Northern District of Georgia
Press releases recorded for this federal judicial district.
Computer Hacker Extradited from FranceRead the Press Release
ATLANTA - Eric Donys Simeu, a/k/a Martell Collins, a citizen of Cameroon, has been arraigned on federal charges of conspiracy, wire fraud, computer fraud and access device fraud. Simeu was indicted by a federal grand jury in Atlanta on September 23, 2014.
“Cybercrime is borderless, but increasingly, so too are our law enforcement capabilities,” said U.S. Attorney John Horn. “With the cooperation of France and our international law enforcement partners, we were able to bring to justice a wanted fugitive who was allegedly committing cyber fraud that affected U.S. companies from the streets of West Africa.”
“Those who target US companies and citizens through cyber attacks and spear phishing emails can no longer be confident they will remain anonymous and be protected by geographic boundaries. The arrest and extradition of Eric Simeu is the result of a multi-national effort led by the FBI, which demonstrates the benefits of global cooperation among international law enforcement and the private sector. This arrest and extradition serves a strong deterrent to those targeting the computer networks of US companies and US citizens. It should also serve as a reminder to the public to be vigilant and aware they are frequently targeted through fraudulent emails seeking to steal their personal information,” 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: Eric Simeu is allegedly responsible for a series of “phishing campaigns” which targeted customers of Global Distribution System (“GDS”) companies from approximately July 2011 to September 2014.
A “phishing campaign” is the act of sending targeted emails to individuals for the purpose of acquiring usernames and passwords. The emails masquerade as an official communication from a legitimate company to gain the trust of the recipient and deceive them into providing protected information. GDS companies provide travel booking services to travel agencies and travel-related websites. Airline tickets that are issued from sources other than air carriers themselves are generally processed through a GDS company. Customers of GDS companies, such as representatives from a travel agency or travel-related website, are issued unique login credentials that are utilized to authenticate their identity and facilitate the issuance of airline tickets on GDS servers.
In this instance, Simeu’s alleged phishing campaigns targeted customers of two GDS Companies – one with its principal U.S. operations in Atlanta, Georgia, and another headquartered in Southlake, Texas. Simeu allegedly caused phishing emails to be delivered to customers of these GDS companies for the purpose of obtaining and stealing their unique log-in credentials. Simeu and others allegedly used the stolen log-in credentials to access the servers of the two GDS companies and cause the issuance of fraudulent airline tickets. Simeu and others then allegedly sold these airline tickets to customers, mostly in West Africa, for fractions of the actual cost, or used them for personal travel. The value of the fraudulently issued airline tickets exceeded $2 million.
On September 3, 2014, Simeu was arrested by French law enforcement pursuant to a federal criminal complaint issued out of the Northern District of Georgia. At the time of his arrest, Simeu was traveling from Casablanca, Morocco, to Paris, France, on an alleged fraudulently issued airline ticket in the name of his alias, Martell Collins, utilizing a fraudulent United Kingdom passport under the same name.
Eric Donys Simeu, a/k/a Martell Collins, 32, a citizen of Cameroon, was arraigned before United States Magistrate Judge Russell G. Vineyard. A federal grand jury in the Northern District of Georgia returned an indictment against Simeu on September 23, 2014. Simeu has been in French custody since his arrest in September 2014, pending completion of extradition proceedings.
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 State Department Diplomatic Security Service.
Assistant United States Attorney Steven D Grimberg and Trial Attorney Peter Roman with the U.S. Department of Justice Computer Crime and Intellectual Property Section are prosecuting the case. The Justice Department’s Office of International Affairs also provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Woman Charged with Illegally Administering Silicone InjectionsRead the Press Release
ATLANTA - Deanna M. Roberts has been arrested on charges that while falsely claiming to be a licensed medical practitioner, she illegally transported liquid silicone from Florida to Atlanta and that she caused the death of another person by injecting the liquid silicone directly into the victim's buttocks.
“Roberts allegedly caused the death of another person by injecting her with silicone after falsely claiming she was a medical professional,” said U. S. Attorney John Horn. “The public should be wary of individuals who use substances like silicone in ways that are not approved by the FDA, or that are administered by persons who are not properly trained or licensed.”
“The FDA protects the public’s health by ensuring, among other things, that medical devices are safe and effective for their intended uses,” said Robert J. West, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We are fully committed to bringing to justice those who subvert FDA’s requirements and place unsuspecting American consumers at risk of serious harm by using unapproved and unsafe devices.”
“It is always a tragedy when someone loses their life due to the reckless negligence of another. This death shows why there is a need for FDA oversight and highlights the dangers when the system is illegally circumvented. We are thankful for the successful indictment of Deanna Roberts and pray that other lives can be saved by removing her ability to perform this dangerous activity,” Chief John F. King, Doraville Police Department.
“The underground operation of illegal injections has become more common and has threatened the health of victims,” said Atlanta Police Chief George N. Turner. “We will continue to work with our federal partners to combat this crime and expose perpetrators who risk the health of victims, for the sake of making a quick profit.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: liquid silicone is strictly regulated by the Food and Drug Administration (FDA) and may be legally injected directly into the human body only as a treatment for certain eye conditions. In April, 2004, Roberts began ordering liquid silicone from a business in Arizona. Before she was allowed to buy the silicone, however, she was required to certify that it was not intended to be injected into humans. Roberts falsely swore that she did not intend to inject the silicone into humans. Instead, she claimed that she intended to supply the silicone to a customer for use in lubricating medical equipment. Between April 2004 and December 2015, Roberts purchased approximately 178 gallons of liquid silicone. Roberts then allegedly transported the liquid silicone to the Atlanta area and injected it into the hips, buttocks, and other body parts of her customers. Roberts falsely claimed to her victims that she was a licensed medical practitioner.
On November 16, 2015, Roberts allegedly injected liquid silicone into the buttocks of a victim identified as L.H. in the indictment. The indictment alleges that in doing so, Roberts caused the death of L.H. The indictment also alleges that Roberts injected another person with liquid silicone on the same date and that Roberts injected two others in October and November 2014. These individuals, however, did not die from the injections.Deanna M. Roberts, 46, of Sanford, Florida, was arrested on May 17, 2016, and made her initial appearance on these charges in federal court in Orlando, Florida.
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 Food and Drug Administration, Office of Criminal Investigations, the Doraville Police Department, and the Atlanta Police Department.
Assistant United States Attorney William L. McKinnon, Jr. and Special Assistant United States Attorney Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office and Justice Department Reach an Extension Agreement to Improve Georgia’s Developmental Disability and Mental Health SystemRead the Press Release
ATLANTA – The United States Attorney’s Office today announced that it has entered into an extension agreement with the state of Georgia to improve the quality and availability of services for people with developmental disabilities living in the community and to provide supported housing to individuals with significant mental illness who need it.
“During the past five years, the State of Georgia has significantly changed the way it provides services for people with disabilities,” said John Horn, U.S. Attorney for the Northern District of Georgia. “Recognizing that we have more work to do in this area, I am encouraged by Georgia’s willingness to continue to partner with the Department of Justice and stakeholders to improve the quality of services for people with developmental disabilities and significant mental illness in our community.”
“By strengthening the services provided by Georgia’s mental health system, this agreement will make a difference in the lives of Georgians with developmental disabilities or mental illness who wish to build lives in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We look forward to working with Georgia to deliver on the promise of community integration enshrined in the ADA.”
The extension agreement builds upon a 2010 settlement agreement resolving a lawsuit brought by the department under the Americans with Disabilities Act and the Supreme Court’s Olmstead decision. The case involves Georgia’s provision of community services for individuals with mental illness and developmental disabilities. The department found in 2009 that Georgia was forcing people with disabilities into state hospitals instead of providing community-based services, in violation of the ADA’s integration requirements. In January, the department alleged that Georgia was not in compliance with the 2010 agreement, both regarding helping people move from institutions into their communities and regarding quality and oversight of community-based services. In light of the agreement and the significant commitments Georgia has made in it, the department has agreed to withdraw its motion to enforce that earlier agreement.
The agreement will resolve the seven areas of alleged deficiency identified by the department in its January court filing. Under the agreement, Georgia will help people with developmental disabilities move from its state hospitals to integrated settings, consistent with their needs and preferences; will identify and address each individual’s needs in the community prior to discharge; and will monitor services and track outcomes for people after their discharge. For individuals who have moved from the state hospitals to the community, Georgia will monitor their health and wellbeing to ensure that emerging needs are met in a timely fashion. The extension agreement also calls for creation of at least 675 new Medicaid home- and community-based waiver slots as alternatives to placement in a facility. Georgia will provide clinical oversight and enhanced support coordination for individuals with developmental disabilities served by the state.
The extension agreement enhances quality oversight, requiring specific actions in the event of serious incidents and corrective actions to address deficiencies. The state will collect and review data to identify any trends and develop quality improvement initiatives. In addition, Georgia will require providers to develop risk management and quality improvement programs.
Under the agreement, at least 600 additional individuals with mental illness will receive bridge funding and at least 633 will receive housing vouchers under the Georgia housing voucher program. By June 30, 2018, the state is to have capacity to provide supported housing to any of the people with mental illness covered by the settlement agreement that need it. The extension agreement requires a referral procedure to supported housing for people who need it leaving the state hospitals, jails, prisons, emergency rooms or homeless shelters.
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.
Assistant U.S. Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Reaches Extension Agreement to Improve Georgia’s Developmental Disability and Mental Health SystemRead the Press Release
The Justice Department today announced that it has entered into an extension agreement with the state of Georgia to improve the quality and availability of services for people with developmental disabilities living in the community and to provide supported housing to individuals with significant mental illness who need it.
The extension agreement builds upon a 2010 settlement agreement resolving a lawsuit brought by the department under the Americans with Disabilities Act and the Supreme Court’s Olmstead decision. The case involves Georgia’s provision of community services for individuals with mental illness and developmental disabilities. The department found in 2009 that Georgia was forcing people with disabilities into state hospitals instead of providing community-based services, in violation of the ADA’s integration requirements. In January, the department alleged that Georgia was not in compliance with the 2010 agreement, both regarding helping people move from institutions into their communities and regarding quality and oversight of community-based services. In light of the agreement and the significant commitments Georgia has made in it, the department has agreed to withdraw its motion to enforce that earlier agreement.
The agreement will resolve the seven areas of alleged deficiency identified by the department in its January court filing. Under the agreement, Georgia will help people with developmental disabilities move from its state hospitals to integrated settings, consistent with their needs and preferences; will identify and address each individual’s needs in the community prior to discharge; and will monitor services and track outcomes for people after their discharge. For individuals who have moved from the state hospitals to the community, Georgia will monitor their health and wellbeing to ensure that emerging needs are met in a timely fashion. The extension agreement also calls for creation of at least 675 new Medicaid home- and community-based waiver slots as alternatives to placement in a facility. Georgia will provide clinical oversight and enhanced support coordination for individuals with developmental disabilities served by the state.
The extension agreement enhances quality oversight, requiring specific actions in the event of serious incidents and corrective actions to address deficiencies. The state will collect and review data to identify any trends and develop quality improvement initiatives. In addition, Georgia will require providers to develop risk management and quality improvement programs.
Under the agreement, at least 600 additional individuals with mental illness will receive bridge funding and at least 633 will receive housing vouchers under the Georgia housing voucher program. By June 30, 2018, the state is to have capacity to provide supported housing to any of the people with mental illness covered by the settlement agreement that need it. The extension agreement requires a referral procedure to supported housing for people who need it leaving the state hospitals, jails, prisons, emergency rooms or homeless shelters.
“By strengthening the services provided by Georgia’s mental health system, this agreement will make a difference in the lives of Georgians with developmental disabilities or mental illness who wish to build lives in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We look forward to working with Georgia to deliver on the promise of community integration enshrined in the ADA.”
“During the past five years, the State of Georgia has significantly changed the way it provides services for people with disabilities,” said U.S Attorney John A. Horn of the Northern District of Georgia. “Recognizing that we have more work to do in this area, I am encouraged by Georgia’s willingness to continue to partner with the Department of Justice and stakeholders to improve the quality of services for people with developmental disabilities and significant mental illness in our community.”
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.
The agreement was secured due to the efforts of Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Northern District of Georgia.
Georgia ADA Extension Agreement
Former Clayton County Police Officer Charged with Soliciting BribesRead the Press Release
ATLANTA – Former Clayton County Police Department Officer Grant Kidd, Jr., has been arraigned after being charged for soliciting a bribe to dismiss pending criminal charges against two Clayton County defendants.
“A law enforcement officer who is allegedly looking to line his own pockets by obstructing justice undermines the dedication and hard work of his fellow officers as well as the community’s trust and respect for its police officers,” said U. S. Attorney John Horn.
“When a law enforcement officer strays from his sworn oath, as is alleged in our investigation and in the resulting federal grand jury indictment, it is extremely disheartening to us and others who work so hard within the criminal justice system and do so with integrity and commitment. Due to the vast potential harm that these cases can cause, the FBI will continue to dedicate significant resources toward investigating such matters involving allegations of public corruption involving police officers,” 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: Kidd was employed by the Clayton County Police Department (CCPD) as a patrol officer. In July 2015, Kidd allegedly used a friend to contact two Clayton County criminal defendants who were charged with theft and forgery. Kidd arranged to meet with the two defendants in a parking lot of a shopping center shortly after they were released from the Clayton County Jail. During a recorded conversation, Kidd allegedly assured the defendants that their charges would be “administratively dismissed” if they paid him $1,500. Kidd even offered a money back guarantee to the defendants if their criminal charges were not dismissed. After these allegations surfaced, Kidd resigned from the CCPD.
Grant Kidd, Jr., 52, of Hampton, Georgia, was indicted by a federal grand jury May 11, 2016. He was arraigned before United States Magistrate Judge Russell G. Vineyard.
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 Brent Alan Gray 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 Owner Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
ATLANTA - Sholondrell Denise Taylor has been sentenced to federal prison for the theft of $1.9 million in a food stamp fraud scheme. Her Atlanta stores allowed customers to exchange their food stamps for cash, and purchased Women, Infants, and Children (WIC) vouchers at less than face value, eventually redeeming them with the United States Department of Agriculture (USDA) at full price.
“Taylor cost taxpayers hundreds of thousands of dollars and diverted scarce resources intended to assist those most in need,” said U.S. Attorney John Horn. “Store owners who provide an outlet for people to commit fraud, while taking profits for themselves, should expect to be caught and prosecuted.”
“The prosecution of this individual should send a strong message to those individuals who defraud governmental programs that the USDA-OIG will continue to aggressively investigate individuals and businesses that take advantage of our SNAP and WIC programs. Sholondrell Taylor used her businesses for fraudulent purposes and profited immensely in doing so. The victims of these types of crimes are the children that were deprived of the food benefits that they were entitled to. We would like to thank the U.S. Attorney’s Office, the Georgia Department of Public Health and the Georgia Department of Human Services, Office of Inspector General, for assisting us with this investigation” says Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through March 2011, Taylor operated Dandes Food Center, LLC, in Forest Park, Georgia, and Shop Rite Food Mart, LLC, located in Atlanta, Georgia, where she unlawfully allowed customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar. Taylor also purchased WIC vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the USDA.
Taylor set the rates of redemption, and instructed her employees to keep detailed ledgers of all transactions to ensure that they were not stealing from her. She trained her employees how to determine the available balances on food stamp cards; and required employees to obtain WIC voucher codes and usable voucher dates before purchasing the vouchers. Many of the customers who sold their WIC vouchers and food stamp benefits never visited Dandes or Shop Rite. Taylor employed a driver who travelled throughout metropolitan Atlanta to retrieve WIC vouchers and food stamp cards and dispense illegal payments.
This case came to the attention of federal authorities as a result of an investigation involving Georgia Department of Human Services employees. In 2011, Gene Tell and Kristy Williams were charged with conspiracy and mail fraud for their roles in the fraudulent creation and distribution of thousands of food stamp cards. Many of the fraudulent cards were illegally redeemed at Dandes Food Center operated by Taylor.
Sholondrell Denise Taylor, 47, of Ellenwood, Georgia, has been sentenced to four years, six months in prison to be followed by three years of supervised release, ordered to pay restitution in the amount of $1.9 million, and a $100 Special Assessment. Taylor was convicted on these charges on February 29, 2016, after she pleaded guilty.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General.
Assistant United States Attorney Loranzo M. Fleming prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendants Sentenced in Million-Dollar Tax Fraud SchemeRead the Press Release
ATLANTA – Four defendants have been sentenced to federal prison for running a tax fraud scheme that involved using an ancestry/genealogy website to find personal information of victims and then file phony tax returns in their names.
“Identity thieves continue to find innovative ways to exploit the many beneficial aspects of the Internet to harvest information and steal money,” said U.S. Attorney John A. Horn. “These defendants were not seeking ancestors. Instead, they collected the Social Security Numbers of deceased people and filed over $1 million in bogus tax returns.”
“Sophisticated stolen identity refund fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Shawuana Sanders and her co-conspirators demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. We, along with the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”
According to U.S. Attorney Horn, the charges and other information presented in court: Four defendants conspired together in a million-dollar tax fraud and identity theft scheme. Defendant Shawuana Sanders orchestrated the scheme. She and defendant Monica Person obtained personal identity information, primarily from an ancestry/genealogy website, but also from other sources. They then filed fraudulent tax returns with the IRS using the names and Social Security numbers found on the website. Many of the victims were deceased at the time of filing.
The fraudulent tax returns claimed false income amounts and dependent information, including dependents whose names were also taken from the ancestry/genealogy website. Sanders and Person had the tax refund checks mailed to various addresses associated with them. Sanders filed over $1.1 million in fraudulent tax returns, and Person filed over $139,000 in fraudulent tax returns, as part of the scheme.
Defendant Tania Zelada worked as a supervisory teller at a bank in Columbus, Georgia. At Sanders’ direction, Zelada cashed 127 fraudulent checks from the scheme worth over $463,000. Zelada received several hundred dollars for each check she cashed.
Sanders’s ex-husband, Jason Sanders, was also involved in the scheme. He mailed some of the fraudulent returns to the IRS, and on occasion shuttled cash and checks between Sanders and Zelada. In addition, before the ancestry/genealogy website scheme, while working as a correctional officer at a jail in Muscogee County, Jason Sanders stole the personal information of inmates and gave it to Shawuana Sanders for her to use in filing fraudulent tax returns in 2008.
United States District Judge Timothy C. Batten, Sr. sentenced the defendants as follows:
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On May 12, 2016, Shawuana N. Sanders, 40, of Kennesaw, Georgia, was sentenced to five years, two months in prison, to be followed by three years of supervised release, and ordered to pay $845,809.76 in restitution.Shawuana Sanders was convicted of conspiracy and aggravated identity in February 2016 after pleading guilty.
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On May 12, 2016, Monica L. Person, 37, of Columbus, Georgia, was sentenced to two years, three months in prison, to be followed by three years of supervised release, and ordered to pay $87,112.65 in restitution.Person was convicted of conspiracy and aggravated identity theft in January 2016 after pleading guilty.
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On April 14, 2016, Tania M. Zelada, 26, of Fortson, Georgia, was sentenced to one year, three months in prison, to be followed by three years of supervised release, and ordered to pay $463,113.02 in restitution.Zelada was convicted of conspiracy in August 2015 after pleading guilty.
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On March 28, 2016, Jason L. Sanders, 33, of Columbus, Georgia, was sentenced to one year, six months in prison, to be followed by three years of supervised release, and ordered to pay $845,809.76 in restitution.Jason Sanders was convicted of conspiracy in August 2015 after pleading guilty.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Stephen H. McClain 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 IRS Revenue Agent Pleads Guilty to Aggravated Identity Theft of Taxpayer InformationRead the Press Release
ATLANTA - Creshika C. Wise, a former Internal Revenue Service (IRS) Revenue Agent who impersonated a taxpayer in order to steal over $470,000, has pleaded guilty to a charge of aggravated identity theft.
It is outrageous for an IRS employee to use her position to steal a citizen’s identity so she could steal taxpayer funds,” said U.S. Attorney John Horn. “Citizens count on the honesty and integrity of thousands of IRS employees every day to safeguard their private information, and breaches of this trust will be prosecuted and punished.”
“As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: the Treasury Inspector General for Tax Administration (TIGTA) will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the public trust,” said to J. Russell George, Inspector General, TIGTA.
According to U.S. Attorney Horn, the charges and other information presented in court: Creshika Wise worked for the IRS from 2008 until the spring of 2016, when she resigned after her arrest in this case. While with the IRS, she served as a revenue agent. In August 2013, Wise was assigned to audit the 2011 tax return of two married taxpayers who had significantly underpaid their 2011 federal income tax. In September 2013, Wise and the taxpayers’ accountant met, and agreed that the taxpayers owed $758,846, plus interest, to the IRS. Wise came up with a plan to steal most or all of that money.
The day after she met with the accountant, Wise placed in the IRS file for the audit a fictitious IRS Form 4549, “Income Tax Examination Changes” for the taxpayers. This form is used by revenue agents to document changes to tax liability arrived at through the audits they conduct. Wise falsified the form by dramatically understating the tax due to the IRS, reducing it from $758,846 to $282,363, and also by forging the accountant’s signature.
