. The robber also threatened store employees by telling them at gunpoint that they must follow his directions or risk never seeing their families again.
In early 2014, believing that the robberies were being committed by the same individual based on the method of operation and descriptions by witnesses, local law enforcement officers from several different Atlanta-metro police departments formed a task force and began working with the FBI to identify the robber.
On October 30, 2014, a local Conyers Police Department officer, who was responding to a call for assistance at a different location, captured Frazier’s license plate as Frazier fled the scene of a robbery at the Title Bucks store in Conyers, Georgia. After further investigation and information sharing among the FBI and local police departments, Frazier was identified as the suspect in the series of armed robberies. Conyers Police Department officers obtained a warrant for his arrest, and Frazier was arrested on that warrant on November 5, 2014.
On April 19, 2016, Frazier pled guilty to the following four armed commercial robberies:
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February 17, 2014 - Frazier robbed the employees of the Georgia Auto Pawn in Conyers, Georgia, while brandishing a firearm.
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May 20, 2014 - Frazier robbed the employees of a Title Max in Smyrna, Georgia, while brandishing a firearm.
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October 7, 2014 - Frazier robbed the employees of a different Title Max in Smyrna, Georgia, while brandishing a firearm. He told these employees that they had to go into a back room of the store and stay in the room if they wanted to see their families again.
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October 30, 2014 - Frazier robbed the employees of a Title Bucks in Conyers, Georgia, while brandishing a firearm. During the robbery, Frazier rounded up two employees and a customer who was present in the store at gunpoint. Brandishing the gun at them, he made them give him the day’s deposit of cash. He then ordered the three victims at gunpoint to go into a back room of the store and to wait ten minutes. He shut them in the room and left the store with the cash. It was in leaving this robbery that Frazier’s license plate was picked up by a local Conyers officer’s license plate reader.
The investigation revealed that during the time frame of the robberies, Frazier was a serious gambler at a casino in North Carolina, and he was making purchases of tens of thousands of dollars of casino chips in the weeks surrounding the robberies. Investigation further revealed that since Frazier was taken into custody in November 2014, there have been no further robberies of title loan stores in Atlanta that showed the same method of operation.
Avery Frazier, 49, of Douglasville, Georgia, was sentenced to 20 years in prison to be followed by three years of supervised release, and restitution of $14,218.
This case was investigated by the Federal Bureau of Investigation, with special assistance from the Conyers Police Department, Smyrna Police Department, Sandy Springs Police Department, Clayton County Police Department, Cobb County Police Department, Atlanta Police Department, Marietta Police Department, Oakwood Police Department, Douglas Co. Sheriff’s Department, Dekalb County Police Department, Snellville Police Department, Gwinnett Police Department, and Newnan Police Department.
Assistant United States Attorneys Mary L. Webb and Angela Marie Munson 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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Former Paramedic Sentenced to Ten Years in Prison for Attempting to Have Sex with a ChildRead the Press Release
ATLANTA - Scott Driscoll Bailey was sentenced for attempting to entice a minor to engage in illegal sexual activity. The defendant admitted he planned to use prescription muscle relaxers as part of a sexual encounter he sought to have with a young girl.
“Bailey expected to sexually abuse a young girl for his own perverse pleasure,” said U.S. Attorney John Horn. “Thankfully, he was caught by the FBI before he could prey on a child.”
“Today’s sentencing to federal prison will firmly hold Mr. Bailey accountable for his criminal behavior of attempting to prey on a minor child. It is reprehensible cases such as this that necessitates a vigilant and proactive posture by trained law enforcement officers and agents in protecting our nation’s children from those who would target and exploit them,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: On August 18, 2015, Bailey responded to an advertisement on the Internet in which a mother said that she was looking for someone to teach her 9-year-old daughter to have sex. Over the next 10 days, Bailey communicated with the mother and said that he had had numerous sexual encounters with young girls. He told her that he was a paramedic, and he said that he would bring something powdered to put in the daughter’s drink to relax her.
Bailey made arrangements to meet with the mother and her daughter at a fast food restaurant in Brookhaven, Georgia, on August 28, 2015. Unbeknownst to Bailey, he was communicating with an undercover FBI agent. He was arrested when he arrived at the restaurant. Agents searched his car and found condoms, lubricant, and a prescription muscle relaxer. Bailey had told the undercover agent that he would bring a muscle relaxer to grind into a powder to give to the child. He also said that he intended to have sex with the child.
Scott Driscoll Bailey, 45, of Fayetteville, Georgia, was sentenced to ten years in prison to be followed by ten years of supervised release. Bailey was convicted on these charges on March 1, 2016, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Thirteen Atlanta-Based Members of a Mexican Drug Trafficking Organization Convicted and Sentenced to Federal PrisonRead the Press Release
ATLANTA – Thirteen members of a drug-trafficking cell which used passenger buses to smuggle staggering amounts of illegal drugs from Mexico to communities in the Northern District of Georgia have been sentenced for conspiracy to distribute methamphetamine, heroin and cocaine, and conspiracy to commit money laundering.
“After distributing these deadly drugs in the Atlanta area and elsewhere, the traffickers then shipped hundreds of thousands of dollars in drug money back to Mexico,” said U.S. Attorney John Horn. “This case stands as a disturbing example of Atlanta’s role as a trans-shipment hub for the Mexican cartels as they package drugs for distribution across the East Coast and collect the proceeds for transportation back to Mexico. Due to the tremendous cooperative effort between federal agencies and local law enforcement, this drug organization has been dismantled, and its members are in federal prison.”
