Northern District of Georgia
Press releases recorded for this federal judicial district.
Five Sex Traffickers Sentenced for Pimping 14-Year-Old GirlsRead the Press Release
ATLANTA – Fabian Terran Murray, a/k/a “Shooter,”--one of five men charged in two related cases involving the pimping of three 14-year-old girls and a 16-year-old girl at hotels in Atlanta, Georgia, and elsewhere-- was sentenced to 17 years, nine months in federal prison. This sentencing brings to a close the prosecution of the two sex-trafficking conspiracies.
Defendants Joshua Thomas Hill, also known as “Cash,” Clinton Saintvil, Richard Douglas King, also known as “Ready,” and Jonathan Branch, were previously sentenced on July 10, 2014, July 14, 2014, and August 1, 2014.
“These men pimped girls as young as 14 years old, who they knew to be runaways and especially vulnerable,” said Acting U.S. Attorney John Horn. “The coordinated efforts of federal and local law enforcement officers, together with the courage of these young trafficking survivors, rescued four teenage girls from the horrific victimization cycle and restored them to safety.”
"The sentencing of Fabian “Shooter” Murray continues to mark the successful collaboration of Atlanta area law enforcement in aggressively addressing the juvenile sex industry as well as the trafficking of these juveniles in support of that industry,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI led Metro Atlanta Child Exploitation (MATCH) Task Force, consisting of experienced law enforcement officers and agents working together across many jurisdictional boundaries, credits its many successful investigations and resulting prosecutions through not only the sharing of information but by also combining resources and assets. The defendants in these cases represent not only the successes of this task force but also the need for it.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: The defendants were indicted in two related cases on charges of conspiracy to commit and commission of sex trafficking of a minor. The investigation that led to these indictments is described as follows:
U.S. v. Hill, Murray, and Saintvil
On February 19, 2012, Hill, Murray, and Saintvil met two 14-year-old girls, A.C. and O.M., at a park in Marietta, Georgia. The girls told the men that they were runaways. Hill, Murray, and Saintvil drove the girls to a nearby convenience store where they purchased condoms. When Hill and Murray entered the store, Saintvil told the girls that they would be working for the defendants as prostitutes. After leaving the convenience store, the men drove the girls to an extended stay hotel. Hill and Murray caused A.C. and O.M. to commit commercial sex acts at various hotels in the Atlanta metro area, soliciting clients for the girls on the website “Backpage Atlanta.” Saintvil drove the girls to the various locations where they engaged in commercial sex acts. On one occasion, Hill and Saintvil drove A.C. and O.M. to meet a male client at a high-rise condominium in Midtown Atlanta. Cobb County, Georgia, Police Department officers discovered the girls on February 22, 2012, during a search of a hotel room.
During this same time, Hill and Saintvil also caused a third 14-year-old girl, M.Q., to engage in prostitution. Sometime in or about February 2012, Hill engaged in sex acts with the girl, after which he told her that she would be committing commercial sex acts for Hill. Saintvil transported Hill and the girl to various hotels where Hill caused her to engage in prostitution. Marietta, Georgia, Police Department officers found the girl with Hill on February 10, 2012, at a local motel.
U.S. v. Murray, King, and Branch
Additionally, Murray, King, and Branch engaged in conspiracy to commit, and commission of, sex trafficking of J.B., a 16-year-old girl, who the defendants knew was a runaway from New York. On or about June 30, 2012, Cobb County Police Department officers received a call from J.B., who reported that she was being held against her will. An FBI Special Agent and a detective with the Cobb County Crimes Against Children Unit immediately met with the girl, who told the investigators that she met Murray and King in May 2012. Murray took the girl to an apartment and soon after began, with King, to cause her to engage in prostitution at truck stops on Fulton Industrial Boulevard, and at various motels, in Atlanta. The men used the website “Backpage Atlanta” to solicit clients for the girl. Branch drove J.B. to the various locations where Murray and King trafficked her.
Sentences Imposed
- Murray, 27, of Tifton, Georgia, pleaded guilty on April 18, 2014, to conspiracy to commit, and commission of, sex trafficking of a minor and was sentenced by United States District Judge William S. Duffey, Jr. to 17 years, nine months in federal prison, followed by five years of supervised release.
- Branch, 24, of Atlanta, Georgia, pleaded guilty on October 13, 2013, to conspiracy to commit sex trafficking of a minor and was sentenced to five years, ten months in federal prison, followed by five years of supervised release.
- Saintvil, 27, of Miami, Florida, pleaded guilty on February 2, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to six years, six months in federal prison, followed by five years of supervised release.
- Hill, 27, of Atlanta, Georgia, also pleaded guilty on April 18, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to 16 years in federal prison, followed by five years of supervised release.
- King, 27, of Atlanta, Georgia, pleaded guilty on April 29, 2014, to sex trafficking of a minor and was sentenced to 14 years in federal prison, followed by 5 years of supervised release.
All the defendants must register as sex offenders as a condition of their supervised release. In addition, Murray, Hill, and Saintvil must pay restitution of $1,000 to minors O.M. and A.C.; Hill and Saintvil must pay restitution of $3,000 to minor M.Q.; and Murray, King, and Branch must pay restitution of $1,000 to minor J.B.
This case was investigated by the Federal Bureau of Investigation’s Metro Atlanta Child Exploitation Task Force with assistance from the Cobb County Police Department’s Crimes Against Children Unit, the Marietta Police Department, and the Cobb County District Attorney’s Office.
Assistant United States Attorneys Richard S. Moultrie, Jr. and Phyllis Clerk prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Two Former Hall County Sheriff's Office Employees Plead Guilty to Bribery and Possession of DrugsRead the Press Release
GAINESVILLE, Ga. - David M. Treadwell and Austin Herring have pleaded guilty in separate cases to criminal charges arising from corrupt actions they took when they were employed by the Hall County Sheriff's Office. Treadwell pleaded guilty to accepting a bribe to tip off a person he believed was a drug dealer, if the person came under investigation by Hall County law enforcement. Herring pleaded guilty to attempting to possess cocaine with intent to distribute.
“Both of these defendants breached the trust of the people of Hall County by taking actions that—had they occurred outside the context of an undercover investigation—could have endangered others or permitted other crimes to occur,” said Acting U.S. Attorney John A. Horn. “Each defendant has now forfeited his career in law enforcement, and could face prison as a result of his corrupt actions.”
“Ethics and integrity is paramount for those working within law enforcement due to the many temptations that can arise and lead to an officer violating their oath of office as well as the law,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “These guilty pleas represent two cases where two promising law enforcement officers gave in to those temptations and now face serious consequences for their criminal actions.”
“Few crimes are as reprehensible as those committed by officers who violate the very laws they are sworn to uphold,” said Hall County Sheriff Gerald Couch. “The actions of David Treadwell and Austin Herring undermines the efforts of all law enforcement that honorably perform their duties.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: In late 2014, while Treadwell was employed as a deputy sheriff with the Hall County Sheriff's Office, he accepted $200 or $300 on five occasions from a person he believed was a drug dealer. In exchange for the money, Treadwell agreed to alert the drug dealer if Treadwell learned that the drug dealer was under investigation in Hall County.
In February 2015, while Herring was employed as a jailer with the Hall County Sheriff's Office, he was paid $500 on two occasions to take a package he was told contained cocaine to an inmate inside the jail. On each occasion Herring took the package to the inmate who was cooperating with the investigation. The inmate then turned the package over to investigators. Herring did not open or tamper with either package, but on each occasion he was specifically told by the person who gave it to him that the package contained cocaine from Mexico. In actuality, neither package contained a controlled substance.