A few days later, Wise opened up a new checking account, in the name “Creshika C. Wise sole prop d/b/a U.S. Treasury and Accounting Service.” In October, 2013, Wise emailed the taxpayer from her official IRS email account, and asked him to wire the funds the taxpayers owed the IRS to her newly opened bank account. Wise’s email provided the routing and account number for the account, which she described as belonging to “U.S. Treasury and Accounting Services.” Wise’s email did not disclose to the taxpayer that she personally, rather than the IRS, was actually the owner of the account.
The taxpayer never wired the funds as requested by Wise, as he had already mailed a check to the IRS for the full amount due. Wise received the check, and processed it for credit to the taxpayers’ account. However, Wise did not abandon her scheme.
Wise knew she had altered the IRS’s records to reflect a tax due of $282,363, rather than the agreed upon $758,846. She also knew that when the IRS processed the check, the system would generate a refund check for any excess – here, over $470,000 – and mail it to the taxpayers’ address of record. Wise turned her attention to getting the large check she knew would be coming to the taxpayers, and preparing to negotiate it herself.
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On 10/21/2013, Wise opened a new UPS mailbox in her own name at a UPS Store location. Soon afterward, Wise caused the taxpayers’ address to be changed in the IRS computer system from their correct address to that of Wise’s newly opened UPS mailbox, causing IRS correspondence to the taxpayers to be misdirected.
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On 12/2/2013, impersonating the taxpayers, Wise filled out an online application for a new joint checking account in their names with a local bank. On 12/10/13, Wise faxed the signature card, which she had created by forging the signatures of the taxpayers and using the husband’s social security number, to the bank.
- On 12/20/2013, Wise called the bank to inquire whether the account was ready to be used. This call was recorded and preserved by the bank. In the call, Wise identified herself by name as one of the taxpayers, the wife, and provided the taxpayer’s correct social security number to confirm that identity. Posing as the taxpayer, Wise said that it was important the account be opened quickly, because she was expecting a large check from the IRS.
Wise’s scheme to take most or all of the money owed by the taxpayers to the IRS was unsuccessful, in that neither the taxpayers nor the IRS suffered any monetary loss.
Sentencing for Creshika C. Wise, 31, of Fairburn, Georgia, is scheduled for August 3, 2016, at 2:00 p.m. before U.S. District Judge Amy Totenberg.
This case is being investigated by the Treasury Inspector General for Tax Administration.
Assistant United States Attorney Alana R. Black is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Business Owner Indicted for Failing to Establish an Effective Anti-Money Laundering ProgramRead the Press Release
ATLANTA – A federal grand jury has indicted Daniel Barrs for willfully failing to follow anti-money laundering requirements under the Bank Secrecy Act as well as conspiracy to commit money laundering for his role in operating a money transmitting business that processed hundreds of millions of dollars’ worth of financial transactions for entities located around the world.
“Our country requires financial institutions to guard against money laundering, terrorist financing, and financial fraud,” said U. S. Attorney John Horn. “Individuals in the financial services industry who willfully avoid complying with the Bank Secrecy Act are not only engaging in highly risky behavior that facilitates dangerous activities, they also risk criminal prosecution.”
“This indictment is a culmination of many months of intense investigative efforts and document review and the matter now moves into federal court. The federal Bank Secrecy Act is in place for very good reason and the FBI will continue to provide investigative resources toward its enforcement,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This joint effort continues to demonstrate our efforts to ensure that the financial services industry will not be used to launder money and will be operated in a fair and honest manner to promote the public interest,” stated Veronica Hyman-Pillot Special Agent in Charge, IRS Criminal Investigation. “Among the goals of this effort are: protecting the integrity and stability of the international financial system, cutting off the resources available to criminals, and making it more difficult for those engaged in crime to profit from their criminal activities.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Barrs ran a money transmitting business located in the Atlanta area named “Global Transaction Services” (GTS) along with several interrelated entities that transmitted hundreds of millions of dollars’ worth of wires on behalf of customers located around the world, many of whom Barrs knew were not able to obtain access to U.S. banking on their own and were sending or receiving wires from countries that posed money laundering concerns. GTS was marketed as a company that could minimize the costs associated with transactions from entities located in one country and customers in other countries. The Bank Secrecy Act requires money transmitters like GTS to guard against money laundering and illegal activity by developing, implementing, and maintaining an effective anti-money laundering program. Money transmitters that identify certain types of suspicious financial transactions are also typically required to file a “Suspicious Activity Report” (SAR) with the U.S. Department of Treasury, Financial Crimes Enforcement Network.
The indictment alleges that Barrs took steps that ensured that GTS did not have an effective anti-money laundering program even though he knew it was critical that the company maintained one. Barrs hired individuals with no experience with the BSA - such as his teenage grandson - to be the compliance officers, failed to train GTS employees to comply with the BSA, and ignored warnings from independent examiners that GTS’s compliance program was inefficient. He also took various steps to help GTS obtain bank accounts even though domestic financial institutions repeatedly closed GTS accounts.
At one point, Barrs became a controlling owner over a community bank based in Braselton, Georgia, so that GTS could process millions of dollars’ worth of international wires, even though federal regulators opposed his efforts. At one other point, Barrs created a shell consulting company so that GTS could obtain a bank account under false pretenses.
As a result of Barrs’ willful failure to develop, implement, and maintain an effective anti-money laundering program, GTS failed to have sufficient procedures in place to guard against money laundering. Notably, from 2009 through the end of December 2014, GTS failed to file a single SAR.
The indictment lists various examples of the types of transactions that GTS processed while Barrs ran the company, none of which resulted in the timely filing of a SAR. For example, GTS transmitted wires totaling over $700,000 for two entities even though publicly available press releases from the U.S. Department of Justice and Federal Bureau of Investigation stated that the entities had been charged with running a large-scale offshore asset protection, securities fraud, and money laundering scheme. GTS transmitted wires totaling over $900,000 for another entity even though a publicly available press release from the U.S. Department of Justice stated that an individual under indictment for operating a Ponzi scheme had used the entity to commit the offense.
In another example, GTS transmitted wires totaling over $1.5 million for a Cyprus-based company that had a limited public profile, with no website or business listings, and that was listed on various publicly available websites as being associated with potential fraudulent credit card charges.
In yet another example, GTS transmitted wires totaling over $2 million on behalf of a Belize-based company that was publicly listed in various websites as being associated with illegal spamming activity and internet fraud.
A substantial portion of GTS’ business also came from processing transactions related to the Iraqi dinar. The indictment alleges that Barrs knew that regulators had concerns regarding the sale of the Iraqi dinar and whether it was part of a scam. GTS facilitated the transfer of hundreds of thousands of dollars between an Iraqi dinar exchanger and an individual in Japan who was purchased dinar in bulk for sale to his/her own customer base in Japan. The Japan reseller submitted dozens of wires that listed the remittance reference as “purpose to buy antique books.” At one point, the Chief Operating Officer of the Iraqi dinar exchanger forwarded a “Confirmation/Statement of Remittance” to GTS that indicated that the Japan reseller was transmitting money “to buy antique books.” However, GTS failed to file a SAR on any of these transactions.
Daniel Barrs, 67, of the United Kingdom, was charged with one count of willful failure to maintain an effective anti-money laundering program and one count of money laundering conspiracy.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Thirty-Two Gangster Disciples Members Federally Indicted on RICO ChargesRead the Press Release
ATLANTA - Federal agents have arrested multiple members and associates of the national gang The Gangster Disciples on RICO charges stemming from an indictment returned by a federal grand jury on April 27, 2016. Agents also arrested Gangster Disciples members on a separate indictment handed down in Memphis, Tennessee.
“Atlanta has historically been resistant to the incursion of these national gangs, but unfortunately today’s indictment shows how this landscape has changed in just the last few years, as the Gangster Disciples are only one of several gangs that now boast a strong foothold,” said U.S. Attorney John Horn. “These charges show how a national gang like Gangster Disciples can wreak havoc here and in communities across the country, with crimes that run the gamut from murder to drug trafficking to credit card fraud. Within Georgia, the leadership of the Gangster Disciples resided mostly in metro Atlanta, yet the reach of the crimes committed extended into far south and west Georgia. We hope this indictment warns the leaders of these gangs that Atlanta is not a good place to do business.”
“It is the very of core of law enforcement’s mission to ensure that everyone feels safe in their homes and neighborhoods, and it is a hard reality that many people across our country simply do not enjoy this basic sense of security because of gangs like the Gangster Disciples,” said Assistant Attorney General Leslie Caldwell. “That is why it is so significant that today’s indictments charge top leaders within the Gangster Disciples. There are a lot of people out there willing to join gangs, and eager to get easy money from criminal activity. But there are far fewer people with the wherewithal to lead organizations like the Gangster Disciples. These are the people who keep gangs like the Gangster Disciples alive, year in and year out, generation after generation. Cases like these make a difference, and I want to thank all the law enforcement and U.S. Attorney Office and Organized Crime and Gang Section prosecutors who worked so hard to build this case.”
“Today’s Gangster Disciple arrests across nine states merely marks the first wave of the FBI’s strategic campaign to dismantle this violent criminal organization. The Gangster Disciples are a highly-organized and ruthless gang that recognizes no geographical boundaries, and its members have far too long indiscriminately preyed upon and infected the good people of our communities like a cancer. The FBI’s Safe Streets Gang Task Forces recognize no boundaries either, and we are committed to identifying, disrupting and dismantling the most violent gangs that seek to harm our communities. The FBI, along with our law enforcement partners, are committed to seeing this campaign through, and once and for all putting an end to the Gangster Disciples’ reign of violence,” 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: Beginning in 2009, the defendants named in the RICO conspiracy charge committed murder, attempted murder, robbery, extortion, arson, firearm crimes, drug trafficking, wire fraud, bank fraud, credit card fraud, prostitution and obstruction of justice and other crimes in furtherance of the Gangster Disciples.
The Gangster Disciples are a national gang active in approximately 24 states, including Georgia. The Gangster Disciples brought money into the gang through, among other things, drug trafficking, robbery, carjacking, extortion, wire fraud, credit card fraud, insurance fraud and bank fraud. The gang protected its power and operation through threats, intimidation and violence, including murder, attempted murder, assault, and obstruction of justice. It also promoted the Gangster Disciples enterprise through member-only activities, including conference calls, celebrations of the birthday of the Gangster Disciples founder, the annual Gangster Ball, award ceremonies, and other events.
The gang also provided financial and other support to members charged with or incarcerated for gang-related offenses, and members who were fugitives from law enforcement would be provided “safe houses” in which to hide from police. To introduce the criminal nature of the Gangster Disciples to a new member, older members and leaders in the various local groups ordered newer members to commit crimes, including murder, robbery and drug trafficking. Further, Gangster Disciples members would teach other members how to commit certain crimes, including fraud crimes, and would provide drugs on discount to other Gangster Disciples members who would then resell the drugs.
Members were organized into different positions, including board members and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers, and chief of security for each state where Gangster Disciples were active; and coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to the strict rules and structure, members and associates were routinely fined, beaten, and even murdered, for failing to follow rules.
The indictment alleges that Gangster Disciples members committed 10 murders, 12 attempted murders, two robberies, the extortion of rap artists to force the artists to become affiliated with the Gangster Disciples, and fraud resulting in losses of over $450,000. In addition, the Gangster Disciples trafficked in large amounts of heroin, cocaine, methamphetamine, illegal prescription drugs, and marijuana. The indictment also seeks forfeiture of 34 different firearms seized as part of the investigation.
In the Georgia indictment alone, the grand jury indicted Gangster Disciples members from multiple cities in the state to include Atlanta, Decatur, Stone Mountain, Marietta, Valdosta, Macon, and Cochran. They also arrested gang members in Birmingham, Alabama; Denver, Colorado; Wichita, Kansas; Chicago, Illinois; Detroit, Michigan; Madison, Wisconsin; and San Jose, California.
The RICO conspiracy charge names the following defendants and their alleged roles within the Gangster Disciples:
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Shauntay Craig, 37, of Birmingham, Alabama, held the rank of Gangster Disciples “Board Member”.
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Vancito Gumbs, 25, of Stone Mountain, Georgia, was a member of the Gangster Disciples while at the same time serving as a police officer with the DeKalb County Police Department.
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Alonzo Walton, 47, of Atlanta, Georgia, held at different relevant times the positions of governor and governor of governors, the latter position controlling Georgia, Florida, Texas, Indiana, and South Carolina.
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Mangwiro Sadiki-Yisrael, 43, of Marietta, Georgia, held at different relevant times the positions of a first coordinator, assistant governor of Georgia, and governor of Georgia.
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Kevin Clayton, 43, of Decatur, Georgia, was the chief enforcer for the State of Georgia.
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Donald Glass, 26, of Decatur, Georgia, served as a first coordinator of the eastside group of the Gangster Disciples.
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Lewis Mobely, 38, of Atlanta, Georgia, was an enforcer.
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Vertious Wall, 40, of Marietta, Georgia, was a first coordinator for the Macon Gangster Disciples group.
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Adrian Jackson, 37, of San Jose, California, was the national treasurer for the Gangster Disciples.
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Terrence Summers, 45, of Birmingham, Alabama, held at different relevant times the positions of governor of Alabama and governor of governors for Georgia, Alabama, South Carolina and Florida.
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Markell White, 43, of Atlanta, Georgia, was a regional leader in Macon.
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Ronald McMorris, 34, of Atlanta, Georgia, was first coordinator of the Atlanta group.
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Perry Green, 29, of Decatur, Georgia, was a member of the Gangster Disciples and acted as enforcer of a Gangster Disciples group.
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Dereck Taylor, 29, of Macon, Georgia, was a member of the Gangster Disciples and acted as security for a Macon group.
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Alvis O’Neal, 37, of Denver, Colorado, was a senior member of and drug trafficker for the Gangster Disciples.
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Jeremiah Covington, 32, of Valdosta, Georgia, was a first coordinator for the Valdosta region.
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Antonio Ahmad, 33, of Atlanta, Georgia, was the chief of security for the state of Georgia.
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Eric Manney, 39, of Atlanta, Georgia, was a member of the Gangster Disciples and stored multiple guns at his house.
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Quiana Franklin, 33, of Birmingham, Alabama, served as treasurer for the state of Alabama.
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Frederick Johnson, 37, of Marietta, Georgia, was a chief enforcer for a Gangster Disciples group.
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Charles Wingate, 25, of Conyers, Georgia, was chief of security for a Covington, Georgia, group.
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Thomas Pasby, 42, of Cochran, Georgia, was a member of the Gangster Disciples.
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Denise Carter, 41, of Detroit, Michigan, was a member of the Gangster Disciples.
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Carlton King, JR., 25, of Cochran, Georgia, was a member of the Gangster Disciples.
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Kelvin Sneed, 26, of Cochran, Georgia, was a member of the Gangster Disciples.
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Arrie Freeney, 32, of Detroit, Michigan, was a member of the Gangster Disciples.
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Myrick Stevens, 26, of Madison, Wisconsin, was a member of the Gangster Disciples.
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Curtis Thomas, 45, of Cochran, Georgia, was a member of the Gangster Disciples.
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Yohori Epps, 36, of Marietta, Georgia, was a member of the Gangster Disciples.
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Michael Drummound, 49, of Marietta, Georgia, was a member of the Gangster Disciples.
In addition to the RICO conspiracy:
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Defendant Lewis Mobely was charged with committing attempted murder in aid of racketeering and using a firearm during that shooting; possessing cocaine with the intent to distribute it; and possessing a firearm in furtherance of that drug charge.
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Defendant Donald Glass was charged with committing a murder in aid of racketeering and using a firearm during that murder.
Defendants Alonzo Walton and Antonio Ahmad were also charged with carjacking. A third defendant, Laderris Dickerson, 45, of Chicago, Illinois, has been charged with the carjacking, but is not charged in the RICO conspiracy.
Defendant James Travis Riley, 35, of Wichita, Kansas¸ has been charged with possessing methamphetamine with the intent to distribute it, but is not charged in the RICO conspiracy.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI Atlanta’s Safe Streets Gang Task Force (composed of members of the FBI, Alpharetta Police Department, Atlanta Police Department, Clayton County Police Department, DeKalb Police Department, Forest Park Police Department, Georgia Dept. of Community Supervision, Georgia Dept. of Corrections, Gwinnett County Police Department, and Marietta Police Department), Internal Revenue Service Criminal Investigation, the United States Marshal’s Service, and the United States Postal Inspection Services.
Assistant United States Attorneys Kim S. Dammers, Stephanie Gabay-Smith, and Ryan K. Buchanan, and DOJ Organized Crime & Gang Section Trial Attorney Hans B. Miller are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
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Immigration Attorney Sentenced to Probation for Assisting Alien in Immigation Fraud SchemeRead the Press Release
ATLANTA - Bonnie Monique Youn has been sentenced to two years on probation for her role in submitting a false application to adjust status on behalf of a Korean citizen to the Citizenship and Immigration Services.
“Youn is an immigration attorney and has a thorough familiarity with immigration rules yet she advised an alien to fraudulently file an application with immigration services claiming to be employed by an entity she controlled,” said U. S. Attorney John Horn. “Her sentence and prohibition to practice law for two years are appropriate punishment for submitting false information to United States Immigration authorities.”
“Immigration fraud presents a serious threat to the national security of our country,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “Illegal schemes like this not only undermine the integrity of our nation's legal immigration system, but they create potential security vulnerabilities while also cheating deserving immigrants of benefits they rightfully deserve."
According to U.S. Attorney Horn, the charges and other information presented in court: Youn filed an application to adjust status based upon employment on behalf of her client, C.O.M.P. The application stated that C.O.M.P. worked for the Asian American Educational Foundation of Georgia (AAEFG) as an accountant in 2006-07 and again in 2010. The application included wage and tax and payroll records that would appear to support the representation that C.O.M.P. had worked for AAEFG.
In September 2011, federal agents interviewed C.O.M.P. at the hair products business that she and her husband ran near Baton Rouge, Louisiana. C.O.M.P. initially told the agents that she worked for AAEFG in 2006-07 and 2010. As the interview progressed, however, the agents noticed that C.O.M.P., who was standing behind a counter, appeared to be looking down at something before she would answer their questions. When confronted, C.O.M.P. admitted that she was referring to notes that Youn and Youn’s paralegal helped her prepare in the event that she was interviewed by federal agents about her alleged employment at AAEFG. C.O.M.P. admitted that she never worked for AAEFG and that she never lived in Georgia.
She also admitted that she would send money to AAEFG and that AAEFG would in turn send her payroll checks. The false payroll scheme involving C.O.M.P. began when AAEFG was controlled by Youn.
Youn instructed C.O.M.P. to obtain a Georgia driver’s license to use as proof of her residency in the state during the time that she allegedly worked for AAEFG. Although C.O.M.P. never lived in Georgia, she obtained the state driver’s license with the intent to use it to prove that she lived in Georgia and worked at AAEFG in the event she was ever questioned about her alleged employment at AAEFG.
Bonnie Monique Youn, 46, of Tucker, Georgia, was sentenced to two years on probation by U.S. District Judge Amy Totenberg, and was ordered to pay a $5,245 fine. Pursuant to her plea agreement with the United States, Youn closed her law office on March 31, 2016. As part of her sentence, Youn is prohibited from practicing law until April 1, 2018. Youn pleaded guilty on Jan. 20, 2016, to a negotiated plea.
This case was investigated by Special Agents with Homeland Security Investigations and the Office of the Inspector General for the United States Department of Labor.
Assistant United States Attorneys William L. McKinnon, Jr. and Lynsey 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.
Sex Traffickers Sentenced for Pimping Three Minor Girls During 2013 Final Four NCAA PlayoffsRead the Press Release
ATLANTA - Isaiah Jernigan, Darren Williamson, Jr., a/k/a Chef Boy RD, Marie St. Vil, a/k/a Jasmine, and Brianne Marcelin, a/k/a Bri, have been sentenced for sex trafficking three minor girls in Atlanta during the 2013 Final Four NCAA Playoffs.
“As fans descended on Atlanta for the Final Four in 2013, these defendants operated in the shadows, selling these young girls for sex to anyone who would pay,” said U. S. Attorney John Horn. “The three teenagers who were exploited in this case are tragic examples of how quickly young women can be entrapped into commercial sex trafficking.”
“The sentencing of these four individuals who were previously convicted in federal court of human trafficking is a tremendous victory for the many investigators, counselors and non-government organizations working so hard to protect our nation’s children from those who would prey on them. While our streets are now safer with the removal of these callous and reprehensible defendants, the fight to eradicate human trafficking continues and the FBI asks that anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” 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 approximately mid-March 2013 to April 20, 2013, the four defendants recruited and enticed three juveniles for committing commercial sex acts. The juveniles ranged in age from 15 to 17 years old. The group’s criminal scheme also involved adult women engaged in prostitution.
The group recruited the girls and then provided them a place to live at an apartment in Sandy Springs, Georgia. At least one of the juveniles was required to have sex with Williamson as an “audition” for working for the group as a prostitute. Members of the group would take photos of the girls in lingerie and then post the photos in advertisements on the website “Backpage.com,” seeking men for commercial sex acts. Various members of the group drove the girls to their sex-dates at different hotels around town, and on occasion, male customers would also visit the Sandy Springs apartment for commercial sex. At one point Jernigan knocked one of the adult women to the ground in front of some of the other girls, dragged her into another room, and shaved off some of her hair.
The defendants’ scheme was uncovered as part of an FBI undercover operation aimed at locating and identifying minor sex traffickers operating during the NCAA Final Four Playoffs in Atlanta, Georgia in April 2103.
