Northern District of Georgia
Press releases recorded for this federal judicial district.
Men Sentenced for Conspiracy to use Weapons of Mass DestructionRead the Press Release
ROME, Ga. - Brian Cannon, Terry Peace and Cory Williamson have been sentenced for conspiring to use weapons of mass destruction in attacks against federal government agencies. The defendants planned to attack critical infrastructure while motivating militia groups in other states to rise up and join them in removing government officials who they believed had exceeded their Constitutional power.
“In this case, anti-government ideology and rhetoric morphed into dangerous extremism and led these defendants to arm themselves and travel to a meeting to pick up pipe bombs and other explosives intended for attacks,” said U.S. Attorney John Horn. “The attacks planned by the defendants, while rare, posed a serious threat to not only the safety of our public servants, but also all other members of the community.”
“This case illustrates the FBI’s commitment in preventing attacks instead of responding to their aftermath. The convictions and now federal sentencing of these individuals on conspiracy charges again represents that the juries and courts understand this shift in the law enforcement mindset in dealing with individuals or groups that wish to bring harm to the public or those who serve the 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: In January and February 2014, Cannon, Peace and Williamson participated in Internet chat rooms frequented by militia members and others with a shared anti-government ideology. During the chat room conversations, Cannon, Peace and Williamson discussed starting a revolution against the federal government by conducting an attack aimed at the infrastructure supporting the Transportation Security Administration, the Department of Homeland Security and the Federal Emergency Management Administration.
According to their conversations, their goals included forcibly removing government officials who the defendants believed acted beyond the scope of the U.S. Constitution. During one of the online conversations, Peace said that they would launch the attack between February 1, and February 15, 2014. He encouraged the militia members to review guerilla warfare tactics, accumulate supplies and prepare their families. By February 1, 2014, Cannon and Williamson had moved to Georgia and were living with Peace at his Rome, Georgia residence.
Cannon, Peace and Williamson targeted the infrastructure supporting their federal agency targets because they believed this would reduce the amount of unnecessary casualties and make it difficult for the government to respond to their attack. The men decided to launch the first attack in Georgia to prompt militia members in other states to begin attacks in their respective states.
Unbeknownst to the defendants, another participant in the chat rooms became alarmed at their plans, informed the FBI of the attack against the government, and agreed to assist in this investigation.
On February 8, 2014, Peace asked the cooperating witness to provide twelve pipe bombs and two thermite devices for use in their attack. Peace said he wanted the pipe bombs designed for “maximum fragmentation” and thermite devices capable of penetrating the engine block of a military-grade armored vehicle. Peace, Cannon and Williamson then made plans to meet with the cooperating witness after the pipe bombs and thermite devices were constructed.
On February 15, 2014, the defendants, armed with numerous firearms, drove from Peace’s residence to meet with the cooperating witness at a location in Cartersville, Georgia, to pick up the pipe bombs and thermite devices. Prior to their arrival, the cooperating witness was provided with twelve inert pipe bombs and two inert thermite devices. The three defendants were arrested as they were taking possession of the items. While their online conversations reflected attacks on federal targets, the defendants planned to use the thermite device at a local police department.
Cannon, 37, has been sentenced to 12 years in prison to be followed by five years of supervised release, and perform 100 hours of community service.
Peace, 47, has been sentenced to 12 years in prison to be followed by five years of supervised release, and perform 100 hours of community service.
Williamson, 29, has been sentenced to 12 years in prison to be followed by five years of supervised release, and perform 100 hours of community service.
Cannon, Peace and Williamson were convicted of the charges on May 26, 2015 after pleading guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Tracia M. King and Ryan K. Buchanan prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Men Sentenced for Conspiracy to Use Weapons of Mass DestructionRead the Press Release
Brian Cannon, 37, Terry Peace, 47, and Cory Williamson, 29, have been sentenced for conspiring to use weapons of mass destruction in attacks against federal government agencies. The defendants planned to attack critical infrastructure while motivating militia groups in other states to rise up and join them in removing government officials who they believed had exceeded their Constitutional power.
“In this case, anti-government ideology and rhetoric morphed into dangerous extremism and led these defendants to arm themselves and travel to a meeting to pick up pipe bombs and other explosives intended for attacks,” said U.S. Attorney John Horn of the Northern District of Georgia. “The attacks planned by the defendants, while rare, posed a serious threat to not only the safety of our public servants, but also all other members of the community.”
“This case illustrates the FBI’s commitment in preventing attacks instead of responding to their aftermath,” said Special Agent in Charge J. Britt Johnson for the FBI’s Atlanta Field Office. “The convictions and now federal sentencing of these individuals on conspiracy charges again represents that the juries and courts understand this shift in the law enforcement mindset in dealing with individuals or groups that wish to bring harm to the public or those who serve the public.”
According to U.S. Attorney Horn, the charges and other information presented in court: In January and February 2014, Cannon, Peace and Williamson participated in Internet chat rooms frequented by militia members and others with a shared anti-government ideology. During the chat room conversations, Cannon, Peace and Williamson discussed starting a revolution against the federal government by conducting an attack aimed at the infrastructure supporting the Transportation Security Administration, the Department of Homeland Security and the Federal Emergency Management Administration.
According to their conversations, their goals included forcibly removing government officials who the defendants believed acted beyond the scope of the U.S. Constitution. During one of the online conversations, Peace said that they would launch the attack between February 1, and Feb. 15, 2014. He encouraged the militia members to review guerilla warfare tactics, accumulate supplies and prepare their families. By Feb. 1, 2014, Cannon and Williamson had moved to Georgia and were living with Peace at his Rome, Georgia residence.
Cannon, Peace and Williamson targeted the infrastructure supporting their federal agency targets because they believed this would reduce the amount of unnecessary casualties and make it difficult for the government to respond to their attack. The men decided to launch the first attack in Georgia to prompt militia members in other states to begin attacks in their respective states.
Unbeknownst to the defendants, another participant in the chat rooms became alarmed at their plans, informed the FBI of the attack against the government, and agreed to assist in this investigation.
On Feb. 8, 2014, Peace asked the cooperating witness to provide twelve pipe bombs and two thermite devices for use in their attack. Peace said he wanted the pipe bombs designed for “maximum fragmentation” and thermite devices capable of penetrating the engine block of a military-grade armored vehicle. Peace, Cannon and Williamson then made plans to meet with the cooperating witness after the pipe bombs and thermite devices were constructed.
On Feb. 15, 2014, the defendants, armed with numerous firearms, drove from Peace’s residence to meet with the cooperating witness at a location in Cartersville, Georgia, to pick up the pipe bombs and thermite devices. Prior to their arrival, the cooperating witness was provided with 12 inert pipe bombs and two inert thermite devices. The three defendants were arrested as they were taking possession of the items. While their online conversations reflected attacks on federal targets, the defendants planned to use the thermite device at a local police department.
Cannon has been sentenced to 12 years in prison to be followed by five years of supervised release and perform 100 hours of community service.
Peace has been sentenced to 12 years in prison to be followed by five years of supervised release and perform 100 hours of community service.
Williamson has been sentenced to 12 years in prison to be followed by five years of supervised release and perform 100 hours of community service.
Cannon, Peace and Williamson were convicted of the charges on May 26, 2015 after pleading guilty.
This case was investigated by the FBI. Assistant United States Attorneys Tracia M. King and Ryan K. Buchanan prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon Sentenced to Federal Prison for Impersonating an Armed Federal AgentRead the Press Release
ATLANTA - Daniel M. Harbison has been sentenced to one year, nine months in federal prison for impersonating an armed DEA agent, after having previously been convicted of a felony.
“The impersonation of a federal agent undercuts the validity of a genuine law enforcement officer’s mission to protect the public,” said U.S. Attorney John Horn. “Thankfully, Harbison made the mistake of pulling over a Doraville police officer who questioned Harbison’s authority and took quick action that resulted in Harbison being arrested that day, and today being sentenced for his crime.”
“Through the cooperation of multiple agencies, Dunwoody Police, FBI, DEA and The Department of Justice, Harbison will be getting the just sentence he deserves. He only serves as a reminder to the community that they should always be aware of what is going on around them. I am thankful that our officer was alert and took the appropriate steps to ensure this successful, peaceful conclusion,” said Chief John King, Doraville Police Department.
According to U.S. Attorney Horn, the charges, and other information presented in court: In the spring of 2015, Harbison began impersonating a Drug Enforcement Administration (“DEA”) agent. Specifically, on April 3, 2015, in Doraville, Georgia, Harbison conducted a traffic stop of a Chevrolet Suburban by engaging green and white flashing light-emitting diode (“LED”) lights. Unbeknownst to Harbison, the vehicle was being driven by an off-duty Corporal with the Doraville Police Department. During the unauthorized traffic stop, Harbison wore a T-shirt printed with the letters “DEA,” carried a .45 caliber handgun in a thigh holster, and possessed an identification card purportedly issued by the DEA. The Doraville Corporal also saw that Harbison possessed a realistic gold and blue badge engraved with the letters “US.”
The Corporal told Harbison that he was a Doraville Police Officer and asked Harbison why his LED lights were green and white (as opposed to the blue and white lights used by genuine police officers). In response to the question, Harbison replied that his LED lights were green and white because he was a federal agent. The Doraville Corporal then stated that other police officers were in route to check the validity of Harbison’s law enforcement credentials. At that point, Harbison returned to his car and fled from the scene.
Doraville and Dunwoody Police Officers then went to Harbison’s residence and arrested Harbison. From Harbison’s residence, police officers recovered several items, including: (a) a Springfield .45 caliber handgun, (b) a DEA T-shirt, (c) LED lights, (d) an identification card purportedly issued by the DEA, and (e) a gold and blue badge engraved with the letters “US.” Harbison has previously been convicted of at least two felonies, and as a result, could not legally possess the gun. Harbison had been impersonating a federal agent for several weeks before he was caught.
On April 23, 2015, a grand jury charged Harbison, 40, of Dunwoody, Georgia, with being a felon in possession of a firearm. Harbison pleaded guilty to that charge on June 9, 2015. He was sentenced to one year, nine months in federal prison and ordered to serve three years of supervised release and pay a special assessment of $100.
This case was investigated by the Federal Bureau of Investigation, Doraville Police Department, and Drug Enforcement Administration.
Assistant U.S. Attorney Jeffrey W. Davis and Special Assistant U.S. Attorney Erin E. Sanders prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
New Jersey Businessman Goes to Prison for Defrauding an Atlanta Financing CompanyRead the Press Release
ATLANTA – Samuel Perez, a New Jersey businessman, has been sentenced to three years, ten months in federal prison for falsifying over $6 million in accounts receivables and invoices that he sold to an Atlanta, Georgia, financing company.
“This defendant swindled a financing company to obtain money to run his own company and finance his personal lifestyle,” said U.S. Attorney John A. Horn. “His fraud put the victim into bankruptcy and cost people at that company their jobs.”
“As Mr. Perez serves his prison sentence, he will have plenty of time to reflect on his greed based criminal conduct that not only negatively affected the victim company but also many of its employees,” 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: Samuel Perez owned and operated Comp Care Partners, LLC, a New Jersey company that was located and operated in New Jersey. Comp Care was in the business of managing occupational medical testing programs for other companies.
Beginning in about December 2009, Perez began “factoring,” or selling Comp Care’s accounts receivables to a financing company headquartered in Atlanta, Georgia. Perez falsified and caused to be falsified many, if not most, of the accounts receivables that he sold to the Atlanta finance company. To support the false accounts receivables, Perez created false invoices purporting to reflect work that Comp Care had done for its customers. When purchasing accounts receivables, the financing company attempted to contact Comp Care’s customers to verify that the accounts receivables and invoices were valid obligations of the customers. Perez created fictitious identities and used those identities to pose as employees of Comp Care’s customers and verify the fraudulent invoices that he was selling to the financing company. Perez created and used internet domain names, telephone numbers, and email addresses to pose as these fictitious employees of Comp Care’s customers.
To further conceal that he was selling false accounts receivables, Perez paid off false receivables by selling the financing company even more false accounts receivables. Over time, the amount of false and fraudulent accounts receivables steadily increased, which ensured that Perez had enough funds to pay the financing company for previous fraudulent accounts receivables that he had sold it. Perez also used the money that he obtained from the financing company to operate and fund Comp Care and his personal lifestyle. In 2013, before the financing company uncovered his fraud, Perez sold over $6 million in fraudulent accounts receivables.
Samuel Perez, 38, of Manahawkin, New, Jersey, has been sentenced by U.S. District Court Judge Steve C. Jones to three years, ten months in prison to be followed by three years of supervised release.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Douglas W. Gilfillan 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/gan/.
Narcotic Treatment Program Faces Civil PenaltiesRead the Press Release
GAINESVILLE, Ga. - Lanier Treatment Center, Inc., a narcotic treatment program, located in Gainesville, Ga., has agreed to pay a civil settlement of $20,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act. Lanier Treatment Center, Inc., also has agreed to additional oversight from the Drug Enforcement Administration (DEA).
“The Controlled Substances Act requires treatment centers like Lanier Treatment Center to keep an accurate inventory of its controlled substances to prevent them from falling into the hands of dealers and addicts,” said Acting U.S. Attorney John Horn. “The diversion of prescription narcotics and painkillers feeds the market for abuse and addiction, and Georgia is experiencing an epidemic of prescription drug abuse. We are committed to preventing the diversion of controlled substances by enforcing the recordkeeping requirements.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “DEA Diversion Investigators will continue to conduct accountability audits to make sure that Narcotics Treatment Programs are abiding by specific rules and regulations. This civil fine shows that DEA and the entire law enforcement community are committed to making sure that such companies are abiding by its mandates.”
The government alleges that Lanier Treatment Center, Inc., failed to maintain a current, complete, and accurate record of all controlled substances received, sold, delivered, or otherwise disposed of. Accountability audits conducted by the DEA revealed overages and shortages of methadone in 2010 and 2013. The government also alleges that Lanier Treatment Center, Inc., failed to conduct a biennial inventory in compliance with all applicable laws and regulations and failed to comply with all applicable laws and regulations regarding written orders for controlled substances. The claims settled are allegations only, and there has been no determination of liability.
The Controlled Substances Act was enacted to ensure that controlled substances are properly regulated and to help prevent drug diversion. Thus, narcotic treatment programs that receive and dispense controlled substances are required to maintain complete and accurate inventories and records of all controlled substances that they purchase, receive, dispense, or destroy. In order to enforce the recordkeeping requirements of the Controlled Substances Act, the Act imposes civil penalties for refusing or negligently failing to maintain the records required by the Act.
This case was investigated by Diversion Investigators from the Drug Enforcement Agency.
The civil settlement was reached by Assistant United States Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Owner of “Direct Tax” Preparation Business Pleads Guilty in Tax Fraud ScamRead the Press Release
ATLANTA - Jessica L. Hills, the former owner of Direct Tax, has pleaded guilty for her role in a tax fraud scheme by using her business to file thousands of fraudulent returns. Direct Tax was a tax preparation business with three locations in the Atlanta - College Park, Georgia, area.
“The defendant’s conduct cost the U.S. Treasury millions of dollars,” said U.S. Attorney John Horn. “Hills’ actions demonstrated a flagrant disrespect for the law, and compromised the personal information of hundreds of victims.”
“Hills’ actions caused considerable financial damage and personal inconvenience to thousands of taxpayers” stated IRS Criminal Investigation Special Agent in Charge, Veronica F. Hyman-Pillot. “We will continue to pursue individuals like Hills, who abuse positions of trust to commit crimes and victimize members of our community and innocent taxpayers for their own personal gain.”
According to U.S. Attorney Horn, the charges and other information presented in court: During tax years 2012, 2013, and 2014, Direct Tax filed over 2,000 federal income tax returns, seeking millions of dollars in refunds. These returns included either fraudulent information designed to increase the refund amount, or were filed using stolen identities. Hills continued to file fraudulent tax returns even after police in College Park, Georgia, executed a search warrant at her business based on complaints from honest taxpayers, and after the IRS cancelled her electronic filing identification number. In total, Hills filed tax returns claiming over $4 million in tax refunds.
Sentencing for Jessica L. Hills, 30, of Atlanta, Georgia, is scheduled for November 9, 2015, at 10:30 a.m., before U.S. District Judge Steve C. Jones.
This case is being investigated by the Internal Revenue Service Criminal Investigation, FBI, Social Security Administration, U.S. Secret Service, and the Georgia Department of Revenue.
Special Assistant U.S. Attorney Diane C. Schulman and Assistant U.S. Attorney Samir Kaushal 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 Atlanta Division is http://www.justice.gov/usao-ndga.
Former Insurance Broker Sentenced to Prison for Massive Phony Trucking Cargo Insurance Fraud SchemeRead the Press Release
ATLANTA - John Paul Kill, the former operator of Appeal Insurance Agency, LLC, has been sentenced to four years in federal prison for insurance fraud. Kill illegally collected over $3.7 million from nearly 800 trucking companies nationwide for selling/brokering fictitious cargo insurance policies.