David M. Treadwell, 33, of Gainesville, Georgia, and Austin Herring, 19, of Murrayville, Georgia, have both been fired by the Hall County Sheriff's Office.
Both cases are being investigated by the Federal Bureau of Investigation with assistance from the North Georgia Major Offenders Task Force which includes deputy sheriffs from the Hall County Sheriff's Office.
Assistant United States Attorney William L. McKinnon, Jr. is prosecuting both cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao/gan/.
Former TSA Security Officer Pleads Guilty to Faking Cancer to Receive Paid Government LeaveRead the Press Release
ATLANTA – Marc Bess, a former transportation security officer with the Transportation Security Administration, has pleaded guilty to theft of government funds after he faked an abdominal cancer diagnosis and forged doctor’s notes in order to receive donated leave hours from his TSA coworkers.
“Bess deceived his coworkers, who donated their own paid vacation time out of concern for their colleague, so he could take time off from work at the public’s expense,” said Acting U.S. Attorney John Horn. “He made the mistake of faking a doctor’s note from a physician who had died months earlier. His repeated lies over five years betrayed not only his coworkers but also the passengers he was charged with protecting.”
“Mr. Bess' thoughtless actions to defraud his fellow employees was indeed despicable; he betrayed the general trust of many compassionate TSA employees, who were willing to donate their hard-earned leave in support of a fellow employee,” said James E. Ward, Special Agent in Charge, DHS - Office of Inspector General. “We are pleased with Mr. Bess’ guilty plea, and the acknowledgment that he will be held responsible for his treachery.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: The TSA offers a Voluntary Leave Transfer Program to its employees, which permits them to donate paid leave hours to other employees in cases of emergency. In order to be eligible to receive donated leave hours through this program, employees must submit a written application describing the nature and severity of their medical emergency with supporting documentation from the treating physician.
Bess was a TSA employee at Hartsfield-Jackson Atlanta International Airport. Between September 2009 and January 2014, Bess submitted three written applications to the TSA falsely claiming that he was receiving treatment for lymphoma cancer in the abdominal area. In support of these applications, Bess forged the signature of a physician in letters he drafted that described phony radiation therapy and surgical treatments for the fake cancer diagnosis. Based on these false applications, Bess became eligible to receive donated leave hours from coworkers. In reality, Bess has never been diagnosed with or treated for cancer.
Bess also submitted periodic forged physician’s notes to the TSA from 2009 through December 2014 describing fake cancer treatments in support of his requests for additional paid leave hours. Two of the forged letters that were purportedly written by the physician were dated several months after the physician died in July 2014.
In total, Bess received approximately 2240 hours of paid leave hours donated by other federal employees over a five-year span based on his false claim of cancer. Based on these donated hours, the TSA paid Bess approximately $60,000 in salary and benefits while he took time off from work. Bess resigned from the TSA in January 2015 after his fraud was exposed.
Bess, 42, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Mark H. Cohen. Sentencing for Bess is scheduled for July 24, 2015, at 10:00 a.m.
This case is being investigated by the Department of Homeland Security, Office of the Inspector General.
Assistant United States Attorney Nathan P. Kitchens 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 Georgia National Guard Employee Pleads Guilty to CorruptionRead the Press Release
ATLANTA - Raytosha Elliott, a former contracting official with the Georgia National Guard, has pleaded guilty to awarding contracts in exchange for illegal kickbacks. Elliott used her position to award numerous contracts under $5,000 to vendor companies created by her friends and associates.
“Ms. Elliott abused her position with the Georgia National Guard by awarding no-bid contracts to her friends in exchange for illegal kickbacks,” said Acting U.S. Attorney John Horn. “She and one friend alone pocketed nearly $75,000 in funds that were intended to maintain facilities supporting those who serve this country.”
“This guilty plea should send a message that there is a price to pay for such a betrayal of trust as seen in this case. This case also represents the FBI’s commitment to those investigations that protect the integrity of government funds and assets,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“The Government relies on the honesty and integrity of its officials engaged in contracting and procurement," stated John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This guilty plea by a corrupt National Guard employee who misused her position was the result of DCIS' joint efforts with our Federal and State law enforcement partners to investigate corruption within the contracting process.”
“IRS Criminal Investigation will continue to provide its investigative resources and expertise in exposing fraud schemes like the one Elliott orchestrated,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.
“We hope this case serves as a deterrent to those who desire to pilfer the State and Federal governments’ coffers. We also believe this case exemplifies how multiple agencies can work together to achieve a common goal: to serve the public who depends on us to defend the integrity of government programs,” said Deb Wallace, State Inspector General, Georgia Office of the Inspector General.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From May 2007 through April 2012, Elliott worked for the Georgia Department of Defense, the state agency charged with coordinating and supervising all agencies and functions of the Georgia National Guard. Elliott worked as an Engineering Operations Manager out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta, Georgia.
In that position, Elliott worked with engineering firms to develop bid-ready construction projects, prepared bid documents, and oversaw no-bid purchase orders. Under the rules governing the contracting process that Elliott oversaw, projects that cost less than $5,000 did not need to go through a competitive bidding process, allowing Elliott to award the contracts. She certified that the work had been completed for those projects, and facilitated payment to the vendors who allegedly completed such projects.
In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Lakeysha Ellis. In return, Ellis paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to Ellis’ vendor company, Total Source Solution, LLC. Elliott falsely certified that work had been completed when, in fact, it had not.
Elliott awarded Total Source Solution 17 contracts with a total value of approximately $75,000. Those contracts were for a variety of services supposedly to be performed by Total Source Solution, including electrical work, landscaping, and HVAC work. But the work was never done. Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, merchandise, and even liposuction treatment for Ellis. As part of the scheme, Elliott owned a company named Tech Group Investments, LLC. Ellis took money she had obtained from the Georgia National Guard contracts, and paid kickbacks to Elliott through this company.
Elliott and Ellis conducted a similar fraud scheme from January 2009, through May 2011, when Ellis was an accountant at Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta. Her job responsibilities included payroll and paying vendors. While employed as Baumueller-Nuermont’s accountant, Ellis fraudulently funneled money to the defendants’ two sham companies, Total Source Solution and Tech Group Investments. Ellis wrote corporate checks to Total Source Solution, signed her name on the checks, and forged the signature of the Vice President on the checks, to ensure that the checks could be negotiated. Ellis recorded these payments in the check registry to reflect falsely that the checks had been issued to true vendors (such as American Express) when in fact they went to Ellis’ company.
As part of the scheme, Ellis also falsified employee records in the corporation’s payroll system to disguise payments to the defendants’ two companies. Ellis created at least two phantom employees by altering the names of real employees (by switching their first and last names) and slightly changing their Social Security numbers. She then caused the payroll system to make fraudulent salary payments to Total Source Solution and Tech Group Investments for these new, non-existent employees.
Baumueller-Nuermont lost about $85,000 from this scheme.
Elliott, 35, of Atlanta, Georgia, pleaded guilty to two counts of conspiracy today. As part of her plea agreement, Elliott has also agreed to pay restitution to WebBank based on a fraudulent loan application she submitted to the bank in September 2013. In that application, Elliott falsely inflated Tech Group Investments’ sales and gross receipts, and provided a fraudulent federal tax return in support of those figures, to obtain the loan.
On March 27, 2014, Ellis, 37, of Atlanta, Georgia, pleaded guilty to two counts of conspiring with Elliott, to commit fraud against the Georgia National Guard and Baumueller-Nuermont. The indictment also charges a third defendant, Angela Thicklin (f/k/a Angela Stanback Kinlaw), 44, of Atlanta, Georgia, of conspiring with Elliott and bribing a public official. In her position at the Georgia National Guard, Elliott awarded contracts to 3M Construction LLC, which was a company owned by Thicklin. The case against Thicklin is pending trial.