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Isaiah Jernigan, 27, of Orlando, Florida, has been sentenced to 11 years, seven months in prison to be followed by five years of supervised release.
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Darren Williamson, Jr., a/k/a Chef Boy RD, 28, of Atlanta, Georgia, has been sentenced to ten years, three months in prison to be followed by five years of supervised release.
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Marie St. Vil, a/k/a Jasmine, 27, of Orlando, Florida, was sentenced April 14, 2016, to six years in prison to be followed by five years of supervised release.
- Brianne Marceline, a/k/a Bri, 26, of Atlanta, Georgia, was sentenced April 15, 2016, to five years of prison to be followed by five years of supervised release.
All defendants have received a $100 special assessment and are required to register as sex offenders as a condition of their supervised release.
This case was investigated by the FBI led Metro Atlanta Child Exploitation (MATCH) Task Force.
Assistant United States Attorney Skye Davis prosecuted the case.
Men who think they are buying sex from a consenting adult may actually be contributing to sex trafficking of minors unwittingly.
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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Two Major International Hackers Who Developed the “SpyEye” Malware get over 24 Years Combined in Federal PrisonRead the Press Release
ATLANTA – Two international computer hackers; Aleksandr Andreevich Panin, a/k/a Gribodemon, of Russia, and Hamza Bendelladj, a/k/a Bx1, of Algeria, have been sentenced to a combined 24 years, six months in prison for their roles in developing and distributing the prolific malware known as SpyEye, which caused hundreds of millions of dollars in losses to the financial industry around the world.
“It is difficult to over state the significance of this case, not only in terms of bringing two prolific computer hackers to justice, but also in disrupting and preventing immeasurable financial losses to individuals and the financial industry around the world,” said U.S. Attorney John Horn. “The outstanding work by our law enforcement partners, both domestically and internationally, as well as terrific cooperation from the private sector, serves as a blueprint on how to combat complex cyber-crime syndicates around the world.”
“Through these arrests and sentencing, the risk the public unknowingly faced from the threat posed by the imminent release of a new highly sophisticated version of SpyEye was effectively reduced to zero. The FBI led investigation that brought one of the world’s most nefarious malware developers to justice and significantly disrupted the prolific SpyEye botnet demonstrates the power of focused investigations that combine the skills and talents of global law enforcement and private industry partners. Furthermore, the arrests and sentences serve as a strong deterrent to future malware developers and their customers, regardless of where they are located,” 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: Until dismantled by the FBI, SpyEye was the preeminent malware banking Trojan from 2010-2012, used by a global syndicate of cybercriminals to infect over 50 million computers, causing close to $1 billion in financial harm to individuals and financial institutions around the globe.
SpyEye was designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs, and other personally identifying information. The malware facilitated its theft of personal and confidential information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the infected computers through command and control (“C2”) servers. Once a computer was infected and under their control, cybercriminals remotely accessed the infected computers, without authorization, and stole victims’ personal and financial information through a variety of techniques, including “web injects,” “keystroke loggers,” and “credit card grabbers.” The victims’ stolen personal and financial data was then surreptitiously transmitted to the C2 servers, where it was used to, among other things, steal money from the victims’ financial accounts.
Panin was the primary developer and distributor of SpyEye. Panin developed SpyEye as a successor to the notorious Zeus malware that had, since 2009, wreaked havoc on financial institutions around the world. In November 2010, Panin allegedly received the source code and rights to sell Zeus from Evginy Bogachev, a/k/a Slavik, and incorporated many components of Zeus into SpyEye. Bogachev remains at large and is currently the FBI’s most wanted cybercriminal.
Operating from Russia between 2009 and 2011, Panin conspired with others, including co-defendant Hamza Bendelladj, to develop, market, and sell various versions of SpyEye and component parts on the Internet. Panin allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information, as well as marketed versions that targeted information about specific financial institutions, including banks and credit card companies.
With the assistance of Bendelladj, a/k/a Bx1, Panin advertised and promoted the SpyEye malware on online, invite-only criminal forums, such as Darkode.com and other exclusive Russian-based criminal forums. The arrest of Bendelladj in January 2013 was a contributing factor that ultimately led to the dismantling of Darkode.com through a coordinated law enforcement effort involving 20 countries in July 2015.
For his part, Bendelladj transmitted over one million spam emails containing strains of SpyEye and related malware to computers in the United States, yielding hundreds of thousands of infected computers. He also developed and sold malicious “plugins” or add-ons for botnets, such as a “spreader”, Automated Transfer System (“ATS”), and “web injects”. These malicious tools were designed to surreptitiously automate the theft of funds from victim bank accounts and to proliferate the spread of malware, including SpyEye and Zeus. Bendelladj used his unauthorized access into infected computers to steal personal identifying information from close to half a million people, hundreds of thousands of credit card and bank account numbers, causing millions of dollars in losses to individuals and financial institutions around the world. Bendelladj also ran a website called VCC.sc where he automated the sale of stolen credit card information to cybercriminals around the world.
On December 20, 2011, a Northern District of Georgia grand jury returned a 23-count indictment against Panin, who had yet to be fully identified, and Bendelladj. The indictment charged one count of conspiracy to commit wire and bank fraud, 10 counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. A superseding indictment was subsequently returned identifying Panin by his true name.
Panin was arrested by U.S. authorities on July 1, 2013, when he flew through Hartsfield-Jackson Atlanta International Airport. On January 28, 2014, Panin pleaded guilty to conspiring to commit wire fraud and bank fraud. Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Algeria. Bendelladj was extradited from Thailand to the United States on May 2, 2013. On June 26, 2015, Bendelladj pleaded guilty to all 23 counts of the superseding indictment.
The apprehension of Panin and Bendelladj has resulted in several of the world’s top malware developers no longer being in a position to create malware that can victimize people in the U.S. and abroad. The FBI discovered that within months of his arrest, Panin was planning to release a new strain of SpyEye, called “SpyEye 2.0”, which, if released, would have been one of the most prolific and undetectable botnets distributed to date, and cause immeasurable losses to the international banking industry and individuals around the world. The investigation has also led to the arrests by foreign authorities of four of Panin’s SpyEye clients and associates in the United Kingdom and Bulgaria.
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Aleksandr Andreevich Panin, a/k/a Gribodemon, 27, of Tver, Russia, was sentenced by United States District Court Judge Amy Totenberg, to nine years, six months in prison to be followed by three years of supervised release.
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Hamza Bendelladj, a/k/a Bx1, 27, of Tizi Ouzou, Algeria, was also sentenced by Judge Totenberg, to 15 years in prison to be followed by three years of supervised release.
This case was investigated by Special Agents of the Federal Bureau of Investigation. The FBI disrupted and dismantled the organizational structure behind SpyEye by utilizing unprecedented levels of cooperation with private industry and 26 international law enforcement agencies, demonstrating international boundaries no longer offer safe havens for cyber criminals.
Assistant United States Attorneys Steven D. Grimberg, Kamal Ghali, and Scott Ferber prosecuted the case. Trial Attorneys from the Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance. The Justice Department’s Office of International Affairs also provided assistance with this case.
Assistance throughout the investigation was also provided by a number of international law enforcement agencies, including the United Kingdom’s National Crime Agency, the Royal Thai Police, the National Police of the Netherlands - National High Tech Crime Unit (NHTCU), Dominican Republic’s Departamento Nacional de Investigaciones (DNI), the Cybercrime Department at the State Agency for National Security-Bulgaria, and the Australian Federal Police (AFP).
Private sector partners also provided valuable assistance, including Trend Micro’s Forward-looking Threat Research (FTR) Team, Microsoft’s Digital Crimes Unit, Flashpoint, PhishLabs, Dell SecureWorks, Damballa, and the Norwegian Security Research Team known as “Underworld.no”.
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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Dermatology Physicians and Practice to Pay $1.9 Million to Settle False Claims Act Investigation into Overbilling Medicare for Evaluation and Management ServicesRead the Press Release
ATLANTA—The U.S. Attorney’s Office for the Northern District of Georgia announced that it has reached a settlement with dermatologists Margaret Kopchick, M.D., and Russell Burken, M.D., and their practice group, Toccoa Clinic Medical Associates, who agreed collectively to pay $1.9 million to settle claims that they violated the False Claims Act by billing Medicare for evaluation and management (E&M) services that were not permitted by Medicare rules.
“Physicians and practice groups are expected to bill Medicare for the costs of the services they provide. However, when they improperly bill for those services, it affects those who depend on Medicare by taking available dollars away from the program,” said U.S. Attorney John Horn. “Those who inflate their Medicare billings can expect recovery of any overpayments, as well as significant penalties under the False Claims Act.”
“The improper billing of evaluation and management services cost the taxpayers millions of dollars each year and drain the Medicare Trust Fund,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) for the Atlanta region. “The OIG and the U.S. Attorney’s Office will continue to hold health care providers like these responsible for improper claims.”
The civil settlement resolves the United States’ investigation into Drs. Burken and Kopchick’s billing for E&M services on the same day as a procedure. Providers are not permitted to bill both E&M services and a procedure on the same day under the Medicare program’s regulations unless a significant, separately identifiable service has been performed. In addition, where a significant, separately identifiable service has been performed, providers must bill the appropriate level of E&M service. More complex E&M services are reimbursed at higher rates. Here, the United States alleged that Drs. Burken and Kopchick billed for E&M services along with procedures where no significant and separately identifiable service was performed, and upcoded E&M services to higher levels than were appropriate, leading to overpayments by Medicare.
HHS-OIG has identified the inappropriate billing of E&M services as a national issue costing taxpayers billions of dollars.
This resolution is part of the government’s emphasis on combating health care fraud under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by the Secretary of the Department of Health and Human Services in May 2009. 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 that effort is the False Claims Act. Since January 2009, the Justice Department recovered more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Department of Health and Human Services, Office of Inspector General.
Assistant United States Attorney Emily Shingler reached the civil settlement.
The claims settled by the settlement agreement are allegations only; there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
With Tax Day Imminent, a Vinings Doctor is Arraigned for Tax FraudRead the Press Release
ATLANTA –Dr. Michael Jon Kell has been arraigned on four counts of tax evasion and one count of interfering with the administration of the Internal Revenue laws. Kell allegedly engaged in a two-decade scheme to evade federal taxes by funneling millions of dollars in assets through a church he created.
“Kell claimed a vow of poverty, but allegedly funneled over $2 million through a church he controlled to avoid paying income taxes on the money he earned,” said U.S. Attorney John Horn. “With the deadline for filing your 2015 tax return only days away, we urge citizens in our district to think twice about the potential consequences of not truthfully reporting their income and paying their taxes.”
“Tax evasion is not a victimless crime,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We all pay when others swindle the government. To maintain faith in our nation's tax system, honest taxpayers need to be reassured that everyone is paying their fair share, including Michael Jon Kell. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The indictment alleges the lengths to which Kell went to avoid paying taxes. Although no longer a practicing medical doctor, he developed numerous patented technologies and was a consultant, which generated millions of dollars in income over the years. To hide this income, he founded and served as the “pastor” of the First Meliorite Church, a church he claimed was a branch of the Universal Life Church.
Claiming to be under a “vow of poverty” that precluded him from earning income, Kell directed his substantial income and assets into bank accounts belonging to the church—all of which were under Kell’s exclusive control. He used these accounts to cover all of his personal expenses including; overseas vacations, dining out, high-end clothing purchases, online dating services, and private school tuition for his children. Kell also transferred ownership of his multi-million dollar residence in Vinings, Georgia, several times over the years to various entities he created and controlled, all in an effort to protect that property from creditors, including the Internal Revenue Service.
Dr. Michael Jon Kell, 66, of Vinings, Georgia, was arraigned by United States Magistrate Judge Janet F. King.
In an unrelated tax fraud case, three individuals, Lorri Jackson-Brown, Cherri Dallas, and Gabrielle Rhodes, have been charged with 41 counts including conspiracy, mail fraud and theft of government money. The three defendants are alleged to have conspired with each other and with a fourth individual, Wayne Pettway, to register sham businesses with the Georgia Secretary of State, obtain Employer Identification Numbers (EINs) for businesses, and file fraudulent tax returns in the names of those businesses. The filed tax returns allegedly claimed fictitious income amounts, deductions and fuel excise credits, all for the purpose of generating fraudulent tax refunds.
Lorri Jackson-Brown, 51, of Lawrenceville, Georgia, Cherri Dallas, 45, of Atlanta, Georgia, and Gabrielle Rhodes, 35 of Loganville, Georgia were indicted on March 22, 2016. Wayne Pettway, 53, of Lawrenceville, Georgia, pled guilty to conspiracy to commit theft of government money on November 21, 2014.
Assistant United States Attorney Lynsey M. Barron is prosecuting the Kell case. Assistant United States Attorney Stephen H. McClain is prosecuting the above cases.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being investigated by the Internal Revenue Service Criminal Investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Georgia DOT Foreman Pleads Guilty to Allowing Illegal Dumping at Atlanta SitesRead the Press Release
George H. Bell, a former Georgia Department of Transportation maintenance foreman, entered a guilty plea in federal court to accepting bribe payments in exchange for allowing more than 38,000 cubic yards of unsuitable dirt to be dumped at DOT sites in metro-Atlanta.
“As a DOT supervisor, Bell accepted thousands of dollars in bribes in exchange for allowing others to dump unsuitable dirt, all at the expense of the environment and the people of this district,” said U. S. Attorney John A. Horn. “His criminal conduct resulted in environmental damage and has already left Georgia taxpayers with a staggering $2.5 million clean-up bill.”
“Public corruption comes in many forms but, at its core, established rules and policy are intentionally ignored, often for personal gain. That was the case here and it comes at great expense to the taxpaying public. It is because of the serious consequences as seen here that public corruption remains the FBI’s number one criminal program priority,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“The Georgia DOT reported the issue and has cooperated fully with all agencies involved in the investigation to ensure that all responsible parties are held accountable and prosecuted to the fullest extent of the law for these illegal actions,” said Georgia DOT Commissioner Russell R. McMurry. “We are appalled by the corrupt actions of this lone former employee that in no way reflect the hard work and commitment displayed by more than 4,000 GDOT employees.”
According to U.S. Attorney Horn, the charges and other information presented in court: Bell worked for the Georgia Department of Transportation (“GA DOT”) for approximately 15 years. By the end of his career, Bell served the GA DOT in a supervisory role as an Assistant Area Maintenance Foreman. In that capacity, Bell oversaw various transportation projects under the control of the GA DOT, including the maintenance and repairs of Georgia roadway system.
From approximately April to December 2014, Bell accepted cash bribe payments from the owners of a dirt hauling company that is not identified in court proceedings (“Owners”). In exchange for those bribe payments, Bell allowed the Owners to dump unsuitable dirt at various GA DOT locations around metro-Atlanta. Unsuitable dirt is dirt that is 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 fragments, and various pieces of metal.
More specifically, in April 2014, one of the Owners asked Bell if the GA DOT would accept multiple loads of dirt. Bell allowed the unsuitable dirt to be dumped at a GA DOT site, but then charged the Owner $600 to dump the dirt. Bell used GA DOT personnel and equipment to spread the dirt after the Owners had dumped it. After that, Bell and the Owners agreed that Bell would charge the Owners about $5 per load (if the Owners spread the dirt themselves) and $7 per load (if Bell used GA DOT personnel and equipment to spread the dirt). For several months thereafter, Bell accepted bribe payments from the Owners in exchange for allowing the Owners to illegally dump unsuitable dirt at a GA DOT location. In total, the Owners paid Bell approximately $15,000 in cash bribe payments.
Bell allowed the Owners to dump well over 1000 dump truck loads of unsuitable dirt at the GA DOT sites located at: (1) Hugh Howell Road and Stone Mountain Highway, 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. Bell permitted over 38,000 cubic yards of dirt to be dumped at the GA DOT location near Hugh Howell Road alone. Unfortunately, Bell also allowed the Owners to dump the dirt at a protected wetland site and at a site 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 have already exceeded $2.5 million.
On August 11, 201, Bell, 49, of Lithonia, Georgia, was indicted by a federal grand jury on bribery charges. Under federal law, conspiring to accept bribe payments carries a maximum sentence of five years in prison and a fine of up to $250,000.
The sentencing hearing for Bell has been scheduled for June 29, 2016, before U.S. District Judge Thomas. W. Thrash, Jr.
This case is being investigated by the Federal and Georgia Bureaus of Investigation.
Assistant United States Attorney Jeffrey W. Davis is 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.
Perpetrators of Multiple Armed Robberies at Atlanta Wal-Mart Stores and a Citgo Food Mart Have Been ArraignedRead the Press Release
ATLANTA - Kesia Quinette Jackson, Deanthony L. Foster, and Makisha Renee Sanders have been arraigned on charges of conspiracy to commit armed robbery, armed robber, and use of a firearm during a crime of violence arising from multiple armed robberies of Wal-Mart stores, and a Citgo food mart that took place between May and October, 2015.
“Armed robberies are dangerous events that traumatize the victims and sow fears throughout the community, and these effects are magnified when the robbers victimize multiple locations over time,” said U. S. Attorney John Horn. “We hope the arrests and indictments in this case will restore the security felt by the employees and customers of these stores, as well as the surrounding neighborhoods.”
“The allegations contained in these indictments clearly illustrated the need to prioritize this investigation and to have those responsible identified and apprehended. With the federal indictments and this morning’s arrests, that was accomplished. Numerous jurisdictions were impacted by these multiple commercial armed robberies creating certain challenges for investigators. Those challenges were, however, overcome as a direct result of the hard work and determination of the many officers and agents representing numerous metro Atlanta area law enforcement agencies working together with the FBI’s Atlanta Metro Major Offender (AMMO) Task Force,” 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 allegedly targeted Wal-Mart stores and a Citgo Food Mart in different areas of the Atlanta, Georgia metropolitan area for the purpose of robbing the employees of cash at gunpoint. Jackson and Sanders acted as scouts or lookouts prior to the robberies by entering the stores and posing as customers in order to determine when employees were removing cash from the self-checkout registers. They would then contact the defendant Foster. The three defendants used cellular telephones to maintain communication with each other prior to and during the commission of the armed robberies. Foster would then enter the stores wearing a surgical mask and using a firearm to rob the employees of cash. In the last robbery, he discharged the firearm into the floor near the employees.
Kesia Quinette Jackson, 44, Deanthony L. Foster, 27, and Makisha Renee Sanders, 42, all of Atlanta, Georgia, were arraigned before United States Magistrate Judge Janet F. King. All three were indicted by a federal grand jury on April 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 FBI.
AUSAs Katherine M. Hoffer and Jessica Morris are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Seven Indicted for Gun Thefts from Multiple Firearms DealersRead the Press Release
ROME, Ga. – Seven defendants have been indicted on federal charges of a conspiracy to steal firearms from the premises of federal firearms dealers, possession of multiple stolen firearms, and theft from firearms dealers in the cities of Tallapoosa, Thomson, Monroe, Warner Robins, Dalton, Macon, LaGrange, and Athens, Georgia as well as Heflin, Alabama.
“Thefts from firearms dealers have become a serious issue in our district and elsewhere, and sometimes stolen firearms are used to commit other crimes,” said U. S. Attorney John A. Horn. “The arrests and indictment of these seven individuals is a significant step in solving these crimes and helping to prevent the distribution of stolen firearms in our community.”
“This is another reminder that ATF and our law enforcement partners will remain on the frontlines of preventing violent crime and not allow criminal behavior to threaten 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 October 2015 and December 2015, there were seven thefts and three attempted thefts from firearms dealers in Northwest Georgia, along with other parts of the state, as well as in the state of Alabama. The indictment alleges that during the investigation, these seven defendants were identified as the ones who committed the burglaries. The perpetrators always struck at night. They entered either by driving a stolen car through the storefront, or using bolt cutters and a window punch to break into the businesses. Approximately 130 guns were stolen in these thefts, and there is evidence that some of the conspirators sold some of the stolen guns.
ATF agents worked closely with local law enforcement to connect the thefts and develop information on the conspirators, including the Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.
The following defendants were arraigned on April 13, 2016, before United States Magistrate Judge Walter E. Johnson:
- Terry Eugene Brown, 26, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, three counts of possession of stolen firearms, and unlawful possession of firearms while pending felony indictment .
- Jakeisia Miller, 19, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms, three counts of aiding and abetting the theft of firearms from federally licensed dealers, and three counts of aiding and abetting the possession of stolen firearms.
- Demontra Sharod Lucear, 26, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms.
- Dillon James Leborgne, 21, of Atlanta, Georgia conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, and three counts of possession of stolen firearms.
- Eric Jerome Moore, 22, of Atlanta, Georgia, has been has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.
The following two defendants will be arraigned on May 3, 2016:
- Jacquez Miller, 23, of Atlanta, Georgia has been charged conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, and one count of possession of stolen firearms.
- Jameel Yusef Drinkard, 35, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.
Brown, Jakeisia Miller, Jacquez Miller, Lucear, Leborgne, Moore, and Drinkard were indicted by a federal grand jury on March 22, 2016.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.
Assistant United States Attorneys Jennifer Keen and Katherine M. Hoffer 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.
Autry State Prison Inmate Pleads Guilty to Laundering $1 Million from PrisonRead the Press Release
Reginald Perkins, who admitted he laundered approximately $1 million of illegal proceeds from inside Autry State Prison, has pleaded guilty to a charge of conspiring to launder money as part of a wide-ranging federal investigation of criminal activity and corruption inside Georgia State prisons.