“The defendant held himself out as an honest broker to hundreds of trucking companies, but he simply pocketed their premium payments instead of securing legitimate insurance coverage,” said U.S. Attorney John Horn. “His scam tricked clients into believing they had proper insurance coverage and endangered small businesses operating in more than 20 states.”
“I’m thankful for the diligence of the U.S. Attorney’s Office,” said Insurance Commissioner Ralph Hudgens, whose office referred the case. “This investigation proves that when agencies like the Department of Insurance and the U.S. Attorney’s Office work together, bad actors will be stopped.”
According to U.S. Attorney Horn, the charges, and other information presented in court: John Kill operated an insurance brokerage firm, Appeal Insurance Agency, LLC, in Norcross, Georgia. He began offering cargo insurance policies to trucking companies in 2013. Kill issued policy binders to clients falsely representing that Lloyd’s of London would provide insurance coverage. In reality, Kill never brokered any agreement with Lloyd’s to provide coverage and instead pocketed the premium payments. Most of the victims received no insurance policies at all, and Kill instead attempted to pay claims for losses out of the premium payments he collected from new victims.
In total, nearly 800 trucking companies located in Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Missouri, Mississippi, New Jersey, North Carolina, Ohio, Oklahoma, Oregon Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Virginia paid approximately $3.75 million in premiums for these fraudulent insurance policies from 2013 through mid-2014.
John Kill, 63, of Norcross, Georgia, was sentenced by U.S. District Court Judge Eleanor L. Ross to four years in federal prison to be followed by three years of supervised release, and he was ordered to pay approximately $1.23 million in restitution to victims. Kill was convicted on this charge on May 6, 2015, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Georgia Office of Commissioner of Insurance.
Assistant U.S. Attorney Nathan P. Kitchens prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Cocaine Trafficker Sentenced to over 17 Years in Federal PrisonRead the Press Release
ATLANTA - Ricky Nuckles has been sentenced to 17 years, 7 months in federal prison for trafficking 22 kilograms of cocaine and for possessing a firearm in furtherance of that offense. Nuckles was found guilty by a jury on May 13, 2015.
“One of our most solemn responsibilities is to protect the public from the blight of illegal narcotics,” said U.S. Attorney John Horn. “Thanks to a vigilant off-duty DEA agent, 22 kilograms of cocaine is off the streets, and Nuckles' drug-trafficking days are finished.”
“We have removed another cocaine trafficker off of the streets, thanks to the quick thinking and fine police work performed by one of our own Special Agents,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “This criminal can no longer pose a danger to the community.”
According to U.S. Attorney Horn, the charges and other information presented in court: On the morning of December 23, 2013, Ricky Nuckles parked his car beside a pump at a gas station on Cheshire Bridge Road in Atlanta, Georgia, and entered the station’s convenience store. As he entered, Nuckles placed a call on his cell phone. Moments later, a second car entered the gas station and parked beside the defendant’s car. The driver of the second car then carried a large suitcase over to Nuckles' car, placed it inside, and quickly returned to his car and drove away. The defendant watched the delivery through the store’s window and remotely locked his car the moment the suitcase was placed inside.
Unbeknownst to Nuckles, an off-duty DEA agent was also at the gas station that morning, and watched the delivery happen while waiting in line for an emissions inspection. The agent confronted Nuckles as he attempted to return to his car and leave the station. The agent identified himself, and after explaining what he saw, Nuckles fled back inside the convenience store and immediately discarded the cell phone he used to arrange the drug delivery.
When Nuckles exited the store the second time, the agent was still waiting by Nuckles’ car. After learning that the defendants had a loaded firearm next to his driver’s seat, the agent placed himself between Nuckles and the car and dialed 911. Minutes later, additional DEA agents and uniformed Atlanta Police Department officers arrived at the gas station. Nuckles consented to a search of the suitcase, inside which agents found 22 kilograms of cocaine with a wholesale value of approximately $750,000. Agents also found an FN model 57 handgun and two 25-round extended magazines next to the driver’s seat of the car, within easy reach.
Ricky Nuckles, 41, of Johns Creek, Georgia, has been sentenced by Senior U.S. District Court Judge Orinda D. Evans to 17 years, 7 months in prison to be followed by 5 years of supervised release.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Cassandra Schansman and Special Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
Jonesboro Woman Pleads Guilty to Lying and Buying of Firearm Used to Kill Omaha, Nebraska Police OfficerRead the Press Release
ATLANTA - Jalita Jenera Johnson has pleaded guilty to lying during the purchase of a gun and magazine, saying it was for her, when in fact she purchased the gun for her convicted felon boyfriend, Marcus Wheeler. Wheeler later used the gun to kill an Omaha, Nebraska, police officer who was attempting to serve a warrant for his arrest.
“Laws which prevent convicted felons from buying guns are designed to protect the public,” said U.S. Attorney John Horn. “This defendant helped a convicted felon circumvent those laws. The tragic consequences and loss of life in this case reinforces the reason we have such strict laws in place.”
“The plea today is another reminder that ATF will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Special Agent in Charge Carl Walker.
According to U.S. Attorney Horn, the charges and other information presented in court: In April 2015, Jalita Jenera Johnson bought a Glock semiautomatic firearm, a 50‑round drum magazine, and ammunition from a pawnshop in Jonesboro, Georgia. When Johnson bought the firearm, she was required to fill out a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473. That form requires the purchaser of the firearm to disclose who the true buyer or transferee of the firearm is. The defendant stated on the form that she was the true buyer. However, Johnson was, in fact, buying the firearm for her boyfriend, Marcus Wheeler, a convicted felon who could not buy the gun for himself.
Wheeler provided Johnson with the money to buy the gun and magazine and directed the defendant on which gun and magazine to buy. In May 2015, using the gun and magazine that Johnson bought for him, Wheeler got into an armed confrontation with the City of Omaha Police Department in Omaha, Nebraska, that resulted in the officer’s death. Wheeler was also killed during the shootout.
Sentencing for Jalita Jenera Johnson, 26, of Jonesboro, Georgia, is scheduled for November 2, 2015, at 2:00 p.m., before United States District Judge Eleanor L. Ross.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Mary L. Webb 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.
Husband of Former DeKalb County Commissioner Sentenced to Prison for Stealing County FundsRead the Press Release
ATLANTA – John Boyer, the husband of former DeKalb County, Georgia, Commissioner Elaine Boyer, has been sentenced to one year and one day in federal prison for conspiring to steal county money. His plea and corruption charges stem from Elaine Boyer’s conviction on similar charges in September 2014.
“John Boyer used his wife’s position as a DeKalb County Commissioner to steal thousands of dollars in taxpayer funds. The Boyers’ scheme put county money in their pockets and ultimately left the citizens of DeKalb County holding the tab,” said U.S. Attorney John A. Horn. “In a county that has recently seen its share of corruption cases, this is a particularly sad chapter.”
“The sentencing of Mr. Boyer further illustrates that there are consequences for those who assist or entice public officials with regard to criminal corrupt activities. The FBI continues to make public corruption investigations its number one criminal program priority and asks that anyone with information regarding such activity to notify their nearest FBI field office,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners serves as the legislative branch of the DeKalb County Government. The Board of Commissioners is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.
In 1992, Elaine Boyer began serving as the Commissioner of District 1, which serves citizens in north DeKalb County, including Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. In August 2014, Elaine Boyer resigned mid-term as the Commissioner of District 1.
In 2009, Elaine and John Boyer experienced financial difficulties. As a result, an unlawful kickback scheme was devised to obtain money from DeKalb County. In particular, in or about September 2009, Elaine Boyer, as the Commissioner of District 1, hired a family-friend Marion Rooks Boynton (who has been separately charged) as a political advisor allegedly to assist her with government consulting.
As part of the scheme, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Boynton. In fact, Boynton performed no services for DeKalb County government, Elaine Boyer’s Office, or the citizens of DeKalb County.
Elaine Boyer used the false invoices as a basis to authorize payments to Boynton. From September 2009 to November 2011, based on requisition requests from Elaine Boyer’s Office, DeKalb County issued approximately 35 checks to Boynton for consulting services that were never performed. In total, DeKalb County paid Boynton more than $85,000.
John Boyer then instructed Boynton to deposit the money that Boynton received from DeKalb County into a bank account used by Elaine and John Boyer. Consequently, after being paid by DeKalb County, Boynton funneled approximately $60,000 received from DeKalb County into a personal bank account used by the Boyers. In turn, the Boyers used the money deposited into the account to pay personal living expenses.
In August 2014, Elaine Boyer, 59, of Stone Mountain, Georgia, resigned mid-term as the Commissioner of District 1. The day after resigning, Boyer was charged with conspiring to commit wire and mail fraud. On March 20, 2015, Boyer was sentenced to one year, two months in prison and ordered to pay approximately $87,000 in restitution.
On February 24, 2015, John Boyer, 63, of Stone Mountain, Georgia, pleaded guilty to conspiring to commit mail fraud. Boyer was sentenced to one year and one day in federal prison, three years of supervised release, and ordered to pay approximately $87,000 in restitution.
On August 11, 2015, the Grand Jury returned an indictment against Marion Rooks Boynton, 73, of Saint Simons Island, Georgia, on charges of conspiracy and substantive federal program theft.
This case is being investigated by Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey W. Davis 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/gan/.
Former State Department Employee Indicted in Computer Hacking and Cyberstalking SchemeRead the Press Release
ATLANTA – A federal grand jury has returned an indictment charging former U.S. State Department employee Michael C. Ford has been engaging in a hacking and cyberstalking scheme in which, using stolen passwords, he obtained sexually explicit photographs and other personal information from victims’ email and social media accounts, and threatened to share the photographs and personal information unless the victims provided him with additional explicit photos and videos.
“Ford is alleged to have hacked into hundreds of email accounts and tormented women across the country, by threatening to humiliate them unless they provided him with sexually explicit photos and videos,” said U.S. Attorney John Horn. “This sadistic conduct is all the more disturbing as Ford is alleged to have used the U.S. Embassy in London as a base for his cyberstalking campaign.”
“According to the indictment, Ford hacked into email accounts and extorted sexually explicit images from scores of victims,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “As these allegations highlight, predators use the Internet to target innocent victims. With the help of victims and our law enforcement partners, we will find those predators and hold them accountable.”
“The Diplomatic Security Service is firmly committed to working with the Department of Justice and our other law enforcement partners to investigate allegations of crime and to bring those who commit these crimes to justice,” said Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security. “When a public servant in a position of trust is alleged to have committed a federal felony such as cybercrime, we vigorously investigate such claims.”
“While the allegations in this case are disturbing, it does illustrate the willingness and commitment of the FBI and its federal partners to aggressively follow those allegations wherever they take us,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division. “The FBI will continue to provide significant resources and assets as we address complex cyber-based investigations as seen here.”
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2013 through May 2015, Ford, using various aliases that included “David Anderson” and “John Parsons,” engaged in a computer hacking and “sextortion” campaign to force numerous women to provide him with personal information and sexually explicit photographs and videos. To do so, Ford allegedly posed as a member of the fictitious “account deletion team” for a well-known email service provider and sent notices to thousands of potential victims, including members of college sororities, warning them that their accounts would be deleted if they did not provide their passwords.
Using the passwords collected from this phishing scheme, Ford allegedly hacked into hundreds of email and social media accounts, stole sexually explicit photographs and personal identifying information (PII), and saved both the photographs and PII to his personal repository.
Ford then allegedly emailed the victims and threatened to release the photographs, which were attached to the emails, unless they obtained videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then sent the videos to him.
The indictment alleges that, when the victims either refused to comply or begged Ford to leave them alone, Ford responded with additional threats, including by reminding the victims that he knew where they lived. On several occasions, Ford allegedly followed through with his threats by sending sexually explicit photographs to victims’ family members and friends.
During the pendency of the alleged scheme, Ford was a civilian employee at the U.S. Embassy in London, England. He allegedly used his government-issued computer at the U.S. Embassy to conduct the phishing, hacking and cyberstalking activities.
Michael C. Ford, 37, of Atlanta, Georgia, was indicted by a grand jury on August 18, 2015, charging him with nine counts of cyberstalking, seven counts of computer hacking to extort, and one count of wire fraud. The names of the victims are being withheld from the public in order to protect their privacy.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of State, Diplomatic Security Service and the Federal Bureau of Investigation.
The case is being 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. Assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Embassy in London.
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.
Former Georgia Department of Transportation Employee Charged with Accepting BribesRead the Press Release
ATLANTA - George H. Bell, a former employee of the Georgia Department of Transportation, has been arraigned on federal charges of conspiracy and accepting bribes. Bell was indicted by a federal grand jury on August 11, 2015.
“This defendant is charged with using his position with the Georgia Department of Transportation to benefit himself at the expense of the environment,” said U.S. Attorney John Horn. “His alleged conduct resulted in enormous clean-up costs to the Georgia Department of Transportation as well as environmental damage.”
“The FBI places a high priority on public corruption based investigations because they often ignore due process put in place to protect others. This case involves allegations of a State of Georgia official accepting bribes as he ignored environment laws put in place to protect so many,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Corruption in state government will not be tolerated. This case is an excellent example of state and federal law enforcement working together to insure government employees who are corrupt are held accountable,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“We are appalled by the corrupt actions of these lone individuals that in no way reflect the hard work and commitment displayed by more than 4,100 GDOT employees. We will exercise all legal actions to recover the costs associated with cleaning up these sites and ensure that every effort is made to correct the damage to the impacted sites once the investigation is closed,” said Commissioner Russell McMurry, Georgia Department of Transportation.
According to U.S. Attorney Horn, the charges, and other information presented in court: Bell was a supervisor with the Georgia Department of Transportation. In 2014, he began soliciting and accepting cash payments in exchange for allowing various individuals to dump unsuitable dirt in several GDOT locations. Unsuitable dirt is dirt that is removed during construction or landscaping projects, and cannot be used for other projects, usually because it contains organic material that would decompose and create problems for building on top of it. Bell is alleged to have allowed the unauthorized dumping to occur on at least four different GDOT sites.
George H. Bell, 49, of Lithonia, Ga., was arraigned before U.S. Magistrate Judge Alan J. Baverman.
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 Public Corruption Task Force, including the Georgia Bureau of Investigation and the Georgia Department of Transportation Investigation.
Assistant U.S. Attorney Jamie L. Mickelson 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.
Boynton Charged with Conspiring to help Former DeKalb County Commissioner Elaine Boyer Steal County MoneyRead the Press Release
ATLANTA - Marion Rooks Boynton has been arraigned after being indicted by a federal grand jury for conspiring with former DeKalb County Commissioner Elaine Boyer and her husband John Boyer to steal over $85,000 from DeKalb County.
“Boynton allegedly conspired with Elaine and John Boyer to steal taxpayer money from DeKalb County,” said U.S. Attorney John Horn. “The trio diverted thousands of dollars in county funds to their own personal bank accounts by exploiting former DeKalb County Commissioner Boyer’s position.”
“Elected officials who violate the public trust remain a priority investigative matter for the FBI but those who entice or assist those public officials as they engage in their corrupt criminal conduct are equally subject to federal investigation and prosecution. The FBI asks that anyone with information regarding such activities to contact their nearest FBI field office,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners serves as the legislative branch of the DeKalb County Government. The Board of Commissioners is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.
In 1992, Elaine Boyer began serving as the Commissioner of District 1, which served citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia.
In 2009, Elaine Boyer and her husband John Boyer began experiencing financial difficulties. As a result, they became involved in an unlawful kickback scheme to obtain money from the DeKalb County government. In particular, in or about September 2009, Elaine Boyer, as the Commissioner of District 1, hired long-time, family friend Rooks Boynton as a purported political advisor, allegedly to assist her with government consulting.
As part of the scheme, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Boynton. In fact, Boynton performed no services for DeKalb County government, Elaine Boyer’s Office, or the citizens of DeKalb County.
Elaine Boyer used the false invoices as a basis to authorize payments to Boynton. From September 2009 to November 2011, based on requisition requests from Elaine Boyer’s Office, DeKalb County issued approximately 35 checks to Boynton for consulting services that were never performed. In total, DeKalb County paid Boynton more than $85,000.
Boynton then deposited a portion of the money that he received from DeKalb County into a bank account used by the Boyers. Specifically, after being paid by DeKalb County, Boynton funneled approximately $60,000 of funds from DeKalb County into a personal bank account used by the Boyers. Boynton kept and spent the rest of the approximately $25,000 that he received from DeKalb County – despite not performing any services for DeKalb County.
In August 2014, Elaine Boyer, 59, of Stone Mountain, Georgia, resigned mid-term as the Commissioner of District 1. The day after resigning, Boyer was charged with conspiring to commit wire and mail fraud. On March 20, 2015, Boyer was sentenced to 14 months in prison and ordered to pay approximately $87,000 in restitution after pleading guilty.
On February 24, 2015, John Boyer, 63, of Stone Mountain, Georgia, pleaded guilty to conspiring to commit mail fraud. Boyer is scheduled to be sentenced on August 19, 2015.
On August 11, 2015, the Grand Jury returned an Indictment against Marion Rooks Boynton, 73, of Saint Simons Island, Georgia, on charges of conspiracy and substantive federal program theft.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis 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.