“Methamphetamine, heroin and cocaine are highly addictive plagues that drug traffickers inflict upon law-abiding communities without any regard for the violence and destruction that often accompany their use,” said Special Agent in Charge of HSI Atlanta Nick S. Annan. “The boldness of this criminal group reflected a callous disregard for public safety that seriously underestimated the dedication of HSI and its federal, state and local law enforcement partners to identify and seek prosecution of those engaged in this criminal conspiracy.”
“The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The sentences handed down today, mark the successful end of an investigation and serve as a strong message to individuals throughout the region that we will not stand for the destruction that drugs and related criminal activity bring to our communities. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
According to U.S. Attorney Horn, the charges and other information presented in court: Atenogenes Alvarado-Delgado, who was initially based in Mexico, directed his brother, Jose Alvarado-Delgado, and associate, Reberiano Arroyo-Santana, in connection with the importation of large amounts of cocaine, methamphetamine, and heroin into the Atlanta, Georgia, area from Mexico.
The investigation revealed that this organization used passenger buses, owned by Alejandro Carmona, to transport the drugs from Puebla, Mexico, across the border into the United States, and directly to the Atlanta area. The drugs were often concealed inside of non-functioning batteries stored on the buses. Alan Arnold Lopez traveled on the drug-filled buses on numerous occasions to ensure their safe passage. Aside from Lopez and the bus drivers, Carmona’s buses traveled thousands of miles between Atlanta and Mexico without any paying passengers.
Once the buses arrived in Atlanta, they were concealed in local warehouses where Jose Cardenas-Garcia off-loaded the drugs concealed within secret compartments in the buses. Jose Antonio Pineda-Maldonado, Rufino Pineda-Perez, Ranferi Pineda-Campos and Miguel Salinas distributed the drugs in the Atlanta area. The drugs were also stored in local residences, including a house in Lilburn, Georgia occupied by Jose Ocampo-Jaimes.
During the investigation, which commenced in October 2013, law enforcement seized approximately 644 pounds of methamphetamine, 37 kilograms of heroin, 27 kilograms of cocaine, and $680,000 in drug proceeds, which included the following seizures:
- October 8, 2013, agents observed Jose Pineda-Maldonado meet with Miguel Salinas in a parking lot located at 2450 Cumberland Pkwy near Vinings, Georgia.Agents followed Salinas onto Interstate 285 east to Buford Highway, where officers of the Doraville Police Department conducted a traffic stop.Salinas attempted to flee on foot, but was quickly apprehended.A search of Salinas’s vehicle revealed over 17 kilograms of methamphetamine, or “ice”.
- October 11, 2013, agents seized 54 kilograms of “ice” methamphetamine pursuant to a search warrant of an apartment on Cleburne Parkway in Hiram, Georgia, and 37 kilograms of cocaine and 18 kilograms of heroin pursuant to a search warrant of an apartment on Cumberland Parkway in Cobb County, Georgia.
- December 7, 2013, agents observed Yarley Pineda board a bus at 4600 South Atlanta Road, near Smyrna, Georgia, that was destined for Mexico. Later that day, officers with the Alabama Drug Task Force conducted a traffic stop of the bus and discovered $145,000 in drug money concealed in hollowed out shoes in Yarley Pineda’s suitcase.
- January 3, 2014, Jose Pineda-Maldonado delivered five kilograms of methamphetamine to a customer of Blanca Hernandez.Shortly thereafter, Pineda-Maldonado was stopped by the Cobb County Police on the East-West Connector in Cobb County.A search of the car revealed a suitcase with three commercial batteries in the back seat and seven more batteries in the trunk. Agents disassembled the batteries and found six bricks of methamphetamine in each battery, with a total weight of 51 kilograms of methamphetamine.
- January 4, 2014, law enforcement responded to an explosion at an apartment on Jameson Pass in Alpharetta, Georgia, which was used by the organization as a methamphetamine laboratory. A search of the apartment revealed a large quantity of liquid methamphetamine as well as approximately 15 grams of cocaine and 535 grams of powder methamphetamine.
- January 24, 2014, law enforcement seized approximately 19 kilograms of heroin from a bus at the U.S.-Mexico border in Laredo, Texas.The bus had just entered the United States from Mexico and was enroute to the drug cell in Atlanta.
- March 18, 2014, the Georgia State Patrol (GSP) stopped a vehicle on I-85 southbound in Gwinnett County, Georgia.During a search of the vehicle, agents seized approximately one kilogram of cocaine which was concealed in a cereal box and arrested Rufino Pineda-Perez.
- March 19, 2014, agents observed a bus used by the organization at a warehouse located at 1311 Fulton Industrial Boulevard in Atlanta.At that time, Jose Cardenas-Garcia loaded the concealed compartment in the bus with drug proceeds.Later that afternoon, the GSP stopped the bus and located $277,490 concealed in false compartments within the bus frame.
- May 29, 2014, law enforcement stopped a bus owned by Alejandro Carmona in Cobb County. A search of the bus revealed approximately 22 kilograms of cocaine concealed in the floorboard.
- May 29, 2014, agents served a federal search warrant at a residence located at 1055 Omaha Drive in Norcross.Upon entering the residence, law enforcement observed Jose Ocampo-Jaimes attempting to dispose of suspected methamphetamine by washing it down the tub drain.During the search of the residence, agents located approximately five kilograms of “ice” methamphetamine in the kitchen and bedrooms.