Sentencing for Elliott is scheduled for August 13, 2015, at 10:30 a.m., before United States District Judge Amy Totenberg. Sentencing for Ellis has not yet been scheduled.
This case is being investigated by Special Agents of the Federal Bureau of Investigation; the Georgia Bureau of Investigation; the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Internal Revenue Service Criminal Investigation; the U.S. Army Criminal Investigation Command; and Deputy Inspectors General of the State of Georgia Office of the Inspector General.
Assistant United States Attorney Stephen H. McClain 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.
FBI Arrests Two Men in Murder-for-Hire PlotRead the Press Release
ATLANTA - Jorge Maturano and Cesar Santos have been arraigned on federal charges of murder-for-hire. They were arrested May 6, 2015, on a criminal complaint. Both defendants were allegedly hired to kill a member of a rival drug trafficking organization.
“These arrests demonstrate how law enforcement, working together with concerned citizens, can not only hold criminals accountable for their actions but prevent violence from occurring in our community,” said Acting U.S. Attorney John Horn.
“Our agents responded quickly to end this alleged murder plot. This case reflects the ever present potential for violence that drug trafficking organizations bring to our community and the FBI will continue to play a role in addressing them,” stated J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting U.S. Attorney Horn, the complaint, and other information presented in court: Maturano and Santos were allegedly hired out of Chicago, Illinois, by a drug trafficking organization to travel to the metro Atlanta area and kill a member of a rival drug trafficking organization who was living in Clayton County, Georgia.
Jorge Maturano, 46, and Cesar Santos, 29, both of Mexico, were arrested on May 6, 2015, and both made initial appearances before United States Magistrate Judge Justin S. Anand on May 7, 2015.
Members of the public are reminded that the criminal complaint in this matter 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.
In that this remains an ongoing investigation, anyone with information regarding this matter should contact the FBI Atlanta Field Office at (404) 679-9000
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 Insurance Broker Pleads Guilty to Nationwide Phony Trucking Cargo Insurance Fraud SchemeRead the Press Release
ATLANTA - John Paul Kill, the former operator of Appeal Insurance Agency, LLC, has pleaded guilty to a charge of insurance fraud. Kill collected over $3.7 million from nearly 800 trucking companies nationwide for fraudulent cargo insurance policies.
“This defendant swindled hundreds of trucking companies into purchasing phantom cargo insurance policies,” said Acting U.S. Attorney John Horn. “Kill abused his clients’ trust and led many small businesses to operate on our roads unwittingly without proper insurance and put them at risk for catastrophic losses.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case was about theft and greed on a large scale. Mr. Kill displayed a complete disregard for his client companies, leaving them legally and fiscally vulnerable while allowing them to believe that they had appropriate insurance coverage. The FBI is pleased with the role it played in bringing this case forward for prosecution and holding Mr. Kill accountable for his criminal actions.”
“I applaud Acting U.S. Attorney John Horn for his handling of this case,” said Insurance Commissioner Ralph Hudgens. “I hope this guilty plea sends a clear signal that my office, and federal authorities, will take decisive action if we catch someone scamming Georgia consumers.”
According to Acting United States Attorney Horn, the charges and other information presented in court: Kill operated an insurance brokerage firm, Appeal Insurance Agency, LLC, in Norcross, Georgia and began offering cargo insurance policies to trucking companies in 2013. Kill falsely represented to clients that he would bind cargo insurance policies through Lloyd’s of London. In the insurance industry, binding coverage serves as an agreement between the insurance provider and insured parties to provide insurance coverage. In reality, Kill did not bind any policies with Lloyd’s and instead pocketed the premium payments.
For a small portion of victims, Kill bound cargo insurance policies through a different company that offered less extensive coverage than what the trucking companies thought they purchased through Kill. 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 for new policies.
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.
Kill, 63, of Norcross, Georgia, pleaded guilty before U.S. District Court Judge Eleanor L. Ross. Sentencing for Kill is scheduled for July 10, 2015, at 10:00 a.m.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Office of Commissioner of Insurance.
Assistant United States Attorney Nathan P. Kitchens 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.
Appalachian Community Bank Vice President Sentenced to Federal Prison for Bank FraudRead the Press Release
GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon has been sentenced to three years, six months in federal prison for defrauding Appalachian Community Bank, in Ellijay, Georgia. Beamon was convicted by a jury of five counts of bank fraud on December 19, 2014, after a five-day trial.
“Bank fraud is a critical problem that has hit Georgia especially hard,” said Acting United States Attorney John A. Horn. “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded. These failures significantly affect the economy, making these cases important to safeguard the nation’s financial health.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Mr. Beamon will hold him accountable for his actions but, unfortunately, will not be able to restore the bank in which he worked for and betrayed. Bank fraud is not a victimless crime and the FBI will continue to provide extensive resources in investigating those who engage in such criminal acts.”
“Former banker Beamon, of TARP applicant Appalachian Community Bank, was sentenced to three years, six months in federal prison for raiding the bank’s inventory of foreclosed real estate when the bank was seeking a TARP bailout,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “A federal jury convicted Beamon of bank fraud. Beamon fraudulently rented out bank-owned properties and collected rent payments for his own use, and he caused the bank to sell properties to his wife and to a shell company he controlled at severely discounted prices—prices well below what others were willing to pay. He claims he did it to save the bank, but these transactions put the bank in jeopardy, and Beamon profited. SIGTARP and our law enforcement partners will shut down TARP-related fraud, swindling, and self-dealing and ensure that perpetrators pay for their crimes.”
“The sentencing of Mr. Beamon reflects fitting punishment for an individual who abused his position of trust at Appalachian Community Bank for personal gain and caused irreparable harm to the institution. The Federal Deposit Insurance Corporation Office of Inspector General is firmly committed to helping ensure integrity in our nation’s banks. We value the cooperative working relationships with our law enforcement partners that bring about such successful outcomes,” said Fred W. Gibson, Acting Inspector General, FDIC.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver.
Beamon was in charge of Appalachian’s foreclosure liquidation department. In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Georgia. Beamon hired that agent to market and lease the property on his behalf. In truth, however, the property was owned by Appalachian and was part of the bank’s foreclosure inventory. Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner. Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank.
Beamon, 54, of Atlanta, Georgia, was sentenced to three years, six months in federal prison, to be followed by five years on supervised release following his prison term, a $500 special assessment, and forfeiture of all real properties involved in the offense.
This case was investigated by the FDIC Office of Inspector General; the Department of Treasury, Special Inspector General Troubled Asset Relief Program; and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips, Douglas W. Gilfillan, and Jenny R. Turner prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao-ndga.
Former University Administrative Assistant Pleads Guilty to Embezzling over $300,000 from EmoryRead the Press Release
ATLANTA - Brenda Michael, who embezzled more than $300,000 from Emory University by using a fake PayPal account, has pleaded guilty to wire fraud.
“Michael brazenly abused her position with Emory University by misdirecting student payments to a personal account for more than a year,” said Acting U. S. Attorney John Horn. “Those funds were owed to the school, paid by students working on their college education.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Brenda Michael was employed as an administrative assistant with Emory University from 2007 through 2014. From 2012 to 2014, while enrolling students for certain classes and programs, she began directing students to make tuition and fee payments which were due to Emory University to a PayPal account. Unbeknownst to the students, the PayPal account where they sent funds was the defendant’s own personal account. She then spent the funds on personal expenses. In total, she fraudulently received more than $317,000 from her scheme.