“This case re-emphasizes the widespread and corrosive effects that cell phones have in prisons,” said U. S. Attorney John Horn. “A prison is the last place where criminal activity like this should be occurring, and the fact that the amount of money laundered through this inmate’s conduct totals $1 million is mind-boggling.”
“The level of victimization that this Georgia Department of Corrections inmate could cause is astonishing and disheartening. Prison can be a mix of punishment or rehabilitation for the many inmates living within its walls. For Mr. Perkins, his prison experience clearly lacks any signs of rehabilitation and, because of his continued and unrepentant criminal conduct, it will now be longer,” 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 in Jimmy Autry State Prison (“Autry”). Autry is a Georgia Department of Correction (“GA DOC”) medium security prison located in Pelham, Georgia, that houses approximately 1,700 adult male inmates.
While Perkins was an inmate at Autry, GA DOC inmates regularly obtained cellular telephones. For example, from 2014 to 2015, GA DOC 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 GA DOC inmates creates a significant risk to prison security and to public safety, as GA DOC 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 potential victims had unlawfully failed to appear for jury duty; (c) that because the potential victims had failed to appear for jury duty, warrants had been issued for the victims’ arrest; and (d) that the potential 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 took 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, 35, of Atlanta, Georgia pleaded guilty to one count of money laundering in a hearing before U.S. District Judge Steve C. Jones. Sentencing is scheduled for June 20, 2016.
This case is being investigated by the Federal Bureau of Investigation. 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 Doctor Pleads Guilty to False Billing for Surgical Monitoring Performed by Medical AssistantRead the Press Release
ATLANTA – Robert E. Windsor, an Atlanta-area physician, has pleaded guilty to health care fraud for filing claims for surgical monitoring services he did not perform.
“Windsor put patients at risk by passing the surgical monitoring work he was paid to perform to an unauthorized medical assistant and then lied about it,” said U.S. Attorney John Horn. “This doctor’s scam left patients without a qualified physician monitoring their neurological health during surgery and cheated other healthcare providers out of over $1 million.”
“The conduct of Dr. Windsor was not only criminal, it was reckless and irresponsible. While Dr. Winsor's repeated and extensive practice of falsely billing for services that he himself did not render is at the heart of these federal charges, the potential risk and harm to those many patients who were not getting the required services should not be overlooked. This guilty plea will hold Dr. Windsor accountable for his greed based criminal conduct,” said J. Britt Johnson, FBI Special Agent in Charge,
“The callous disregard for patient safety, coupled with the arrogance of billing for services performed by an untrained employee, is shocking,” said Derrick Jackson, Special Agent in Charge for the HHS Office of Inspector General. “Together with our law enforcement partners, we will seek justice for Medicare beneficiaries and the program they depend upon and trust when they need health care services.”
“Health care fraud is a serious problem that undermines the ability of the Department of Defense to focus on warfighting and defense by diverting precious taxpayer dollars from our national security efforts. DCIS will relentlessly investigate those who defraud DoD’s critical programs, bring violators to justice, and recover funds wherever possible,” said John F. Khin, Special Agent in Charge of the Southeast Field Office-Defense Criminal Investigative Service.
According to United States 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. In 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 contract stated that Windsor would provide real-time monitoring services for patients in surgery via an online platform with technologists in the operating room. Windsor was responsible for providing a final monitoring report at the conclusion of each surgery, and ANA and its sister company would thereafter bill patients and health care benefit programs, including private health insurance companies, for the monitoring. Windsor was paid a fee for each surgery monitored.
Between at least January 2010 through July 2013, Windsor instead assigned the monitoring to a medical assistant who impersonated Windsor by using Windsor’s log-in credentials in the online platform. The medical assistant was not a doctor and was not permitted to perform the monitoring under the contract with ANA. Windsor submitted final monitoring reports falsely stating that he had conducted the monitoring, which ANA and its sister company relied upon in billing health care benefit programs for his services. On several occasions, Windsor billed ANA for monitoring services he purportedly performed when he was actually traveling on an international flight.
In total, after collecting reimbursements from insurers, ANA paid Windsor over $1.1 million for monitoring services he did not perform during this time period. 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, 54, of Cumming, Georgia, pleaded guilty before U.S. District Court Judge Amy Totenberg. Sentencing for Windsor is scheduled for June 3, 2016 at 10:30 a.m.
This case is being 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 Attorney Nathan P. Kitchens is prosecuting the case. Former Assistant United States Attorney Jamie L. Mickelson prosecuted the case prior to the 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/.
Former Hedge Fund Manager Sentenced for Defrauding Investors and Obstructing the SECRead the Press Release
ATLANTA – Stanley J. Kowalewski has been sentenced to 18 years in federal prison for defrauding the investors in his former hedge funds and obstructing the U.S. Securities and Exchange Commission’s (SEC) investigation into his activities.
“Investors trusted Kowalewski to invest their money as promised,” said U.S. Attorney John A. Horn. “Instead, he stole their hard-earned savings and repeatedly lied to them and the SEC about his investments and self-dealing. Incredibly, while on bond awaiting trial in the case, Kowalewski continued to defraud investors based on false promises relating to a new investment business that turned out to be just another scam.”
“While sentencing Mr. Kowalewski to federal prison does not make his many investor turned victims fiscally whole again, denying him his freedom and the opportunity to enjoy their money does have value. It is unfortunate, however, that, in the aftermath of the high profile Madoff case and others like it, we are still plagued with large scale investment fraud schemes such as this. The FBI will continue to work with its many partners, to include the SEC, in identifying, investigating, and presenting for prosecution those individuals that would engage in greed based criminal schemes that defraud so many people,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This criminal action demonstrates the U.S. Department of Labor's resolve to vigorously enforce the law to ensure that those who defraud employee benefit plans are brought to justice. This case also exemplifies our commitment to protect employee benefits in coordination with fellow federal agencies,” said Isabel Colon, Regional Director of the Employee Benefits Security Administration’s Atlanta Regional Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Kowalewski was the sole owner and Chief Executive Officer of SJK Investment Management, LLC, in Greensboro, North Carolina. Beginning in 2009, Kowalewski solicited investment money from pension funds, school endowments, hospitals, non-profit foundations, and other investors which he placed in two SJK “hedge fund of funds,” an onshore fund and an offshore fund called the Absolute Return Funds. Almost immediately after receiving the first investor money, Kowalewski began diverting the proceeds to pay for personal and business overhead expenses.
In December 2009, Kowalewski formed a new SJK fund called the Special Opportunities Fund, which he did not disclose to investors. He diverted over $16 million from the Absolute Return Funds to the Special Opportunities Fund without disclosing the transfers to investors. After he secretly transferred the funds, Kowalewski diverted millions from the Special Opportunities Fund to himself through various self-dealing transactions, including having the Special Opportunities Fund buy three homes that Kowalewski owned and in which his family, his parents, and his brother-in-law’s family lived. Kowalewski also bought a multi-million-dollar beach house in Pawleys Island, South Carolina, and directed that the Special Opportunities Fund pay him $4 million as a fee to which he was not entitled. Kowalewski created and altered documents in an effort to make these transactions appear legitimate.
Also as part of the scheme, Kowalewski overvalued the assets held by the Special Opportunities Fund and used those fraudulent valuations to calculate the returns for investors in the Absolute Return Funds. As a result, the monthly statements distributed to SJK investors showed fraudulently inflated returns. Investors lost over $11 million as a result of Kowalewski’s fraudulent scheme.
On March 30, 2010, the SEC initiated a proceeding to determine whether there had been violations of the federal securities laws in connection with SJK. As part of its investigation, the SEC subpoenaed Kowalewski to testify under oath. During his sworn testimony, Kowalewski testified that, after the Special Opportunities Fund had purchased his three homes, the Fund had leased the properties to him and his relatives, each for a yearly rental payment. He testified further that Michael J. Fulcher, the Chief Financial Officer of SJK, had drafted, and Kowalewski had signed, the leases at or near the time of the homes’ sales. In truth, however, Kowalewski and his relatives had never leased the homes back from the Special Opportunities Fund. Prior to Kowalewski’s sworn testimony, Kowalewski and Fulcher conspired to obstruct the SEC proceeding by creating the leases and backdating them, in an effort to document the claimed lease relationships and to conceal Kowalewski’s self-dealing transactions. Kowalewski provided the fraudulent leases to the SEC as part of the investigation and then testified falsely about them. Kowalewski further lied to the SEC in his sworn testimony when he testified that he had disclosed the Special Opportunities Fund to investors and attorneys and other professionals had approved of his self-dealing transactions.
While on bond awaiting trial in this case, Kowalewski defrauded investors in another company he controlled named Global Remediation Solutions. He solicited money from investors based on false pretenses and then misrepresented to them how he spent the money. As before, he diverted the investors’ money to his own personal use. Kowalewski was living in Pawleys Island at the time. After Kowalewski’s new fraud came to light, his bond was revoked. Kowalewski has been in custody based on that revocation since September 25, 2015.
Stanley J. Kowalewski, 44, of Pawleys Island, South Carolina, was sentenced by U.S. District Judge Richard W. Story to 18 years in prison, with credit for the time served since September 25, 2015, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $9,436,236.23. Kowalewski was convicted on 22 counts of wire fraud, one count of conspiracy, and one count of obstructing the SEC proceeding in November 2015 after a jury trial.
Michael J. Fulcher, 59, of Greensboro, North Carolina, has pleaded guilty to one count of conspiring with Kowalewski to obstruct the SEC proceeding. His sentencing date has not yet been scheduled.
This case was investigated by Special Agents of the Federal Bureau of Investigation, Investigators with the Atlanta Regional Office of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), and Special Agents of the Atlanta Regional Office of the U.S. Department of Labor’s Office of the Inspector General. The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Kowalewski. In that case, Kowalewski was ordered to pay over $16 million in disgorgement and civil penalties.
Assistant United States Attorneys Stephen H. McClain and J. Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Leader of Atlanta ATM Machine Theft Ring SentencedRead the Press Release
ATLANTA - Ovino Harris has been sentenced to 10 years, 10 months in federal prison for attempting to rob the Wellesley Inn Atlanta Airport Hotel, in what was believed to be one of a string of ATM machine thefts in the Atlanta, Georgia, area.
“Harris and his group were so audacious that they even threatened to shoot a hotel clerk in order to steal an ATM,” said U. S. Attorney John Horn. “This group has been dismantled thanks to the tremendous work of the Atlanta Police Department and the FBI.”
“The sentencing of Mr. Harris to federal prison will not only hold him accountable for his criminal actions as well as removing him from our streets, but it also clearly illustrates that Atlanta law enforcement will bring all of its resources to bear in addressing these aggressive theft rings,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Each time we’re able to get a criminal off the streets, it’s a good day,” said Atlanta Police Chief George Turner. “The arrest and conviction of Ovino Harris is yet another example of why the partnership between the Atlanta Police Department and the FBI is critical to making Atlanta the safest big city in the nation.”
According to U.S. Attorney Horn, the charges and other information presented in court: Harris was believed to be the leader of a group known as the “Green Team,” that operated out of the Pittsburgh area of Atlanta and engaged in various criminal activities including the theft of ATM machines from local businesses. Green Team members would frequently break into closed businesses, attach chains or ropes to an ATM machine while attaching the other end to a van or truck, and pull the ATM machine from the store.
During the early morning hours of December 4, 2013, however, Harris traveled to the Wellesley Inn Atlanta Airport Hotel where he and four other Green Team members attempted to steal the ATM machine from within the hotel lobby by threatening to shoot the hotel clerk. Law enforcement was called to the area, and the men fled before they could be apprehended.
Then, on December 22, 2013, and again on December 27, 2013, members of the Green Team traveled to the CVS Pharmacy located on North Highland Avenue in Atlanta where they attempted to steal the ATM machine from inside the store. Harris was arrested and arraigned on July 9, 2014.
Ovino Harris, 35, of Atlanta, Georgia, has been sentenced by United States District Judge Amy Totenberg to 10 years, 10 months in prison to be followed by three years of supervised release. Harris was convicted on these charges on December 15, 2015, after he pleaded guilty. All of Harris’ co-defendants have also pled guilty in this matter. Five of Harris’ co-defendants have already been sentenced, with one additional co-defendant awaiting sentencing.
This case was investigated by the Atlanta Police Department and Federal Bureau of Investigation.
Assistant United States Attorneys Matthew S Carrico 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.
Fraudulent Tax Preparers Sentenced to Federal PrisonRead the Press Release
ATLANTA - Frederick Jenkins and Willie Jenkins have each been sentenced to over six years in federal prison after a jury convicted them of preparing and filing false tax returns with the Internal Revenue Service.
“The defendants in this case blatantly stole from their clients and left them to deal with the tax liability,” said U. S. Attorney John Horn. “It’s important to be careful when selecting someone to prepare tax returns. Demand to see what your tax preparer files with the IRS and ask questions, especially if the return seems too good to be true.”
“Return Preparer fraud is a top priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Veronica Hyman-Pillot, Special Agent in Charge, Atlanta Field Office. “Return preparers who concoct schemes to defraud the government, the tax paying public and their own clients face federal prosecution and federal prison. It is our hope that the sentencing of Willie and Frederick Jenkins helps reassure our communities that return preparers who lack integrity and engage in illegal activities will be held accountable for their actions.”
“Frederick and Willie Jenkins did a disservice to legitimate tax preparers who comply with Georgia tax law. The Jenkins’ not only violated the integrity of our tax system, but also placed an unfair burden on the hardworking taxpayers of Georgia. We will continue to find and track others who seek to defraud the taxpayers of our state,” said Josh Waites Director of the Office of Special Investigations, Georgia Department of Revenue.
According to U.S. Attorney Horn, the charges and other information presented in court: Between 2009 and 2012, Fredrick and Willie Jenkins prepared and filed thousands of tax returns at Global Tax Service, a business they managed together. The defendants created fictitious, unprofitable businesses that they listed on their clients’ tax returns as a way to generate fraudulent deductions. Those deductions lowered the clients’ taxable income and made their refunds larger. Ultimately, however, the clients were left to resolve their situations with the IRS and state authorities, while the defendants kept the fees they charged for preparing the returns.
In the end, Fred and Willie Jenkins conspired to create fraudulent business deductions that resulted in a tax loss of over $3.5 million.
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Frederick Jenkins, 43, of Douglasville, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release, a special assessment of $1100, and restitution of $3.5 million to the IRS.
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Willie Jenkins, 46, also of Douglasville, was sentenced to six years, three months in prison to be followed by three years of supervised release, a special assessment of $700, and restitution of $3.5 million to the IRS.
Both Defendants were found guilty by a jury on October 26, 2015, following a week-long trial.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Office of Special Investigations, Georgia Department of Revenue.
Assistant United States Attorneys Bernita B. Malloy and Christopher C. Bly 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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Atlanta Doctor Who Was a Self-Proclaimed “Private Sovereign Citizen” Sentenced to Prison for Tax EvasionRead the Press Release
ATLANTA – Dr. Debra Johnson-Jordan, who claimed for seven years that she was a “private sovereign citizen” and not subject to federal income tax laws, has been sentenced to one year and one day in federal prison after pleading guilty to a federal tax evasion charge.
“Hard-working taxpayers should not have to shoulder the burden for people, like Dr. Johnson-Jordan, who fail to pay their taxes because of spurious claims that they’re above the law,” said U.S. Attorney John Horn. “This case shows that there are serious consequences for those who intentionally avoid their tax obligations.”
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States – those honest taxpayers who diligently file tax returns each year. It is our hope that today's sentence will send a strong message, that schemes to avoid paying taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Johnson-Jordan, who practiced medicine in East Point, Georgia, failed to file income tax returns and pay federal income taxes from at least 1997 to 2014. Johnson-Jordan maintained she was exempt from paying federal income taxes despite earnings in excess of $1.5 million dollars because she claimed she was a “private sovereign citizen” and not subject to federal income tax laws. She ignored numerous notices from the IRS explaining her tax liability and warning of criminal penalties if she failed to comply with tax laws. Despite these warnings, Johnson-Jordan sent correspondence to her employer, the IRS and the U.S. Attorney’s office raising frivolous arguments and continued to challenge her tax liability until she was indicted in August 2015.
Debra Johnson-Jordan, 58, of Winder, Georgia, was sentenced to one year, one day in federal prison, three years of supervised release, $100 special assessment, 60 hours of community service and restitution in the amount of $464,432.00 to the IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Jeffrey Brown 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.
Member of Fraudulent Check Cashing Ring SentencedRead the Press Release
ATLANTA - Ryan Sylvestre, a/k/a Fly, a/k/a Nature has been sentenced to three years, nine months in prison after a jury convicted him of bank fraud conspiracy, bank fraud, and aggravated identity theft stemming from his role in a scheme that stole hundreds of thousands of dollars from banks across the Southeast.
“Sylvestre and his co-conspirators stole hundreds of thousands of dollars from numerous bank accounts across the Southeast,” said U. S. Attorney John Horn. “His elaborate scheme reinforces that identity thieves will go to almost any length to enrich themselves at the expense of their victims.”
“Bank fraud is not a victimless crime and the FBI will continue to dedicate significant investigative resources toward investigating and presenting for prosecution those who would engage in such criminal activities. The FBI is proud of the role that it played in the sentencing of Ryan Sylvestre, which removes a key crime figure from our streets,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Bank fraud is one of the largest challenges facing financial institutions today,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The Unites States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate the trust the public has in our economic system. This sentence should serve as a reminder that criminals will bear the consequences of their actions and be sent to prison for their crimes.”
According to U.S. Attorney Horn, the charges and other information presented in court: In 2013, Sylvestre, along with co-conspirators Richaad T. Mason, a.k.a. “Cap,” Carley Carpenter, and April M. Hayes, stole hundreds of thousands of dollars from SunTrust, Bank of America, and Wells Fargo bank accounts. After obtaining counterfeit checks that contained the confidential account information of customers at the three banking institutions, this group recruited individuals to cash the counterfeit and forged checks.
Sylvestre personally recruited women to cash forged checks. The checks were written out in the names of the recruited check cashers. The crew was responsible for cashing checks at various banks in Georgia, Virginia, North Carolina, and Florida, among other places. On multiple occasions, Sylvestre picked up the check cashers from their homes, gave them forged and counterfeit checks, drove them to the bank, and collected the proceeds. He also permitted his co-conspirators to use his rental car to cash checks in Savannah, Georgia and Virginia.
Other co-conspirators, some of whom await sentencing, include:
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Richaad T. Mason, a.k.a. “Cap,” 24, or Atlanta, Georgia, who pleaded guilty to aggravated identity theft and bank fraud conspiracy on June 15, 2015.
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Carley T. Carpenter, 26, of Atlanta, Georgia, who pleaded guilty to bank fraud conspiracy on September 18, 2015.
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April M. Hayes, 24, or Braselton, Georgia, who pleaded guilty to aggravated identity theft and bank fraud conspiracy on June 22, 2015.
Ryan Sylvestre, a/k/a Fly, a/k/a Nature, 32, of Atlanta, Georgia, was sentenced to three years, nine months in prison to be followed by three years of supervised release. He was indicted for bank fraud, conspiracy to commit bank fraud, and aggravated identity theft on October 27, 2015, and found guilty by a jury on December 16, 2015.
This case was investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant United States Attorneys Kamal Ghali and Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Former U.S. State Department Employee Sentenced to over Four Years in Extensive Computer Hacking, Cyberstalking and “Sextortion” SchemeRead the Press Release
ATLANTA – Former U.S. State Department employee Michael C. Ford has been sentenced to four years, and nine months in prison for perpetrating a widespread, international e-mail phishing, computer hacking and cyberstalking scheme against hundreds of victims in the United States and abroad.
“This case unfortunately shows that cyber-stalkers have the ability to torment victims from any corner of the globe,” said U.S. Attorney John A. Horn. “Hopefully, Ford’s victims can be reassured that he will serve a significant sentence for his conduct. Members of the public must be extremely careful about disclosing their logins and passwords to anyone, even when the person on the other end of an e-mail or instant message appears to be legitimate.”
“Michael Ford hacked hundreds of email accounts, particularly targeting young women so he could extort them into sending him sexually explicit images,” said Assistant Attorney General Caldwell. “He preyed on vulnerable victims, leaving them with indelible emotional scars. His sentence is a necessary step in holding him to account for his crimes and helping his victims move forward with their lives.”
“The sentencing of Mr. Ford will not only hold him accountable for his despicable criminal conduct but will also deny him the ability to further victimize others. The FBI is proud of the role that it played in bringing this case forward for investigation, apprehension, and federal prosecution and it is hoped that those who were victimized by Mr. Ford will find some relief with this sentencing,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“The Diplomatic Security Service is proud of the hard work of everyone involved in the investigation including our partners at the FBI and the Department of Justice. When a public servant in a position of trust commits crimes like cyberstalking and computer hacking on such a large scale, we will vigorously investigate those crimes and ensure they are brought to justice. We hope that this sentence will provide some closure for the victims,” said Director Miller.
According to U.S. Attorney Horn, the charges and other information presented in court: Ford admitted that between January 2013 and May 2015, while employed by the U.S. Embassy in London, he used various aliases to commit a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others. Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.