All defendants in this case were sentenced by Chief United States District Judge Thomas W. Thrash, Jr., as follows:
• Alejandro Carmona, 65, of Arlington, Texas was sentenced to 20 years in prison, followed by five years of supervised release. Carmona was found guilty of a narcotics conspiracy charge on November 9, 2015 after a week-long federal jury trial.
• Reberiano Arroyo-Santana, 38, of Atlanta, Georgia was sentenced to 20 years in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Atenogenes Alvarado-Delgado, 35, of Powder Springs, Georgia was sentenced earlier today to 19 years and seven months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Jose Alvarado-Delgado, 37, of Austell, Georgia was sentenced to 19 years and seven months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Ranferi Pineda-Campos, 29, of Lilburn, Georgia was sentenced to 11 years and three months in prison, followed by three years of supervised release on charges of narcotics and money laundering conspiracy.
• Alan Arnold Lopez, 26, of Mableton, Georgia was sentenced to 11 years and three months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Jose Antonio Pineda-Maldonado, 24, of Smyrna, Georgia was sentenced to 10 years and one month in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Miguel Salinas, 24, of Lawrenceville, Georgia was sentenced to eight years and ten months in prison, followed by four years of supervised release on a narcotics conspiracy charge.
• Blanca Hernandez, 43, of Alpharetta, Georgia was sentenced to eight years and one month in prison, followed by five years of supervised release on a narcotics conspiracy charge.
• Rufino Pineda-Perez, 50, of Lawrenceville, Georgia was sentenced to six years and six months in prison, followed by three years of supervised release on a narcotics conspiracy and illegal re-entry by a previously removed alien charge.
• Jose Ocampo-Jaimes, 37, of Lilburn, Georgia was sentenced to five years and ten months in prison, followed by five years of supervised release on narcotics conspiracy and illegal re-entry by a previously removed alien charges.
• Jose Cardenas-Garcia, 50, of Kennesaw, Georgia was sentenced to four years and nine months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Yarely Pineda, 24, of Smyrna, Georgia was sentenced to two years and six months in prison, followed by three years of supervised release on a charge of money laundering conspiracy.
The investigation and prosecution of this case was a coordinated effort through the David G. Wilhelm OCDETF Strike Force, led by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigations. Valuable assistance was also provided by the Cobb County Police Department, Cobb County Sheriff’s Office, Marietta Police Department, Powder Springs Police Department, Henry County Police Department, Clayton County Sheriff’s Office, Georgia Bureau of Investigation, DeKalb County Police Department, Alabama Drug Task Force, Newnan Police Department, Conyers Police Department, Gwinnett County Judicial Task Force, United States Customs and Border Protection, and the Georgia State Patrol.
Assistant United States Attorneys Michael Herskowitz, Nicholas Hartigan, and Michael J. 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.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.
- October 8, 2013, agents observed Jose Pineda-Maldonado meet with Miguel Salinas in a parking lot located at 2450 Cumberland Pkwy near Vinings, Georgia.Agents followed Salinas onto Interstate 285 east to Buford Highway, where officers of the Doraville Police Department conducted a traffic stop.Salinas attempted to flee on foot, but was quickly apprehended.A search of Salinas’s vehicle revealed over 17 kilograms of methamphetamine, or “ice”.
Former Law Firm Executive Sentenced for Embezzling over $230,000 from FirmRead the Press Release
ATLANTA - Mary Suzanne Creach has been sentenced to federal prison for wire fraud as part of her scheme to steal over $230,000 from her former employer, an Atlanta-based law firm.
“Even though well-paid as the Executive Director of her firm, Creach used her position to embezzle money routinely and to pad her comfortable lifestyle,” said U. S. Attorney John Horn. “Stealing is illegal whether it’s from someone's home or from your employer, and in this instance a law firm lost several hundred thousand dollars due to the actions of an unscrupulous senior employee.”
“This case is another unfortunate example of an individual who violated her position of trust to illegally enrich herself,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who commit these types of crimes.”
According to U.S. Attorney Horn, the charges and other information presented in court: From August 2013 until June 2015, Creach was the law firm’s Executive Director, and part of her responsibilities were managing the firm's financial affairs, including employee payroll. Despite being paid a considerable salary well in excess of six-figures, Creach used her authority to initiate unauthorized bank transfers and payroll adjustments that almost doubled what she earned in salary.
At the beginning of her scheme, Creach initiated fraudulent transfers and payroll adjustments in the $1,000 to $3,000 range. She grew considerably bolder over time, and towards the end of the scheme, she was routinely authorizing transfers to herself in the $6,000 to $7,000 range, with some transfers well over $10,000. By the time her theft was discovered by the firm, she had stolen $232,933.40.
Mary Suzanne Creach, 53, of Dunwoody, Georgia, has been sentenced by U.S. District Court Judge Thomas W. Thrash, to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $232,933.40. Creach pleaded guilty on March 28, 2016.
This case was investigated by the United States Secret Service.
Assistant United States Attorney Lynsey M. Barron prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
English Avenue Drug Market Intervention Targets Drug Dealer Who Recruited Juveniles into the Drug TradeRead the Press Release
ATLANTA - Tovias Dunton, has been arraigned on federal charges of conspiring to possess heroin with the intent to distribute, distribution of heroin, and using a minor to distribute and attempt to distribute heroin. The defendant was indicted as part of the Drug Market Initiative (DMI), which is an on-going commitment to eradicate the heroin market in the English Avenue neighborhood.