Sentencing for Michael, 53, of Atlanta, Georgia, is scheduled for July 8th, 2015 at 10:00 a.m. before United States District Judge Willis B. Hunt.
This case is being investigated by the Federal Bureau of Investigation. Emory University has fully cooperated in this investigation.
Assistant United States 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Felon Impersonates Federal Agent while Armed with GunRead the Press Release
ATLANTA - Daniel M. Harbison has been arraigned on federal charges of being a felon in possession of a firearm while impersonating a DEA agent after he allegedly performed a traffic stop of an off-duty Doraville police officer.
“Posing as a federal agent creates a genuine safety risk for everyone involved, as well as bystanders, especially when a firearm is present,” said Acting U.S. Attorney John A. Horn. “The event is deeply unsettling to the victim and threatens to undermine legitimate police encounters that take place every day.”
Daniel R. Salter, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division said of the case, “When Mr. Harbison pretended to be a DEA agent, he undermined the hard work and dedication of all DEA agents and the other dedicated law enforcement officers who legitimately earned their badges. His actions were exposed because of the hard work conducted by the Doraville Police Department, the Federal Bureau of Investigation’s Atlanta office and DEA. This defendant will now have to pay the price for the crimes he committed.”
“Doraville Police's ability to rapidly react to the DEA impersonator landed him where he needs to be, behind bars. Had he not stopped our officer, who knows what damage he could have done to citizens? We are thankful for both the local and Federal cooperation that will insure Harbison's activity will be fully prosecuted. It is still unknown how many victims remain, but we can say there won't be more,” said John King, Chief of Police, Doraville Police Department.
According to Acting 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”) officer. Specifically, on April 3, 2015, in Doraville, Georgia, Harbison conducted a traffic stop of a Chevrolet Suburban by activating light-emitting diode (“LED”) lights on his vehicle similar to those of a law-enforcement vehicle, except the lights were green and possibly white instead of blue and white. Unbeknownst to Harbison, the Chevrolet Suburban 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 what appeared to be 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 embossed with the letters “US.”
The Doraville Corporal told Harbison that he was a Doraville Police Officer and asked Harbison why his LED lights were green and white. The indictment alleges that in response to the question, Harbison replied that his LED lights were green and white because he was a federal officer. The Doraville Corporal then stated that other police officers were in route to check the validity of Harbison’s law enforcement credentials – whereupon Harbison returned to his car and fled the scene.
Further investigation led Doraville and Dunwoody Police Officers to Harbison’s residence and ultimately, officers arrested him. 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 embossed with the letters “US.” Harbison has previously been convicted of a felony and as a result, could not legally possess the gun.
On April 23, 2015, a grand jury charged Harbison, 40, of Dunwoody, Georgia, with being a felon in possession of a firearm.
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, Doraville Police Department, and Drug Enforcement Administration.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin E. Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Georgia Hospital to Pay $20 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA - The Medical Center of Central Georgia (MCCG) has agreed to pay $20 million to settle allegations that the hospital violated the False Claims Act by billing Medicare for more expensive inpatient services that should have been billed as less costly outpatient or observation services, the United States Attorney’s Office announced today. MCCG is located in Macon, Georgia, and is the second largest hospital in the state.
“Overcharging the government for medical services wastes our country’s limited health care resources,” said Acting U.S. Attorney John Horn. “When a provider inflates its billings, we will aggressively seek to recover the overcharges under the False Claims Act.”
“Charging the government for higher cost inpatient services when the patient care received was outpatient or observation services causes Medicare to pay more than it should,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This department will continue its work to stop abuses of the nation’s health care resources and to ensure patients receive the most appropriate care.”
“Unnecessarily admitting patients who could have been treated in an out-patient or observation setting is not only a waste of taxpayer dollars, but a fundamental breach of trust,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Medicare beneficiaries must feel secure and know that the care selected for them is in their best interest, and not merely what will generate the most revenue for the facility.”
This settlement resolves the United States’ investigation into MCCG’s inpatient admission practices. The government contends that from 2004 through 2008, MCCG violated the False Claims Act by knowingly charging Medicare for medically unnecessary inpatient admissions when the care provided should have been billed as less costly outpatient or observation services. Because hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient or observation services, the admission of numerous patients whose care should have been billed as outpatient or observation services, as alleged here, can result in substantial financial harm to Medicare.
As part of this agreement, MCCG entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) that requires the company to engage in significant compliance efforts over the next five years. Under the agreement, MCCG is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
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 claims settled by the settlement agreement are allegations only; there has been no determination of liability.
This case was investigated by Special Agents of Health & Human Services, Office of Inspector General.
The civil settlement was reached by Assistant United States Attorney Christopher J. Huber.
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.
FAA Inspector Charged with Bypassing TSA Passenger Screening in Violation of TSA's Security RequirementsRead the Press Release
ATLANTA - Ernest E. Abbott has been arraigned on federal misdemeanor charge of unlawfully entering Hartsfield Jackson International Airport and an airplane without submitting to the security requirements for all passengers as administered by Transportation Security Administration (TSA).
“The security of all airline passengers is of paramount concern,” said Acting U.S. Attorney John Horn. “Neither FAA employees who travel for work nor any other passenger is exempt from the consequences when they fail to submit to the airport security screening process.”
“Protecting the traveling public and maintaining public confidence in the safety of commercial air travel is of utmost importance,” said Marlies Gonzalez, Special Agent-in-Charge for the U.S. Department of Transportation’s Office of Inspector General. “Working with our Federal, State and local law enforcement and prosecutorial partners, we will vigorously pursue those who violate the law designed to protect the safety of travelers.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Abbott, a Federal Aviation Administration Inspector, flew from Atlanta, Georgia, to New York on January 12, 2015. Prior to boarding his flight, Abbott used his Hartsfield Jackson International Airport employee access card to bypass TSA passenger screening. Abbott came to the attention of TSA the very next day after a firearm was detected in his carry-on luggage when he attempted to fly back to Atlanta. He was subsequently charged in New York with unlawfully possessing a firearm.
Ernest E. Abbott, 69, of Sugar Hill, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard. He was charged in a Criminal Information filed on April 15, 2015.Members of the public are reminded that the Criminal Information 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 Transportation Security Administration and the U.S. Department of Transportation, Office of the Inspector General.
Assistant United States Attorney Tracia M. King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Sixteen Defendants Indicted in Stolen U.S. Treasury Check RingRead the Press Release
ATLANTA – Sixteen defendants have been indicted for stealing over $10 million in U.S. Treasury checks from the mail and then cashing them at Walmart, Kroger, and other businesses using fake identifications. The defendants were indicted by a federal grand jury on March 11, 2015.
“Georgia has the unfortunate distinction of being one of the worst states in the nation for stolen U.S. Treasury checks,” said Acting U.S. Attorney John Horn. “This crime affects thousands of victims – including senior citizens, the disabled, and veterans – who go to their mailbox looking for a needed check only to discover that it has been stolen by criminals and identity thieves. These sixteen defendants are charged with stealing over $10 million in U.S. Treasury checks in Georgia and traveling around the country to cash them.”
“Check fraud is one of the largest challenges facing financial institutions and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who steal from unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“The U.S. Postal Inspection Service is committed to protecting the U.S. Mail and taking an aggressive stance on those who violate federal statutes that protect the American Public. We value the investigative efforts with our federal partners and thank the U.S. Attorney's Office for continuing to protect innocent victims.” said Thomas Noyes, Inspector in Charge of the Charlotte Division.