Emory Professor Arraigned on Child Pornography ChargesRead the Press Release
ATLANTA – Kevin M. Sullivan, a professor in Emory University’s Epidemiology Department, has been arraigned on federal charges of receiving and possessing child pornography.
“Sullivan is charged with downloading images that record the sexual abuse of children,” said U.S. Attorney John Horn. “We remain committed to the primary goal of Project Safe Childhood, which is to protect children by finding and prosecuting those who exploit children through child pornography.”
“HSI special agents are dedicated to tracking down the consumers of child pornography wherever they might be in an effort to stop the senseless rape of children that supplies this perverse demand,” said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations in Atlanta. “Child predators come from all walks of life, as the accused in this case clearly demonstrates. This investigation is a credit to the close working relationships HSI has built with law enforcement agencies around the world, including the Georgia Bureau of Investigation and the Swiss Fedpol in this case, to protect innocent children.”
“This case demonstrates the need for law enforcement to remain vigilant in the pursuit of people who exploit children. Dr. Sullivan’s life took a turn from helping people through his work in Epidemiology to exploiting children, utilizing the Wi-Fi at Emory University. The GBI’s top priority continues to be working crimes against children, regardless of who the offenders are,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Horn, the charges, and other information presented in court: In October 2014, Swiss law enforcement seized a server that was hosting child pornography. Login information from the server showed that someone at Emory University Rollins School of Public Health was using Emory’s Wi-Fi to access child pornography. With cooperation from Emory University’s Information Technology Department, agents were able to determine that Dr. Kevin Sullivan, a professor in Emory University’s Epidemiology department, was the person accessing child pornography from a Swiss website.
Based on this information, agents obtained and then executed a search warrant on June 15, 2015, at the defendant’s office. Sullivan was present when the agents arrived, but left before agents found child pornography on his personal laptop and external hard drive. When agents went to Sullivan’s house later the same day to arrest him, they found him attempting to erase the hard drive from his home desktop computer.
Kevin M. Sullivan, 60, of Atlanta, Georgia, was indicted by a federal grand jury on August 5, 2015. Today he was arraigned before U.S. Magistrate Judge Alan J. Baverman on those charges.
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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation.
Assistant U.S. Attorney Paul R. Jones and Special Assistant U.S. Attorney Erin E. Sanders are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Business Owners Charged with Defrauding CDC and IRSRead the Press Release
ATLANTA - Cesar Arbelaez Tabares and Juan Carlos Bazantes have been arraigned after being indicted on federal charges of defrauding the IRS and the Centers for Disease Control and Prevention (CDC) by intentionally misrepresenting the employment status of construction workers on a federal contract.
“Employers are required to truthfully account for their employees and withhold federal employment taxes on their behalf,” said U.S. Attorney John Horn. “These defendants allegedly committed fraud in connection with a construction project for the CDC by maintaining a double payroll system that concealed the true employment status of their workers and denied the IRS its collection of employment taxes in the process.”
“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the Internal Revenue Service,” stated Special Agent in Charge Veronica F. Hyman-Pillot. “Corporate officers, who neglect to withhold payroll taxes and remit them to the IRS in order to gain a competitive advantage, will be prosecuted to the fullest extent of the law.”
“Providing false information to a CDC contract administrator in order to stay in compliance with federal contracting guidelines will not be tolerated,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The integrity of federal projects requires that contractors adhere to a strict code of conduct.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Cesar Arbelaez Tabares was the Chief Executive Officer and Juan Carlos Bazantes was the Secretary and Chief Financial Officer of IWES Contractors, Inc. (“IWES”), a Norcross-based business that supplied drywall laborers to contractors and subcontractors for construction projects. Beginning in 2012, IWES supplied drywall laborers for a construction project with the CDC.
Under the direction of Tabares and Bazantes, IWES allegedly maintained a double payroll system for its workers on the CDC project, which internally classified those workers as either “W2.REAL” or “W2.F.2CHK”. Those workers who were classified as “W2.REAL” received one paycheck each pay period with employment taxes withheld, received an IRS Form W-2 at the end of the calendar year, and were reported on quarterly employment taxes filed by IWES with the IRS.
Those workers who were classified as “W2.F.2CHK” received two paychecks simultaneously each pay period. The first paycheck totaled the worker’s net pay (gross wages minus employment taxes withheld), while the second paycheck received by the worker totaled the employment taxes withheld from the first paycheck so that the worker, in reality, was receiving his or her gross wages with no tax withholdings. Workers classified as “W2.F.2CHK” performed many of the same job duties as those who were classified as “W2.REAL” and should have been likewise treated as employees, but they allegedly did not receive an IRS Form W-2 at the end of the calendar year and were not reported on quarterly employment taxes filed by IWES with the IRS.
In connection with its subcontracting work on the federal project with the CDC, Tabares and Bazantes allegedly caused IWES to submit fraudulent certified payroll forms, signed under penalty of perjury by Tabares, which falsely represented that employment taxes had been withheld for all of the IWES workers on the CDC project, including those whom IWES had internally classified as “W2.F.2CHK” and whose employment tax withholdings were being returned to the employee in the form of a simultaneous second paycheck. Between approximately January 2012 and April 2013, Tabares and Bazantes allegedly caused IWES to fail to report over $800,000 in wages to the IRS.
Cesar Arbelaez Tabares, 35, of Pembroke Pines, Florida, and Juan Carlos Bazantes, 43, of Miami, Florida, were arraigned today before United States Magistrate Judge Alan J. Baverman. They were indicted by a federal grand jury on July 28, 2015.
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.
Anyone who has information concerning the allegations described in the indictment is encouraged to contact IRS-Criminal Investigation at 404-338-7543.
This case is being investigated by the Internal Revenue Service Criminal Investigation, the Department of Labor-Office of Inspector General and the Department of Health and Human Services.
Assistant United States Attorney Steven D. Grimberg 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.
Dekalb Regional Crisis Center Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with DeKalb Regional Crisis Center (DeKalb Regional), a mental health and addiction facility, to resolve an investigation into allegations that it violated Title II of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“A person who is deaf or hard-of-hearing should be able to participate fully in his or her health care decisions,” said U.S. Attorney John Horn. “When a deaf patient 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. Access to medical care is a fundamental part of our society, and we will continue to devote resources to eradicate barriers to health care for persons with disabilities.”
An investigation was initiated by a complaint filed with the U.S. Attorney’s Office alleging that, during a 13-day admission, DeKalb Regional failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication for the complainant. The complainant is deaf and uses American Sign Language as her primary means of communication. The complainant was admitted to DeKalb Regional for mental health treatment. On numerous occasions during her stay, the complainant alleged that DeKalb Regional failed to provide a qualified sign language interpreter when necessary to ensure effective communication.
Under the settlement agreement, DeKalb Regional agreed to ensure effective communication to patients who are deaf and hard of hearing. In the future, DeKalb Regional agreed to give primary consideration to the expressed preference for a particular auxiliary aid or service by an individual who is deaf or hard of hearing. Among other things, DeKalb Regional has agreed to provide mandatory in-service training to all its personnel and provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard-of-hearing patients and companions. DeKalb Regional also agreed to pay $60,000 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 of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant United States Attorney Aileen Bell Hughes and Assistant United States Attorney Emily Shingler 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Child Pornography Producer Receives Lengthy Prison SentenceRead the Press Release
ATLANTA - Jeff Clouse has been sentenced to 20 years in prison for producing and distributing child pornography via the Internet. Clouse possessed and actively traded child pornography on the Internet.
“Clouse created a series of vile videos depicting a mother sexually abusing her own young children,” said Acting U.S. Attorney John Horn. “He further exploited these children by trading the videos for more child pornography. This is simply one of those cases that defies any explanation, and it is difficult to quantify the pain and suffering his conduct caused. But it reinforces our commitment to bring justice those who victimize children by producing child pornography.”
“This case exemplifies the international nature of the modern child pornography trade,” said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations (HSI) in Atlanta. “The defendant sexually exploited a mother and her young daughters in the Philippines via a webcam. He then traded recordings of that abuse with others for additional child pornography on a Russian file sharing site. As we learn more and more in these investigations, the fight against child pornography is clearly global in nature, and HSI is well positioned to follow the threads of these international networks and hold child predators accountable for their crimes against the innocent.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In January 2012, agents with the Department of Homeland Security in Phoenix, Arizona, initiated an investigation into an individual using a Russian file sharing website to trade child pornography. During a forensic review of the individual’s computer, Phoenix agents found that their target was exchanging child pornography with an email address in Atlanta, Georgia. A subsequent investigation revealed that this email address was associated with Jeff Clouse in Conyers, Georgia.
On February 15, 2013, agents went to Clouse’s home and explained that child pornography had been sent to an email address associated with him. Clouse admitted that he possessed thousands of images of child pornography and actively traded child pornography on the Internet. Clouse then directed the agents to the areas on his computer where he kept the images.
As agents reviewed Clouse’s email accounts, they found hundreds of images and videos containing child pornography, including videos that appeared to have been made with a web camera and “streamed” over the Internet. In the videos, a woman performed sexual acts on her minor daughters while Clouse directed her on a live video link. From chat logs found on Clouse’s computer, it appears that this woman lived in the Philippines and that the small children were her daughters.
After these videos were identified, Clouse agreed to speak with agents about the items found on his computer. In that interview, Clouse admitted he met the woman in the videos online in a chat room and that she created the child pornography at his direction using a web camera on her computer. The videos were made in the Philippines and transmitted over the Internet to Clouse in the United States, who then saved them on his computer so that he could view and trade the images at a later time. Clouse said that the two girls who were sexually abused in the videos were the woman’s minor daughters who were 6 and 8 years old.
A forensic review of his computer showed that Clouse subsequently distributed these videos to other individuals who were seeking child pornography. For Clouse, the videos became a kind of currency by which he could obtain more child pornography from other pedophiles. The forensic review also revealed that Clouse had been grooming at least one other minor during this same time.
On Tuesday, August 4, 2015, the Court sentenced Jeff Clouse, 47, of Conyers, Georgia, to 20 years in prison to be followed by 50 years of supervised release, and ordered him to pay restitution in the amount of $16,000. Clouse was convicted on these charges on June 12, 2014, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Kurt R. Erskine prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pediatric Services of America and Related Entities to Pay $6.88 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA – The U.S. Attorney’s Office announced that Pediatric Services of America Healthcare, Pediatric Services of America, Inc., Pediatric Healthcare, Inc., Pediatric Home Nursing Services (collectively, “PSA”), and Portfolio Logic, LLC agreed to pay $6.88 million ($6,882,387) to resolve allegations that PSA, a provider of home nursing services to medically fragile children, knowingly (1) failed to disclose and return overpayments that it received from federal health care programs such as Medicare and Medicaid, (2) submitted claims under the Georgia Pediatric Program for home nursing care without documenting the requisite monthly supervisory visits by a registered nurse, and (3) submitted claims to federal health care programs that overstated the length of time their staff had provided services, which resulted in PSA being overpaid.
“Participants in federal health care programs are required to actively investigate whether they have received overpayments and, if so, promptly return the overpayments,” said Acting U.S. Attorney for the Northern District of Georgia John Horn. “This settlement is the first of its kind and reflects the serious obligations of health care providers to be responsible stewards of public health funds.”
United States Attorney for the Southern District of Georgia, Edward J. Tarver said, “The failure to report and return a known overpayment is a serious offense that ultimately drives up the costs of health care for all of us. This U.S. Attorney’s Office and its federal and state law enforcement partners will continue to work together to ensure that health care providers, who receive millions of tax dollars every year, play by the rules and do not waste critical program funds.”
“The healthcare system is trust-based and providers who willfully ignore their fiscal responsibilities will be held accountable for their actions. This precedent-setting case should send the message that we will not tolerate any provider keeping American taxpayer dollars unjustly. Special thanks to the United States Attorney's Office for recognizing the importance of this case and partnering with us to pursue justice,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office, stated, “This collaborative investigative effort reflects the Defense Criminal Investigative Service’s ongoing commitment to ensuring accountability throughout the military health care system, protecting the integrity of Department of Defense programs, and preserving precious taxpayer dollars.”
This is the first settlement under the False Claims Act involving a health care provider’s failure to investigate credit balances on its books to determine whether they resulted from overpayments made by a federal health care program. Under section 6402 of the Affordable Care Act, health care providers must report and return any overpayments by the later of (i) 60 days after the overpayment was identified or (ii) the date any corresponding cost report is due (if applicable).
PSA had been maintaining numerous credit balances on its books that related to claims it had submitted to various federal health care programs, some of which had been on PSA’s books for several years. Additionally PSA wrote off and absorbed credit balances that had resulted from overpayments into their revenue because they had not investigated the reason for the credit balances before doing so. At the government’s request, PSA cooperated with a joint audit of the credit balances on its books in order to identify all outstanding overpayments.
As part of the settlement, PSA has agreed to enter into a corporate integrity agreement with the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), which will require PSA to put in place procedures and reviews to avoid and promptly detect conduct similar to that which gave rise to the settlement.
The settlement resolves allegations filed by Yvette Odumosu and Sheila McCray, former employees of PSA, under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to sue for false claims on behalf of the United States and share in the recovery. Ms. Odumosu’s lawsuit was filed in the Northern District of Georgia and is captioned U.S. ex rel. Yvette Odumosu v. Pediatric Services of America Healthcare, No. 1:11-CV-1007-AT and Ms. McCray’s lawsuit subsequently was filed in the Southern District of Georgia and is captioned United States ex rel. Sheila McCray, et al. v. Pediatric Services of America, Inc., Pediatric Services of America, Pediatric Healthcare, Inc., Pediatric Home Nursing Services, collectively d/b/a PSA Healthcare; and Portfolio Logic, LLC, No. CV413-12. Ms. Odumosu and Ms. McCray will receive a share of the settlement payment that resolves the qui tam suits that they filed in the amount of $1.1 million ($1,121,729). The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia, the U.S. Department of Health & Human Services, U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, the Medicaid Fraud Control Unit of the Georgia State Attorney General’s Office, and the National Association of Medicaid Fraud Control Units, comprised, in part, of the 20 states that are parties to the settlement.
The civil settlement was reached by Assistant United States Attorneys Neeli Ben-David, Darcy Coty and Charles Mulaney.
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/gan/.
Delgado Sentencing Caps Prosecution of 22 MS-13 Members after Three TrialsRead the Press Release
ATLANTA – Jose Delgado, a/k/a Fantasma, the last of twenty-two Mara Salvatrucha-13 (MS-13) gang members charged with murder, attempted murder and armed robbery, has been sentenced to 12 years in federal prison. All defendants were members of the violent street gang which operated in Gwinnett County and DeKalb County, Georgia, and they will all be serving their sentences in federal prison.
“MS-13 is a ruthless street gang that used violence to spread fear through Gwinnett, DeKalb and Fulton Counties,” said Acting U.S. Attorney John Horn. “The 8-year federal investigation identified and convicted the local leadership of the gang and dismantled the membership of a brutal and merciless criminal enterprise in the Atlanta region. While the gang preyed mostly on other rival gang members, this case demonstrates the tragic violence that harmed innocent citizens when the gang’s activities spilled out into the community.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: MS-13 is an international criminal gang that was operating in the Atlanta area since at least 2005 and up until the grand jury issued its indictment in February 2010. Almost all of the members came from El Salvador, Honduras, and Guatemala. During that time, MS-13 staked out areas within Gwinnett and DeKalb Counties as its territory.
MS-13 gang members held meetings where they discussed attacking and killing gang members, collected dues, shared firearms, and disciplined members who broke gang rules. Dues money was used to buy additional weapons and to post bond for gang members in jail. Gang leaders would keep MS-13 leaders in their home countries informed of gang activity, and they would often send back a portion of dues as “rent.”
The following defendants were convicted by a jury on July 15, 2013:
- Miguel Alvarado-Linares, a/k/a Joker, 26, of Norcross, Georgia, was convicted of Racketeer Influenced and Corrupt Organization (RICO) conspiracy involving murder, two counts of Violent Crime in Aid of Racketeering (VICAR) involving murder, two counts of VICAR involving attempted murder, and four firearms offenses. He was sentenced on October 15, 2013, to three life sentences to be followed by 85 years.
- Ernesto Escobar, a/k/a Pink Panther, a/k/a Flaco, 32, of Norcross, Georgia, was convicted of one count of RICO conspiracy involving murder, one count of VICAR involving murder, and one firearms offense. He was sentenced on December 20, 2013, to two life sentences to be followed by 10 years.
- Dimas Alfaro-Granados, a/k/a Toro, 32, of Duluth, Georgia, was convicted of one count of RICO conspiracy involving murder, two counts of VICAR involving murder, and two firearms offenses. He was sentenced on October 30, 2013, to three life sentences to be followed by 35 years.
- Jairo Reyna-Ozuna, a/k/a Flaco, 30, of Norcross, Georgia, was convicted of one count of RICO conspiracy and one firearms offense. He was sentenced on January 31, 2014, to 13 years in prison.