“The cycle of drug trafficking in the English Avenue community is perpetuated by people like Dunton, who allegedly tried to avoid his own prosecution by enlisting minors to traffic heroin,” said U. S. Attorney John Horn. “We won’t sit on the sidelines when drug dealers attempt to pull the young people in their community into the drug trade.”
“Although we are very pleased with the success of this operation, it highlights the persistence of narcotics trafficking and demonstrates that this type of crime is real and must be continuously battled,” said Assistant Special Agent in Charge John Schmidt, Bureau of Alcohol, Tobacco, Firearms & Explosives, Atlanta Field Division.
“The arraignment of Tovias Dunton on federal charges related to heroin distribution is a win for the City of Atlanta,” said Chief George N. Turner, Atlanta Police Department. “The cowardly method of using children to commit your crimes shows just how far a criminal will go to carry out his deeds. We will remain committed to working with our federal partners to protect our youth from every type of threat.”
“This indictment illustrates that drug trafficking at any level will not be tolerated in the state of Georgia. It is paramount that violators of drug laws and criminals that utilize juveniles to distribute drugs be held accountable. The Georgia Bureau of Investigation is fully committed to working with our local and federal partners in drug enforcement to address these types of crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Horn, the charges, and other information presented in court: Dunton’s indictment stems from the latest phase of the DMI investigation of drug trafficking in the English Avenue community. Dunton was identified by law enforcement as a heroin seller in the English Avenue community when he allegedly conducted a hand-to-hand transaction with a confidential informant in February 2016. Beginning that same month, Dunton allegedly conspired with a 15-year old boy and others to possess heroin with the intent to distribute. On two separate occasions in April and May 2016, Dunton allegedly used the minor distribute and attempt to distribute heroin.
Tovias Dunton, 37, of Atlanta, Georgia, was indicted by a federal grand jury on June 14, 2016, and was arraigned before United States Magistrate Judge Catherine M. Salinas.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Atlanta Police Department, and Georgia Bureau of Investigation. Assistant United States Attorney Nicholas Hartigan is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
Eight, including a Former State Employee, Charged in Northern District of Georgia as Part of the Largest National Medicare Fraud Takedown in HistoryRead the Press Release
ATLANTA – The Department of Justice (DOJ) and the Department of Health and Human Services (HHS) announced an unprecedented nationwide sweep led by the Medicare Fraud Strike Force in 36 federal districts, resulting in criminal and civil charges against 301individuals, including 61 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $900 million in false billings. Twenty-three state Medicaid Fraud Control Units also participated in the arrests. In addition, the HHS Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority provided in the Affordable Care Act. This coordinated takedown is the largest in the history of the Medicare Fraud Strike Force, both in terms of the number of defendants charged and loss amount.
“This exemplifies the ongoing commitment to investigate and prosecute those who steal tax dollars that provide essential healthcare to the elderly and low-income families,” said U.S. Attorney John A. Horn. “Those who commit healthcare fraud through filing of false claims, payment or receipt of bribes, or fraudulent medical practices will be held accountable for defrauding the U.S. government.”
“As this takedown should make clear, health care fraud is not an abstract violation or benign offense – it is a serious crime,” said U.S. Attorney General Loretta Lynch. “The wrongdoers that we pursue in these operations seek to use public funds for private enrichment. They target real people – many of them in need of significant medical care. They promise effective cures and therapies, but they provide none. Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends. The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.”
“This indictment demonstrates our office’s continued commitment to protect crucial Medicaid dollars from fraud and abuse,” said Georgia Attorney General Sam Olens. “I would also like to thank our federal partners for their work and cooperation in this case.”
“The FBI, in working with the U.S. Department of Justice and the U.S. Health and Human Services Office of Inspector General, brought these investigative cases forward for federal prosecution as part of a national coordinated effort to firmly and aggressively protect the much needed federal funds that make up the Medicare program. Those individuals that engage in Medicare fraud are not only stealing from the federal taxpayer but also from those individuals who are counting on Medicare and Medicaid for their healthcare needs,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“These actions send a strong message to those who allegedly steal from Medicare and Medicaid: The Office of Inspector General will continue to work hard with our law enforcement partners to eliminate the financial bleeding of our health care system,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
Specifically, the Northern District of Georgia case announced as part of the nationwide Medicare Strike Force takedown include:
United States v. Otis Shannon, et. al., Case No. 1:16-CR-218
According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2013 until 2015, Otis Shannon was employed with the Georgia Department of Behavioral Health and Developmental Disabilities. In this position, Shannon was tasked with reviewing mental health provider applications to verify that prospective mental health providers met requisite minimum staffing levels and had proper credentials and licenses to provide proper care to Georgia Medicaid beneficiaries.
According to the indictment, Shannon solicited and accepted bribes from applicants to accept falsified and forged documents. Matthew Harrell, Denise Dixon, Geovon Martin, Marion Simpson, Sharon Zellner, Derrick McDow, and Cortim Martin were owners, operators or employees of health care providers that paid bribes to Otis Shannon to gain approval to provide mental health services to Georgia Medicaid beneficiaries. These mental health providers were approved to bill Georgia Medicaid without meeting program requirements that were in place to ensure that beneficiaries were obtaining quality care. These unqualified providers improperly billed Georgia Medicaid for over $6.6 million and Georgia Medicaid paid the providers over $5.9 million.