“Social Security payments are a lifeline for many Americans. We are pleased with the aggressive action by the U.S. Attorney’s Office and our law enforcement partners that resulted in these indictments,” said Special Agent in Charge Thomas Caul, SSA/Office of the Inspector General.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Maurice Shuler and Milton Minter are alleged to have received stolen U.S. Treasury checks that were taken from the mail before reaching their intended recipients. The stolen checks included tax refund, Social Security, and Veteran Benefits checks. After receiving the checks, Shuler and Minter provided them to a network of check cashers, including 14 of the defendants charged here, who negotiated the stolen checks, mainly at Walmart and Kroger stores. The defendants used fake driver’s licenses to pose as the check payees and forged the payees’ signatures on the back of the checks. They also used other individuals’ Social Security numbers to cash the checks. In an effort to avoid detection, the defendants traveled to different states, including Alabama, Mississippi, Illinois, Michigan, Minnesota, Kentucky, Iowa, Louisiana, and Tennessee, to cash the stolen checks. The defendants are charged with cashing thousands of stolen U.S. Treasury checks worth over $10 million.
The indictment charges the following individuals with conspiracy, theft of U.S. money, and aggravated identity theft:
- Maurice Shuler, a/k/a Fred, 25, of Atlanta, Georgia,
- Gino Shuler, 27, of Atlanta, Georgia,
- Chucky Ransom, 41, of Decatur, Georgia,
- Sepater Ransom, 27, of Atlanta, Georgia,
- Damontra Ransom, a/k/a Pop, 20, of Atlanta, Georgia,
- Milton Minter, a/k/a White Boi, 31, of Riverdale, Georgia,
- Brian K. Hightower, a/k/a Big, 33, of Stockbridge, Georgia,
- Angela L. Williams, 40, of Stockbridge, Georgia,
- Charles E. Bolton, Jr., a/k/a Lightpole Jones, 26, of College Park, Georgia,
- Mariah C. Clark, 24, of Loganville, Georgia,
- Lovely Richardson, 27, of Fairburn, Georgia,
- Osiris O. Hernandez, 23, of Atlanta, Georgia,
- Kimbela Jordan, 19, of Atlanta, Georgia,
- Raymon D. Gales, 26, of Atlanta, Georgia,
- Jeremy Arnold, 28, of Riverdale, Georgia, and
- Rodrekus R. Harris, 26, of Blakely, Georgia.
The 83-count indictment was unsealed and the defendants were arraigned before U.S. Magistrate Judge Russell G. Vineyard.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the United States Secret Service; United States Postal Inspection Service; Social Security Administration, Office of Inspector General; and Department of Justice Office of the Inspector General.
Assistant United States Attorneys Stephen H. McClain and Chris Bly 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/.
Former Office Manager Pleads Guilty to Embezzling More Than a Half-Million Dollars from EmployerRead the Press Release
ROME, Ga. - Judy Elaine Henry has pleaded guilty to wire fraud charges arising out of her theft of more than $500,000 from her former employer, 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, ultimately more than $500,000,” 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.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The guilty plea of Ms. Henry concludes the federal investigation into her eight years of embezzling from her employer. The loss amounts in this case are significant as well as her breach of trust to those who counted on her to help oversee company funds.”
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 on 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.
Henry, 50, of Lafayette, Georgia, pleaded guilty before U.S. District Court Judge Harold L. Murphy. Sentencing for Henry will be July 10, 2015, at 1:30 p.m.
This case is being investigated by the Federal Bureau of Investigation.
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.
U.S. Government Concludes Major Public Corruption and Drug Trafficking OperationRead the Press Release
ATLANTA – Federal authorities have concluded an extensive public corruption and drug trafficking investigation that spanned over five years and resulted in the convictions of a Customs and Border Protection Officer from Atlanta’s airport, a DeKalb County Police Officer, and more than 10 drug traffickers who were responsible for the distribution of approximately 1 million pills of 3,4-methylenedioxy-methamphetamine (MDMA) and benzylpiperazine (BZP), a drug similar to ecstasy.
Mark Tomlinson, a/k/a “Supa,” has been sentenced to 16 years in prison, and is the final defendant in this case which involved multiple federal, state and local law-enforcement agencies.
“This case began with a Customs and Border Protection officer taking payoffs to smuggle guns and purported drug money through Atlanta’s airport, and it ended with the dismantling of a large-scale drug trafficking organization and the seizure of hundreds of thousands of ecstasy pills,” said Acting U.S. Attorney John Horn.
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “Whether the crimes being committed were public corruption, marriage fraud, or drug trafficking, the coordinated law enforcement response demonstrates how spirited law enforcement cooperation on all levels produce fruitful results. I would like to personally thank everyone who worked tirelessly to make this investigation a success.”
The Department Homeland Security, Office of Inspector General, Special Agent in Charge James E. Ward said: “Today’s announcement sends a strong message, that we remain committed with our law enforcement partners to aggressively pursue such complex investigations. We are pleased with the overall outcome of this investigation; and we will remain vigilant in pursuing the prosecution of criminals, who brazenly defy federal law.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Beginning in late-2009, numerous federal, state, and international agencies conducted an extensive investigation into a corrupt federal and local law enforcement officer with ties to a major drug trafficking organization. The investigation led to the arrest, indictment, and conviction of more than 15 defendants.
Federal Corruption
Former Customs and Border Protection Officer Devon Samuels pleaded guilty to conspiring to launder drug money, attempting to bring guns onto an airplane, and conspiring to commit marriage fraud. The charges against Samuels centered around three undercover sting operations during which he smuggled drug money and guns through Hartsfield‑Jackson Atlanta International Airport.
More specifically, on November 3, 2010, an undercover officer (posing as a drug money launderer) gave Samuels approximately $25,000 in money represented to be from the sale of drugs. By unlawfully using his badge to bypass security and avoid screening, Samuels smuggled the money through Atlanta’s airport and onto a plane bound for Jamaica. Once in Jamaica, Samuels delivered the cash to a Jamaican undercover police officer who was posing as an international drug trafficker.
On November 19, 2010, another undercover officer gave Samuels over $50,000 in purported drug money. Samuels took the money, flew from Atlanta to Jamaica, and then delivered the money to Jamaican undercover police officers. While in Atlanta’s airport, Samuels unlawfully used his badge to bypass security and avoid being screened.
Finally, on November 30, 2010, Samuels accepted five firearms and approximately $20,000 in alleged drug money from an undercover police officer. Samuels smuggled the firearms and money into the airport by using his badge to bypass security. Once inside the airport, Samuels gave the firearms and money to a second undercover officer who had explicitly told Samuels that she was going to transport the firearms and money to Arizona for a meeting with members of a Mexican drug cartel.
On June 2, 2011, Devon Samuels, a/k/a “Smokey,” 49, of Stockbridge, Georgia, was sentenced to eight years in prison, followed by three years of supervised release.
Marriage Fraud
Beginning in November 2009, Samuels and his wife Keisha Jones (a former Delta Airlines employee) used Samuels’ intimate knowledge of immigration policies to commit marriage fraud. In that regard, Samuels and Jones taught Carlton Ferguson and Dahlia McLaren how to deceive U.S. immigration authorities into believing that Ferguson and McLaren’s sham marriage was genuine and legitimate. Samuels and Jones were also paid to falsely complete the immigration paperwork necessary for McLaren to obtain United States citizenship through her sham marriage to Ferguson. Samuels, Jones, Ferguson, and McLaren all pleaded guilty to marriage fraud conspiracy charges. After her plea, McLaren was stripped of her U.S. citizenship and removed from the United States to Jamaica.