The evidence at trial showed that Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006. Ko was a fellow MS-13 member, but Alvarado-Linares – one of the gang leaders – thought that Ko was cooperating with police and ordered his murder. Additionally, in December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13. On Christmas Eve 2006, that gang member, following orders, shot at a car on I-85 that he believed contained rival gang members. The passenger, Angel Gonzalez, was murdered. He was 20 years old.
On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged insults with two members of a rival gang. Alvarado-Linares pulled out a gun and shot the men. On August 5, 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to Reyna-Ozuna, who was the gang leader at the time. Reyna-Ozuna gave Escobar a .45 caliber semi‑automatic handgun to retaliate. Escobar went back to the Shell station and shot one of the teenagers as he was painting lines in the parking lot. The victim, David Hernandez, was only 16 years old.
A jury convicted the following defendants on November 21, 2013:
- William Espinoza, a/k/a Cheberria, a/k/a El Crazy, 33, of Norcross, Georgia, was convicted of one count of RICO conspiracy involving murder, one count of VICAR involving attempted murder, and one firearms offense. He was sentenced on April 15, 2014, to 20 years, eight months in prison.
- Remberto Argueta, a/k/a Pitufo, 26, of Lilburn, Georgia, was convicted of one count of RICO conspiracy involving murder, one count of VICAR involving murder, and one firearms offense. He was sentenced on October 29, 2014, to two life sentences to be followed by five years.
The evidence presented at their trial showed that on April 13, 2007, Argueta, along with other gang members, planned to rob Arpolonio Rios-Jarquin, a suspected drug dealer, at a hotel in DeKalb County. When Rios-Jarquin turned out to have his own gun, Argueta and his fellow MS-13 members engaged in a shootout that resulted in the murder of Rios-Jarquin. Six months later, on October 24, 2007, Argueta and several other MS-13 members were at an apartment complex in Gwinnett County when Argueta spotted suspected rival gang members. He approached them and asked them who they “claimed” – that is, what gang they belonged to. When one of them responded that he and his friend were members of a rival gang, Argueta pulled out a handgun and started chasing and shooting at them. He shot one in the back and the other in the hip and arm.
On July 20, 2008, Espinoza and other members of MS-13 were at a nightclub in DeKalb County when a fight broke out with suspected members of a rival gang. Espinoza went out to the parking lot and retrieved a .380 handgun from a car. He approached the club entrance and shot Jayro Arango-Sanchez in the stomach. Just two days later, Espinoza and four other MS-13 members drove to an apartment complex in Gwinnett County to look for pedestrians to rob. After spotting a victim, Espinoza and another gang member got out of their SUV and approached the victim, Aurelio Vasquez. Espinoza put his .380 handgun to Vasquez’s head while the other MS-13 member started to search Vasquez’s pockets for money. Vasquez resisted being robbed, so Espinoza shot him through the head. Espinoza and his fellow gang members wanted to rob Vasquez to get money for beer.
A jury convicted the following defendant on October 7, 2014:
- Elio Marroquin-Lopez, a/k/a Perico, 29, of Chamblee, Georgia, was convicted of one count of RICO conspiracy. He was sentenced on October 29, 2014, to seven years, two months in prison.
The evidence at his trial showed that on December 15, 2008, Marroquin-Lopez and two other gang members broke into an apartment to rob it. When the owner returned, one of the gang members shot at him. On March 13, 2009, Marroquin-Lopez got into a fight with two suspected rival gang members and shot at one of them. Marroquin-Lopez, who was one of the gang leaders, often gave out baggies of cocaine to fellow MS-13 members at meetings and instructed them to sell the cocaine at clubs.
The following defendants entered guilty pleas and have been sentenced:
- Jose Delgado, a/k/a Fantasma, 28, of Lawrenceville, Georgia, was sentenced on July 31, 2015, to 12 years in prison after pleading guilty to RICO conspiracy involving murder and two counts of VICAR involving murder.
- Alex Ferrufino, a/k/a Whiskey, 35, Tucker, Georgia, was sentenced on September 11, 2014, to 25 years in prison after pleading guilty to two counts of VICAR involving attempted murder and one firearms offense.
- Joseph Ivan Dias, a/k/a Travieso, 27, of Gainesville, Georgia, was sentenced on April 1, 2015, to 14 years in prison after pleading guilty to RICO conspiracy.
- Miguel Guevara, a/k/a Blacky, 31, of Fort Walton Beach, Fla., was sentenced on February 13, 2015, to 30 years in prison after pleading guilty to RICO conspiracy involving murder and a firearms offense.
- Kenedis Bonilla, a/k/a Mago, 33, of Tucker, Georgia, was sentenced on June 13, 2015, to 15 years in prison after pleading guilty to RICO conspiracy involving murder and a firearms offense.
- Salvador Franco, a/k/a Smiley, 30, of Norcross, Georgia, was sentenced on September 11, 2014, to 12 years in prison after pleading guilty to RICO conspiracy and a firearms offense.
- Edwin Menjivar, a/k/a Chilly Willy, a/k/a Vago, 33, of Norcross, Georgia, was sentenced on November 21, 2014, to 11 years in prison after pleading guilty to RICO conspiracy and VICAR involving attempted murder.
- Omar Cubillos, a/k/a Pancho, 30, of Gainesville, Georgia, was sentenced on June 15, 2015, to 20 years in prison after pleading guilty to RICO conspiracy involving murder and a firearms offense.
- Carlos Mendoza, a/k/a Catracho, 30, of Atlanta, Georgia, was sentenced on April 30, 2105, to 17 years, 6 months in prison after pleading guilty to RICO conspiracy involving murder and a firearms offense.
- Emmanual Hidalgo, a/k/a Scooby, 29, of Chamblee, Georgia, was sentenced on November 21, 2014, to 25 years in prison after pleading guilty to RICO conspiracy involving murder and a firearms offense.
- Christopher Castro Ramirez, a/k/a Demente, 26, of Norcross, Georgia, was sentenced on November 1, 2012, to two years, six months in prison after pleading guilty to RICO conspiracy.
- Enzo Baires, a/k/a Ghost, 25, of Norcross, Georgia, was sentenced on May 11, 2015, to 12 years in prison after pleading guilty to RICO conspiracy involving murder.
- Irvin Mejia-Cruz, a/k/a Lil Triste, a/k/a Triste, 25, of Duluth, Georgia, was sentenced on February 13, 2015, to nine years in prison after pleading guilty to RICO conspiracy.
- Walter Aldana, a/k/a Goofy, 25, of Norcross, Georgia, was sentenced on February 13, 2015, after pleading guilty to RICO conspiracy.
- William Pineda, a/k/a Slayer, 32, of Lawrenceville, Georgia, was sentenced on December 11, 2104, to seven years in prison after pleading guilty to RICO conspiracy.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Norcross Police Department, Chamblee Police Department, and the Gwinnett County Sheriff’s Office.
This case was prosecuted by Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and Department of Justice Organized Crime and Gang Section Trial Attorney Joseph Wheatley.
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.
Two Memphis Men Indicted for Kidnaping, Robbery and FirearmsRead the Press Release
ATLANTA - Mario Deandre Jackson and Leon Scott have been indicted by a federal grand jury for robbery, kidnaping and firearms crimes relating to a home invasion in the Buckhead community on May 25, 2015.
During the home invasion, a family was held at gunpoint and one victim was forcibly removed from the home and made to withdraw money from his bank account.
“These men are charged with terrorizing an Atlanta family, including their three minor children during a violent home invasion,” said Acting U.S. Attorney John Horn. “They allegedly traveled to Georgia from outside the state for the purpose of robbing the family, and forcing them at gunpoint to remove money from an ATM and to turn over other valuables, including a wedding band. The arrests in this case occurred through the collaborative efforts of federal, state, and local law enforcement officers determined to solve this particularly heinous crime.”
“The identification, apprehension, and resulting federal grand jury indictments of Jackson and Scott regarding their alleged involvement in a violent Atlanta area home invasion was brought about by a collaborate law enforcement effort covering numerous jurisdictions and demonstrates the true value of such a combined investigative approach. The FBI will continue to dedicate significant investigative assets and resources as we partner with area law enforcement in addressing violent crime in the region,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“After many long hours of exhaustive work by Investigators of the Atlanta Police Department, who worked jointly with our federal partners, I am pleased that these individuals who targeted our neighborhoods are behind bars and no longer a threat. The Atlanta Police Department will continue to work closely with the US Attorney’s Office and the FBI on these cases to ensure any other involved parties are identified and similarly charged,” said Atlanta Police Chief George N. Turner.
According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: On May 25, 2015, a home invasion robbery was committed in the Atlanta, Georgia, Buckhead community by two armed assailants who entered a family’s home. At the time of the robbery, the house was occupied by a husband and wife and their three minor children. One of the robbers forced the husband at gunpoint to go with one of them to a Wells Fargo ATM machine and withdraw money, while the other robber held the remaining family members at gunpoint to ensure the husband’s cooperation. Through a Crime Stoppers tip, police learned that the robbers traveled from Memphis, Tennessee, and returned there with the stolen goods. Police then recovered one of the items taken during the robbery – a wedding band – at a Memphis pawn shop.
On July 9th, 2015, Georgia State Patrol officers stopped a car in which Jackson was a passenger and found him with two firearms, both of which had been stolen during other robberies in Atlanta and Memphis. Scott was arrested separately in a motel in Birmingham, Alabama on July 24th, 2015.
Mario Deandre Jackson, 28, of Memphis, Tennessee, and Leon Scott, 25, of Memphis, Tennessee, will be arraigned at a later date.
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 Atlanta Police Department and the Federal Bureau of Investigation.
Assistant United States Attorneys Ryan K. Buchanan and Kim S. Dammers 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former HUD-OIG Special Agent in Charge Convicted of Making False Statements to Obtain a LoanRead the Press Release
ATLANTA - Herschell Harvell, Jr., a former Special Agent in Charge with the Office of Inspector General for the Department of Housing and Urban Development, has been convicted of two counts of making false statements to First Tennessee National Bank, N.A., to obtain a loan, after a one week jury trial.
“Harvell, who was a federal law enforcement officer with supervisory responsibility for mortgage fraud investigations and other matters involving false statements, violated the law he was sworn to enforce by making false statements to obtain a loan to finance his own private business interests,” said Acting U.S. Attorney John Horn.
“Mr. Harvell’s conviction demonstrates our commitment to bringing to justice all bad actors, even when that misconduct occurs within our very own organization. I am profoundly disappointed at the break down of trust and the violation of laws of this former employee. As this conviction shows, these ethical lapses are neither tolerated nor condoned,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: The Office of Inspector General (OIG) for the Department of Housing and Urban Development (HUD) investigates and prevents fraud and abuse in HUD programs. Harvell began his career with HUD-OIG as a Special Agent and in 2003, was promoted to Assistant Special Agent in Charge for HUD-OIG’s Region 9, which is based in Los Angeles, California, and encompasses several western states. Harvell was promoted in 2008 to Special Agent in Charge for the HUD-OIG region based in Fort Worth, Texas, and later served as the Special Agent in Charge of HUD-OIG’s Region 4, based in Atlanta, Georgia. As a Supervisory Special Agent, Harvell oversaw and supervised mortgage fraud investigations, as well as other matters involving false statements affecting HUD programs.
In 2008, while stationed in Los Angeles, Harvell maintained a portfolio of six rental homes in the Atlanta area, all of which were mortgaged, with monthly payments in various amounts. In addition, between January and March 2008, Harvell acquired and opened a Precision Tune automobile care franchise, also in the Atlanta area. The start-up costs for the owner of a new franchise location, such as Harvell’s, ranged from $100,000 to over $200,000. To fund the costs of his new business, in February 2008, Harvell cashed in a certificate of deposit that he held worth approximately $70,000. Over the next five weeks, Harvell spent this amount and more on his Precision Tune business and other expenses, including payments on his rental homes.
On March 25, 2008, Harvell obtained additional cash by refinancing one of his rental homes. Harvell attended closing and signed a loan application and other documents to obtain a refinance loan for $165,000 from First Tennesse Bank, N.A. Harvell received approximately $23,000 from this loan. Although he had cashed in and spent the certificate of deposit and additional funds, Harvell’s loan application falsely stated that he still owned this certificate of deposit. In addition, Harvell’s loan application falsely stated that he received a total of $6,180 per month in rental income from his portfolio of investment homes. Although some of Harvell’s houses were rented, he was receiving roughly half that amount, or less, on a monthly basis when he closed the loan. Harvell’s loan application also failed to disclose his Precision Tune business and associated costs and liabilities that he was incurring to open that business.
In addition, Harvell’s loan application stated that his permanent residence was in Georgia. During the course of approving the loan, First Tennessee Bank’s underwriter asked Harvell to explain a Los Angeles post office box that appeared on Harvell’s bank statements. The underwriter posed this question to determine whether Harvell had living expenses in Los Angeles that were not disclosed on his loan application. In response to the underwriter’s question, Harvell wrote a letter falsely stating that his employment required him to work in California during the weekdays and that he resided with relatives while on work assignments there. In truth, Harvell lived in Los Angeles and paid rent there, which was not disclosed to the underwriter.
While in Atlanta to close the loan from First Tennessee Bank on March 25, 2008, Harvell applied to a different lending institution for a cash-out refinance loan on a different investment property. When this second loan closed on April 14, 2008, Harvell received over $17,000. Harvell’s loan application contained the same false statements and omissions as his March 25, 2008, loan application to First Tennessee Bank.
Sentencing for Harvell has been scheduled for 2:30 p.m. on October 1, 2015, before United States District Judge William S. Duffey, Jr.
This case is being investigated by the Department of Housing and Urban Development, Office of Inspector General, Special Investigations Division, Washington, DC.
Assistant United States Attorney Douglas W. Gilfillan 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 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 Emory University Employee Sentenced for Embezzling Funds from EmoryRead the Press Release
ATLANTA - Brenda Michael, a former Emory University administrative assistant, has been sentenced to one year, six months in federal prison for stealing more than $300,000 in student tuition payments from the university.
“Michael used her position at Emory to steal hundreds of thousands of dollars in just over a year and a half,” said Acting U.S. Attorney John Horn. “Students trusted that this university employee was there to facilitate their enrollment. Had the defendant not been exposed by Emory, her deception could have caused even greater damage.”
“Those Emory University students had every right to trust in Ms. Michael, who was assigned by the University to assist those students. Unfortunately, Ms. Michael chose to betray that trust and use her position for personal gain. The FBI is pleased with its role in ensuring that Ms. Michael be held fully accountable for her criminal conduct, which today’s sentencing certainly does,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Emory University is satisfied with the outcome of this case and with the excellent work of the United States Attorney’s Office in prosecuting Ms. Michael for her crime. We take the security of our students’ financial information and thefts by employees very seriously and are pleased that we could work cooperatively with the United States Attorney’s Office in bringing the investigation to a successful conclusion,” said Nancy Seideman, Associate Vice President, Media Relations, Emory University.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Brenda Michael was employed as an administrative assistant with the Wound Ostomy Center, part of the School of Nursing at Emory University. As part of her job, the defendant assisted Emory students with enrolling in various programs and classes.
Beginning in August 2012, while assisting students with their enrollment in Emory programs, Michael began directing the students to pay their tuition and fees via PayPal to an account that the students believed was an authorized Emory University account. In fact, it was Michael’s personal PayPal account. The defendant misdirected student payments for more than a year, diverting a total of more than $317,000 in payments due to Emory and spending them for her personal benefit.
Brenda Michael, 53, of Atlanta, Georgia, has been sentenced by U.S. District Judge Willis B. Hunt to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $317,923.33 to Emory University. Michael was convicted on these charges on April 30, 2015, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, with the assistance of Emory University.
Assistant United States Attorney Jamie L. Mickelson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Habersham County Deputy Sheriff Charged for her Role in Flash Bang Grenade IncidentRead the Press Release
ATLANTA – Nikki Autry, a former Habersham County deputy sheriff and special agent of the Mountain Judicial Circuit Criminal Investigation and Suppression Team (“NCIS”), has been indicted by a federal grand jury on charges of providing false information in a search warrant affidavit and providing the same false information to obtain an arrest warrant. Providing false evidence to a judge to obtain a warrant is a federal civil rights violation.
“Our criminal justice system depends upon our police officers’ sworn duty to present facts truthfully and accurately – there is no arrest that is worth selling out the integrity of our law enforcement officers,” said Acting U.S. Attorney John Horn. “In this case, Autry is charged with making false statements to a judge in order to obtain search and arrest warrants. Without her false statements, there was no probable cause to search the premises for drugs or to make the arrest. And in this case, the consequences of the unlawful search were tragic.”
“Integrity is an absolute cornerstone for those who serve in law enforcement and today’s federal indictment of former Deputy Sheriff Autry, sadly, clearly illustrates the results when there is a departure from that ever important core value. The FBI will continue to provide investigative assets and resources toward investigating and presenting for prosecution allegations of law enforcement misconduct as seen here,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“As a result of this investigation, the GBI has partnered with law enforcement and prosecution officials in Habersham County and northeast Georgia to revamp drug enforcement operations in order to prevent incidents such as this in the future.” said Vernon M. Keenan, Director, Georgia Bureau of Investigation.