Posing as a member of the fictitious “account deletion team” for a well-known e-mail service provider, Ford sent thousands of phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords. Ford admitted he then used the passwords to hack into at least 450 e-mail and social media accounts belonging to at least 200 victims, where he searched for sexually explicit photographs and for victims’ personal identifying information (PII), including their home and work addresses, school and employment information, and names and contact information of family members, among other things.
Using both the photos and PII, Ford admitted that he then e-mailed at least 75 victims, threatening to release those photos unless they took and sent him sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores.
When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford escalated his threats, according to the plea agreement. For example, Ford admitted that he wrote in one e-mail “don’t worry, it’s not like I know where you live,” followed by another e-mail with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address. On several occasions, Ford followed through with his threats, sending his victims’ sexually explicit photographs to family members and friends, according to the plea.
Additionally, at sentencing, the government presented evidence that Ford engaged in a related scheme targeting aspiring models beginning in 2009. Posing as a model scout, Ford convinced young women to send their personal information, to include dates of birth and measurements, as well as topless photos for consideration for fictitious modeling opportunities. During this ruse, Ford obtained topless and partially nude photos from hundreds of women, including several minors. He also attempted to entice a minor to take voyeuristic videos of her peers in her school locker room. Some of his early model-scout victims became the first victims of his charged cyberstalking scheme.
Michael C. Ford, 36, of Atlanta, was sentenced by U.S. District Judge Eleanor L. Ross of the Northern District of Georgia, to four years and nine months in federal prison, to be followed by three years of supervised release. On Dec. 9, 2015, Ford pleaded guilty to nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud in connection with his ongoing criminal scheme. The names of the victims are being withheld from the public to protect their privacy.
The Diplomatic Security Service and the FBI investigated the case.
The case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section. The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case.
Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement. Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber.
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.
Lawyer Charged with Defrauding Elderly ClientRead the Press Release
ATLANTA – Attorney Bennett L. Kight was arraigned on a federal indictment today charging him with mail fraud while serving as a trustee and manager for assets, investments, and real estate owned by one of his clients.
“Kight was trusted to properly manage assets and investments belonging to an elderly client,” said U. S. Attorney John Horn. “This indictment alleges that he instead misappropriated $2 million from her by orchestrating a sham real estate transaction involving his former personal residence.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Kight is a lawyer licensed to practice law in the State of Georgia since 1966. Kight represented F.B. and members of her family, as well as serving as a trustee and manager for assets, investments, and real estate owned and held for the benefit of F.B. and her family.
In January 2006, Kight used his responsibility over F.B.’s assets to misappropriate approximately $2 million from accounts owned by or held for the benefit of F.B. Kight used the money he took from F.B.’s accounts to pay off the $500,000 mortgage on his former home in Atlanta and to fund investments for his benefit. Without informing F.B., Kight obtained the money by purporting to sell F.B. his former home. To facilitate the sale, Kight formed and used two limited liability companies that were supposed to hold title to the house for F.B.’s benefit. However, no deed transferring Kight’s former home to F.B. or these companies was publicly recorded, and Kight later dissolved these companies.
Kight’s son ultimately moved into the property Kight allegedly “sold” to F.B. and caused a back dated deed to the property to be prepared and publicly recorded on March 21, 2011. The back dated deed purported to show that an entity owned and controlled by Kight had owned the house since July 2005, which was several months before Kight obtained $2 million from F.B.’s assets by allegedly selling her the property.
Kight, 75, of Atlanta, Georgia, was arraigned before United States Magistrate Judge John K. Larkins. He was indicted by a federal grand jury on March 16, 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 FBI.
Assistant United States Attorney Douglas W. Gilfillan is prosecuting the case.
Today’s 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.
Former U.S. State Department Employee Sentenced to 57 Months in Extensive Computer Hacking, Cyberstalking and “Sextortion” SchemeRead the Press Release
A former U.S. State Department employee was sentenced today to 57 months in prison for perpetrating a widespread, international e-mail phishing, computer hacking and cyberstalking scheme against hundreds of victims in the United States and abroad.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Michael C. Ford, 36, of Atlanta, was sentenced today by U.S. District Judge Eleanor L. Ross of the Northern District of Georgia. On Dec. 9, 2015, Ford pleaded guilty to nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud in connection with his ongoing criminal scheme. The names of the victims are being withheld from the public to protect their privacy.
According to the plea document, Ford admitted that between January 2013 and May 2015, while employed by the U.S. Embassy in London, he used various aliases to commit a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others. Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.
Posing as a member of the fictitious “account deletion team” for a well-known e-mail service provider, Ford sent thousands of phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords. Ford admitted he then used the passwords to hack into at least 450 e-mail and social media accounts belonging to at least 200 victims, where he searched for sexually explicit photographs and for victims’ personal identifying information (PII), including their home and work addresses, school and employment information, and names and contact information of family members, among other things. Using both the photos and PII, Ford admitted that he then e-mailed at least 75 victims, threatening to release those photos unless they took and sent him sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores.
When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford escalated his threats, according to the plea agreement. For example, Ford admitted that he wrote in one e-mail “don’t worry, it’s not like I know where you live,” followed by another e-mail with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address. On several occasions, Ford followed through with his threats, sending his victims’ sexually explicit photographs to family members and friends, according to the plea.
Additionally, at sentencing, the government presented evidence that Ford engaged in a related scheme targeting aspiring models beginning in 2009. Posing as a model scout, Ford convinced young women to send their personal information, to include dates of birth and measurements, as well as topless photos for consideration for fictitious modeling opportunities. During this ruse, Ford obtained topless and partially nude photos from hundreds of women, including several minors. He also attempted to entice a minor to take voyeuristic videos of her peers in her school locker room. Some of his early model-scout victims became the first victims of his charged cyberstalking scheme.
“Michael Ford hacked hundreds of email accounts, particularly targeting young women so he could extort them into sending him sexually explicit images,” said Assistant Attorney General Caldwell. “He preyed on vulnerable victims, leaving them with indelible emotional scars. His sentence is a necessary step in holding him to account for his crimes and helping his victims move forward with their lives.”
“This case unfortunately shows that cyber-stalkers have the ability to torment victims from any corner of the globe,” said U.S. Attorney Horn. “Hopefully, Ford’s victims can be reassured that he will serve a significant sentence for his conduct. Members of the public must be extremely careful about disclosing their logins and passwords to anyone, even when the person on the other end of an e-mail or instant message appears to be legitimate.”
“The Diplomatic Security Service is proud of the hard work of everyone involved in the investigation including our partners at the FBI and the Department of Justice,” said Director Miller. “When a public servant in a position of trust commits crimes like cyberstalking and computer hacking on such a large scale, we will vigorously investigate those crimes and ensure they are brought to justice. We hope that this sentence will provide some closure for the victims.”
“Today’s sentencing of Mr. Ford will not only hold him accountable for his despicable criminal conduct but will also deny him the ability to further victimize others,” said Special Agent in Charge Johnson. “The FBI is proud of the role that it played in bringing this case forward for investigation, apprehension, and federal prosecution and it is hoped that those who were victimized by Mr. Ford will find some relief with this sentencing.”
The Diplomatic Security Service and the FBI investigated the case. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia prosecuted the case. The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case.
Former Bank Employees Sentenced for Executing Stolen Identity Tax Refund Fraud SchemeRead the Press Release
ATLANTA –Jeoffrey Jenkins and Vaughn Chambers have been sentenced for their roles in a two-year long tax refund fraud scheme that generated hundreds of false tax returns and sought over $2.8 million in fraudulent tax refunds. Jenkins and Chambers, both bank employees, stole personally identifying information from bank customers and used that information to open bank accounts to receive the fraudulent tax refunds.
“This case is one more unfortunate example of the growing problem of stolen-identity tax return fraud,” said U.S. Attorney John Horn. “As criminals attempt to employ more sophisticated methods, citizens need to be vigilant about protecting their personal information.”
“These unscrupulous defendants were trusted insiders who abused their positions to commit crimes and victimize members of our community and innocent taxpayers for their own personal gain. The sentences these defendants received will not replace the losses that were incurred or the harm endured by the victims. However, it does illustrate that IRS Criminal Investigation, along with our law enforcement partners, are committed to pursuing individuals who commit these types of crimes,” stated IRS Special Agent in Charge, Veronica F. Hyman-Pillot.
“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate their positions of trust to illegally enrich themselves,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This sentencing should serve as a reminder that criminals will bear the consequences of their actions and be sent to prison for their crimes.”
According to U.S. Attorney Horn, the charges and other information presented in Court: From at least February 2013 until at least March 2014, Jenkins and Chambers opened numerous bank accounts using stolen personally identifying information. Those bank accounts were then listed in over 2,000 fraudulent tax returns filed with the Internal Revenue Service, with the intention that any tax refund due for the fraudulent tax returns would be deposited into the fraudulently opened bank accounts. The scheme came to light primarily through a report from a Suntrust Bank investigator who told law enforcement that Chambers was associated with anomalous banking activity. When confronted by law enforcement, Chambers provided information that implicated Jenkins. And from there, tax filings and bank records unraveled the defendants’ involvement in the scheme.
In total, the bank accounts opened by the two men were set up to receive approximately $2.5 million in fraudulent tax refunds. Out of that amount, approximately $500,000 was actually deposited into the bank accounts by the IRS.
Jeoffrey Jenkins, 50, and Vaughn Chambers, 40, both from Atlanta, Georgia, were sentenced by U.S. District Judge Mark H. Cohen as follows:
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Jenkins was sentenced to six years, three months in prison, and was ordered to pay $570,034 in restitution.
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Chambers, who was recruited into the scheme by Jenkins, received two years in prison, and was ordered to pay $9,464 in restitution.
Both defendants were ordered to serve three years of supervised release when they complete their prison terms.
This case was investigated by the Internal Revenue Service Criminal Investigations and United States Secret Service.
Assistant United States Attorney Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
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Career Identity Thief Sentenced to over 19 Years in Federal PrisonRead the Press Release
ATLANTA - Kamali Rives was sentenced to 19 years, six months in federal prison on fraud and identity theft charges. Rives and his co-conspirators ran multiple fraud and identity theft schemes that ultimately stole over $2 million.
“Rives made his living for years by victimizing hundreds of people,” said U.S. Attorney John Horn. “He used the stolen identities to open bank accounts and write checks in other people’s names, as well as taking out loans and making purchases on phony credit cards. He ultimately had no regard for the financial hardships he caused the people whose identities were stolen.”
Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division stated, “The U.S. Postal Inspection Service will continue to go after those who use the U.S. Mail to defraud the American public. This case demonstrates the importance of cooperation among our law enforcement partners to pursue those individuals who insist on defrauding unwitting victims by stealing their identities and attacking their personal well-being.”
“This case illustrates the negative impact that bank fraud and identity theft have on the citizens of the United States. The sentence imposed today should be a reminder that the Secret Service, in conjunction with our law enforcement partners, will continue to arrest criminals who violate innocent victims and threaten our financial systems,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Rives and co-defendant Rashon Bohannon, 34, of Lilburn, Georgia, ran multiple fraud and identity theft schemes for many years, dating back to at least 2010. Rives and Bohannon maintained hundreds of files that contained “profiles” of their victims. These profiles included names, dates of birth, Social Security numbers, bank information, credit card numbers, and credit reports. They used this information to open bank accounts, cash checks, take out loans, manufacture credit cards, and make credit purchases.
In one of the schemes, Rives and Bohannon conspired with Jimia Fannin, 36, and Ashley Posey, 31, both of Atlanta, Georgia, to steal corporate checks from Bank of America. Fannin was employed by Bank of America in its lockbox unit, where her job was to process checks that had been mailed to post office box numbers assigned to Bank of America corporate clients. As part of processing the checks, Fannin was supposed to post them as deposits to the appropriate Bank of America accounts. Instead, Fannin stole numerous checks and gave them to Rives and Bohannon.
Rives and Bohannon then recruited “runners,” including Posey, to open checking accounts at other banks in Georgia and deposit the checks. The defendants opened the accounts in the names of corporations that were similar or identical to the payee corporations on the stolen corporate checks.
Rives and Bohannon also used the information obtained from the stolen checks to access the bank accounts held by the account holders who had written the checks. The defendants called the banks and changed the customer information, including the addresses, email addresses, and phone numbers, for the customers’ existing accounts. After changing the account information, Rives and Bohannon withdrew money from the victims’ accounts for their own use.
The defendants stole over $2 million in this bank fraud scheme alone.
Rives also maintained an office in College Park, Georgia, where he conducted credit card fraud. In November 2013, officers from the College Park Police Department executed a search warrant at the office space after an individual claimed he had been held against his will there and pressured to engage in identity theft. The officers went to location, and after smelling marijuana and seeing evidence of drug and identity theft activity, obtained a search warrant. Inside, they found abundant evidence of identity theft, including hundreds of counterfeit credit cards, a credit-card-manufacturing machine, numerous files with credit card information (purchased from illicit Internet web sites), and other documents with personal identifiers.
At the sentencing, the government introduced evidence that Rives continued to engage in credit card fraud and identity theft even when he was placed in pretrial detention on the federal charges. He used fraudulent credit cards to transfer money to inmates’ commissary accounts in the detention facility. Rives then purchased commissary items and received payments from other inmates from the accounts.
Kamali Rives, 37, of Riverdale, Georgia, was sentenced by United States District Judge Thomas W. Thrash, Jr., to 19 years, six months in prison to be followed by three years of supervised release, and ordered him to pay restitution in the amount of $602,388.32. Rives was convicted on these charges on December 16, 2015 after he pleaded guilty to a 23-count indictment charging him with conspiracy, bank fraud, access device fraud, and aggravated identity theft.
Bohannon, Fannin, and Posey are scheduled to be sentenced on March 9, 2016 before Judge Thrash.
This case is being investigated by the United States Postal Inspection Service and United States Secret Service. The College Park Police Department and the Hapeville Police Department provided valuable assistance in the investigation.
Assistant United States Attorney Stephen H. McClain 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.
Operator of Fraudulent Moving Company Sentenced for ConspiracyRead the Press Release
ATLANTA - Shedrick Giles and Tasheen Raphael Pickett, both of whom owned and operated moving companies, have been sentenced for their roles in fraudulently obtaining unsuspecting citizens’ household goods.
“The defendants took advantage of trusting citizens who sought help with moving to a new home,” said U.S. Attorney John Horn. “Who could conceive of movers taking all of their possessions and then simply disappearing? Others that would consider following in their footsteps and attempt such brazen thefts can expect the same outcome; prosecution.”
“The sentencing of Tasheen Raphael Pickett and Shedrick Giles for conspiring to fraudulently obtain household goods is a strong signal to those that would defraud customers seeking to transport their household goods,” said Marlies T. Gonzalez, regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT-OIG). “We will continue working with our prosecutorial, law enforcement and Federal Motor Carrier Safety Administration colleagues to prevent, detect and prosecute violations of Federal law and regulation designed to protect the public.”
According to U.S. Attorney Horn, the charges and other information presented in court: since at least November 2013, Pickett and Giles have been traveling the United States, picking up shipments of innocent victims’ personal property, and promising to deliver those shipments to agreed-upon locations. But instead of delivering the property, Pickett and Giles would take control of the property, keeping some of it for themselves and disposing of the rest.
After a criminal complaint was filed against Pickett in Amarillo, Texas, in July 2014, the DOT-OIG was notified. In September 2014, DOT-OIG agents searched storage units at a Public Storage Facility in East Point, Georgia, and discovered that the units were stacked full with approximately 14 individuals’ personal property—property that had been taken by Pickett months before and never delivered. Other property taken by Giles was discovered in a second Public Storage Facility in Decatur, Georgia, in January 2015. Although both Pickett and Giles have worked as movers for several years, neither is authorized to transport household goods by the Federal Motor Carrier Safety Administration (FMCSA), the federal agency tasked with providing oversight over household goods movers. Pickett, the primary perpetrator of the scheme, intended to cause over $600,000 in losses to 36 people. Giles assisted Pickett in three of the moves.
Pickett and Giles sentences are as follows:
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Shedrick Giles, 43, of Brentwood, New York, was sentenced to one year and two days in federal prison, to be followed by three years of supervised release.Giles was ordered to pay $144,007 in restitution to the victims of the crime and complete 40 hours of community service.
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Tasheen Raphael Pickett, 41, of College Park, Georgia, was sentenced on January 6, 2016, to four years in federal prison, to be followed by three years of supervised release.Pickett was ordered to pay $427,809.85 in restitution to the victims of the crime.
This case was investigated by the Department of Transportation – Office of Inspector General.
Assistant United States Attorney Samir Kaushal prosecuted the case.
More than 5,800 household goods moving companies are registered with the FMCSA. In 2014, FMCSA received more than 2,800 consumer complaints about household goods movers, down from more than 3,100 in 2013. Among the most common complaints are shipments being held hostage, loss and damaged goods, delay of shipments, unauthorized movers, and deceptive practices such as unwarranted overcharges. Consumers can report unsafe and unlawful moving companies by calling FMCSA’s nationwide complaint hotline at 1-888-368-7238 (1-888 DOT-SAFT) or by visiting the database at http://nccdb.fmcsa.dot.gov. Consumers can visit www.protectyourmove.gov to find out more about the “red flags” of moving fraud.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Convenience Store Owner Pleads Guilty to over One Million Dollars in Food Stamp FraudRead the Press Release
ATLANTA - Sholondrell Taylor has pleaded guilty to theft of government funds in a $1.6 million food stamp fraud scheme. Taylor’s stores allowed customers to exchange their food stamps for cash, buying Women, Infants, and Children (WIC) vouchers at less than face value and redeeming them at full price.
“The defendant abused the food stamp program for her own financial gain, taking advantage of families in need and stealing over a million dollars from taxpayers,” said U.S. Attorney John Horn. “Taylor’s elaborate scheme even included a driver to pick up food stamps and WIC vouchers from those willing to sell them for a fraction of their value.”
“Taylor’s plea should serve as a warning to all stores that participate in the WIC and EBT programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the US Attorney’s Office, and all of its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from tax payer funded programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through January 2011, Taylor operated Dandes Food Center, LLC, in Forest Park, Georgia, and Shop Rite Food Mart, LLC, located in Atlanta, Georgia, where she unlawfully allowed her customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar. Taylor also purchased Women, Infants, and Children (WIC) vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the U.S. Department of Agriculture.
Taylor set the rates of redemption, and instructed her employees to keep detailed ledgers of all transactions to ensure that they were not stealing from her. She trained her employees on how to determine the available balances on food stamp cards; and required employees to obtain WIC voucher codes and usable voucher dates before purchasing the vouchers. Many of the customers who sold their WIC vouchers, and food stamp benefits, never visited Dandes or Shop Rite because Taylor employed a driver to retrieve WIC vouchers and food stamp cards in exchange for cash.
This case came to the attention of federal authorities as a result of a investigation involving Georgia Department of Human Services employees. In 2011, Gene Tell and Kristy Williams were charged with conspiracy and mail fraud for their roles in the fraudulent creation and distribution of thousands of food stamp cards. Many of the fraudulent cards were illegally redeemed at Dandes Food Center operated by Taylor.
Sentencing for Sholondrell Taylor, 47, of Ellenwood, Georgia, has not yet been scheduled.This case is being investigated by the U.S. Department of Agriculture, Office of Inspector General.
Assistant United States Attorney Loranzo M. Fleming is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta Store Owner Pleads Guilty to Trafficking in Food StampsRead the Press Release
ATLANTA - Samuel Kwushue has pleaded guilty to eight counts of wire fraud for illegally exchanging food stamp benefits for cash in his convenience store. Between late 2010 to approximately June 2015, Kwushe exchanged food stamp benefits for pennies on the dollar.
“The federal food stamp program is intended to help low-income citizens obtain needed nutritional assistance for themselves and their families,” said U. S. Attorney John Horn. “Instead, Kwushue abused the program by exchanging food stamp benefits for cash so he could enrich himself.”
“The federally funded food stamp program was designed with the best of intentions for those individuals truly in need. Kwushue was not one of those truly in need. This guilty plea in federal court will now firmly hold him accountable for his greed driven criminal acts of preying on those in need and stealing from a government program,” 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 August 2011 until at least June 2015, Kwushue owned and operated KD Metro Tropical Market, a convenience store in Atlanta, Georgia, where he unlawfully exchanged his customers’ food stamp benefits for cash at the rate of approximately 60 cents on the dollar. Stores that participate in the food stamp program are prohibited by law from exchanging cash for food stamp benefits or accepting food stamp benefits for the purchase of alcohol, tobacco, and non-food items.
During the investigation, law enforcement obtained data showing that KD Metro Tropical Market, a small convenience store, gradually raised its food stamp benefits transactions each month from approximately $1,100 in October 2010, to approximately $200,000 in June 2015. During undercover transactions where Kwushue paid agents cash in exchange for food stamp benefits, agents saw a collection of foodstuffs that could not justify the substantial sums Kwushue charged to the food stamp program each month. The scheme allegedly netted Kwushue approximately $2 million. He also allegedly handed out nearly $3 million in cash to customers.
Sentencing for Samuel Kwushue, 54, of Union City, Georgia, has not yet been scheduled.