The following individuals were convicted on the marriage fraud indictment:
- On June 2, 2011, Samuels was sentenced to five years in prison, followed by three years of supervised release.
- On June 2, 2011, Keisha Jones, a/k/a Platinum, 34, of Stockbridge, Georgia, was sentenced six months of home confinement, three years of probation, and 150 hours of community service.
- On April 11, 2011, Carlton Ferguson, a/k/a “Fergie,” 39, of Decatur, Georgia, was sentenced to three years of probation and 150 hours of community service.
- On April 11, 2011, Dahlia McLaren, a/k/a “Dahlia McLaren Ferguson,” 34, formerly of Decatur, Georgia, was sentenced to three years of probation and was removed from the United States.
Drug Trafficking
In a parallel investigation beginning in February 2010, law enforcement officers started investigating a major drug trafficking organization operating in the Atlanta-metropolitan area and in other areas across the country. The organization was led by Jerome Bushay, Otis Henry, and Mark Tomlinson.
Otis Henry was a major distributor of BZP (a drug similar to ecstasy) and marijuana who provided pills and marijuana to several lower-level drug dealers. Most notably, on October 1, 2010, law enforcement officers obtained a federal warrant to search Henry’s residence located in DeKalb County, Georgia. Inside the home, officers seized approximately 700,000 tablets of BZP – which was one of the largest domestic seizures of the drug in U.S. history. In particular, officers found the pills hidden all over the house, including in the walls of the house, behind insulation, under seat cushions, in crawl spaces, and stuffed into luggage. Officers also recovered a handgun, two pounds of marijuana, almost $40,000 in cash, and over 150 grams of methamphetamine from Henry’s residence. The street value of the pills was estimated at $2.8 million.After agents executed the search warrant, Henry fled from authorities and remained on the run for over a year. Ultimately, in January 2012, Henry was arrested in Tampa, Florida. Thereafter, agents searched Henry’s hotel room and recovered four pounds of marijuana and $3,300 in cash.
Jerome Bushay also organized and supplied countless drug transactions sales, in addition to supervising several lower-level drug traffickers. In total, Bushay distributed over 185,000 pills. Bushay also used former Customs and Border Protection Officer Devon Samuels to transport his drug money through the airport. For example, on November 12, 2010, Bushay had Samuels smuggle $40,000 in drug money into Hartsfield-Jackson Airport. Inside the airport, Samuels used his badge to bypass airport security, which resulted in the bag not being screened. Thereafter, Samuels gave the bag to Bushay’s associate, who was destined for Texas.
On December 15, 2010, law enforcement officers executed a coordinated take-down. As part of the take-down, agents executed a search warrant on Bushay’s home, where they recovered an arsenal of weapons and cache of drug paraphernalia. Specifically, agents recovered: (1) a Cobra 9mm pistol; (2) a .40 caliber semi-automatic pistol; (3) a Bushmaster Assault Rifle; (4) a .22 caliber rifle; (5) a Sturm Ruger Ranch Rifle with a scope; (6) a Glock semi-automatic pistol with a laser sight; (7) a Sten-Type 9mm machine gun; and (8) approximately 700 rounds of ammunition, including ballistic tipped and hollow point rounds. In addition to the weapons, agents found a narcotics ledger, an electronic money counter, two digital scales, and a baseball hat with “Customs and Border Protection” embroidered on it.
Mark Tomlinson also distributed thousands of pills of MDMA and BZP, while simultaneously running Club Intrigue (a nightclub in DeKalb County). In addition, in April 2010, Tomlinson brokered a major marijuana deal, which resulted in the seizure of over $100,000. After law enforcement seized the drug money, Tomlinson and others devised a scheme to make it appear that the money was actually to pay musicians for his nightclub. On December 15, 2010, law enforcement officers searched Tomlinson’s home, where they recovered: (a) a Remington 12 gauge shotgun, (b) a Glock .40 caliber semi-automatic handgun, (c) a Taurus semiautomatic handgun, and (d) a drug ledger. In October 2014, after a one week trial, a federal jury convicted Tomlinson of conspiring to traffic MDMA, BZP, and marijuana.
The following individuals were convicted on the drug trafficking indictment:
- Mark Tomlinson, a/k/a “Supa,” 40, of Stone Mountain, Georgia, was sentenced to 16 years in prison, followed by five years of supervised release.
- Jerome Bushay, a/k/a “Romey,” 36, of Norcross, Georgia, was sentenced to 15 years in prison, followed by five years of supervised release.
- Otis Henry, a/k/a “Wesley Johnson,” 44, of DeKalb County, Georgia, was sentenced to 14 years in prison, followed by five years of supervised release.
- Conrad Harvey, a/k/a “Fowley,” 45, Snellville, Georgia, was sentenced to 10 years, one month in prison, followed by three years of supervised release.
- Roshaun Hood, a/k/a “Shaun,” 33, of Atlanta, Georgia, was sentenced to nine years, three months in prison, followed by five years of supervised release.
- Dave Grant, a/k/a “David Clarke,” a/k/a “Scratchy,” 39, of Lithonia, Georgia; was sentenced to nine years in prison, followed by six years of supervised release.
- Nigel Edwards, a/k/a “Nigel the Barber,” 37, of Stone Mountain, Georgia, was sentenced to four years, four months in prison, followed by three years of supervised release.
- Ricardo Duncan, a/k/a “Ricky,” 32, of Lithonia, Georgia, was sentenced to four years in prison, followed by three years of supervised release.
- Damien Aarons, a/k/a “Damage,” 39, of Covington, Georgia, was sentenced to three years, nine months in prison, followed by three years of supervised release.
- Jermaine Campbell, a/k/a “Fatman,” 35, of DeKalb County, Georgia, was sentenced to three years, one month in prison, followed by three years of supervised release.
- Christopher Williams, a/k/a “Eric Washington,” “Bobby,” “Beagle,” and “Apachee,” 49, of Snellville, Georgia, was sentenced to three years in prison, followed by one year of supervised release.
Local Corruption
During the course of the operation, law enforcement authorities also learned that former DeKalb County Police Officer Donald Bristol abused his law enforcement position to help drug traffickers hide a stolen vehicle; that he unlawfully accessed his police computer; and that he lied to federal agents. More specifically, starting in April 2010, Bristol helped separately-charged defendants Christopher Dixon (currently a fugitive) and Ricardo Duncan hide the fact that the car they were driving was in fact a stolen vehicle. Bristol also misused his access to a sensitive law enforcement database to provide drug traffickers with confidential information, such as whether the drug traffickers had any open warrants. Finally, when questioned about his activities, Bristol made numerous false statements to federal agents.
On October 18, 2011, Bristol, 45, of DeKalb County, Georgia was sentenced to one year and one day of incarceration, followed by three years of supervised release.
This case was investigated by the Immigration Customs Enforcement (ICE); Drug Enforcement Administration; ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigation; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation; United States Marshal’s Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and U.S. Department of State - Bureau of International Narcotics and Law Enforcement Affairs.Assistant United States Attorneys Jeffrey W. Davis, L. Skye Davis, and Dahil Goss 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.
Two Georgia Men Sentenced for Conspiring to File False Tax ReturnsRead the Press Release
ATLANTA - Obi Emelogu and Oloh Samuel have been sentenced for their involvement in a tax refund fraud scheme in which Emelogu filed false income tax returns and directed that the fraudulent refunds be deposited into bank accounts he and Samuel controlled.
“These defendants brazenly stole money from the American taxpayers with little regard for whom they affect,” said Acting U.S. Attorney John Horn. “We have committed resources to combat this kind of theft, and will aggressively pursue and prosecute those who believe they can file false tax returns.”