According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: Autry worked for the Habersham County, Georgia, Sheriff’s Office from 2004 to 2014. On the night of May 27, 2014, Autry and other members of the NCIS team were attempting undercover narcotics buys from various subjects in Habersham County.
Eventually, a brand new NCIS informant and two of his associates – his wife and a roommate – went to a residence located in Cornelia, Georgia. The informant’s roommate, who was not officially working with NCIS, approached the residence and allegedly purchased a small quantity of methamphetamine from an individual unknown to him who was standing outside the residence. There was no police surveillance to verify the purchase. Shortly afterwards, Autry presented an affidavit to a Habersham County magistrate judge falsely swearing that the NCIS informant made the purchase and that the NCIS informant was “a true and reliable informant who has provided information in the past that has led to criminal charges on individuals selling narcotics in Habersham County.”
The federal indictment alleges that Autry knew the NCIS informant had not purchased any methamphetamine from anyone at the residence and the NCIS informant had not proven himself to be reliable in the past. Additionally, the indictment alleges that Autry had not confirmed that there was heavy traffic in and out of the residence. Based on this false information, the magistrate judge issued a “no-knock” search warrant for the residence and an arrest warrant for W. T., who allegedly sold the methamphetamine. The warrant obtained by Autry was executed approximately two hours later, during the early morning hours of May 28, 2014.
During the execution of the search warrant, a Habersham County deputy sheriff tossed a “flash and noise distractionary device,” also known as a flash bang grenade, into a side door of the residence. The flash bang grenade was thrown directly into the room where an 18-month-old toddler was sleeping. The grenade landed inside the toddler’s playpen and critically injured him. The toddler and his family had been staying at the residence for approximately six weeks prior to the search. They are relatives of the lawful occupants of the residence. W. T. was arrested shortly after the flash bang incident at a nearby residence.
Nikki Autry, 29, of Clarkesville, Georgia, will be arraigned by a U.S. Magistrate Judge later this week. The indictment charges Autry with four counts of civil rights violations for willfully depriving the occupants of the residence of their right to be free from unreasonable searches and seizures by a police officer and for knowingly depriving W. T. of his right to be free from arrest without probable cause.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Georgia Bureau of Investigation, and the District Attorney’s Office of the Mountain Judicial Circuit.
Assistant United States Attorneys William McKinnon, Brent Alan Gray 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office Hosted 3rd Annual Youth Legal and Law Enforcement SymposiumRead the Press Release
ATLANTA – The U.S. Attorney’s Office hosted its 3rd Annual Youth Symposium on Thursday, July 16, 2015. The symposium included overviews of both federal criminal prosecutions and civil proceedings from various agencies including the Acting U.S. Attorney, with presentations from the FBI, DEA, U.S. Secret Service, the Social Security Administration – Office of the Inspector General, Federal Bureau of Prisons, and the Department of Homeland Security Investigations.
“This summit is an incredible opportunity to personally connect with so many talented young people and encourage them toward positive futures after high school and college,” said Acting U.S. Attorney John Horn. “They are able to see so many possibilities for a career in law enforcement, and we hope this event strengthens their trust and understanding in the justice system as well.”
More than 125 students and guests were provided with a basic understanding of the criminal justice system, helping foster relationships between law enforcement and the communities they serve, and informing students of career opportunities in federal law enforcement.
“A career in law enforcement could be very rewarding,” said Assistant U.S. Attorney and Community Outreach Coordinator Loranzo Fleming. “Indeed, one can ‘do well’ and ‘do good’ at the same time; you do not have to choose one or the other.”
Special Agents from the participating agencies shared information about requirements for employment, training, job duties, and responsibilities. Each presenter encouraged students to strive for academic excellence and to consider a career in law enforcement. They also shared interesting, real-life stories. For example, U.S. Bureau of Prison personnel explained that life behind bars is much different than seen on television.
After the presentations from federal law enforcement agencies, the students and guests visited the courtrooms of U.S. District Judge Richard W. Story, U.S. Magistrate Judge Justin S. Anand, and U.S. Magistrate Judge Russell G. Vineyard. The judges provided information about the structure and function of the court system; layout and design of the courtroom; and shared information about their job duties and responsibilities. The judges also gave inspirational messages and encouraged students to consider legal and law enforcement careers.
The students and invited guests represented various organizations including the Cascade United Methodist Church Youth Ministry, Operation P.E.A.C.E. Inc., Russell Management Resident Services, Inc., DeKalb County Juvenile Court Journey & Youth Achievement Programs, Fulton County Junior D.A., Program, Urban League of Greater Atlanta – Urban Youth Empowerment Program & Neighborhood College Program, Fulton County Junior Deputy Clerk Program, and Atlanta Bar Association Summer Law Intern Program.
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.
Operators of Atlanta Stores Enter Guilty Pleas to WIC and SNAP FraudRead the Press Release
ATLANTA - Rodney Byrd and Reginald Byrd have pleaded guilty to conspiring to commit food stamp fraud. The defendants used a series of stores in the Atlanta area to unlawfully purchase over $5.7 million in vouchers of the Georgia Women, Infants and Children (“WIC”) program and debit cards of the Supplemental Nutrition Assistance Program (“SNAP”).
“These defendants stole from a program designed to provide nutritional items to needy members of our community,” said Acting U.S. Attorney John Horn. “The scheme induced customers to forego infant formula and other necessary products in exchange for cash at less than face value of the vouchers. They put their own financial profit above the physical needs of low-income mothers and children.”
“The individuals who choose to defraud taxpayers through trafficking schemes will continue to be aggressively investigated by USDA-OIG and its law enforcement partners. Greed and arrogance drives people like the Byrds’ to feel like they are undetectable in a system where thousands of stores participate in assistance programs like SNAP and WIC. Their guilty plea should be a warning to others that you will be caught, and you will be prosecuted,” stated Karen Citizen-Wilcox, Special Agent-in-Charge with USDA-OIG- Investigations.
“The integrity of the WIC and SNAP programs must be protected from fraud and abuse by the vendors who seek to illegally profit by violating the standards established for these programs,” stated Veronica F. Hyman-Pillot, IRS Criminal Investigation, Special Agent in Charge. “This was a case of greed, deceit, manipulation and theft directed by the Byrd brothers in order to enrich themselves with ill-gotten gains. The North Georgia Financial Task Force are proud to contribute their financial expertise in unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Rodney Byrd owned and operated Atlanta metropolitan-area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, in violation of the terms of the WIC program and SNAP. The cash payments were at amounts of less than face value, allowing the defendants to generate substantial profits when exchanging the vouchers.
As a result, tens of thousands of WIC vouchers totaling millions of dollars were deposited into bank accounts under the control of Rodney Byrd. A large number of these vouchers were for prescribed infant formula that is supposed to be given to malnourished infants or infants who cannot use traditional formula. Instead of selling products such as this to needy recipients, the defendants and their co-conspirators unlawfully purchased the vouchers for cash. All told, this scheme resulted in an estimated loss to the government of $5,747,817.18.
Sentencing for Rodney Byrd, 39, of Lawrenceville, Ga., and Reginald Byrd, 38, of College Park, Ga., is scheduled for October 13, 2015, at 2:00 p.m., before United States District Judge Leigh Martin May.
This case is being investigated by the United States Department of Agriculture, Office of the Inspector General, and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Jamie L. Mickelson 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Department of Corrections Employee Pleads Guilty to Stealing State Restitution FundsRead the Press Release
ATLANTA – Daynna Gregory, the last of three defendants charged with stealing state restitution funds, has pleaded guilty. Earlier this year, Tammi Stephens and Richard Cantrell also entered guilty pleas to theft of public funds and conspiracy stemming from a check fraud scheme to steal from a victims’ restitution fund controlled by the Georgia Department of Corrections where Stephens and Gregory formerly worked as an account paraprofessional and an accounting clerk, respectively.
“The State of Georgia created this fund for the honorable purpose of providing relief to victims of financial crime, and these defendants callously stole from this fund to enrich themselves,” said Acting U.S. Attorney John Horn. “This conduct is all the more disturbing because as Georgia Department of Corrections employees Stephens and Gregory were responsible for issuing restitution checks to the people they preyed upon.”
“When those within the criminal justice system so deliberately choose to engage in such corrupt criminal activity as seen in this case, it is truly disheartening. The FBI will continue to work with its various law enforcement partners, to include the Georgia Department of Corrections, to ensure that this type of criminal conduct is swiftly addressed,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
"The guilty plea by these former employees is a reflection of the professional and diligent work by our internal investigations team and their partnership with our colleagues at the FBI,” said Commissioner Homer Bryson. "We remain committed to our zero-tolerance policy for this type of conduct by employees entrusted with public funds," continued Bryson.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From September 2013 to June 2014, Stephens and Gregory were employees in the Georgia Department of Corrections’ banking unit where they were responsible for issuing checks drawn on a restitution fund set up to compensate victims of other crimes. The defendants formed and carried out a plan to steal victim restitution by having Stephens and Gregory use their access to the fund to issue fraudulent checks payable to a flower shop owned by Cantrell, who was not a Department employee. The checks were purposely issued to Cantrell's flower shop to hide the defendants’ involvement in the theft. Cantrell agreed to use his business to launder the stolen money.
After printing the fraudulent checks, Stephens and Gregory altered the Department’s financial records to further disguise their theft. Stephens and Gregory issued twenty-nine fraudulent checks to the flower shop, which were then delivered to Cantrell, who cashed them and split the proceeds with Stephens and Gregory. In total, the defendants stole more than $232,000 in restitution funds, which they then spent on a variety of retail purchases.
Each of the defendants pleaded guilty before U.S. District Court Judge Steve C. Jones. Richard Cantrell, 54, of Marietta, Georgia, was sentenced by Judge Jones on July 10, 2015, to two years in prison followed by three years of supervised release. Tammi Stephens, 37, of Forsyth, Georgia, will be sentenced on July 31, 2015, at 3:00 p.m. Daynna Gregory, 41, of Lithonia, Georgia, will be sentenced on September 24, 2015 at 2:30 p.m.
This case is being investigated by the Federal Bureau of Investigation, and the Georgia Department of Corrections.
Assistant United States Attorney Kurt R. Erskine and Special Assistant United States Attorney Trevor C. Wilmot 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Office Manager Sentenced to Federal Prison for Embezzling More Than $500,000 from Her EmployerRead the Press Release
ROME, Ga. - Judy Elaine Henry has been sentenced to serve three years and one month in federal prison for committing wire fraud in connection with a scheme to defraud Bec-Don, Inc., a company that supplies concrete reinforcing steel and related products to the construction industry.
“This defendant abused her employer’s trust by stealing money from the company account for nearly eight years,” said Acting U.S. Attorney John Horn. “Businesses have the right to expect honest services from their employees, but they should nonetheless be vigilant and adopt protocols to safeguard against internal fraud.”
“The sentencing of Ms. Henry in federal court holds her accountable for her eight years of theft from an employer who trusted her. The FBI, along with the Catoosa County Sheriff's Office, which assisted in the matter, fully understands how these types of thefts can adversely impact the bottom line of the victim company's financial stability,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Henry was the manager of Bec-Don’s office in Ringgold, Georgia, and was authorized to sign checks on Bec-Don’s account. From approximately 2006 through 2014, Henry embezzled more than $500,000 in company funds by writing checks payable to herself from Bec-Don’s account, and by making false entries in Bec-Don’s checkbook and accounting records to make it appear that the checks had been issued to pay legitimate company expenses. Henry deposited some of the fraudulent checks into her personal account and then used her debit card to spend the stolen money.
Judy Elaine Henry, 50, of Lafayette, Georgia, was sentenced to three years, one month in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $565,005.05. Henry was convicted on these charges on April 23, 2015, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, and the Catoosa County Sheriff’s Department.
Assistant United States Attorney 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.
Former Murray County Judge Sentenced to Five Years in Federal PrisonRead the Press Release
ROME, Ga. – Former Murray County, Georgia, Chief Magistrate Judge Bryant L. Cochran has been sentenced to federal prison for orchestrating the false arrest of a woman who had been sexually propositioned by Cochran, for tampering with a witness, for sexually assaulting a county employee, and for illegally searching a county employee’s personal cell phone.
“Cochran completely abused the trust given to him by the good citizens of Murray County,” said Acting United States Attorney John A. Horn. “Cochran used the power of the bench to victimize a citizen seeking justice and to exploit his staff. There is no greater breakdown in the justice system than when the judge himself violates other citizens’ rights to simply advantage himself.”
“This sentencing concludes a lengthy investigation that not only ended the career of former Murray County Chief Magistrate Judge Cochran, but also the careers of two Murray County law enforcement officers,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “While the criminal actions of these individuals are disheartening, in the end, truth and justice prevailed.”
“Being in a position to uphold and enforce the law does not mean you are above the law,” said Vernon Keenan, Director, Georgia Bureau of Investigation. “The GBI will continue to work with the FBI and the U.S. Attorney's office to investigate and hold accountable those who are involved in corruption, regardless of their position.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: From January 1, 2004, to August 15, 2012, Bryant Cochran served as the Chief Magistrate Judge in Murray County, Georgia.
In that position, on April 9, 2012, Cochran met with a female citizen regarding a routine legal matter. During the meeting, Cochran made inappropriate sexual advances towards the citizen, including an offer to trade sex for a favorable legal ruling. By mid-July 2012, the allegations of Cochran’s sexual misconduct towards the citizen had become public and gained significant media coverage. In response, Cochran called at least six local and state police officers providing them with a so-called “tip” – that the citizen carried drugs in her vehicle. Cochran also encouraged several of the police officers to stop the citizen because pulling her over would assist Cochran and would dissipate the heat caused by her complaint.
In a further effort to discredit the citizen, Cochran conspired with Clifford J. Joyce (who was Cochran’s tenant) to have the citizen framed for drug possession. Specifically, on or about August 12, 2012, Joyce planted a metal tin containing five packets of methamphetamine under the fender of the citizen’s car.
Two days later, on August 14, 2012, Murray County Sheriff’s Office Deputy Joshua Greeson (who has since been convicted of witness tampering) conducted a traffic stop on a car occupied by the citizen. During the traffic stop, several officers and a police drug dog searched the car for approximately ten minutes – but did not find any drugs. Thereafter, Captain Michael Henderson, who is Cochran’s cousin and who has also been convicted of witness tampering, had an approximately two-minute telephone conversation with Cochran. Following that call, Henderson told an officer at the scene that according to his information; the citizen hid her drugs in a magnetic box under the left, rear tire well. Upon receiving that information, Greeson found the metal box magnetically attached to the car in that precise location. Inside the box, Greeson recovered five small packets containing methamphetamine. Greeson then told the citizen that he had recovered drugs from her car. At that point, the citizen stated that she had been set up by Judge Cochran or Joyce. Despite this, Greeson arrested the citizen and transported her to jail.
On August 15, 2012, the day after the arrest, Cochran resigned his position as Murray County’s Chief Magistrate Judge. On August 22, 2012, Joyce admitted to law enforcement officers that he planted drugs – after which the local District Attorney dismissed the charges against the woman. Finally, in an apparent effort to cover up the framing of the woman, Cochran tried to persuade a witness to provide false information to law enforcement officers.
As the Chief Magistrate Judge, Cochran also sexually assaulted a Murray County court employee and unlawfully searched the personal cellular telephone of another Murray County employee.
On May 13, 2014, a federal grand jury indicted Cochran, 45, of Chatsworth, Georgia for: (1) conspiracy against rights; (2) deprivation of rights under color of law, (3) conspiracy to distribute a controlled substance, and (4) tampering with a witness. The trial of Cochran began on December 2, 2014, and on December 11, 2014, the jury returned guilty verdicts on all counts (after one day of deliberations).
Bryant L. Cochran was sentenced to five years in prison, followed by three years of supervised release, and 100 hours of community service.
This case also resulted in the following convictions:
- On December 13, 2013, Clifford J. Joyce, of Murray County, Ga., was sentenced to one year, six months in prison for conspiring to distribute a controlled substance.
- On October 30, 2013, Michael Henderson, of Murray County, Ga., was sentenced to one year and one day in prison for tampering with a witness.
- On September 25, 2013, Joshua Greeson, of Murray County, Ga., was sentenced to 10 months in prison for tampering with a witness.
This case was investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and William L. McKinnon, Jr. prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.
Three Sentenced to Federal Prison for Filing Fraudulent Income Tax ReturnsRead the Press Release
ATLANTA – Three members of a local fraud ring—Rodney Henry, Tony Lamar Watkins, and Phyllis Grant—have been sentenced to federal prison for conspiring to defraud the United States by filing bogus income tax returns using stolen identities. The trio stole more than $800,000, all in the form of fraudulent tax refunds.
“Phony refund schemes that use stolen identities hurt the people whose names and personal information were illegally used, and honest taxpayers throughout the country who foot the bill for the fraud,” said Acting U.S. Attorney John Horn. “Identity theft remains a top priority of this office and will continue to be a priority until we end the victimization of our citizens through their stolen personal identities.”