The following defendants have been charged by indictment with conspiracy to commit health care fraud and conspiracy to commit bribery:
- Otis Shannon, 42, of Stone Mountain, Georgia.
- Matthew Harrell, 40, of Atlanta, Georgia.
- Denise Dixon, 40, of Fayetteville, Georgia.
- Geovon Martin, 39, of Mableton, Georgia.
- Marion Simpson, 66, of Austell, Georgia.
- Sharon Zellner, 58, of McDonough, Georgia.
- Derrick McDow, 46, of Greensboro, North Carolina.
- Cortim Martin, 31, of Smyrna, Georgia.
The case is being investigated by the Georgia State Attorney General’s Medicaid Fraud Control Unit, FBI, and U.S. Department of Health & Human Services, Office of the Inspector General. Assistant United States Attorney Jeffrey Brown and Special Assistant United States Attorney Robin Daitch are prosecuting this case. Including the enforcement actions, nearly 1,200 individuals have been charged in national takedown operations, which have involved more than $3.4 billion in fraudulent billings.
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.
The court documents for each case will posted online, as they become available, here: http://www.justice.gov/opa/documents-and-resources-june-2016-medicare-fraud-strike-force-press-conference.
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.
- Otis Shannon, 42, of Stone Mountain, Georgia.
Bankcard Fraud Defendants Sentenced to Federal PrisonRead the Press Release
ATLANTA - Stefon D. Clark, Ayanna Johnson, and Quantaves Curry, have been sentenced to three years, five months in federal prison for conspiracy to commit bank fraud in connection with their scheme to deposit fraudulent checks at USAA, the Navy Federal Credit Union, and BB&T.
“These defendants appealed to their victims with promises of ‘fast cash,’” said U.S. Attorney John Horn. “The ease with which they were able to prey on unsuspecting citizens reinforces that bank customers should always carefully guard their bank account information.”
“Bank fraud is not a victimless crime and this case clearly illustrates that those engaging in this type of criminal act will pay a high price for those actions. The FBI will continue to dedicate significant investigative resources toward the protection of the banking industry and those customers in which it serves from those who would prey on them and defraud them,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: the defendants participated in a bank fraud scheme that lasted at least 17 months, compromised more than 240 bank accounts, and resulted in more than $600,000 in losses to three financial institutions. The scheme generally worked as follows: the defendants would post advertisements on social media sites, such as Instagram, seeking individuals who had bank accounts with certain financial institutions and were looking to make “fast cash.”
Upon learning of an interested party, the defendants would obtain the individual’s bank account information—including account number, PIN number, online banking information, and debit card. The defendants then deposited checks that had been stolen or were for closed bank accounts into the compromised bank account, and would withdraw the funds as cash before the financial institution realized that the checks were not valid. In total, the defendants deposited more than one million dollars in invalid checks into the compromised bank accounts and withdrew over $600,000 in cash.
All of the defendants pleaded guilty, with Johnson and Curry pleading guilty to conspiracy to commit bank fraud and Clark pleading guilty to conspiracy to commit bank fraud and seven substantive bank fraud counts. Curry pleaded guilty on July 6, 2015, Johnson pleaded guilty on August 26, 2015, and Clark pleaded guilty on January 20, 2016.
Stefon D. Clark, 27, Ayanna Johnson, 23, and Quantaves Curry, 27, all of Atlanta, Georgia, were sentenced to three years, five months in prison to be followed by supervised release, and ordered to pay restitution in the amount of $613,476.25. Curry and Johnson were sentenced on November 16, 2015 and Clark was sentenced on June 22, 2016.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Christopher J. Huber and former Assistant United States Attorney Jamie Mickelson prosecuted the case.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Dentist Indicted for Medicaid Fraud and Money LaunderingRead the Press Release
ATLANTA – A federal grand jury has indicted Oluwatoyin Solarin for filing false Medicaid claims, money laundering, and seeking to evade banking reporting requirements.
“Medicaid funds should benefit truly deserving members of society,” said U. S. Attorney John Horn. “When medical practitioners allegedly steal Medicaid funds for their own selfish benefit, this diverts scarce resources away from those who need them most.”
“Fighting Medicaid fraud is a top priority for my office,” said Georgia Attorney General Sam Olens. “Those that steal these funds will be prosecuted.”
“The OIG is committed to investigating all allegations of individuals who target the vulnerable and unsuspecting refugee community,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
“The integrity of the medical profession must be protected from people like Dr. Solarin, who allegedly seek to illegally profit by pretending to provide legitimate medical services,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Health care fraud diverts funds from individuals who legitimately need care. Through joint investigations such as this, we intend to continue to aggressively pursue those who steal from taxpayers and receive money that they are not entitled to.”
According to U.S. Attorney Horn, the indictment, a civil forfeiture complaint, and other information presented in court: Solarin was a dentist who ran “Care Dental,” a small dental franchise with offices in Doraville and Duluth, Georgia. Over a period of at least four years, Solarin allegedly submitted numerous false bills to the Georgia Medicaid Program that falsely claimed Solarin had performed dental procedures on Medicaid recipients.
The indictment alleges that on various dates that Solarin claimed she was treating Medicaid recipients, she was not even in the state of Georgia, and was sometimes overseas. Patients were seen at times by another dentist at Care Dental who Solarin knew was not permitted to file Medicaid claims. At other points, Solarin allegedly directed at least one employee to falsify service dates on Medicaid claims so that it would appear dental work was being done on dates that the patient was eligible for Medicaid.