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and seek to incarcerate the offenders who view the Federal Treasury as their own personal bank account.”
“IRS Criminal Investigation will remain proactive in the investigation of individuals and groups especially return preparers, who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge. “We will continue to utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”
“These sentences send a clear message that the federal government will aggressively investigate and prosecute the crime of identity theft involving stolen tax refunds,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “While criminals may find it easy to steal someone’s identity using their personal information, they need to know that the punishment for committing this crime will be commensurate with the devastating toll identity theft takes on its victims.”
According to Acting United States Attorney Horn, the charges and other information presented in court: Emelogu owned and operated “O.B. Consulting and Tax Services, LLC,” a tax preparation business in Marietta, Georgia. In 2012, Emelogu filed hundreds of false tax returns claiming fraudulent refunds that were directed into his bank account. Emelgou also filed false tax returns that were deposited into a bank account Samuel controlled. Electronic evidence also showed that additional false tax returns were filed from overseas and refunds were deposited into Samuel’s bank account. Many of the tax refunds that were directed into the defendants’ bank accounts came from tax returns that used stolen names and social security numbers.
Obi Emelogu, 51, of Woodstock, Georgia, has been sentenced to three years, and nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $719,872. Emelogu was convicted on these charges on October 10, 2014, after he pleaded guilty.
Oloh Samuel, 33, of Acworth, Georgia, has been sentenced to one year, and six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $146,179. Samuel was convicted on these charges on December 2, 2014, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration.
Assistant United States Attorney Thomas J. Krepp and DOJ Criminal Tax Division Trial Attorney Jason Poole 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/.
‘Dr. Commander’ Former Leader of Hindu Temple of Georgia,Read the Press Release
ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, has been sentenced to 27 years, three months in prison following his conviction on 34 felony counts, including bank fraud, tax fraud, bankruptcy fraud, and obstruction charges.
“Annamalai perverted the sacred institution of religion by using it as a vehicle for greed and personal profit,” said Acting U.S. Attorney John A. Horn. “He convinced his victims that they had a problem in need of spiritual guidance, and then took advantage of their vulnerabilities for personal financial gain. The sentence rendered against him is lengthy but just and fair considering the irreparable harm he caused to his victims.”
“Annamalai Annamalai, a self-proclaimed “child prodigy” and “priest”, received his fate today for the fraud that he perpetrated on the faithful followers that believed in him,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This defendant utilized the nation’s financial system to steal money from unsuspecting victims and then used the money for his own personal benefit. This sentence is a vital element in maintaining public confidence in our legal and financial system.”
According to Acting United States Attorney Horn, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai caused the followers’ credit card numbers to be charged on multiple occasions, in excess of their agreed amount and without authorization.
If the followers disputed the charges with their respective credit card companies, Annamalai submitted false documentation to the credit card companies in support of the unauthorized charges. Annamalai later filed spurious lawsuits against followers who disputed his charges and manipulated audio recordings to make it sound as if the followers had agreed to the disputed charges. Annamalai caused these manipulated audio recordings to be submitted to police departments investigating criminal complaints that were lodged against him.
The income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.
Following a two-week jury trial, Annamalai was convicted on August 25, 2014, for bank fraud and tax fraud offenses. Annamalai was also convicted of bankruptcy fraud offenses in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. Annamalai concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to a bank account in the name of a different entity. Annamalai was also convicted of money laundering for using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.
Annamalai was also convicted on three counts of obstruction and false statements in connection with the grand jury investigation and the bankruptcy proceeding. Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding.
Finally, Annamalai was convicted of conspiring with his spouse and others to conceal the arrest of co-defendant Kumar Chinnathambi.
Annamalai Annamalai, 49, of Baytown, Texas, was sentenced to 27 years, three months in prison.
Chinnathambi, 34, of Baytown, Texas, was later arrested and pleaded guilty to conspiracy to commit bankruptcy fraud on July 17, 2014. He will be sentenced at a later date.
In addition to Annamalai’s prison sentence, U.S. District Court Judge Timothy C. Batten, Sr. also ordered Annamalai to not engage in any spiritual service for compensation, directly or indirectly through intermediaries; and to not file frivolous, abusive, or malicious lawsuits against (1) former customers of the Hindu Temple and related entities, and victims of his criminal schemes; (2) parties, creditors, the Trustee, lawyers, or court personnel involved in the Hindu Temple’s bankruptcy case; and (3) attorneys, government agents, the jury, and court personnel involved in the criminal case. Judge Batten also recommended to the Bureau of Prisons that Annamalai be housed in a “Communications Management Housing Unit,” which is a special facility that will be able to monitor Annamalai’s telephone calls and electronic communications from prison.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation, with valuable assistance from the Federal Bureau of Investigation.
Assistant United States Attorneys Steven D. Grimberg and Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
C.W. Matthews Agrees to Pay $1 Million to Settle Allegations That it Violated the False Claims ActRead the Press Release
ATLANTA - C.W. Matthews Contracting Company (“C.W. Matthews”), a Marietta, GA based construction firm, has agreed to pay $1 million dollars to settle allegations that it violated the False Claims Act by submitting false and misleading certifications to the Government regarding: (1) work performed on several federally funded highway construction projects; as well as (2) the company’s compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program (“DBE Program”).
Additionally, C.W. Matthews has reached a separate settlement with the U.S. Federal Highway Administration, pursuant to which the company has agreed to: (1) adopt an ethics code and a corporate compliance program; (2) appoint a compliance officer; and (3) retain an independent monitor to assess its performance.
“To receive the tangible and intangible benefits that it contracts for, the United States expects companies that actively seek and obtain federally funded contracts to be diligent and forthright in fulfilling their contractual obligations to the Government,” said Acting U.S. Attorney John Horn.
The settlement concerns false certifications that C.W. Matthews provided the Government regarding its compliance with requirements associated with the DBE Program. Pursuant to the DBE Program, federally funded construction contracts contain DBE clauses, which require that a specified percentage of the work be sub-contracted to firms meeting the statutory definition of a Disadvantaged Business Entity (“DBE”).
As a precondition to bidding, a contractor must acknowledge the project’s DBE goals, and then identify the DBE that it proposes to subcontract with if awarded the contract. Additionally, DBE regulations require “real and substantial” work performed by a “viable” and “independent” DBE firm, and state that “there cannot be a contrived arrangement for the purpose of meeting DBE goals.” See, 49 C.F.R. § 26.55. The DBE Program is intended to ensure that DBEs are able to compete for federal construction contracts.
Between 2006 and 2007, C.W. Matthews was awarded several highway construction contracts that contained DBE clauses. In bidding on the contracts, C.W. Matthews promised to subcontract with a DBE firm called Longoria Trucking (“Longoria”) to satisfy the contracts’ DBE goals. As work progressed, C.W. Matthews submitted the requisite DBE Reports to the Government, which: (1) described work Longoria had purportedly performed; and (2) quantified the monetary amounts purportedly paid to Longoria.
The Government’s investigation revealed that the DBE Reports submitted by C.W. Matthews were false and misleading as, in truth, it was a non-DBE trucking firm called G.E. Robinson – not Longoria – that performed most of the work, and received most of the payments, described in the reports. Indeed, the investigation revealed that G.E. Robinson used Longoria as a “front” to obtain, and receive payment under, the applicable contracts. As a non-DBE firm, G.E. Robinson was ineligible to even bid on these subcontracts. To circumvent this restriction, G.E. Robinson assumed the identify of, and controlled, Longoria, which did little work and was paid a small fee by G.E. Robinson for its complicity.The investigation revealed C.W. Matthews either knew, or should have known, of the scheme between Longoria and G.E. Robinson. However, despite this knowledge, C.W. Matthews continued issuing false and misleading certifications to the Government regarding Longoria’s role in the applicable highway projects.