“IRS Criminal Investigation will remain proactive in the investigation of individuals who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge. “These sentences should serve as a strong message that there are consequences for stealing and using other individual’s personal identifying information.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Rodney Henry, Tony Watkins, and Phyllis Grant worked together to use stolen identities to file federal income tax returns. Henry filed the tax-returns, which sought more than $1.9 million in refunds. Watkins assisted in the scheme by retrieving refund checks from mailboxes, forging signatures on the checks, withdrawing refunds from debit cards, and bringing checks to locations where they would be cashed. Grant opened two mailboxes for their scheme in Mableton, Georgia, and one in East Point, Georgia. She also provided Henry with some of the identities he used on the returns.
All defendants were sentenced by U.S. District Judge William S. Duffey, Jr., as follows:
- Rodney Henry, 43, of Atlanta, Georgia, has been sentenced to seven years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $895,699.28. Henry was convicted on this charge, as well as a charge of aggravated identity theft, on May 22, 2014, after he pleaded guilty.
- Tony Lamar Watkins, 49, of College Park, Georgia, has been sentenced to four years, seven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $824,121.28. Watkins was convicted on this charge on May 23, 2014, after he pleaded guilty.
- Phyllis Grant, 52, of Decatur, Georgia, has been sentenced to one year, two months in prison to be followed by three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $770,231.00. Grant was convicted on this charge after a jury found her guilty on March 12, 2015.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Christopher C. Bly prosecuted the case.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
South Carolina Man Sentenced to Eight Years in Prison for Shooting a DEA Special AgentRead the Press Release
Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house. Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.
“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”
“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.
On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.
Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.
Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina. He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days. On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.
Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.
Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, 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.
Convenience Store Owner Pleads Guilty to Trafficking in Food StampsRead the Press Release
ATLANTA - Tessema Lulseged, the owner and operator of Big T Supermarket in Decatur, Georgia, has pleaded guilty to trafficking in food stamps. Lulseged allowed his customers to exchange their food stamp benefits for cash in a scheme that netted him $6.5 million.
“Food stamps are intended to provide assistance to our citizens most in need,” said Acting U.S. Attorney John A. Horn. “This defendant ran a corrupt exchange scheme that, until his scheme was discovered, undermined the purpose of the program and resulted in great financial benefit to himself.”
“This defendant, in knowingly and so aggressively stealing government assistance from vulnerable individuals who were already struggling, demonstrates a new level of insensitivity and greed. The FBI will continue to provide assets and resources to assist in ensuring that these much needed federally funded assistance programs are used as intended and not abused by such individuals as Mr. Lulseged,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“USDA-OIG dedicates its resources to ensuring integrity in its programs. One of the ways in which USDA-OIG does this is through vigorously investigating allegations of fraud in the EBT program,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG. “Tessema Lulseged made a choice to defraud the EBT program and in doing so defrauded the taxpayers of millions of dollars through purchasing benefits from recipients. He, like countless others, may look at this as a victimless crime. However, it is not a victimless crime, but rather a crime that takes away needed food from the mouths of those the program was intended for. More often than not, those victims, many of whom are children, have no say in how the benefits are used. USDA-OIG will continue to work with DOJ and its law enforcement partners to investigate and prosecute those who greedily and selfishly traffic in EBT benefits.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: From January 2009 through April 2014, Lulseged 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.
Lulseged, 49, of Decatur, Georgia, pleaded guilty before U.S. District Court Judge Leigh Martin May. His sentencing hearing is scheduled for September 22, 2015, at 10:00 a.m.
This case is being investigated by the United States Department of Agriculture, Office of Inspector General, Investigations Division, and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips and Jenny R. Turner 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Four Steroid Distributors SentencedRead the Press Release
ATLANTA – Four steroid distributors have been sentenced for trafficking in illegal anabolic steroids. The defendants were importing raw materials from China and selling the finished product online.
"The use of illegal anabolic steroids is far from a harmless pursuit. They pose significant health risks,” said Acting U.S. Attorney John Horn. “Users of steroids could suffer kidney failure, liver damage, and younger users can even suffer heart attacks. Thankfully, USPIS and DEA agents put these distributors, who sent their illicit product across the country, out of business.”
“The sentencing’s for the suspects involved in Operation Eliteanabolx should serve as a warning to those who intend to misuse the U.S. Mail for shipping illicit drugs. The U.S. Postal Inspection Service would like to recognize and commend the efforts of our state and local counterparts who diligently investigated this case as well as the U.S. Attorney's Office of the Northern District of Georgia for their dedication and assistance in a successful resolution. The U.S. Postal Inspection Service remains vigilant in protecting the nation's mail system from all criminal activity to ensure the public's trust in a safe and secure mail system,” said Thomas L. Noyes II, Inspector in Charge, Charlotte Division.
“Steroids pose a significant health risk to users seeking to artificially enhance their athletic abilities,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the sentencings. “The mission of DEA is unwavering--we relentlessly pursue drug traffickers who distribute dangerous drugs that cause immeasurable damage to our communities.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In 2013, Brandon Keith Franklin and Jay Michael Reger began producing and selling anabolic steroids under the name Performance Formulations. They received raw materials for the steroids from China and sold the finished product online. Franklin and Reger were partners in the operation: Franklin managed the website and Reger mixed the raw materials to create the finished product. They hired Austin Britt Shirley and Andrew Chrismer to fill the orders. Shirley packed the orders and Chrismer mailed them. Franklin used the proceeds from his illegal steroid business to fund a lavish lifestyle, purchasing a number of luxury vehicles.
Shirley and Chrismer were arrested on May 28, 2014, when law enforcement agents with the United States Postal Inspection Service and the Drug Enforcement Administration seized tens of thousands of units of steroids from the organization. Franklin was arrested on December 3, 2014. Even after the seizures and arrests, Reger continued to manufacture steroids from his home in Woodstock, Georgia, until he was arrested on December 10, 2014.
The defendants in this case have been sentenced as follows:
- Brandon Keith Franklin, 41, of Canton, Georgia, was sentenced to two years, six months in prison to be followed by three years of supervised release. Franklin was convicted on December 16, 2014, after he pleaded guilty. His luxury vehicles were also forfeited.
- Jay Michael Reger, 30, of Woodstock, Georgia, was sentenced to two years in prison to be followed by three years of supervised release. Reger was convicted on December 16, 2014, after he pleaded guilty.
- Andrew Chrismer, 25, of Atlanta, Georgia, was sentenced to one year in prison to be followed by two years of supervised release. Chrismer was convicted on June 25, 2014, after he pleaded guilty.
- Austin Britt Shirley, 25, of Acworth, Georgia, was sentenced to two years of probation. Shirley was convicted on September 25, 2014 after he pleaded guilty.
All four defendants were all sentenced by U.S. District Judge Timothy C. Batten, Sr.
This case was investigated by the United States Postal Inspection Service and Drug Enforcement Administration.
Assistant United States Attorney Vivek Kothari 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.
Stone Mountain Tax Return Preparer Sentenced for Filing Fraudulent Tax ReturnsRead the Press Release
ATLANTA - Joan Leger has been sentenced to serve two years in federal prison for filing false tax returns that claimed over $4 million in fraudulent refunds for refugees who were unaware of the fraud.
“This defendant took advantage of refugees’ limited understanding of tax laws to file fraudulent tax returns in their names,” said Acting U.S. Attorney John Horn. “Her fraudulent actions cost American taxpayers millions of dollars.”
“An integral part of IRS Criminal Investigation’s mission involves detecting, investigating, and stopping fraudulent refund schemes,” stated Acting Special Agent in Charge, James E. Dorsey. “Special Agents work year round to investigate and root out unscrupulous return preparers like Ms. Leger.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Between 2008 and 2012, Leger operated two tax preparation businesses in Stone Mountain, Georgia; “J & Company Tax Service” and “1804 Tax Group, Inc.” While operating these businesses, she filed thousands of federal income tax returns that claimed fraudulent deductions, expenses, and credits, which resulted in her clients receiving fraudulent refunds. Leger’s scheme primarily targeted Bosnian refugees who spoke little or no English and had a limited understanding of tax laws. In particular, Leger included false income and created phony businesses, faking both income and expenses for those businesses. Leger received monetary fees from the fraudulent refunds. In total, Leger prepared tax returns claiming over $4 million in fraudulent refunds.
Joan Leger, 48, of Stone Mountain, Georgia, was sentenced to two years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $134,961. Leger was convicted on March 12, 2015, after she pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Millenium Capital Exchange CEO Pleads Guilty to running Foreign Exchange Market Ponzi SchemeRead the Press Release
ATLANTA - Stafford S. Maxwell, the former owner and Chief Executive Officer of Millennium Capital Exchange, Inc., has pleaded guilty to 10 counts of wire fraud for orchestrating a multi-million dollar foreign exchange market Ponzi scheme.
“Maxwell lured investors to his forex firm with bravado and false promises of trading success,” said Acting U.S. Attorney John Horn. “Maxwell’s claims led to nothing more than common theft, as he used lies and deceit to fleece people of their savings.”
“It is hoped that this guilty plea will provide some comfort to the many investors turned victims in this case that Mr. Maxwell will be held accountable for his greed based criminal conduct. The FBI continues to caution investors to be wary of those individuals promising such high rates of returns,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In March 2007, Maxwell incorporated and owned Millennium Capital Exchange, Inc. (“Millennium”), which purported to be a foreign exchange market trading firm. The foreign exchange market (or forex market) is the global market in which participants buy, sell, exchange, and speculate on currencies. The forex trading market consists of banks, commercial companies, central banks, investment management firms, hedge funds, retail forex brokers, and individual investors. Forex trading involves the trading of currencies from different countries against each other. An example of a forex trade is to buy Japanese yen while simultaneously selling United States dollars. Trading in foreign exchange markets frequently exceeds $5 trillion per day.
From about 2008 to January 2012, Maxwell solicited investments from individuals across the United States with promises of high fixed rates of return to be generated from successful foreign currency trading. In particular, to obtain money from investors, Maxwell falsely stated that: (a) he possessed excellent forex trading skills; (b) he had a long history of forex trading success; (c) he often assured investors that they would earn an annualized rate of return on their investments from approximately 48% to 72%; (d) he used “stops” and “floors” on currency trades to insure that the gains would be large, but that the losses would be small; (e) investors had realized significant gains based on his trading; and (f) he had reserve funds that enabled him to cover any trading losses.
In fact and in truth, Maxwell: (a) had little success executing forex trades; (b) lost almost all the money that he traded in forex markets; (c) was unable to pay investors the promised investment dividends; and (d) possessed no reserve fund to cover forex trading losses.
According to Millennium’s business model, Maxwell was supposed to use the invested funds to make forex trades through accounts at a financial firm in Geneva, Switzerland. Based on his false representations, investors wired Maxwell well over $1 million, expecting that the funds would be traded in the Swiss accounts. After receiving money from investors, however, Maxwell diverted approximately half of the money for other improper purposes. First, in an effort to perpetuate the scheme and make it appear that he was a successful forex trader, Maxwell used the money received from new investors (that was supposed to be traded on the forex market) to pay “dividends” to older investors. Second, Maxwell used the money received from investors (that was supposed to be traded on the forex market) to pay his own personal living expenses. In the end, Maxwell spent or lost almost every dollar invested with him.
On March 17, 2015, Stafford S. Maxwell, 46, of Mableton, Georgia, was indicted on 10 counts of conspiratorial and substantive wire fraud.
Sentencing for Maxwell is scheduled for September 2, 2015, at 10:00 a.m., before United States District Judge Eleanor L. Ross.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Gwinnett County Man goes to Prison for Child PornographyRead the Press Release
ATLANTA - Samuel London has been sentenced to eight years and four months in federal prison for downloading child pornography. London’s computer contained thousands of files containing child pornography including images depicting the sexual abuse of infants and toddlers.
“It is beyond belief that anyone could enjoy watching the sexual abuse of infants and toddlers,” said Acting U.S. Attorney John Horn. “This defendant’s conduct fueled the production and trade of this disgusting material.”
“This sentencing of Mr. London removes from our community an individual who has consistently demonstrated his willingness to exploit vulnerable children through child pornography. This case not only reflects the commitment of law enforcement to aggressively pursue these types of cases but also illustrates why we need to,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In August 2013, law enforcement officers in Maryland seized a website that was used by individuals to advertise and distribute child pornography and to discuss the sexual abuse of children. That investigation led to a target in Michigan, who admitted to FBI agents that he had sexually abused his three-year-old daughter while using Skype so that a couple in Georgia could watch the abuse.
FBI agents determined that the couple—Samuel London and Heather Dalton—lived in Sugar Hill, Georgia. FBI agents executed a search warrant at their home on January 24, 2014. Agents found thousands of files containing child pornography on a computer belonging to London, with many of the images depicting the sexual abuse of infants and toddlers.
Samuel London, 30, of Sugar Hill, Georgia, has been sentenced to eight years and four months in prison to be followed by ten years of supervised release. London was convicted on these charges on April 2, 2015, after he pleaded guilty.
Heather Dalton is being prosecuted by the Gwinnett County District Attorney’s Office on charges of child molestation.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
DaVita to Pay $450 Million to Resolve Allegations that it Sought Reimbursement for unnecessary Drug WasteRead the Press Release
ATLANTA – DaVita Healthcare Partners, Inc., the largest provider of dialysis services in the United States, has agreed to pay $450 million to resolve claims that it violated the False Claims Act by knowingly creating unnecessary waste in administering the drugs Zemplar and Venofer to dialysis patients, and then billing the federal government for such avoidable waste. Davita is headquartered in Denver, Colorado, and has dialysis clinics in 46 states and the District of Columbia.
“Through personal sacrifice and courage, two whistleblowers exposed knowingly wasteful dosing practices designed simply to increase profits and improperly drain the government’s resources,” said Acting U.S. Attorney John Horn. “This settlement returns hundreds of millions of dollars to the treasury that had been improperly obtained by DaVita through these wasteful practices.”
“This settlement is an example of what can be accomplished as a result of the successful cooperation between the government and whistleblowers in protecting our vital federal health care programs,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.
This civil settlement resolves allegations brought in a whistleblower action that DaVita devised and employed dosing grids and/or protocols specifically designed to create unnecessary waste of the drugs Venofer and Zemplar. These drugs are packaged in single-use vials, which are intended for one-time use. Sometimes, the amount of the drug in the vials does not match the dosage specified by the physician, resulting in the remainder of the drug in the vial being discarded.
At the time of the alleged scheme, Medicare would reimburse a dialysis provider for certain waste if the dialysis provider – acting in good faith – discarded the remainder of the drug contained in a single-use vial after administering the requisite dose and/or quantity of the drug to a Medicare patient. The whistleblowers’ complaint alleged that, to create unnecessary Zemplar waste, DaVita required its employees to provide Zemplar to dialysis patients pursuant to mandatory and wasteful “dosing grids.” Zemplar, a Vitamin D supplement usually administered at every dialysis session, is packaged in single-use vial sizes of 2 mcg, 5 mcg, and 10 mcg. Davita allegedly created unnecessary waste by requiring its employees to provide Zemplar to dialysis patients pursuant to mandatory “dosing grids,” which were designed to maximize the amount of Zemplar administered to patients. DaVita then allegedly billed the government not only for the amount of Zemplar administered to patients, but also for the amount “wasted.”
With regard to Venofer, an iron supplement packaged only in a single-use vial size of 100 mg during the relevant time period, DaVita allegedly enacted protocols that required nurses to administer this drug in small amounts, and at frequent intervals, to maximize wastage. For instance, in certain instances, DaVita’s protocol called for a patient to receive 25 mg of Venofer per week, which resulted in 300 mg of waste per month that was billed to the Government. In contrast, if the order had been filled by giving the patient the entirety of a single 100 mg vial, once per month, no waste would have resulted.
In 2011, the Centers for Medicare and Medicaid Services changed the manner by which it reimbursed dialysis providers for such drugs. As a consequence, wastage derived from single-use vials was no longer profitable, and, as a result, DaVita allegedly changed its practices and reduced its drug wastage dramatically.
The allegations resolved today arose from a lawsuit filed and ultimately litigated to this successful resolution by two whistleblowers, Dr. Alon Vanier and nurse Daniel Barbir, under the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The United States may intervene in the action or, as in this case, the whistleblower may pursue the matter. To bring this case to its successful resolution, whistleblowers Dr. Vainer and Mr. Barbir, along with their attorneys, engaged in extensive and exceptional litigation efforts.
The lawsuit is captioned United States ex rel. Alon J. Vainer, M.D., F.A.C.P. and Daniel D. Barbir, R.N., Plaintiffs v. DaVita, Inc. and Gambro Healthcare, Inc., and their respective subsidiaries and affiliated companies, Defendants, No. 1:07-cv-2509-CAP (N.D. Ga.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Assistant United States Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Alpharetta Business Owner Convicted of Defrauding NASA and National Science Foundation of Almost $800,000Read the Press Release
ATLANTA – Craig D. Near and Genziko, Inc., of Alpharetta, Georgia, were convicted by a federal jury Friday, June 19, 2015, on seven counts of wire fraud and two counts of filing false claims against the United States, all relating to a procurement fraud scheme targeting the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF).