Solarin also allegedly paid individuals to recruit Nepalese refugee children to come to Care Dental for dental services. Parents were not always consulted when these children were seen at Care Dental.
The indictment further alleges that Oluwatoyin Solarin, 45, Atlanta, Georgia, tried to mask financial transactions and also used the fraudulent proceeds for her own benefit. On various occasions during the course of this fraud scheme, Solarin made cash deposits into a bank account directly under $10,000, with the purpose of evading banking reporting requirements. Solarin used the proceeds of this scheme to purchase rental properties throughout the Atlanta area. In a separate civil forfeiture action, the government is seeking to forfeit Solarin’s interest in over a dozen real properties located throughout the state of Georgia.
Members of the public are reminded that the indictment contains only allegations. 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. Department of Health and Human Services, Office of the Inspector General, investigators from the Georgia Medicaid Fraud Control Unit, and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Thomas J. Krepp and Georgia Assistant Attorney General Lyndie M. Freeman 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 Woman Sentenced for Stealing Disabled Son's BenefitsRead the Press Release
ATLANTA - Veronical Joyner has been sentenced to two years in prison following her guilty plea for stealing her disabled son's Supplemental Security Income (“SSI”).
“Joyner lied to get her disabled son’s Social Security benefits,” said U. S. Attorney John Horn. “Those benefits were intended to provide much needed care for him. Instead, Joyner selfishly spent the money on herself.”
“There are few things more egregious than someone that wrongly takes the SSA funds of a disabled child and uses the money for themselves. These investigations demonstrate the seriousness with which Social Security Administration’s Office of the Inspector General (SSA/OIG), responds to allegations of fraud against our agency and its recipients,” said Special Agent-in-Charge Margaret Moore-Jackson, SSA/Office of the Inspector General. “Though SSA has worked diligently over the years to improve the systems to detect the misuse of benefits, SSA/OIG actively pursues the few determined individuals that continue to manipulate the system. We are pleased with the aggressive action by the US Attorney’s Office that resulted in this sentencing.”
According to U.S. Attorney Horn, the charges and other information presented in court: in 2005, the Defendant applied for SSI on her son's behalf. At that time, she swore to the Social Security Administration (“SSA”) that her son lived with her and that she would use the benefits for his care and support. Because of her false statements, she was appointed to be his representative payee, allowing her to receive SSI payments directly. Subsequently, Joyner completed annual reporting forms swearing that her son continued to live with her and that she spent all of the money on him. She often included statements in the reporting forms explaining she was “unable to save” any money for her son because of additional expenses associated with his care. In fact, her son did not live with her and she did not use the money for his care and support. Rather, she spent the money on her own personal expenses. Her fraud continued until March 2014, when the SSA discovered that the child did not, and never had, lived with Joyner.
Veronical Joyner, 43, of Conyers, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, a $100 special assessment, and ordered to pay restitution in the amount of $66,425.20. Joyner was convicted on these charges on March 17, 2016, after she pleaded guilty.
This case was investigated by the Social Security Administration /Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Owner of “the Wholesale Source” Convicted for Selling Unsafe Dietary Supplements OnlineRead the Press Release
ATLANTA - Chenhsin Chan, a/k/a Paul Chan, has been found guilty of 30 felony counts following a three-day jury trial, in connection with his online marketing and sale of dietary supplements containing ephedrine in violation of a federal ban.
“Ephedrine has been banned for use in dietary supplements for over a decade now,” said United States Attorney John Horn. “Chan, however, continued to market and sell unlawful products to online customers, exposing them to an unreasonable risk for illness or injury. He willfully broke the law, and his conviction should send a message to those who seek to endanger the online marketplace with unsafe products.”
“This verdict emphasizes that criminals selling unsafe, adulterated dietary supplements to American consumers will be held accountable for their actions,” said Robert J. West, Special Agent in Charge, United States Food and Drug Administration (“FDA”) Office of Criminal Investigations’ Miami Field Office. “The FDA will continue to pursue and bring to justice those who place profits above the public health.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Paul Chan owned and operated The Wholesale Source, LLC, a company that marketed and sold dietary supplements, primarily through affiliated websites including www.thatswholesale.com and www.ephedrawholesale.com. From at least July 2005 through August 2012, Chan marketed and sold dietary supplements on his websites that contained ephedrine alkaloids. In April 2004, the FDA published a final rule declaring dietary supplements containing ephedrine alkaloids to be adulterated because they present an unreasonable risk of illness or injury. Chan was warned by FDA investigators and others that it was illegal to sell dietary supplements containing ephedrine alkaloids, but he continued to do so.
Chan’s websites made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by the FDA for treatment of any disease, and that ephedrine has “never been illegal.” The jury found that these false and misleading claims were designed to lure customers into believing that it was legal to purchase adulterated dietary supplements containing ephedrine, when it was not. Chan sold over $4.5 million in dietary supplements with ephedrine alkaloids, including to customers in the Northern District of Georgia.
Chenhsin Chan, a/k/a Paul Chan, 44, of Elmhurst, New York, was charged by a federal grand jury on May 29, 2014, with ten counts of mail fraud, ten counts of introducing adulterated food (namely, dietary supplements containing ephedrine alkaloids) into interstate commerce, five counts of knowingly distributing a listed chemical (namely, ephedrine) without obtaining the required registration, and five counts of money laundering. The jury rendered a guilty verdict on all thirty counts of the indictment.