This case is being investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Assistant United States Attorney Samir Kaushal 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 Managing Partner and CFO of Morris, Hardwick, Schneider Law Firm, and Land Castle Title, Indicted for Multi-Million Dollar EmbezzlementRead the Press Release
ATLANTA – A federal indictment unsealed today charges Nathan E. Hardwick IV and Asha R. Maurya with conspiracy, wire fraud, and related crimes in connection with Hardwick’s alleged theft of over $20 million from the attorney escrow accounts and operating accounts of Morris Hardwick Schneider and LandCastle Title, an Atlanta-based law firm and title agency in which Hardwick and Maurya once served as top executives. In addition to charges against Maurya for assisting with Hardwick’s theft, the indictment also charges Maurya with stealing approximately $900,000 from the firm’s accounts to pay her own personal expenses.
“The indictment alleges an embezzlement scheme dating back years,” said U.S. Attorney John Horn. “Along the way, Mr. Hardwick is alleged to have repeatedly lied to his clients, law partners, banks and others. The allegations are especially troubling given that the actions were orchestrated by a lawyer who swore an oath to uphold the law and to represent his clients with integrity.”
“The magnitude of theft as alleged in the federal indictments of these two defendants clearly merited the resulting federal investigation and prosecution. The allegations describe a trusted corporate officer and attorney in personal financial troubles conspiring with another corporate officer to steal from their employer, primarily through escrow accounts entrusted to their company. Today’s federal grand jury indictments will now move those allegations into federal court,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated.
According to U.S. Attorney Horn, the indictment, and other information presented in court: Morris Hardwick Schneider and LandCastle Title (“MHS”) was a law firm and title insurance agency headquartered in Atlanta, Georgia. MHS employed approximately 80 lawyers and 800 non-lawyer employees in 16 states. MHS’s law practice specialized in residential real estate closings and default and foreclosure matters. MHS’s title insurance business involved selling title insurance policies in connection with residential real estate closings.
During periods of high activity in the real estate market, MHS performed thousands of residential real estate closings per month, and received hundreds of millions of dollars in closing funds that it was required to hold in trust in attorney escrow accounts until disbursed in accordance with its clients’ closing instructions for each transaction. At any given time, a single MHS attorney escrow account might contain millions of dollars. MHS also had operating accounts for purposes of funding its operations. MHS’s accounting and escrow account operations were based out of the firm’s Atlanta headquarters.
From MHS’s formation in 2005 until Hardwick’s resignation in August 2014, Hardwick served as managing partner of the law firm and Chief Executive Officer of the title insurance agency. Hardwick was also the majority shareholder of MHS. Hardwick worked out of MHS’s Atlanta headquarters, supervised virtually all of MHS’s day-to-day operations, and had virtually unlimited access to, and control over, MHS’s financial affairs.
Maurya was an accounting department employee of MHS from April 2009 until her termination in November 2014. Maurya was hired to be MHS’s Escrow Account Controller and was eventually promoted to the position of Chief Financial Officer of MHS’s closing division. Maurya managed MHS’s attorney escrow account operations and other accounting operations under Hardwick’s supervision.
Hardwick allegedly began experiencing severe financial problems in the late 2000s, when a sharp decline in the residential real estate market made MHS less profitable, and he was subject to a July 2008 divorce decree requiring him to pay his ex-wife over $550,000 per year in alimony and other payments for five years. Hardwick’s legitimate income could not keep pace with his lavish lifestyle, which included private jet travel; multi-million dollar homes; high-end retail goods and services; gambling at casinos in Louisiana, Mississippi, New Jersey, and Nevada; and payments to bookies and girlfriends.
The Alleged Embezzlement Conspiracy
To maintain the illusion of wealth and success despite his financial problems, and to continue to live beyond his means, in or about 2011, Hardwick allegedly began directing Maurya to make millions of dollars in shareholder distributions, bonuses, and other payments for Hardwick’s benefit, directly out of MHS’s bank accounts, in amounts that exceeded the share of MHS’s profits to which Hardwick was entitled. This occurred at times when no shareholder bonuses or distributions were scheduled to be made, and without causing or directing proportionate bonuses or distributions to be made to the other MHS shareholders. The excess bonuses, distributions, and payments to and for Hardwick’s benefit included payments to casinos, private jet charter companies, credit card issuers, and other creditors and accounts.
To fund the vast majority of these illicit payments, Hardwick and Maurya allegedly caused millions of dollars to be wire transferred to and for Hardwick’s benefit out of MHS’s attorney escrow accounts. Hardwick and Maurya fraudulently concealed Hardwick’s excess payments from the other MHS shareholders, MHS employees, outside auditors, title insurance underwriters, and others through false statements, half-truths, and by the omission of material facts, and by distributing false and misleading financial information and records.
According to the indictment and based on information presented in court, when other MHS shareholders, MHS employees, and one of MHS’s title insurance underwriters began to uncover the conspiracy in July and August 2014, Hardwick and Maurya took further steps to conceal the illicit payments and to delay and obstruct the discovery of their scheme, including by making false statements about the nature, amount, and cause of the excess payments and any resulting escrow account shortages. In particular, Maurya allegedly provided excuses and denials that attempted to attribute any problems to bank error.
Before the other MHS shareholders and employees knew the full extent of the scheme, Hardwick also allegedly tried to conceal the amount of his illicit payments and the severity of the resulting escrow account shortages by lying to obtain and to attempt to obtain loans from various individuals and entities to repay part of the money that he had stolen.
The indictment also charges Hardwick with lying to obtain over $3.5 million in loans from federally-insured banks in 2009, 2011, 2013, and 2014.
Maurya’s Alleged Embezzlement
In addition to charges against Maurya for her assistance with Hardwick’s alleged theft of over $20 million, the indictment charges Maurya separately with a scheme to defraud MHS by tricking MHS into issuing checks to pay off her personal credit card bills. Maurya is alleged to have diverted over $900,000 from MHS’s attorney escrow accounts and operating accounts to pay off her credit card bills and home mortgages.
Overview of The Charges
The indictment charges Hardwick and Maurya with one count of conspiracy to commit wire fraud and 18 counts of wire fraud. It charges Hardwick with one count of bank fraud and three counts of making false statements to federally-insured financial institutions. The indictment charges Maurya with 11 counts of mail fraud. The conspiracy, wire fraud, and mail fraud charges against Hardwick and Maurya each carry a maximum sentence of 20 years in prison and a fine of up to $250,000 per count. The bank fraud and false statements charges against Hardwick each carry a maximum sentence of 30 years in prison and a fine of up to $1 million per 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.
A federal grand jury in Atlanta returned the sealed indictment against Hardwick, 50, formerly of Atlanta, and Maurya, 40, of Atlanta, on February 9, 2016. Both defendants made their initial appearances today before U.S. Magistrate Judge Justin S. Anand.
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 each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the FBI. Valuable assistance has also been provided by Special Agents of the Criminal Investigation Division of the IRS.
Assistant United States Attorneys David M. Chaiken and J. Russell Phillips are prosecuting the case.
Today’s 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.
Former Manager of Marietta Hair Products Company Sentenced for Embezzling over $3.3 MillionRead the Press Release
ATLANTA - Veria Fields, a former employee of Bronner Bros., Inc., a hair care products company in Marietta, Georgia, has been sentenced to serve two years and four months in federal prison on charges of mail fraud relating to a theft from her former employer.
“Small businesses depend on their finance and accounting personnel to safeguard the financial health of the company,” said U.S. Attorney John Horn. “Instead, Fields violated the company’s trust by stealing millions of dollars for herself.”
“Today’s sentencing of Ms. Fields to federal prison will provide her with significant time to reflect on her ill-conceived greed driven theft scheme that diverted over three million dollars from her company to her own bank account. The FBI will continue to dedicate its investigative resources toward those individuals engaged in such unbridled and damaging white collar based criminal schemes as seen here,” 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: Fields was the Accounts Receivable Manager for Bronner Bros. Inc., a wholesaler of African-American hair care products headquartered in Marietta, Georgia. Fields also informally performed customer service functions for the company.
From 2006 through 2010, Fields embezzled over $3.3 million from Bronner Bros. by offering customers unauthorized discounts of five to15 percent in exchange for customers making account payments to her in cash. Rather than applying the discounted payments to the customers’ accounts as the customers expected, Fields instead pocketed the cash for herself. To conceal the unauthorized discounts and the thefts, Fields used her position as the company’s Accounts Receivable Manager to allocate portions of the payments from other Bronner Bros. customers to cover the shortfalls she created. She also wrote off portions of the bills owed by the customers.
Veria Fields, 54, of Atlanta, Georgia, has been sentenced to two years, four months in federal prison, to be followed by three years of supervised release, and to pay restitution of $3,330,828.02. Fields was convicted of these charges on November 20, 2015, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Convenience Store Owner Sentenced to Federal Prison for Trafficking in Food StampsRead the Press Release
ATLANTA - Tessema Lulseged has been sentenced to serve four years and three months in federal prison for using his Decatur, Georgia, convenience store to illegally traffic in food stamps. Lulseged allowed his customers to exchange their food stamp benefits for cash in a scheme that netted him $6.5 million.
“The purpose of the food stamp program is to offer low-income citizens nutritional assistance, and this defendant undermined the program solely for his own profit and cost taxpayers more than $6.5 million,” said U.S. Attorney John Horn.
The United States Department of Agriculture, Office of Inspector General- Investigations, actively investigates allegations of fraud in the Supplemental Nutritional Assistance Program (SNAP). Annually, this type of fraudulent activity undermines this program by misdirecting millions of dollars of taxpayer funds from the purposes they were intended. We would like to thank U.S Attorney's Office for aggressively prosecuting perpetrators of fraud and sending a strong message that illegally profiting by defrauding USDA programs will not be tolerated,” said Karen Citizen-Wilcox, Special Agent-in-Charge for USDA’s Office of Inspector General.
“This case represents an individual systematically exploiting those in need and diverting U.S. funds intended for the needy to his own bank account. The FBI is pleased with its role in bringing this case forward for prosecution which resulted in today’s federal prison sentence for Mr. Lulseged,” 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 January 2009 through April 2014, Lulseged operated Tess Market, Inc., d/b/a Big T Supermarket, a convenience store in Decatur, Georgia, where he unlawfully allowed his customers to exchange their food stamp benefits for cash at the rate of 60 cents on the dollar. As part of the deal, Lulseged required customers to purchase eligible food products equal to 10% of the value of the transaction. For example, if a customer wanted to sell $100 worth of food stamp benefits for $60, that customer also had to purchase $10 worth of eligible food products from Lulseged’s store. The fraudulent scheme netted Lulseged approximately $6.5 million.
Pursuant to search and seizure warrants that were executed in February 2014, the government seized and forfeited over $700,000 in funds tainted by the fraud. The government also forfeited two pieces of real property: the defendant’s personal residence in Gray, Georgia, and his store property in Decatur, Georgia, on the grounds that they were proceeds of the fraud and properties involved in money laundering transactions.
Tessema Lulseged, 49, of Decatur, Georgia, was sentenced to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,930,450.16. Lulseged was convicted on these charges on July 7, 2015, after he pleaded guilty.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, Investigations Division, and the Federal Bureau of Investigation.
Assistant U.S. Attorneys J. Russell Phillips, Dahil D. Goss, and Jenny R. Turner prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta Executives and an Internet-Based Promoter Charged with Scheme to Defraud InvestorsRead the Press Release
ATLANTA – The co-owners, chief operating officer, and an alleged paid promoter of Sterling Currency Group, which at one time billed itself as one of the largest sellers and exchangers of the Iraqi dinar in the U.S., have been indicted for their roles in a scheme to fraudulently induce investors into purchasing the Iraqi dinar. Tyson Rhame, James Shaw, Terrence Keller, and Frank Bell, have been indicted in this case and had their initial appearances before U.S. Magistrate Judge Alan J. Baverman.
“Investors in the Iraqi dinar, like all investors, are entitled to make an informed choice based on honest and transparent information,” said U. S. Attorney John Horn. “These defendants are alleged to have defrauded investors by spreading misinformation about the investment potential of the Iraqi dinar in order to profit from sale of the currency. We urge anyone who believes they were impacted by this scheme to contact the FBI.”
“This federal indictment represents extensive efforts by the government to protect investors from those who would make alleged unsubstantiated claims involving the potential revaluation of certain foreign currency. The FBI, along with the IRS Criminal Investigative Division, has made every effort to provide some protection for those who have already invested by seizing millions of dollars, the disposition of which will be further determined as this case now moves into the U.S. Courts system,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Investment fraud schemes are designed to appeal to people's hope, often resulting in the total loss of their investment,” stated Special Agent in Charge Veronica F. Hyman-Pillot, IRS Criminal Investigation. “Individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable. The indictment of these individuals illustrates our commitment, along with our law enforcement partners, to pursue those individuals who victimize investors, violate the public trust and enrich themselves financially at the expense of the investor.”
According to U.S Attorney Horn, the indictment, and other information presented in court: During the scope of the conspiracy, the Iraqi dinar – which is the currency of the country of Iraq - was touted by some as a potential investment opportunity. Information publicly available on certain internet websites, blogs, chat rooms, and conference calls fueled this speculation by predicting that a “revaluation” of the Iraqi dinar would occur imminently. A “revaluation” or “RV,” in this context, meant a sudden, exponential rise in the value of the Iraqi dinar as compared to the U.S. dollar and other relatively stable global currencies. Individuals who owned Iraqi dinar would realize potentially enormous gains if an “RV” ever occurred in this manner.
Sterling Currency Group, LLC, which also did business as Sterling Online Processing Services, LLC, and Dinar Banker (collectively, “Sterling”), was a Georgia corporation with its principal place of business in Atlanta, Georgia. Sterling sold and exchanged so-called “exotic currencies,” including most predominantly the Iraqi dinar.Tyson Rhame and James Shaw were co-owners of Sterling, which began operations in 2004. Frank Bell began working for Sterling in 2010 and became Sterling’s Chief Operating Officer in 2011.
According to the indictment, Terrence Keller, who was also known as “TerryK,” led an internet-based group known as “The GET Team,” which consisted of a website, an internet chat forum and weekly conference calls in which, among other things, information was disseminated to participants concerning the potential investment value of the Iraqi dinar.Keller, through The GET Team, was one of the leading internet-based proponents of the “RV” theory. On The GET Team’s website, internet chat forum, and on weekly conference calls, Keller is alleged to have falsely claimed to have information from, and verified by, high-level confidential sources in the United States government, the Iraqi government, international organizations, and major financial institutions, regarding an imminent “RV.” However, Keller did not have information from, or contact with, these supposed high-level confidential sources. The indictment alleges that Keller, Rhame, Shaw, and Bell knew and believed that representations concerning an imminent “RV” of the Iraqi dinar, particularly claims that the information came from one or more supposed high-level confidential sources, would boost sales for Sterling.
Keller allegedly claimed, directly and indirectly, to The GET Team followers that he had no financial or other ulterior motive to promote the Iraqi dinar as an investment, but, rather, that he was simply disseminating his knowledge and information so that others could benefit from it as well. To that end, Keller affirmatively told his followers that he did not make substantial profits from his dealings with Sterling and other dinar dealers that advertised with the GET Team.Keller allegedly had a secret arrangement with Rhame, Shaw and Bell to promote and “pump” the Iraqi dinar in exchange for payments made by Sterling to benefit Keller. Since at least as early as August 2011, Sterling paid Keller over $160,000. Keller consistently downplayed these financial benefits to his followers and listeners.
The correlation between Sterling’s increased sales and Keller’s promotion of the Iraqi dinar was allegedly further cemented by the presence of a Sterling representative, including, at times, Rhame and Bell, on The GET Team’s conference calls and internet forums. At various times, Rhame, Bell and other Sterling representatives participated in conference calls and internet forums in which Keller made representations to followers concerning the imminent Iraqi dinar “RV,” his access to high-level confidential sources, and claims that he was just trying to be helpful and received no financial benefit for providing this information to others. The presence and participation of Rhame, Bell, and other Sterling representatives on The GET Team’s conference calls and internet forums provided further validation to followers that Keller’s claims about an imminent “RV” of the Iraqi dinar should be believed.
The indictment alleges that the promotional activities of Keller and other dinar promoters were essential to Sterling’s financial success and generated Sterling millions of dollars in dinar and other currency sales. In December 2010, Rhame is alleged to have told colleagues that Keller and the GET Team pushed 80% of Sterling’s business. In December 2011, Bell is alleged to have referred to the GET Team as Sterling’s “largest referrer.” Between approximately 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies. During this same time period, Rhame and Shaw received over $180 million in distributions from Sterling.
Tyson Rhame, 51, and James Shaw, 53, both of Atlanta, Georgia, Frank Bell, 54, of Decatur, Georgia, and Terrence Keller, also known as “TerryK,” 55, of Grayson, Kentucky, are each charged with conspiracy to commit mail and wire fraud as well as several counts of mail fraud and wire fraud. Rhame and Shaw are also charged with conspiracy to commit money laundering and 12 counts of money laundering.
The indictment also includes criminal forfeiture listing numerous assets to which the defendants may have an interest. Specifically, the government is seeking the forfeiture of millions of dollars held in financial accounts, foreign currencies, three private airplanes, three automobiles, numerous corporate and trust entities, as well as real property in Georgia, Florida, North Carolina, and Iowa. Also, the government filed motions to amend two civil forfeiture complaints, which similarly seek the forfeiture of a variety of assets allegedly linked to this scheme. The government’s motions and amended civil forfeiture complaints can be found at United States v. 225 Valley Road, NW, Atlanta, GA et. al., 1:15-CV-2032-LMM (Doc. 217) and United States v. Approximately 8,671,456,050 in Iraqi Dinars, et. al., 1:15-CV-2677-LMM (Doc. 212).
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp, Steven D. Grimberg, and Jamie L. Mickelson are prosecuting the case. Assistant United States Attorneys Kelly K. Connors, Dahil D. Goss, and Thomas J. Krepp are handling the parallel civil forfeiture actions.
Members of the public who believe they were impacted by this scheme are encouraged to contact the FBI at https://forms.fbi.gov/iraqi-dinar-investment-investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eighteen Individuals Sentenced for Running Stolen U.S. Treasury Checks and Identity Theft RingRead the Press Release
Eighteen defendants have been sentenced in a large, stolen U.S. Treasury check and identity theft ring. The defendants ran an elaborate scheme that obtained stolen checks, manufactured fake Georgia driver’s licenses to use in cashing the stolen checks, and opened credit card accounts in the names of unsuspecting victims.
“Fraud and identity theft crimes are a growing problem in our community,” said U.S. Attorney John Horn. “These crimes have long-lasting effects on the victims, destroy credit ratings and deprive victims of benefit checks they often desperately need. For many, it can take years to undo the damage caused by these schemes.”
“The federal prison sentences handed down to this aggressive and organized theft ring are the direct result of the efforts of a large group of committed and dedicated investigators and prosecutors that clearly saw the level of victimization to individuals, corporations, and even the U.S. government. The FBI is proud of the role that it played in bringing this case forward for the successful prosecution that now holds these individuals fully accountable for their criminal actions,” 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 approximately June 2012 until September 2014, the defendants worked together to obtain and cash U.S. Treasury checks stolen from the U.S. Mail. The checks were originally issued to people entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving Social Security and disability payments.
The defendants played different roles in the scheme: Defendants Erica Willis, Dexter Willis, Sayeed Valdez and Antonio Slatton sold stolen checks to other defendants. Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check sellers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers like Ibrahim Abdur-Rabbani and Khalil Majeed to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “check runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta metropolitan area, such as Wal-Mart and Publix.
As part of the investigation, FBI and other law enforcement agents worked with a confidential informant, which put them in a position to recover the stolen checks and false identifications. During the investigation, the government reimbursed the stores that agreed to help in the investigation by cashing the stolen checks, thus aiding law enforcement in identifying the members of the scheme.
In a separate credit card fraud scheme, defendants Asad Abdullah, Mikal Majeed, Sayeed Valdez and Billie Cosby, obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants obtained replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.
In total, the defendants defrauded the federal government, Wal‑Mart, and Sam’s Club of close to $1,000,000.
The defendants were indicted by a federal grand jury on September 11, 2014. All were convicted by either guilty plea or trial, and all but one has been sentenced. The defendants, and their charges and sentences are as follows:
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Asad Abdullah, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, aggravated identity theft and conspiracy to commit credit card fraud. He pleaded guilty and was sentenced to seven years, eight months in months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $72,182.12
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Erica Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. She was convicted at trial and was sentenced to three years in months in prison to be followed by three years of supervised release.
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Hussain Abdullah, 34, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, eight months, followed by three years supervised release and 100 hours of community service.
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Hudhayfah Abdullah, 32, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $7,325.00.
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Hafid Abdur-Rabbani, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,684.30.
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Ibrahim Abdur-Rabbani, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, seven months in prison to be followed by three years of supervised release.
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Khalil Majeed, 35, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, ten months in prison to be followed by three years of supervised release.
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Ali Al-Amin, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft after pleading guilty. He was sentenced to three years, seven months in prison to be followed by three years of supervised release.
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Zakariyah Abdullah, 35, of Atlanta, Georgia, was convicted of aggravated identity theft and using a passport belonging to another after pleading guilty. He was sentenced to three years, two months in prison to be followed by three years of supervised release.
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Sayeed Valdez, 38, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after he pleaded guilty. He was sentenced to two years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $55,623.17.
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Antonio Slaton, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to one year in prison to be followed by three years of supervised release.