“For years this defendant supported himself and his family in a suburban lifestyle, with practically his only earnings being the fruits of his scheme defrauding the government,” said Acting U.S. Attorney John Horn. “The Small Business Innovation Research Program, which Near defrauded, supports technological innovation by investing federal research funds in critical priorities. Near’s scheme diverted funds that should have been used for these important goals.”
“The NASA Office of Inspector General is committed to ensuring aggressive oversight of taxpayer funds used for scientific research by NASA contractors and grantees,” said Paul Martin, NASA Inspector General.
“The Small Business Innovation Research Program sets aside funds to support small companies that conduct innovative research. These convictions of guilt on nine counts, including wire fraud and false claims, send a strong signal to anyone who would seek to defraud this program and divert taxpayer dollars intended for scientific research to personal use. I commend the U.S. Attorney’s office and our investigative partners for their work on this case,” said Allison Lerner, the National Science Foundation Inspector General.
“The United States Secret Service and our law enforcement partners take an aggressive approach towards investigating individuals who commit fraud to illegally enrich themselves. We will continue to work closely with prosecutors to ensure offenders are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From approximately June 2008 to June 2014, Near submitted numerous fraudulent grant and contract proposals to various federal agencies seeking funds for scientific research. Near submitted all of the proposals through his company, Genziko. All of the proposals falsely stated that Genziko had multiple employees. The proposals also listed the credentials of an apparently impressive management team with many years of experience in the relevant scientific and engineering specialties, without the knowledge or consent of several of those individuals.
Some of the proposals also contained fraudulent budgets. Near, through Genziko, Inc., inserted a variety of fake costs into the fraudulent budgets, including salaries for engineers and technicians who were not needed to accomplish the research work. Near pocketed the salaries for these “phantom employees” and also collected inflated overhead and general and administrative costs from the government based on their fictitious wages. At the same time, Near pocketed money earmarked for the university subcontractors and scientist consultants who actually completed work on the research projects. Taken together, these fraudulent techniques allowed Near and Genziko, Inc., to conceal the fact that they were making profits ranging from 79 to 197 percent on the three proposals that were actually granted by the government. These profits were far in excess of the seven percent maximum that was allowed for these contracts by the NSF and NASA.
In sum, Near and Genziko, Inc., received almost $800,000 in federal research funds on the three granted proposals. Rather than using the money for the scientific research for which it was intended, Near spent it almost entirely on personal expenses such as mortgage payments, private school tuition for his children, vacations, shopping, and large money wires to family and friends overseas.
Sentencing has been scheduled for 10:00 am on September 1, 2015, before United States District Judge Thomas W. Thrash.
This case is being investigated by the National Aeronautics and Space Administration, the National Science Foundation, and the United States Secret Service.
Assistant United States Attorneys Alana R. Black and Lynsey M. Barron are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office Initiative Reviews Disability Access at Metro Atlanta CourthousesRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has initiated a review of local courthouses in the Northern District of Georgia to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”). This initiative is being conducted in accordance with the federal government’s congressionally-mandated responsibility to review compliance with the ADA.
“Access to local courthouses is a fundamental part of our society that everyone in our district is entitled to enjoy,” said John A. Horn, Acting U.S. Attorney for the Northern District of Georgia. “We are hopeful that our local courthouses will partner with us on this very important initiative to ensure that they are in full compliance with the law.”
As part of the review, nine local courthouses are being asked to complete and return a survey form. Once the survey forms are completed, investigators may follow up with on-site inspections to confirm survey responses and to evaluate compliance with the ADA regulations. The U.S. Attorney’s office hopes to work cooperatively with local courthouses that are found to be non-compliant. The goal is to ensure that government facilities, services, and programs are accessible to persons with disabilities.
The courthouses under review are in DeKalb, Fayette, Floyd, Fulton, Gwinnett, Hall, Rockdale, Spalding, and Troup counties. Any member of the public who wishes to file a complaint alleging that a courthouse or any other place of public accommodation with the Northern District of Georgia is not accessible to people with disabilities may contact the U.S. Attorney’s Office by phone at 404-581-4626 or email at [email protected].
Additional information about the ADA can be found at www.ada.gov, or by calling the toll-free information line at the Civil Rights Division of the Justice Department at (800)514-0301 (voice) and (800)514-0383(TTY).
Assistant United States 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 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 Dentist to Pay Settlement to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia announced that it has reached a settlement with Dennis Jaffe and Dennis B. Jaffe D.M.D., P.C., to pay $324,327.05 to settle health fraud claims -- specifically that Jaffe violated the False Claims Act by fraudulently billing Medicaid for tooth extraction procedures and for fraudulently billing for services rendered by a dental assistant when Jaffe was not present in the office. Under the terms of the settlement, Jaffe is also excluded from all federal and state healthcare programs.
In addition to the civil settlement, Jaffe also pleaded guilty to a charge of theft from a healthcare benefit program in a separate federal criminal action and was sentenced to serve one year of probation. As part of the plea, Jaffe agreed to surrender his dental license.
“Citizens rely on dentists to treat all patients in accordance with the approved standards of care,” said Acting U.S. Attorney John Horn. “Patients were placed at risk when a dental assistant, without Jaffe present to supervise, performed procedures a licensed dentist must oversee. The defendant also enriched himself at the expense of those patients by marking up the bills to Medicaid for the services he was not performing.”
“All patients should be entitled to the same level of care and providers who choose to cut costs and increase profits by using unlicensed staff bring shame upon the entire profession and more importantly jeopardizes the safety of patients,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Dr. Jaffe’s case should stand as a warning to those who choose to put profits above patient care.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI, in working with Health & Human Services investigators, is proud of the role that it continues to play in ensuring that federally funded healthcare programs such as Medicaid are not abused by providers such as Mr. Jaffe. The FBI asks that anyone with information regarding such matters report it to authorities by contacting their nearest FBI field office.”
Georgia Attorney General Sam Olens stated: “The State’s Medicaid Fraud unit is pleased to work with our federal partners in attacking fraud upon vital healthcare programs. Dr. Jaffe’s actions are inexcusable and clearly warranted the administrative, civil, and criminal actions. I want to thank Assistant Attorneys General Kevin D. Bradberry and James P. Mooney for all of their hard work on the case.”
The civil settlement resolves allegations that Jaffe, a 71-year-old dentist from Atlanta, Georgia, fraudulently sought payment from Medicaid for higher and more expensive levels of service than were actually performed, a practice commonly referred to as “upcoding.” The settlement also resolves claims that Jaffe unlawfully billed for services rendered by an unsupervised dental assistant on days in which Jaffe was not present in the office. Under Medicaid regulations and Georgia law, it is unlawful for dental assistants to render any care outside of the direct supervision of a licensed dentist.
The civil settlement resolves a lawsuit filed by Michelle Smith under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case, pending in the Northern District of Georgia, is filed under United States ex rel. Michelle Smith v. Dennis B. Jaffe D.M.D., P.C. and Dennis B. Jaffe, Civ. 2:13-CV-1732. The Federal government will receive $190,635.67, and the State of Georgia will receive the remainder of the settlement. Ms. Smith will receive a share of the settlement payment that resolves the qui tam suit that she filed. The claims in the civil settlement are allegations only, and there has been no determination of liability.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was investigated by Special Agents of Health & Human Services, Office of Inspector General and the Federal Bureau of Investigation as well as investigators with the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorney David A. O’Neal and Georgia Assistant Attorney General Kevin D. Bradberry. The criminal case was prosecuted by Assistant U.S. Attorney Nathan Kitchens and Georgia Assistant Attorney General James P. Mooney.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former U.S. Penitentiary Guard Sentenced for Smuggling Contraband into the Federal Prison in AtlantaRead the Press Release
ATLANTA - Dirk Antonious Engram, Jr., has been sentenced to federal prison for taking bribes to smuggle contraband into U.S. Penitentiary-Atlanta while he worked there as a corrections officer. He admitted that he charged $500 every time he smuggled cigarettes, marijuana, or other contraband into the prison for inmates.
“Corrupt corrections officers compromise prison safety while they profit from the underground economy that unfortunately exists in prison,” said Acting U.S. Attorney John Horn. “Prison is supposed to be a place where the controls are strong enough that additional crime is impossible, but this breaks down instantly when the officers themselves participate in the corruption.”
“The sentencing of Mr. Engram marks the end of his career as a federal corrections officer and the beginning of his time as a federal inmate,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI will continue to vigorously investigate all allegations of corruption within this or other correctional facilities as part of the overall effort to ensure safety and order for both inmates and staff at these facilities.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In November 2013, Engram began working as a corrections officer at U.S. Penitentiary-Atlanta, a medium-security prison with approximately 2,000 male inmates. In 2014, Engram began smuggling contraband into the prison for inmates who befriended him. Engram charged $500 each time that he smuggled cigarettes, marijuana, or other contraband into the prison.
He was arrested on September 11, 2014, by agents with the FBI after he accepted a bribe to smuggle what he believed was heroin into the penitentiary.
Dirk Antonious Engram, Jr., 27, of Atlanta, was sentenced to two years, four months in prison to be followed by three years of supervised release. Engram pleaded guilty to the charges on March 24, 2015.
This case was investigated by the FBI.
Assistant United States Attorney William G. Traynor 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.
First Tennessee Bank, N.A. agrees to pay $212.5 Million to Resolve False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
ATLANTA – First Tennessee Bank, N.A. (“First Tennessee”) has agreed to pay the United States $212.5 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. First Tennessee is headquartered in Memphis, Tennessee.
“First Tennessee admitted failings that resulted in poor quality FHA loans. While First Tennessee profited from these loans, taxpayers incurred substantial losses when the loans defaulted,” said John A. Horn, the Acting U.S. Attorney for the Northern District of Georgia. “The settlement, as well as the investigation that preceded it, illustrates that the Department of Justice will closely scrutinize entities that cause financial injury to the Government, and, in turn, the American taxpayer.”
“First Tennessee’s reckless underwriting has resulted in significant losses of federal funds and was precisely the type of conduct that caused the financial crisis and housing market downturn,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to hold accountable lenders who put profits before both their legal obligations and their customers, and restore wrongfully claimed funds to FHA and the treasury.”
“We are pleased that First Tennessee has acknowledged facts that demonstrate its failure to comply with HUD’s requirements and has agreed to settle with the government,” said Helen Kanovsky, HUD’s General Counsel. “We thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us to make this settlement a reality. We hope this agreement sends a message to those lenders with whom we do business that HUD takes compliance very seriously and so should they.”
“Our investigation found that First Tennessee caused FHA to pay claims on loans that the bank never should have approved and insured in the first place,” said HUD Inspector General David A. Montoya. “This settlement reinforces my commitment to combat fraud in the origination of single family mortgages insured by the FHA and makes certain that only qualified, creditworthy borrowers who can repay their mortgages are approved under the FHA program.”
Between January 2006 and October 2008, First Tennessee, through its subsidiary First Horizon Home Loans Corporation (“First Horizon”), participated in the FHA insurance program as a Direct Endorsement Lender (DEL). As a DEL, First Tennessee had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL such as First Tennessee approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, for the losses resulting from the defaulted loan.
Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs such as First Tennessee are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance, to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices, and to self-report any deficient loans identified by their quality control program. In August 2008, First Tennessee sold First Horizon to Metlife Bank, N.A. (“Metlife”), a wholly-owned subsidiary of Metlife, Inc., which thereafter originated FHA-insured mortgages under the Metlife name. In February 2015, Metlife agreed to pay $123.5 million to resolve its False Claims Act liability arising from its FHA originations after it acquired First Horizon from First Tennessee.
The settlement announced today resolves allegations that First Tennessee failed to comply with FHA origination, underwriting, and quality control requirements. As part of the settlement, First Tennessee admitted to the following facts:
- From January 2006 through October 2008, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements.
- Beginning in late 2007, First Tennessee significantly increased its FHA originations. The quality of First Tennessee’s FHA underwriting significantly decreased during 2008 as its FHA lending increased.
- Beginning no later than early 2008, First Tennessee became aware that a substantial percentage of its FHA loans were not eligible for FHA mortgage insurance due to its own quality control findings. These findings were routinely shared with First Tennessee’s senior managers. Despite internally acknowledging that hundreds of its FHA mortgages had material deficiencies, and despite its obligation to self-report findings of material violations of FHA requirements, First Tennessee failed to report even a single deficient mortgage to FHA.
First Tennessee’s conduct caused FHA to insure hundreds of loans that were not eligible for insurance and, as a result, FHA suffered substantial losses when it later paid insurance claims on those loans.
Assistant United States Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office.
The investigation of the allegations in the Government’s complaint was a coordinated effort between the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of Georgia, HUD, and HUD’s Office of Inspector General.
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/.
Tennessee Man Pleads Guilty to Conspiracy to Defraud Cornerstone Community Bank in Dalton, GeorgiaRead the Press Release
ROME, Ga. - Grady Wayne Fricks has pleaded guilty to conspiracy charges arising out of a scheme to defraud Cornerstone Community Bank in Dalton, Georgia.
“This defendant used his connection with a bank insider to obtain a fraudulently inflated loan,” said Acting U.S. Attorney John Horn. “Fricks’ ability to manipulate people to further his scheme left the bank and its stockholders shouldering the loss.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud is not a victimless crime. With this guilty plea, Mr. Fricks will be held accountable for his criminal actions and a clear message sent to others considering such greed based fraudulent acts that this is a serious crime with serious consequences.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In November 2004, Fricks contacted a senior vice president at Cornerstone Community Bank and stated that he needed an $850,000 loan to purchase property in Ringgold, Georgia. Fricks did not reveal that he had already signed a contract to purchase the property for only $425,000. Fricks had done business with that senior vice president for many years before this, both at Cornerstone and at the bank where the employee had worked before joining Cornerstone. And Fricks had allowed the bank employee free use of his condominium at a beach in Florida, five to ten times.
The senior vice president violated Cornerstone’s policies and procedures by not obtaining a copy of the sales contract between Fricks and the seller of the property to verify the contract price. The senior vice president also allowed Fricks to select an appraiser to appraise the property. Fricks paid the appraiser $1,000 to inflate the appraised value of the property so that Cornerstone would approve the $850,000 loan Fricks was seeking. In addition, Fricks gave the appraiser $100 in cash as a “tip.” The appraiser provided Fricks with a fraudulently inflated appraisal report, which stated that the market value of the property was $1,010,000.
Prior to the loan closing, Fricks contacted the senior vice president at Cornerstone and asked, “Do you care if I get some money back at closing?” The senior vice president responded, “What the bank cares about is that the HUD-1 settlement statement shows a sales price of $850,000.”
At the direction of Fricks, a real estate closing agent created two HUD-l settlement statements: a correct one that listed the purchase price of the property as $425,000, and a fraudulent one that listed the purchase price of the property as $850,000. Fricks forged or caused someone else to forge the seller’s signature on the fraudulent HUD-l settlement statement and then caused the fraudulent HUD-1 settlement statement and the fraudulent appraisal report to be submitted to Cornerstone. Cornerstone relied upon the false information provided by Fricks and loaned Fricks $850,000 to purchase the property. Fricks used only half of the loan proceeds for the purpose intended and used the remainder for purposes that were not authorized or approved by Cornerstone.
Approximately two years later, in October 2006, Fricks contacted the same senior vice president at Cornerstone and stated that he wanted to borrow more money against the property. Fricks paid the same appraiser $1,000 to re-appraise the property and once again directed the appraiser to fraudulently inflate its appraised value. Fricks also gave the appraiser another $100 tip. The appraiser provided Fricks with a new appraisal report, which fraudulently stated that the market value of the property was $1,433,000. Fricks caused the new appraisal report to be sent to Cornerstone, knowing that it was fraudulent. The new appraisal was more than 40% higher than the previous appraisal conducted by the same appraiser just two years earlier. As a result of this new appraisal, Cornerstone released the additional collateral pledged by Fricks when the loan was originated in 2004, consisting of five real properties and the guaranty of Fricks Properties, a company owned by Fricks.
In November 2006, in reliance upon the false and misleading information and documents provided by Fricks and his unindicted co-conspirators, Cornerstone loaned Fricks an additional $177,000. Fricks did not repay the loans, and the bank foreclosed on the property.
Fricks, 65, of Nashville, Tennessee, pleaded guilty before U.S. District Court Judge Harold L. Murphy. Sentencing for Fricks will be August 14, 2015, at 1:30 p.m.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Assistant United States Attorney Russell Phillips 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.
Three Men Plead Guilty to Conspiracy to Use Weapons of Mass DestructionRead the Press Release
ROME, Ga. - Brian Cannon, Terry Peace and Cory Williamson have pleaded guilty to conspiring to use weapons of mass destruction—specifically, pipe bombs—in attacks against federal government agencies.
“This case is a startling example of militia activists reaching true extremes, as distrust and hatred of government led these defendants to arm themselves, plan attacks against federal agencies, and seek out explosives to attack a local police department,” said Acting U.S. Attorney John Horn. “While this level of extremism is fortunately rare, this case illustrates the threats to all our safety that arise from people who turn their hatred into actions.”