In addition to its guilty verdict on the charges, the jury also criminally forfeited assets the defendant purchased with proceeds from the crimes, including real property in New York that had been purchased for $950,000, a Mercedes Benz purchased for over $50,000, and a Lamborghini Gallardo purchased for approximately $117,000, as well as over $666,000 in proceeds from the crimes.
Sentencing for Chan has not yet been scheduled.
This case is being investigated by the FDA’s Office of Criminal Investigations. The Drug Enforcement Agency provided valuable assistance.
Assistant United States Attorneys Steven D. Grimberg and Kelly K. Connors 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.
Loganville Man who Participated in “Ethnic Cleansing” in the 1990’s as Bosnian Prison Guard Convicted of Immigration FraudRead the Press Release
ATLANTA - Mladen Mitrovic, who served in the Bosnian Serb Army and worked as a prison guard in a camp that was part of the infamous “ethnic cleansing” that occurred during the Bosnian War, was found guilty of obtaining his American citizenship by providing false and fraudulent information on his naturalization application.
“Mitrovic thought that he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U. S. Attorney John Horn. “A jury saw through his deceit and he will now be held accountable for failing to be truthful during the naturalization process.”
“This case demonstrates the Justice Department’s continued commitment to denying safe haven to human rights violators,” said Assistant Attorney General Leslie Caldwell. “No matter how long it takes, we will pursue justice, protect the integrity of our immigration system, and seek accountability for crimes.”
“Human rights violators who think they can conceal their past to escape accountability in the United States are sorely mistaken,” said Nick S. Annan, special agent in charge of ICE Homeland Security Investigations Atlanta. “This individual tried to cheat our nation's immigration system by lying about his actions during the Bosnian Civil War. This result shows that HSI is firmly committed to investigating and identifying criminals who seek to exploit our nation's welcoming policy toward legitimate war refugees.”
According to U.S. Attorney Horn, the charges and other information presented in court: In 1996, Mitrovic was permitted to immigrate to the United States based on his statements in his refugee application that he feared persecution if he remained in Bosnia. In 2002, he naturalized as an American citizen. The evidence presented at trial also demonstrated that on his naturalization application, Mitrovic stated, among other things, that he had never persecuted anyone because of their race, religion or membership in a social group; he had never committed a criminal offense for which he had not been arrested; and he had never provided any false or misleading information to obtain an immigration benefit, such as refugee status.
In reality, as the trial evidence established, during the Bosnian War, Mitrovic had been a guard in one of the prison camps that the Bosnian Serb Army (VRS) opened in May 1992 to “ethnically cleanse” northwest Bosnia of non-Serb minorities. At trial, one victim testified that Mitrovic had used a sharp military knife to carve a Christian cross into his chest, saying from that moment on, he “was going to be a Serb.” Others testified that Mitrovic and other soldiers beat non-Serb prisoners into unconsciousness or threatened to kill them with automatic rifles. Bosnian government documents also showed that in February 1996, Mitrovic applied for and was later awarded veterans’ benefits for his later military service in the VRS during the Bosnian War. Trial evidence showed that Mitrovic failed to disclose any of this conduct or military service on his refugee and naturalization applications.
Sentencing for Mladen Mitrovic, 54, of Loganville, Georgia, is scheduled for August 25, 2016, at 10:30 a.m. before U.S. District Judge Amy Totenberg.
This case is being investigated by the Department of Homeland Security.
Assistant United States Attorneys William Traynor and Jessica Morris, and Christina Giffin, Assistant Deputy Chief of the Human Rights and Special Prosecutions Section of the Justice Department are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Man Convicted of Immigration Fraud for Failing to Disclose Role in Bosnian Prison CampRead the Press Release
Mladen Mitrovic, 54, of Loganville, Georgia, was found guilty by a federal jury of obtaining his U.S. citizenship by providing false and fraudulent information on his naturalization application, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Horn of the Northern District of Georgia and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Atlanta.
Among other things, Mitrovic, who is originally from Bosnia and Herzegovina, failed to disclose his role as a prison guard in a detention camp, which was part of the “ethnic cleansing” that occurred during the Bosnian War from 1992 through 1995. Mitrovic was convicted yesterday and his sentencing is scheduled for Aug. 25, 2016, before U.S. District Judge Amy Totenberg of the Northern District of Georgia.
“This case demonstrates the Justice Department’s continued commitment to denying safe haven to human rights violators,” said Assistant Attorney General Caldwell. “No matter how long it takes, we will pursue justice, protect the integrity of our immigration system and seek accountability for crimes.”
“Mitrovic thought that he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U.S. Attorney Horn. “A jury saw through his deceit and he will now be held accountable for failing to be truthful during the naturalization process.”
“Human rights violators who think they can conceal their past to escape accountability in the United States are sorely mistaken,” said Special Agent in Charge Annan. “This individual tried to cheat our nation's immigration system by lying about his actions during the Bosnian Civil War. This result shows that HSI is firmly committed to investigating and identifying criminals who seek to exploit our nation’s welcoming policy toward legitimate war refugees.”
According to evidence presented at trial, in 1996, Mitrovic was permitted to immigrate to the United States based on his statements in his refugee application that he feared persecution if he remained in Bosnia. In 2002, he naturalized as an American citizen. The evidence presented at trial also demonstrated that on his naturalization application, Mitrovic stated, among other things, that he had never persecuted anyone because of their race, religion or membership in a social group; he had never committed a criminal offense for which he had not been arrested; and he had never provided any false or misleading information to obtain an immigration benefit, such as refugee status.