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Cory Howell, 43, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three months in prison to be followed by three years of supervised release.
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Damion Davis, 31, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after entering a guilty plea. His sentencing is scheduled for April 8, 2016.
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Dexter Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to five years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $118,199.16
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JoAnn Drigo, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. She was sentenced to three years’ probation.
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Muhajid Ahmad, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three years of probation.
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Billee Cosby, 34, of Atlanta, Georgia, was convicted of conspiracy to commit credit card fraud after pleading guilty. She was sentenced to four months of a combination of community and home confinement, three years of probation and ordered to pay restitution in the amount of $5,635.47.
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Mikal Majeed, 33, of Atlanta, Georgia, was convicted of aggravated identity theft after pleading guilty. He was sentenced to three years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $50,929.34.
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Jasmine Proctor, 20, of Atlanta, Georgia, was convicted of interfering with the U.S. Mail after pleading guilty. She was sentenced to 18 months of probation.
This case was investigated by the Federal Bureau of Investigation. Investigative assistance in this case was provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies also assisted: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.
Assistant U.S. Attorneys Nekia Hackworth and Kim S. Dammers, along with DOJ Trial Attorney Hans Miller 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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Sandy Springs Man Sentenced to Prison for Impersonating a U.S. MarshalRead the Press Release
ATLANTA - John Letcher Edens has been sentenced to one year in federal prison for impersonating a United States Marshal.
“Edens misrepresented that he was a U.S. Marshal to gain sensitive personal information to use in his skip tracing business,” said U.S. Attorney John Horn. “He abused the trust that is placed in law enforcement to make exigent requests for phone location data. Instead of using the data to rescue kidnapped children, he used it to repossess cars.”
“When someone fraudulently represents themselves as a deputy U.S. Marshal – or any law enforcement officer – the consequences can be serious. Eden was able to gain access to non-public information, which allowed him to harass one victim. His crimes had the potential to damage the trust that the U.S. Marshals Service has worked long and hard to establish with the public, private companies and fellow law enforcement agencies”, said U.S. Marshal Beverly Harvard.
According to U.S. Attorney John Horn, the charges and other information presented in court: In October and November, 2014, Edens falsely claimed to be a Deputy U.S. Marshal and submitted exigent request forms to a cellular phone provider in order to obtain location information about private citizens. Edens then used that private location information for his business as a skip tracer, in which he located individuals for the purpose of repossessing their vehicles. Precise location information is provided by cellular phone companies to law enforcement with a search warrant, or when exigent circumstances require the disclosure of such information before a search warrant may be obtained.
When submitting the exigent request forms, Edens fraudulently represented that children had been kidnapped and were in immediate danger in order to trick the cellular provider into providing private citizens’ location information without a search warrant. In one instance, Edens even harassed a victim.
On May 6, 2015, a grand jury charged Edens, 56, of Sandy Springs, Georgia, with seven counts of false impersonation of a U.S. Officer. Edens pleaded guilty to six of the seven counts on September 24, 2015. On February 10, 2016, U.S. District Judge Eleanor L. Ross Sentenced Edens to one year and one day, and ordered him to serve three years of supervised release and pay a special assessment of $600.
This case was investigated by the United States Marshals Service.
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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Further Corruption Involving Georgia Department of Corrections Guards ExposedRead the Press Release
ATLANTA – More than 45 current and former Georgia Department of Corrections officers and contract correctional officers have been charged in seven separate federal indictments with smuggling contraband into prisons and with accepting bribe payments in exchange for providing protection for drug deals that were part of a federal undercover operation.
“It’s troubling that so many officers from state correctional institutions across Georgia were willing to sell their badges for personal payoffs from purported drug dealers,” said U. S. Attorney John Horn. “They not only betrayed the institutions they were sworn to protect, but they also betrayed the ideals that thousands of honest, hard-working correctional officers uphold every day.”
“While the vast majority of those working within Georgia’s correctional facilities are dedicated and loyal officers and employees, today’s FBI led an operation focused on the apprehension of those who strayed. These arrests represent an extensive FBI Atlanta and Georgia Department of Corrections’ investigation which initially focused on inmate criminal activities but also revealed a significant public corruption problem within eleven of the 35 Georgia Department of Corrections facilities,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“We truly appreciate the swift response to our request for assistance from our partners at the FBI,” said GDOC Commissioner Homer Bryson. “We stand committed in our continuing efforts to bring to justice to those who pose a threat to the safety of the public and to the operations of our facilities. Shedding light on individuals involved in this type of corruption will remain our focus, and we will seek prosecution to the fullest extent of the law.”
According to U.S. Attorney Horn, the indictments, and other information presented in court: The Georgia Department of Corrections (“GA DOC”) is the agency responsible for overseeing the operations of the Georgia state prison system and its more than 50,000 inmates. During a federal investigation of GA DOC employees and inmates, the Federal Bureau of Investigation uncovered that correctional officers were smuggling contraband (liquor, tobacco, cell phones) into state prisons. Many of those contraband cell phones were then used by inmates to commit wire fraud, money laundering, identity theft and drug trafficking.
The operation also revealed that numerous GA DOC officers were willing to use their law enforcement credentials to protect what they believed were drug deals involving multiple kilograms of methamphetamine and cocaine. In a series of undercover operations, more than 45 correctional officers used their law enforcement status to protect drug deals in exchange for thousands of dollars in cash bribe payments. During the undercover deals, the correctional officers generally wore their GA DOC uniforms or had their GA DOC badges in an effort to avoid law enforcement scrutiny.
In connection with this most recent phase of the operation, a federal grand jury has returned multiple indictments charging the following individuals:
- Ashley Jenee Barnes, 21, of Sparta, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Selena Black, 22, of Oglethorpe, Georgia, a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Michael Bostic, 32, of Lawrenceville, Georgia, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison, with accepting bribe payments to protect drug transactions, and with attempted drug trafficking.
- William Dale Bragg, 25, of Warner Robins, Georgia, a GA DOC inmate, has been charged with conspiring to commit money laundering.
- Crystal Sasha Brooks, 22, of Tennille, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison, with accepting bribe payments to protect drug transactions, and with attempted drug trafficking.
- Jessica Brown, 30, of Milledgeville, Georgia, a Correctional Officer at Baldwin State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Christopher Clayton, 28, of Americus, Georgia, formerly a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Chasity Coleman, 22, of Cordele, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Patrick Coleman, 43, of Tucker, Georgia, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison, with accepting bribe payments to protect drug transactions, and with attempted drug trafficking.
- Angela Dinkins, 25, of Morrow, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Quardarrius Duhart, 29, of Tennille, Georgia, has been charged with attempted drug trafficking.
- Travonne Ferrell, 22, of Milledgeville, Georgia, a Correctional Officer on the GA DOC tactical unit or COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with drug trafficking.
- Benjamin Floyd, 23, of Hawkinsville, Georgia, formerly a Correctional Officer at Dooly State Prison and a jailor at Pulaski County Sheriff’s Office, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Dantavis Fluellen, 26, of Milledgeville, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Jeremy Fluellen, 26, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Tacowan Fluellen, 24, of Milledgeville, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Justin Gennings, 29, of Port Royal, South Carolina, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison.
- Charisma Glenn, 22, of Milledgeville, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Jaleel Green, 23, of Oglethorpe, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Kenny Grover, 28, of Fort Valley, Georgia, formerly a Correctional Officer at Macon State Prison prior to his arrest, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Kierria Harvey, 23, of Milledgeville, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Cortavius Henderson, 23, of Cordele, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Pierre Hill, 33, of Warrenton, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Joshua Johnson, 20, of Kingsland, Georgia, formerly a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Marvin Johnson, 33, of Rochelle, Georgia, has been charged with attempted possession with intent to distribute a controlled substance.
- Tamika Johnson, 34, of Forsyth, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Winfred Johnson, 25, of Sandersville, Georgia, formerly a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Ethan Kilgore, 24, of Dublin, Georgia, a Correctional Officer at Dodge State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Kewanda Love, 26, of Cochran, Georgia, formerly a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Chelsey Mayweather, 24, of Milledgeville, Georgia, formerly a Correctional Officer at Baldwin State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Tiawanna McDonald, 24, of Centerville, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Jarratt Ken Melvin, 23, of Thomaston, Georgia, formerly a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Phoenicia Minor, 30, of Bonaire, Georgia, a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Shameka Mobley, 27, of Warner Robins, Georgia, a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Brandon Mullino, 34, of Hawkinsville, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Trevon Newsome, 22, of Warner Robins, Georgia, a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Angelique Pate, 25, of Montezuma, Georgia, formerly a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Ebony Scott, 26, of Tennille, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Anthony Shoffner, 23, of Kathleen, Georgia, a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Sarne Sylvester, 28, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison.
- Tavia Trammer, 34, of Lawrenceville, Georgia, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Tramaine Tucker, 27, of Milledgeville, Georgia, formerly a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Brandon Watkins, 24, of Warner Robins, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- James Julius Watkins, Jr., 26, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Alice Whitfield, 24, of Unadilla, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Branden Wiley, 24, of Cordele, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Christopher Tate Williams, 25, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Tonia Williams, 25, of Warner Robins, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
- Keyerra Winkfield, 24, of Milledgeville, Georgia, formerly a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
Previously, numerous others have been charged as part of the overall investigation of the GA DOC. In particular:
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On January 21, 2016, more than 50 Georgia Department of Corrections employees, inmates, and non-incarcerated co-conspirators were charged federally with conspiring to commit wire fraud, conspiring to commit money laundering, and accepting bribes to smuggle contraband into prisons. Many of the alleged criminal activities were committed inside Georgia state prisons.
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On January 13, 2016, three GA DOC inmates and 14 others were charged federally with participating in a wide-ranging drug trafficking conspiracy that operated within several state prisons.Using contraband cellular telephones inside of prison, and employing a network of brokers, distributers, and runners outside of prison, GDOC inmates controlled and managed the distribution of illegal narcotics throughout the Atlanta-metropolitan area and the southeast region of the United States.
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On September 24, 2015, 12 prison employees, inmates, and others were charged federally in a wide-ranging conspiracy that involved drug trafficking, identity theft, and credit card fraud. Many of the alleged criminal activities were committed inside Georgia state prisons.
In total, this extensive operation has resulted in charges against approximately 130 prison employees, inmates, and non-incarcerated co-conspirators.
Members of the public are reminded that the indictments 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.
These cases are being investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Georgia Department of Corrections Office of Professional Standards.
First Assistant United States Attorney Kurt R. Erskine and Assistant United States Attorneys Brent A. Gray, John S. Ghose, Trevor Wilmot, Brian Pearce, Jennifer Whitfield, and Jeffrey W. Davis are prosecuting the cases.
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.
Man Sentenced for Leaving Pipe Bomb at Vickery Creek ParkRead the Press Release
ATLANTA - Michael C. Sibley has been sentenced to two years in prison for creating a hoax when he left a backpack containing two inoperable pipe bombs in Vickery Creek Park in Roswell, Georgia.
“Sibley built two nearly-operable pipe bombs that he recklessly left in Vickery Creek Park in a place intended to inflict maximum panic among the public,” said U. S. Attorney John Horn. “He compounded the crime by preying on stereotypical fears and prejudices by making it appear the bombs were planted by a Muslim. Thankfully an alert park visitor discovered and immediately reported the bag containing the bombs to police.”
“The sentencing of Mr. Sibley to two years in federal prison should clearly illustrate to him and to others the serious nature of leaving a backpack device in a public setting for the specific purpose of creating panic and distress. The law enforcement response and the resulting federal investigation was extensive and costly to the taxpaying 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: Sibley placed a backpack alongside one of the trails in Vickery Creek Park. Roswell Police Department contacted FBI after a park visitor discovered the suspicious bag, which contained two pipe bombs that fortunately omitted one component and therefore were not capable of immediate detonation. Approximately 400 nails and screws were attached to the outside of the tubing consistent with construction designed for maximum fragmentation upon explosion, making the device more lethal.
On the bag containing the bombs, Sibley wrote a traditionally Muslim name on the backpack and he placed inside the bag, among other things, two books: one titled “The Rape of Kuwait” and the other titled “The Holy Qur’an.” He also placed papers printed from three websites in the bag: the 2015 Atlanta Falcons schedule, a printout from a website for a Jewish Community Center in the Atlanta area, and a printout from the Metropolitan Atlanta Rapid Transit Authority’s (“MARTA”) website. These printouts were included to convey threats to these locations as well.
Based on the items recovered from the backpack, the FBI narrowed its focus to Sibley. On March 20, 2015, Sibley voluntarily met with the FBI and confessed to making the devices and to placing them in Vickery Creek Park. He stated that he placed the bag with these devices, the books and other items in the park to “wake-up” people in the United States. He related that he believes the Mexican border is poorly defended and that many people are entering this country illegally. He also said that he made the explosive devices and placed them in the park to make people realize that if this can happen in Roswell, Georgia, it can happen anywhere.
Michael C. Sibley, 67, of Marietta, Georgia, was sentenced to two years in prison to be followed by one year of supervised release. Sibley was convicted on these charges on September 9, 2015, after pleading guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Tracia M.King 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.
Lawrenceville Pimp Convicted of Sex TraffickingRead the Press Release
ATLANTA - Travis Sentall Robinson, a/k/a “Triggaplay,” a/k/a “Trigga,” of Lawrenceville, Georgia, was convicted last week following a three-week jury trial of multiple sex-trafficking charges, including conspiracy to commit and commission of sex trafficking of a minor and sex trafficking by force, fraud or coercion.
“Calling himself the ‘King of Diamonds,’ Robinson attempted to build a sex trafficking empire by exploiting vulnerable young women and a minor,” said U.S. Attorney John Horn. “Thanks to the courage of his victims and the diligence of the law enforcement officers whose efforts led to his arrest, Robinson is now officially out of business.”
“The FBI is pleased with the role that it played in getting Mr. Robinson and his co-defendant Ladrigus Stuckey off of our streets. Robinson, in particular, displayed a complete disregard for those who he exploited within sex trafficking industry. The conviction of Robinson and the earlier guilty plea of Stuckey should resonate among those other individuals out there who might consider this reprehensible criminal conduct acceptable. The FBI and its law enforcement partners have made human trafficking a priority matter,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“The jury saw Robinson for what he truly is - a predator,” stated Lt. Christopher Rafanelli, Gwinnett County Police Department. “The verdict is the result of countless hours of hard work and cooperation by the Gwinnett Vice Unit and the FBI. My hope is that this outcome will serve as a warning to anyone that is considering sexually exploiting victims in Georgia.”
According to U.S. Attorney Horn, the charges, and evidence presented during the trial: From the summer of 2013 until his arrest at a hotel in downtown Atlanta on May 14, 2014, Robinson, the self-proclaimed “King of Diamonds,” ran a commercial sex operation he referred to as the “Queen of Diamonds.” Robinson used fraud to recruit female victims between the ages of 17 and 22, promising to hire the victims as models and party promoters for his business. Five of the victims testified at trial that Robinson lured them into prostitution by claiming that he was connected to Atlanta’s music scene and to a Grammy-nominated musician and producer. Robinson bought plane or bus tickets for the victims to travel to Atlanta and then, upon their arrival, invited the victims to live at his large Lawrenceville home. He took them shopping, to a recording studio, and to nightclubs.
After Robinson’s victims were indebted to and trusted him, he posted the victims’ names in “escort” sections of online classified websites. Robinson then forced the victims to commit commercial sex acts with customers who responded to the ads. Robinson’s scheme used force, threats of force, and psychological coercion to force his victims to engage in prostitution and involved regular beatings of the victims, causing them to suffer black eyes and other injuries. Several victims testified that Robinson frequently assaulted other victims in their presence, further increasing the victims’ fear of disobeying or attempting to escape from him. He required the victims to work seven days a week, plying them with a drug, “Molly,” so that they could work without sleep. He installed a program on their cell phones that enabled him to read their text messages and monitor their locations. And he kept the victims’ earnings, requiring them to ask permission to use money for food and personal hygiene items.
The evidence at trial established that Robinson caused the victims to travel to at least nine states for the purpose of committing commercial sex acts, including Alabama, Florida, South Carolina, North Carolina, Louisiana, Indiana, Illinois, Mississippi and New York. Robinson also used hotels throughout the metro-Atlanta area for his sex-trafficking operation. He spent at least $31,000 on hotel rooms for this purpose between September 2013 and April 2014.
The jury convicted Robinson of 10 counts. He faces a mandatory minimum sentence of 15 years of imprisonment and up to a statutory maximum sentence of life imprisonment for six counts of sex trafficking by force, fraud or coercion. He faces a mandatory minimum sentence of 10 years of imprisonment and up to a maximum sentence of life imprisonment for a single count of sex trafficking of a minor. And, he faces up to 20 years of imprisonment for two counts of obstruction. Robinson could also receive a maximum fine of $250,000 on each count of conviction, and he must register as a sex offender. 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.
Robinson’s co-conspirator, Ladrigus Dondrea Stuckey a/k/a “Dreek,” pled guilty to conspiracy to commit sex trafficking by force, fraud or coercion on September 11, 2015.
Robinson’s and Stuckey’s sentencing dates have not yet been set.
This case was investigated by the Federal Bureau of Investigation and the Gwinnett County Police Department with the assistance of the FBI's Metro Atlanta Child Exploitation (MATCH) Task Force, a partnership of police departments in the Atlanta area working together to identify, investigate, and prosecute organized child prostitution enterprises.
Assistant United States Attorneys Jessica C. Morris and Phyllis Clerk prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Georgia Accountant Pleads Guilty to Filing a False Tax ReturnRead the Press Release
A former certified public accountant in Georgia pleaded guilty today to one count of filing a false tax return, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia announced.
According to court documents and information presented in court, Thomas D. Ziff was a licensed certified public accountant in Georgia, and from approximately January 2006 through December 2010, Ziff operated a tax return preparation and accounting business. During that time, Ziff was the trustee of a trust that was associated with the last will and testament of another individual. As the trustee, Ziff opened a bank account in the name of the trust at Wachovia Bank over which he had sole signatory authority; he then proceeded to embezzle and cause to be transferred approximately $300,000 from the trust bank account to other bank accounts that he controlled and then used the funds for his personal use. Ziff failed to report the embezzled funds as income on his federal income tax returns for the years 2008, 2009 and 2010.
Ziff faces a statutory maximum sentence of three years in prison, one year of supervised release and a $250,000 fine. As part of his plea agreement, Ziff also agreed to pay restitution to the Internal Revenue Service (IRS). U.S. District Judge Steve C. Jones of the Northern District of Georgia set sentencing for April 11, 2016.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher J. Maietta of the Tax Division and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former CEO of Summit Wealth Management and Business Partner Indicted in a Multi-Million Dollar Fraud SchemeRead the Press Release
ATLANTA – Angelo Alleca and Mark Morrow have been arraigned on charges of orchestrating a multi-million dollar investment fraud scheme. The Defendants 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. According to the new indictment, they instead used the money to pay redemptions to earlier investors, to acquire and operate several businesses, and to pay personal expenses.
“These defendants are charged with stealing millions of dollars from unsuspecting investors with false promises,” said U. S. Attorney John Horn. “Their misrepresentations on how funds would be invested serves as a reminder that citizens need to be careful when choosing where to invest their hard earned money.”
“The FBI is pleased with the role that it played in bringing this matter forward for prosecution. While financial restitution to the victim investors remains an issue for another day, it is hoped that these federal criminal charges will provide some solace to those victims,” 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. Morrow served as the administrator of several of the funds. During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds.
In 2007, Morrow established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan. The indictment alleges that 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 offering documents contained material misrepresentations, including that the notes would be secured by real property when 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 the Defendants fraud schemes, over 300 investors lost over $35 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.
Alleca and Morrow formed Summit Capital Trading, a registered investment advisor and broker dealer in New York and Ohio in 1997. Alleca led the Buffalo, New York office and Morrow ran the Cincinnati and Cleveland, Ohio offices.
Angelo Alleca, 46, of Buffalo, New York, and Mark Morrow, 54, of Cincinnati, Ohio, were indicted on December 15, 2015.
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.
Six Defendants Sentenced to Prison for Operating a “Pill Mill” in Lilburn, GeorgiaRead the Press Release
ATLANTA – Larry Webman, Randy Webman, Dara Webman, Dr. George Williams, George Borbas, and Liz Gaitan have been sentenced for illegally selling and distributing prescriptions for opiate-based narcotics and other controlled substances to addicts and drug dealers under the guise of a pain clinic in the Lilburn, Georgia area. The Webman brothers were the pain clinic owners. Dara Webman was an office manager and the daughter of Randy Webman. Dr. George Williams was a physician at the clinic. George Borbas was a patient and recruiter for the clinic. Liz Gaitan was a clinic employee.
“Larry, Randy, and Dara Webman came to Georgia for the sole purpose of profiting from the illicit prescribing of prescription narcotics to addicts and drug dealers, without regard to the safety and well-being of our community,” said U.S. Attorney John Horn. “Once here, they employed the services of an unscrupulous doctor and an employee with no medical training to issue bogus prescriptions for painkillers. The abuse of prescription drugs in Georgia unfortunately has led to record levels of overdoses and addiction as well as a disturbing resurgence in heroin use by people who transition from abusing prescription pain killers to using heroin.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division, commented, “The success of this investigation illustrates how DEA and the law enforcement community are committed to stopping prescription drug abuse which continues to plague this country. These Pill Mill operators will spend well-deserved time in prison.”