“Through the FBI led Joint Terrorism Task Force (JTTF), the FBI and its various law enforcement partners remain vigilant in identifying, investigating and presenting for prosecution individuals such as those seen in this case that would conspire to do harm to the U.S. and its government infrastructure,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI asks that anyone with information regarding such matters to immediately contact their nearest FBI field office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In January and February 2014, Cannon, Peace and Williamson participated in Internet chat rooms frequented by militia members and others with a shared anti-government ideology. During the chat room conversations, Cannon, Peace, and Williamson discussed starting a revolution against the federal government by conducting an attack aimed at the infrastructure supporting the Transportation Security Administration, the Department of Homeland Security and the Federal Emergency Management Administration.
According to their conversation, their goals included forcibly removing government officials who the defendants believed acted beyond the scope of the U.S. Constitution. During one of the online conversations, Peace said they would launch the attack between February 1, and February 15, 2014. He encouraged the militia members to review guerilla warfare tactics, accumulate supplies and prepare their families. By February 1, 2014, Cannon and Williamson had moved to Georgia and were living with Peace at his Rome, Georgia residence.
Cannon, Peace and Williamson targeted the infrastructure supporting their federal agency targets because they believed this would reduce the amount of unnecessary casualties and make it difficult for the government to respond to their attack. The men decided to launch the first attack in Georgia to prompt militia members in other states to begin attacks in their respective states.
Unbeknownst to the defendants, a participant in the chat rooms became alarmed at their plans, informed the FBI of the attack against the government and agreed to assist in this investigation.
On February 8, 2014, Peace asked the cooperating witness to provide twelve pipe bombs and two thermite devices to use in their attack. Peace said he wanted the pipe bombs designed for “maximum fragmentation” and thermite devices capable of penetrating the engine block of a military-grade armored vehicle. Peace, Cannon and Williamson then made plans to meet with the cooperating witness after the pipe bombs and thermite devices were constructed.
On February 15, 2014, the defendants, armed with numerous firearms, drove from Peace’s residence to meet with the cooperating witness at a location in Cartersville, Georgia, to pick up the pipe bombs and thermite devices. Prior to their arrival, the cooperating witness was provided with twelve inert pipe bombs and two inert thermite devices. The three defendants were arrested as they were taking possession of the items. While their online conversations reflected attacks on federal targets, the defendants planned to use the thermite device at a local police department.Sentencing for Terry Peace, 47, Brian Cannon, 37, and Cory Williamson, 29, all of Rome, Ga., is scheduled for August 7, 2015, at 1:30 p.m., before United States District Judge Harold L. Murphy.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Tracia M. King and Ryan K. Buchanan 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office, Department of Justice, and McPal, Inc. D/B/A McDonald’s agree to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with McPal, Inc., a franchisee of McDonald’s, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by failing to allow the use of a service dog by a person with a disability.
“This settlement agreement ensures that those who are assisted by service animals will enjoy the same service as all citizens, and we hope it ensures that the same will occur at other restaurants as well,” said Acting U.S. Attorney John A. Horn.
The investigation in this matter was initiated by a complaint filed with the United States, alleging that the complainant’s son is an individual with a disability who uses a service dog for assistance. The complainant and her family visited a McDonald’s restaurant in Canton, Georgia and were met by a restaurant manager who refused to allow the service animal into the establishment. Despite the complainant’s explanation that the dog was a service animal, the manager insisted that the animal could not remain in the facility.
Under the settlement agreement that the government has reached with McPal, the McDonald’s franchisee agreed that it will provide at least one hour of training regarding the ADA to its customer service employees and that it will also provide each employee a copy of its Service Animal Policy. All new employees will also receive this training.
The ADA defines a service animal as any guide dog, signal dog, or other animal individually trained to provide assistance to an individual with a disability. Under the ADA, privately owned businesses that serve the public are prohibited from discriminating against individuals with disabilities. The ADA requires these private businesses, such as restaurants, to allow service animals to accompany people with disabilities in all areas of the facility where the public is normally allowed to go.
Assistant United States Attorneys Aileen Bell Hughes and Cynthia B. Smith represented 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 is http://www.justice.gov/usao-ndga.Former Employee Pleads Guilty to Bribing DeKalb and Georgia World Congress Center OfficialRead the Press Release
ATLANTA - Cecil K. Clark has pleaded guilty to conspiracy to commit bribery of a public official while working for a janitorial services company from 2006-2010.
“Clark attempted to circumvent the process which provides companies an opportunity to bid fairly on government contracts, and in doing so his scheme exposed a corrupt public official who was willing to put his own interests above those of the taxpayers he served,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This plea clearly illustrates that the FBI will pursue not only those public officials engaged in corrupt activities but also those individuals who entice or otherwise conspire with those officials in their corrupt and criminal activities. The FBI considers public corruption as a priority investigative program and asks that anyone with information regarding such matters to contact their nearest FBI field office.”
“When bidding on government contracts, there are strict guidelines and processes that must be followed. Clark utilized a corrupt public official to obtain a lucrative contract without following the law and is now being held accountable,” said Vernon Keenan, Director of the Georgia Bureau of Investigation.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Cecil Clark worked for a company, identified as “Company A,” that sought to do business with both DeKalb County and the Georgia World Congress Center (GWCC). Clark facilitated payments through his company to provide a public official a furnished luxury apartment in Atlanta, Georgia. The official who lived in the apartment was Patrick Jackson.
Jackson was simultaneously employed by both DeKalb County and the GWCC as the manager of janitorial services from approximately 2006-2012. Jackson did not disclose to either employer that the company Clark worked for, Company A, provided him with an apartment. In exchange for the apartment, Jackson used his position as a public official to benefit the interests of Company A in its business dealings with DeKalb County and the GWCC. Jackson previously pleaded guilty to accepting the bribes and is scheduled for sentencing on July 16, 2015 at 9:30 a.m.
Sentencing for Cecil K. Clark, 55, of Jonesboro, Georgia, is scheduled for July 31, 2015, at 9:30 a.m., before United States District Judge William S. Duffey Jr.
This case is being investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant United States Attorneys Jamie L. Mickelson and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Serial Counterfeit Check Fraudster Sentenced to Six Years in PrisonRead the Press Release
ROME, Ga. - Taurus Centaur has been sentenced to six years in prison for engaging in a counterfeit check scheme through which he purchased thousands of dollars in jewelry and consumer goods with counterfeit checks.
“The defendant traveled from state to state, using a stolen identity to pass bad checks to purchase luxury items,” said Acting U.S. Attorney John Horn. “This case serves as a reminder that in this day of sophisticated cybercrime and Internet-based identity theft, there are still traditional, paper-using fraudsters and counterfeiters who prey on unsuspecting citizens and businesses.”
“This case validates the impact of identity theft and check fraud on our communities. Today’s sentence should serve as a reminder that criminals will not get away with taking advantage of unsuspecting victims without bearing the consequences,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From October 2011 until April 2014, Centaur traveled in states along the East coast of the United States—Georgia, South Carolina, Tennessee, North Carolina, West Virginia, Pennsylvania, Maryland, and New Jersey—purchasing jewelry and other consumer goods with counterfeit checks and, in some instances, pawning the purchased items for cash.
In executing this scheme, Centaur assumed the identity of an individual in custody with the Virginia Department of Corrections and presented checks bearing that individual’s name at various stores. To assume the name, Centaur forged a “Release Certificate” in the name of the prisoner, used that forged document to obtain a legitimate copy of the prisoner’s birth certificate from the Maryland Division of Vital Records, and then used that birth certificate to request a Social Security card in the name of the prisoner.
Centaur’s spending spree came to an end on April 12, 2014, when he was arrested by the Cartersville, Georgia, Police Department during a traffic stop related to active warrants for his arrest. Inside Centaur’s vehicle, law enforcement found, among other things: a check embossing machine, a typewriter, and counterfeit cashier’s checks.
Taurus Centaur, 48, of Dallas, Texas, was sentenced to a term of imprisonment of six years and ordered to pay restitution in the amount of $172,465.10. He was also ordered to serve three years of supervised release, and the court imposed special conditions of supervised release, including that Centaur may not possess any device-making materials which could be used to manufacture counterfeit instruments, such as computers and printers, without permission of the United States Probation Officer.
This case was investigated by the 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 Rome Division is http://www.justice.gov/usao-ndga.
Kennesaw Man Sentenced for Producing Child PornographyRead the Press Release
ATLANTA - Shawnston Beaudoin has been sentenced to 22 years in federal prison for producing child pornography.
“Producing child pornography is an unspeakable crime,” said Acting U.S. Attorney John Horn. “Beaudoin preyed on the vulnerable and innocent of our society for his own personal pleasure. This office’s Project Safe Childhood program is dedicated to searching out and prosecuting anyone who victimizes children to contribute to the child pornography market.”
“Those who collect and distribute child pornography victimize and exploit the children in those images again with each re-distribution. To have an individual such as Mr. Beaudoin, who was actually producing child pornography, off of our streets is a major step toward protecting our community’s children from those who would prey on them,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In February 2014, the FBI received information that Shawnston Beaudoin was collecting and distributing child pornography. On March 5, 2014, FBI agents executed federal search warrants at Beaudoin’s apartment and at a business that he managed in Kennesaw, Georgia. Beaudoin initially admitted to having child pornography but denied having any inappropriate contact with a child. He agreed to take a polygraph test to support his claim.
During the polygraph test, his answers to key questions indicated that he was being deceptive. At that time, he admitted to FBI agents that they would find homemade pornographic images of young girls on his computers. The forensics analysis of his computers revealed that he had personally produced pornographic images of three different children between 2005 and 2013.
Shawnston Beaudoin, 31, of Kennesaw, Georgia, has been sentenced to 22 years in prison to be followed by lifetime supervised release. Beaudoin was convicted on these charges on March 4, 2015, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Gwinnett Lawyer Sentenced to Prison for Stealing Funds from His ClientsRead the Press Release
ATLANTA – Former Gwinnett County, Georgia, lawyer Michael Rene Berlon has been sentenced to five years, three months in prison for stealing more than $2 million from clients of his former law firm and using it for his own benefit.
“The defendant was a respected member of the community and held an important position of trust. Where most lawyers conscientiously live up to this trust, Berlon instead violated it by stealing large sums from his clients for his personal gain with little regard for how it affected those who trusted him with their money,” said Acting U.S. Attorney John Horn.
“While offering up his services as an attorney, Mr. Berlon outright stole from his clients. This sentence now holds him accountable for his senseless and greed based criminal conduct,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting United States Attorney Horn, the charges and other information presented in court: Berlon was a solo practitioner in Grayson, Georgia, and the owner of the Law Office of Michael R. Berlon. Over the course of nearly six years, from 2008 to 2014, Berlon obtained more than $2 million in client funds. He usually obtained those funds by either telling the clients that he would hold the funds in a trust for safe-keeping, or that he would use the funds to resolve a financial or legal problem on the client’s behalf. Instead, Berlon used the funds for his own benefit, including making personal purchases and paying travel expenses, and, in some instances, repaying other clients.
In one instance, Berlon obtained money from two individuals who were looking for his assistance with starting a new business. Berlon told the victims that he would help them get a loan, but that they had to provide a percentage of the requested loan amount as a down payment. Instead of assisting them with obtaining a loan, Berlon used the funds for his personal expenses and debts. As part of his plea agreement, Berlon agreed to pay restitution of more than $2 million to fifteen different individuals.
Michael Rene Berlon, 55, of Loganville, Georgia, has been sentenced to five years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,009,542.81. Berlon was convicted of wire fraud after pleading guilty on February 25, 2015.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jamie L. Mickelson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Four Defendants Plead Guilty to Operating a “Pill Mill” in Lilburn, GeorgiaRead the Press Release
ATLANTA - George Borbas, Randy Webman, Larry Webman, and Dara Webman have all pleaded guilty to 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 Lilburn, Georgia.
“These defendants came to Georgia for the sole purpose of profiting personally from the sale of prescription narcotics to addicts and drug dealers, without regard to the safety and well-being of our community,” said Acting U.S. Attorney John Horn. “Trafficking in prescription pain killers and other pharmaceuticals continues to be a top public safety issue in Georgia, leading to record levels of overdoses and addiction as well as a disturbing resurgence in heroin use by addicts who transition from abusing prescription pain killers.”
“The arrest of these defendants led to the dismantlement of an organization responsible for the illegal distribution opiate-based analgesics and other controlled substances,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “This case is a perfect example of the success that can be achieved when federal, state and local resources are combined to present a united front.”
“The integrity of the medical profession must be protected from criminal enterprises and those who seek to illegally profit by pretending to provide legitimate medical services,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Our communities need assurance that medical professionals who lack integrity and engage in illegal activities will be held accountable for their actions. The guilty pleas today are just one example of how IRS Criminal Investigation and the law enforcement community work together to reassure the public.
“I would like to thank all of our law enforcement partners who helped dismantle and prosecute those responsible for operating this illegal enterprise. While the pill mill was operating in our town, it unlawfully dispensed thousands of powerful pain killers into the streets, poisoning our community. After the removal of this pill mill, our business corridor returned to a legal boulevard of opportunity, devoid of the proliferation of illegal dispensing of prescription drugs,” said Bruce Hedley, Chief of Police, City of Lilburn, Georgia.
“We always stand ready to partner with our federal agencies to combat the growing problem of prescription drug diversion. These close working relationships are imperative in this type of multi-jurisdictional and complex drug investigations,” said Director B.W. Collier, North Carolina State Bureau of Investigation.
According to Acting 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 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. The clinic’s physician allegedly saw a customer only at the initial visit, at which time he conducted a brief examination.
On return visits, a customer rarely saw the clinic’s physicians, but instead was able to obtain additional prescriptions for controlled substances allegedly based solely upon an exam by another clinic employee. 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, and Larry Webman and Randy Webman personally used that money to promote the clinic’s ongoing illegal activity by, for example, purchasing an MRI machine.
The defendants in this case are as follows:
- George Borbas, 46, of Raleigh, North Carolina, pleaded guilty to drug trafficking conspiracy.
- Randy Webman, 62, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy.
- Larry Webman, 66, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy.
- Dara Webman, 31, of Hollywood, Florida, pleaded guilty to using the mail to illegally distribute drugs.
George Borbas will be sentenced on September 23, 2015, at 11:00 a.m. Randy, Larry, and Dara Webman will also be sentenced on the same day at 2:00 p.m. All defendants will be sentenced by United States District Judge Steve C. Jones. Dr. George Williams and Liz Troncoso are presently awaiting trial.
Criminal charges remain pending against the clinic physician, Dr. George Williams, for prescribing controlled substances outside the course of professional medical practice, and without a legitimate medical purpose. Charges are also pending against another clinic employee, Liz Troncoso, who is alleged to have conducted exams of patients seeking pills instead of Dr. Williams. Dr. George Williams and Liz Troncoso are presently awaiting trial.
This case is being 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 Attorney Laurel Boatright 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.
Former Credit Union Official Pleads Guilty to Mail FraudRead the Press Release
ATLANTA - Ardonus “Donna” Perkins, the former Assistant Vice President of Risk Management of the Credit Union of Georgia, has pleaded guilty to a charge of mail fraud for causing the credit union to disburse over $300,000 in fraudulent loans.
“This now former credit union executive used her institutional knowledge of the financial system to concoct a multi-faceted fraud scheme to steal money from the credit union,” said Acting U.S. Attorney John Horn. “The Department of Justice and our law enforcement partners will vigorously investigate and prosecute those engaged in fraud that threatens the integrity of the banking system.”
“The United States Secret Service will continue to take an aggressive approach to arrest individuals who violate the trust of businesses to further their personal financial gain,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through August 2010, Perkins, who was the Assistant Vice President of Risk Management for the Credit Union of Georgia, used the names of unknowing family members and friends to open signature loans and true lines of credit at the credit union, which are open-ended personal lines of credit. Perkins took the funds obtained from these fraudulent loans for her own personal use. She also secretly refinanced automobile loans without the auto owner’s knowledge, consent, or authorization, and took those proceeds. Additionally, Perkins established fraudulent VISA accounts in the names of family members and friends and received cash advances on those accounts without their knowledge.
Perkins’ fraud scheme went undetected at the Credit Union of Georgia until she was fired in 2010 for policy violations. She continually increased the loan limits and available credit limits on the fraudulent loans to obtain more funds. In an effort to conceal and continue her scheme, Perkins used some of the money she fraudulently received to make payments on some of the loans, lines of credit, and credit card accounts that she had fraudulently established in the names of others. To further conceal her scheme, Perkins directed the monthly statements of the fraudulently established accounts to her personal post office box. As a result of Perkins’ scheme, the Credit Union of Georgia lost more than $300,000.
Sentencing for Ardonus “Donna” Perkins, 40, of Atlanta, Georgia, is scheduled for July 30, 2015, at 10:00 a.m. before United States District Judge Mark H. Cohen.
This case is being investigated by the United States Secret Service.
Assistant United States Attorneys Loranzo M. Fleming and Jeff A. Brown are prosecuting the case.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.