In reality, as the trial evidence established, during the Bosnian War, Mitrovic had been a guard in one of the prison camps that the Bosnian Serb Army (VRS) opened in May 1992 to “ethnically cleanse” northwest Bosnia of non-Serb minorities. At trial, one victim testified that Mitrovic had used a sharp military knife to carve a Christian cross into his chest, saying from that moment on, he “was going to be a Serb.” Others testified that Mitrovic and other soldiers beat non-Serb prisoners into unconsciousness or threatened to kill them with automatic rifles. Bosnian government documents also showed that in February 1996, Mitrovic applied for and was later awarded veterans’ benefits for his later military service in the VRS during the Bosnian War. Trial evidence showed that Mitrovic failed to disclose any of this conduct or military service on his refugee and naturalization applications.
HSI investigated this case. Assistant Deputy Chief Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys William Traynor and Jessica Morris of the Northern District of Georgia are prosecuting the case.
Former CEO of Summit Wealth Management Pleads Guilty to Orchestrating a Multi-Million Dollar Fraud SchemeRead the Press Release
ATLANTA – Angelo Alleca, the former CEO of Atlanta, Georgia, based Summit Wealth Management, has pleaded guilty to conspiring with a former business partner to defraud investors of over $35 million dollars. Alleca marketed several funds that were supposed to invest in certain assets/investments, such as hedge funds managed by a professional money manager or mortgage debt. Instead he used the money to pay redemptions to earlier investors, to acquire and operate several businesses, and to pay personal expenses.
“Instead of fulfilling promises of investments, investors were largely swindled out of their money in a Ponzi scheme which directly enriched Alleca,” said U.S. Attorney John Horn. “This case serves as another reminder that investors need to be careful, and do their research when deciding who to trust with their hard-earned money.”
“The guilty plea of Mr. Alleca is the culmination of a lengthy and extensive federal investigation examining the allegations of many years of financial fraud which victimized so many investors out of millions of dollars. It is the FBI’s hope that today’s guilty plea will provide some sense of relief to those victims that have suffered so much by Mr. Alleca’s greed driven criminal conduct,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2012, Alleca acted as the President and Chief Operating Officer of Summit Wealth Management, an investment adviser headquartered in Atlanta, Georgia. During that time, Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers.
Instead of investing the money as advertised, Alleca allegedly lost a substantial portion of the funds through securities trading. In addition, Alleca improperly used the funds to operate Summit Wealth Management, make interest payments and redemptions to earlier investors, and to pay personal expenses. During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds.
In 1997 Alleca and Mark Morrow, a co-defendant in the case, and Alleca’s former business partner, formed Summit Capital Trading, a registered investment advisor and broker dealer in New York and Ohio. Alleca led the Buffalo, New York office and Morrow ran the Cincinnati and Cleveland, Ohio offices.
In 2007, Morrow established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan.
Between 2007 and 2012, Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta, and throughout the country. Detroit Memorial Partners offered documents which contained material misrepresentations, including that the notes would be secured by real property. In fact, no security interest was ever recorded with respect to the notes. Moreover, shortly after receiving the note proceeds, Alleca and Morrow, diverted funds for improper purposes including, making interest payments and redemptions to investors in Summit Wealth Management funds and personal expenses. The indictment alleges that as a result of their fraud schemes, over 300 investors lost over $35 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.
Sentencing for Angelo Alleca, 46, of Buffalo, New York, is scheduled for August 4, 2016 at 2:00 p.m., before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey Brown 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
Man Sentenced to over 13 Years in Prison for being a Career Offender in Possession of a Machine GunRead the Press Release
ATLANTA - Franklin Latimore has been sentenced to thirteen years, three months in federal prison for possessing an unregistered machine gun while being a felon. Latimore is considered a “career offender” under federal law because he has two prior felony convictions for either a crime of violence or a drug trafficking offense.
“Machine guns are an especially dangerous category of firearms,” said U. S. Attorney John Horn. “When these weapons are possessed by individuals with serious criminal histories, the threat that machine guns pose increases exponentially.”
“The law abiding citizens of this community are safer because of today’s sentence which will ensure the incarceration of a dangerous criminal and contribute to the restoration of order and peace to this area,” said ATF Special Agent in Charge Carl Walker.
According to U.S. Attorney Horn, the charges and other information presented in court: Latimore first came to the attention of police after a court-authorized wiretap intercepted a conversation concerning the sale of a large amount of cocaine. Police did not know who the buyer was going to be, but knew the location and time of the supposed deal. On that date and time, police made a lawful traffic stop of a vehicle that Latimore was driving near the drug deal and found over $100,000 in the trunk.
A few days later, a search warrant was served on Latimore’s residence and police found the loaded machine gun, a second firearm, a kilogram press typically used by drug dealers to create brick-shaped blocks of drugs, and material commonly used to package drugs. Latimore’s criminal history is so severe that special enhanced sentencing applies to him.
Franklin Latimore, 60, of Atlanta, Georgia, was sentenced by United States District Judge Timothy C. Batten, Sr., to thirteen years, three months in prison to be followed by six years of supervised release, and ordered to forfeit all firearms. Latimore has been convicted on these charges on December 15, 2015, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Suzette A. Smikle, Michael Brown, and Kim S. Dammers 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.