“It is our goal as financial investigators to assist our law enforcement partners in dismantling organizations conspiring to illegally distribute and dispense large amounts of prescription meds without a legitimate medical purpose,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “The sentence today does not negate the lives that were potentially ruined due to this scheme. However, it does illustrate that IRS Criminal Investigation, along with our law enforcement partners, are committed to pursuing individuals who violate the public trust and enrich themselves financially at the expense of others.”
“I’m incredibly grateful to our Federal and out of State partners who worked hand in hand with our agency to mitigate a substantial risk to our community. Peace and harmony has been restored to our business corridor where the Pain Clinic once illegally operated. We are grateful that justice has been served and that the illegal dispensing of pain medications have been eradicated from our City. These actions are due to the dedicated work from the Lilburn Police Department, DEA, IRS, NC State Bureau of Investigation, and the U.S. Attorney’s Office for the Northern District of Georgia,” said Lilburn Police Chief Bruce Hedley.
“We will always work with our law enforcement partners to combat the illegal sale and use of prescription pills that continue to harm society,” said B.W. Collier, Director, North Carolina State Bureau of Investigation.
According to U.S. Attorney Horn, the charges and other information presented in court: From approximately February 2012 through January 2013, Larry Webman and Randy Webman operated an illegal enterprise, variously known as Premier Medical Management, Inc.; Premier Pain Management, Inc.; Premier Pain Management; and Premier Pain Management and Physical Therapy, located in Lilburn, Georgia. Dara Webman worked at the clinic as an office manager handing out prescriptions for narcotic opiates to customers in exchange for cash payments ostensibly collected for office visits.
Larry Webman and Randy Webman managed and controlled the clinic. Though neither had any medical training, they often directed the decisions of the clinic’s physician, Dr. George Williams, with respect to prescribing controlled substances. The clinic saw as many as 60 customers a day, each paying between $250 and $350 a visit. These customers almost always left with a prescription for controlled substances, which often included Oxycodone, a highly addictive painkiller. The clinic’s customers regularly traveled long distances to obtain prescriptions for controlled substances. Most hailed from outside the state, including North Carolina, Kentucky, Tennessee, Ohio, South Carolina, and Florida. Dr. George Williams saw a customer only at the initial visit, at which time he conducted a brief examination.
When customers made return visits, they rarely saw the clinic’s physicians, but instead obtained additional prescriptions for controlled substances based solely upon an exam by Liz Gaitan, a clinic employee with no medical authority to do so. On at least one occasion, Dara Webman mailed opiate prescriptions to undercover officers posing as customers.
George Borbas sponsored the visits of numerous customers to the clinic in exchange for receiving a portion of the prescription pills the customers were ultimately prescribed. Almost all customers paid cash. Larry Webman and Randy Webman personally used that money to promote the clinic’s ongoing illegal activity by, for example, purchasing an on-site MRI machine.
United States District Judge Steve C. Jones sentenced the defendants in this case as follows:
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Larry Webman, 68, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy, and was sentenced to ten years in prison, three years of supervised release, and a $100,000 fine.
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Randy Webman, 62, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy, and was sentenced to eleven years in prison and three years of supervised release.
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Dr. George Williams, 48, of Duluth, Georgia, pleaded guilty to drug trafficking conspiracy, and was sentenced to seven years in prison, and five years of supervised release.Williams Dr. Williams has also agreed to forfeit his State of Georgia Physician's License
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Dara Webman, 31, of Hollywood, Florida, pleaded guilty to using the mail to illegally distribute drugs, and was sentenced to one year, six months in prison, and one year of supervised release.
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George Borbas, 54, of Raleigh, North Carolina, pleaded guilty to drug trafficking conspiracy, and was sentenced on December 29, 2015, to five years, ten months in prison.
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Liz Gaitan, 29, of Lawrenceville, Georgia, pleaded guilty to wire fraud, and was sentenced to four years in prison, three years of supervised release, and $525 in restitution.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, the Lilburn Police Department, and the North Carolina State Bureau of Investigation.
Assistant United States Attorneys Laurel R. Boatright, C. Brock Brockington, and Katherine Terry 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
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More Than 50 Individuals Charged in Massive Corruption, Fraud and Money Laundering Schemes Operated from inside Georgia State PrisonsRead the Press Release
ATLANTA – Numerous Georgia Department of Corrections employees, inmates and individuals outside the prison system have been charged federally with conspiring to commit wire fraud, conspiring to commit money laundering, and accepting bribes to smuggle contraband into Georgia prisons. Much of the alleged criminal activity was committed inside Georgia state prisons and was initiated by inmates.
“The indictments allege that inmates managed and directed a number of elaborate fraud schemes that victimized citizens from across the country from within the Georgia prison system using contraband cell phones,” said U.S. Attorney John A. Horn. “Since September 2015, we have charged 75 people with criminal conduct that is initiated from within state prisons. The unfortunate common denominator to this criminal conduct is the pervasive availability of contraband cell phones, which allows too many prison inmates to continue victimizing our communities while serving their sentences.”
“Prisons should be a deterrent for individuals on both sides of its walls. Acquiring cell phones and smart phones have, however, emboldened current and former inmates and their associates to engage in criminal conduct with a perceived impunity from law enforcement officials. In many of these cases, the corrections officers themselves facilitated the introduction of the prohibited cell phones into the prisons, thereby allowing these criminal enterprises to continue and even expand. The FBI will continue to pursue investigations involving public corruption as seen here and will continue to work with its Georgia Department of Corrections partners in addressing these and other problems posed by the illegal introduction of cell phones within the confines of prison walls,” 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: The Georgia Department of Corrections (“GA DOC”) is the agency responsible for overseeing the operations of the Georgia state prison system and its more than 50,000 inmates. Jimmy Autry State Prison (“Autry”) is a GA DOC prison located in Pelham, Georgia. Autry is a medium security prison that houses approximately 1,700 adult male inmates.
Under the Official Code of Georgia § 42-5-18, it is unlawful to give an incarcerated GA DOC inmate a cellular telephone and it is unlawful for a GA DOC inmate to possess a cellular telephone while incarcerated. Accordingly, within the GA DOC prison system, cellular telephones are considered to be contraband.
Nevertheless, GA DOC inmates regularly obtained cellular telephones while incarcerated. For example, from 2014 to 2015, GA DOC 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. Frequently, the seized cellular telephones were smuggled into GA DOC prisons by correctional officers or other prison employees. The possession of cellular telephones by GA DOC inmates creates a significant risk to prison security and to public safety, as GA DOC inmates used contraband cellular telephones to commit various criminal acts while incarcerated. The indictments also allege that correctional officers smuggled other contraband into Autry, such as tobacco products and drugs in exchange for bribes.
Inmates allegedly 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 potential victims had unlawfully failed to appear for jury duty; (c) that because the potential victims had failed to appear for jury duty, warrants had been issued for the victims’ arrest; and (d) that the potential 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.
After a victim provided an inmate with the account number of the pre-paid cash card, the inmates then used their contraband cellular telephones to contact 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.
In connection with these schemes, a federal grand jury has returned multiple indictments charging the following individuals:
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Shalonda Baker, 33, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Leanna Bearden, 25, of Cairo, Georgia, has been charged with conspiring to commit money laundering.
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Iesha Bell, 25, of Waco, Texas, has been charged with conspiring to commit money laundering.
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Austin Bradley, a/k/a “Red,” 22, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Ashley Butler, 28, of Macon, Georgia, has been charged with conspiring to commit money laundering.
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Karhary Campbell, 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
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Toccara Cantrell, 30, of Gainesville, Georgia, has been charged with conspiring to commit money laundering.
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Cellie Clark, 35, of Lynchburg, Virginia, has been charged with conspiring to commit money laundering, and money laundering.
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Jokelera Copeland, 28, of Doerun, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Jonathan Jamaal Daniels, 22, of Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.
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Willa Davis, 60, of Las Vegas, Nevada, has been charged with conspiring to commit money laundering.
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Tyler Dickens, 22, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison and formerly an Early County Sheriff’s Deputy, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Renaldo Freeman, 30, of Pelham, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Caeser Futch, 36, of Lithonia, Georgia, a paroled inmate from Autry and Phillips State Prisons, has been charged with conspiring to commit money laundering.
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Dayia Gilbert, 23, Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Keri Hatcher, 29, of Aurora, Colorado, has been charged with conspiring to commit money laundering.
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Chameta Isom, 32, of Camilla, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Bettie Jones, 53, of Dawson, Georgia, has been charged with conspiring to bribe correctional officers at Autry State Prison to smuggle contraband into the prison.
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Brian Kennedy, 25, of Thomasville, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.
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Laporshia Knight, 40, of Macon, Georgia, has been charged with conspiring to commit money laundering.
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Ricky Knight, a/k/a “Slick,” 36, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
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Melissa Lloyd, 35, of Lawrenceville, Georgia, has been charged with conspiring to commit money laundering.
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Jessee Lopez, a/k/a “Loco,” 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe Correctional Officers to smuggle contraband into the prison.
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Calvin Martin, 21, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Amber Mayes, 29, of Dublin, Georgia, has been charged with conspiring to commit money laundering.
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Sharron McCoy, a/k/a “Ron G,” 26, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
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Cassaundra McGhee, 45, of McDonough, Georgia, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.
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Tadia Mercer, 41, of Leesburg, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with extortion under color of official right.
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Kiatya Milton, 42, of Sylvester, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Tangela Parks, 33, of Lithonia, Georgia, has been charged with conspiring to commit money laundering.
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Steven Patterson, 29, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Reginald Perkins, 35, of Atlanta, Georgia, a paroled inmate from Autry State Prison, has been charged with conspiring to commit money laundering.
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David Pinder, a/k/a “Wolf,” 30, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Anthony Powell, a/k/a “Bo,” 39, formerly an inmate at Autry State Prison, has been charged with wire fraud, conspiring to commit money laundering, and money laundering.
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Aida Rosa, 27, of Virginia Beach, Virginia, has been charged with conspiring to commit money laundering.
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Anthony Sanders, a/k/a “Stick ‘em Up,” 25, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Terrance Shields, a/k/a “DK,” 41, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Clifford Smalls, a/k/a “D Boy,” 31, formerly an inmate at Autry State Prison, has been charged with wire fraud and money laundering.
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Shameik Spinks, 22, formerly an inmate at Autry State Prison, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.
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Shebrikia Stewart, 28, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Joseph Tate, Jr., a/k/a “Cool,” 34, formerly an inmate at Autry State Prison, has been charged with conspiring commit wire fraud and money laundering.
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Edward Townsend, 40, formerly an inmate at Autry State Prison, has been charged with conspiring to commit money laundering.
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Derrick Watson, 36, formerly an inmate at Autry State Prison, has been charged with conspiring to smuggle contraband into the prison.
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Veronica Watters, 38, Atlanta, was charged with conspiring to have contraband smuggled into the prison.
Douglas Welch, 34, of Cordele, Georgia, has been charged with conspiring to commit money laundering and conspiring to bribe correctional officers to smuggle contraband into the prison.
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Benjamin Williams, a/k/a “Ohio,” 24, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Quintavious Williams, 20, of Dawson, Georgia, has been charged with conspiring to bribe corrections officers to smuggle contraband into the prison.
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Shameka Williams, 31, of Albany, Georgia, a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments in exchange for not reporting criminal acts of other Corrections Officers.
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Christina Wilson, 34, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Ermesha Wingfield, 25, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to bribe Correctional Officers to smuggle contraband into the prison.
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Rokei Winston, a/k/a “Double R,” 32, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
In total, 15 current or former Autry correctional officers, 19 current or former GA DOC inmates, and 17 individuals have been charged by the grand jury in the fraud and bribery schemes.
Members of the public are reminded that the indictments 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.
These cases are being investigated by the Federal Bureau of Investigation the Georgia Bureau of Investigation and the Georgia Department of Corrections Office of Professional Standards.
Assistant United States Attorneys Brent Gray, Shanya Dingle, John Ghose, Steven Grimberg, Nicolas Hartigan, Christopher Huber, Jennifer Keen, Brian Pearce, William Traynor, and Mary Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Mexican Cartel Member Sentenced to Prison for Conspiracy Involving over 400 Kilograms of MethamphetamineRead the Press Release
ATLANTA - Israel Garcia-Villanueva has been sentenced to over 17 years in prison for his involvement in a conspiracy to traffic over 400 kilograms of methamphetamine. He received shipments of methamphetamine and coordinated its delivery in Atlanta, Georgia, and throughout the Southeast.
“The Mexican cartel that employed Garcia-Villanueva shipped massive amounts of methamphetamine into the Atlanta area from the Mexican border,” said U.S. Attorney John Horn. “Garcia-Villanueva was this cartel’s point of contact, coordinating drug shipments for distribution in this country. We are committed to disrupting these sophisticated drug organizations by seizing their shipments of narcotics and getting their members off the streets.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencing, “Mexican drug cartels are the source of so many dangerous drugs destined for our country and are responsible for much of the violence in Mexico today. This sentencing illustrates how DEA and its law enforcement counterparts will not allow these drug traffickers to wreak havoc on our society.”
According to U.S. Attorney Horn, the charges and other information presented in court: From at least April 2014 through the November 2014, Israel Garcia-Villanueva coordinated large shipments of methamphetamine into the Atlanta metro-area on behalf of a group affiliated with the Knights Templar drug cartel in Mexico. His co-conspirators sent methamphetamine from Mexico into the United States in a variety of ways, including hiding it in cars with sophisticated, hidden electronic traps, car batteries, diesel fuel tanks, and even statue molds. Garcia-Villanueva also coordinated delivery of the methamphetamine throughout the Southeast.
As part of his drug trafficking operations, Garcia-Villanueva used multiple residential homes as methamphetamine “stash houses,” including one house in the Lawrenceville, Georgia area. The houses were used to safeguard methamphetamine shipments, process the drugs for redistribution, and store drug proceeds. Garcia Villanueva was also tasked with sending drug proceeds back to Mexico and did so by sending cash with people who drove it over the U.S.-Mexico border and by wiring money to a number of individuals in Mexico. Although Garcia-Villanueva executed orders given by members of his organization in Mexico, he supervised and managed a crew in the United States that assisted him with his methamphetamine distribution operations.
Israel Garcia-Villanueva, 22, of Guerrero, Mexico, has been sentenced to 17 years, six months in prison to be followed by five years supervised release. Garcia-Villanueva was convicted on these charges on June 8, 2015, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Kamal Ghali 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.
Former-DeKalb County Zoning Board of Appeals Member and Late-Night Business Owner Sentenced for BriberyRead the Press Release
ATLANTA – Former DeKalb County Zoning Board of Appeals Member Jeremy “Jerry” Clark and Ismail Sirdah have been sentenced to federal prison on corruption charges. Clark accepted a bribe from Sirdah in exchange for voting for a zoning variance for Sirdah’s late-night billiard hall in DeKalb County, Georgia.
“This is another unfortunate incident of corruption in DeKalb County,” said U.S Attorney John Horn. “Again, I reiterate that the citizens of DeKalb County expect public officials to act with honestly and integrity. Public officials who may be tempted by money and graft remember; we remain committed to investigating and prosecuting acts of corruption regardless of who commits them or where they are.”
“Today’s sentencing serves as a reminder to not only these defendants but other public officials that there are consequences for such actions as seen in this case. Because of the extensive potential damage involved, the FBI regards public corruption investigations as its number one criminal investigative priority and, as such, urges the public to partner with our agents in reporting those who abuse their public offices,” 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 November 2008, the DeKalb County (Georgia) Board of Commissioners passed a zoning ordinance that regulated the operation of late-night establishments and nightclubs. As a general matter, the ordinance required that new businesses obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be exempt from the 2008 zoning ordinance change.
Ismail Sirdah was the owner and Chief Executive Officer of 2841 Investments, Inc., which did business as LuLu Billiards. LuLu Billiards was a pool hall and bar located in Tucker, Georgia, which is located in DeKalb County.
Based on the new zoning ordinance, in November 2011, the DeKalb County Department of Planning and Sustainability informed LuLu Billiards in writing that it was grandfathered in only as a late-night business – and thus could neither operate as a nightclub nor have a dance floor. Despite the notice, Lulu Billiards operated as a nightclub and possessed a dance floor.
In September 2012, the Department of Planning and Sustainability issued a warning to Sirdah through LuLu Billiards for operating as a nightclub with a dance floor. In the warning, Sirdah was again advised that under the new zoning ordinance, LuLu Billiards could not operate as a nightclub or have a dance floor without a Special Land Use Permit.
Sirdah responded that LuLu Billiards had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule.
Sirdah appealed not being able to operate LuLu Billiards as a nightclub to the DeKalb County Zoning Board of Appeals. The Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error. From January 2009 to May 2013, Jeremy Clark served as a member of the Zoning Board of Appeals.
Prior to the hearing on the appeal, Sirdah met with Clark. During those meetings, Sirdah made it clear to Clark, that if the Zoning Board of Appeals approved Sirdah’s petition to operate as a nightclub, Clark would be rewarded.
In November 2012, the Zoning Board of Appeals approved Sirdah’s request to operate as a nightclub. Clark voted in favor of LuLu Billiards being able to operate as a nightclub. In return for the vote, Sirdah paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.
On February 19, 2015, Clark, 43, of Lithonia, Georgia, pleaded guilty to accepting a bribe from Sirdah. He was sentenced to nine months in prison followed by three years of supervised release and order to pay a $3,500 fine.
On April 2, 2015, Sirdah, 53, of Duluth, Georgia, pleaded guilty to bribing Clark. He was sentenced to six months in prison followed by two years of supervised release and order to pay a $10,000 fine.
These cases were investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis prosecuted the cases.
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/.
Grady Memorial Hospital 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 Grady Memorial Hospital (Grady), the largest hospital in the State of Georgia and located in Atlanta, 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.
“When a deaf patient or caregiver is unable to understand what is happening during a medical visit or procedure, it can be a terrifying experience and adversely affect the quality of care,” said U.S. Attorney John Horn. “I am encouraged that Grady has demonstrated an ongoing commitment to ensure that people who are deaf or hard of hearing have equal access to quality medical care.”
The U.S. Attorney’s Office initiated an investigation after receiving a complaint alleging that Grady failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant, who is deaf and relies on American Sign Language as his primary means of communication, was treated in the Emergency Care Center at Grady after falling from a ladder. The complainant alleged that he was in a lot of pain during his six hour stay in the Emergency Care Center. Complainant did not understand most of what was being communicated because he was not provided a sign language interpreter or other auxiliary aid or service.
Under the settlement agreement, Grady has agreed to ensure effective communication to patients who are deaf and hard of hearing. Among other things, Grady has agreed to provide mandatory in-service training to all its Emergency Care Center personnel and provide reports to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard of hearing patients and companions. Grady also agreed to pay $5,000 to the complainant.
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 and 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 between the Civil Rights Division and U.S. Attorneys’ offices across the nation designed 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 Aileen Bell Hughes and Assistant United States Attorney Neeli Ben-David 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.
Atlanta Man Sentenced for Stolen Treasury Check SchemeRead the Press Release
ATLANTA - Marvious D. Hester has been sentenced to four years and nine months in federal prison for theft of government funds and aggravated identity theft. The defendant was purchasing U.S Treasury checks which had been stolen in the metropolitan Atlanta, Georgia, area and elsewhere.
“Hester and his co-conspirator deposited over $750,000 in stolen U.S. Treasury checks,” said U.S. Attorney John Horn. “Money that rightfully belonged to honest taxpayers and Social Security beneficiaries. Unfortunately, Treasury Check schemes like this are becoming more and more common in Atlanta.”
“This sentencing again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to steal from the American public,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “This sentence is a message to others that such greed based criminal behavior as seen in this case comes with a cost.”
Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division stated, “This is a textbook example of solid investigative work and cooperation on everyone’s part. We are proud to have prevented further victimization by these individuals, who could have caused even more considerable financial damage to law abiding taxpayers.”
According to U.S. Attorney Horn, the charges and other information presented in court: In approximately 2011, Hester met Rasheda Thomas, who operated a tax preparation business which she used to file fraudulent tax returns. Hester convinced Thomas to abandon her tax preparation business and, instead, use her business bank account to deposit stolen U.S. Treasury checks which Hester was able to obtain.
Together, Hester and Thomas deposited over $750,000 in stolen U.S. Treasury checks into various J.P. Morgan Chase bank accounts. On December 10, 2013, Thomas was charged in a federal indictment with theft of government funds and aggravated identity theft. She pleaded guilty on April 28, 2014, and provided information that incriminated Hester. Hester was indicted on the same charges on May 5, 2015 and pleaded guilty on September 30, 2015.
Marvious D. Hester, 35, of Atlanta, Georgia, has been sentenced was sentenced by U.S. District Judge Orinda D. Evans to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $752,744.19. Hester was convicted on these charges on September 30, 2015, after he pleaded guilty.
Rasheda D. Thomas was sentenced on July 28, 2014 to four years, nine months in federal prison, followed by three years supervised release, and ordered to pay $686,886.53 in restitution. Thomas was convicted on these charges on April 28, 2014, after she pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation, Social Security Administration - Office of the Inspector General, and United States Postal Inspection Service.
Special Assistant United States Attorney Diane C. Schulman and Assistant United States Attorney Steven D. Grimberg 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.