In certifying that Longoria was performing work under the contracts, despite clear signs that the work was actually being performed by G.E. Robinson, C.W. Matthews, at minimum, was either reckless or deliberately indifferent.
This matter was investigated by the U.S. Department of Transportation – Office of the Inspector General.
Assistant United States Attorney Paris A. Wynn handled 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/gan/.
Former State Representative Tyrone Brooks, Sr., Pleads Guilty to Fraud and Tax ChargesRead the Press Release
ATLANTA - Tyrone Brooks, Sr., has pleaded guilty to charges that he misappropriated almost $1 million in charitable funds from Universal Humanities, a charity he founded in 1990, and the Georgia Association of Black Elected Officials (GABEO). From the mid-1990s through 2012, Brooks solicited contributions from individuals and corporate donors to combat illiteracy and fund other charitable causes, but then used the money to pay personal expenses for himself and his family.
“Through two charitable organizations he led, Representative Brooks raised over one million dollars for the causes of illiteracy, crime and voter disenfranchisement that plague our disadvantaged communities, especially ones in poor and rural areas,” said Acting U.S. Attorney John Horn. “Sadly, Representative Brooks misappropriated nearly all of the money to pay personal expenses for himself and his family. By diverting these funds, he deprived those communities from receiving the literacy training and other assistance that they so desperately needed.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “People have a right to expect honesty and integrity from their elected officials. The FBI’s Public Corruption program plays a vital role in ensuring that any such departures from the expected honesty and integrity of public officials that result in violations of the law will be investigated. The FBI launched its investigation in this matter based on information and facts that indicated that a State elected official was using undue influence for personal gain. The FBI, in conjunction with IRS-CI, followed those facts throughout this investigation, which led to this guilty plea of former State Representative Tyrone Brooks.”
“Mr. Brooks exploited his position as representative and director of Universal Humanities and GABEO for his own personal financial gain, which came at the expense of the organizations and people he was trusted to serve,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. “In addition, Brooks stole money from the American taxpayers by failing to report the income and pay taxes on the money he diverted.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court:
Universal Humanities SchemeThe government presented evidence at the plea hearing that from at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $800,000. Donors included the Coca-Cola Company, Georgia Pacific Company, Northside Hospital, and others who gave smaller amounts. Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy; he described how the donated funds would be used, claiming that Universal Humanities had established literacy programs, conducted workshops, and tutored and mentored students. He also falsely claimed that Universal Humanities used a staff and operated under the leadership of a board of directors.
In reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students. Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses.
Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account that he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses. At times, Brooks paid personal expenses directly from the Universal Humanities account.
Contrary to Brooks’ representations to donors, Universal Humanities never had a functioning board of directors. The individuals listed on the solicitations and incorporation documents were unaware that Brooks had identified them as Universal Humanities board members, and most had never even heard of the organization.
Brooks represented in a 1999 solicitation that Universal Humanities had been “so successful” in Georgia that it was expanding its programs to other states in the Southeast, and expected to have a projected budget of $500,000. In truth, Universal Humanities did not have an operational literacy program inside or outside of Georgia, nor did it have a projected budget of $500,000.
Brooks represented that Universal Humanities’ literacy program, which Brooks called “Visions of Literacy,” consisted of a host of “outlets” created to increase literacy and included activities such as seminars, workshops, tutoring, mentoring, and rallies. Brooks further claimed that Universal Humanities and its “staff had over 40 years’ experience in assisting U.S. communities through a variety of efforts,” and that 10,000 people would be the direct beneficiaries of the literacy program. In fact, Universal Humanities and Brooks did not operate a functional literacy program, did not host the literacy activities described in the solicitation, or did not have a staff.
Brooks represented in a 2011 solicitation that the Visions of Literacy program conducted monthly workshops, seminars, and advocacy outreach activities, and that the solicited funds would be used to hire retired teachers and administrators as “educational consultants” to gain targeted results. Instead, Brooks spent the funds donated in response to this solicitation on payments for personal credit card charges, personal loan payments, utility bills, and a $500 check to a family member as a Christmas gift.
Unbeknownst to GABEO, Brooks represented in a 2011 solicitation that GABEO was a “sister organization” to Universal Humanities and that GABEO was committed to the “growth and advancement of Universal Humanities.” Brooks falsely claimed that GABEO members spoke in public forums to implement and promote Universal Humanities’ programs; that GABEO members taught at Universal Humanities meetings and classes “alongside” Universal Humanities community organizers; and that GABEO members served on the Universal Humanities’ board of directors, steering committee, fundraising committee, and program management committees, though the purported committees were nonexistent.
As a result of Brooks’ misappropriation, the intended beneficiaries of the donated funds did not receive the needed literacy training or assistance.
GABEO Scheme
The government presented evidence at the plea hearing that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family. GABEO is an organization of state, county, and municipal elected officials which promotes crime prevention, voter registration, literacy and economic empowerment initiatives.
Brooks solicited contributions for GABEO from corporations, organizations and individuals. When Brooks was elected as GABEO’s President in 1993, the organization already maintained an official bank account at a local bank. This account was administered by GABEO’s Treasurer, and disbursements required two signatures by GABEO Board members. In December 1997, Brooks secretly opened a second GABEO bank account at a different bank. Brooks set himself up as the sole signatory on this account, and had the account statements sent to his address rather than the address of the GABEO Treasurer. Brooks then deposited the donations that he solicited on behalf of GABEO into this undisclosed account, and used much of these funds to pay personal expenses for himself and his relatives.
Between 2002 and 2012, businesses, civic, religious groups and individuals contributed approximately $300,000 to GABEO through Brooks, which he then deposited into the undisclosed GABEO account. Brooks misappropriated donations that he solicited on behalf of GABEO from corporations, local teacher unions, small business owners, and individual donors – all of whom relied on Brooks’ assurances that the contributions were intended to further GABEO’s community activities. The GABEO Board was unaware of this activity and did not approve these transactions.
Brooks misappropriated the GABEO funds in much the same manner as the Universal Humanities funds. Brooks deposited funds he solicited on behalf of GABEO into the undisclosed GABEO account, then transferred the funds to his personal account, from which he paid his personal expenses. While Brooks utilized some of the GABEO donations to pay expenses related to GABEO’s annual meetings, he utilized much of the GABEO funds for personal expenses.
During the time that Brooks acted as GABEO’s President, a variety of charitable groups, companies and individuals made donations to GABEO through Brooks. These donors relied on Brooks’ representations that GABEO would use the contributions to defray the costs of the organization’s annual meetings and convention, and to support GABEO’s programs.
Brooks made specific false representations to donors about how the solicited funds would be used, claiming that the funds would be used to cover the expenses of annual GABEO meetings, support GABEO crime prevention and child hunger initiatives, voter registration, felon rehabilitation initiatives, and literacy programs. Donors included Coca Cola, Georgia Power, the International Brotherhood of Teamsters and others. Instead, Brooks deposited these funds into the undisclosed GABEO account that he controlled and then transferred the money to his personal account, ultimately using most of the contributions to pay personal expenses.
By misappropriating GABEO donations for his personal use, Brooks benefitted himself at the expense of both GABEO and the communities most in need of the literacy, crime prevention and voter registration programs for which the funds were intended.
False Tax Returns ChargesFinally, Brooks pleaded guilty to tax fraud and, in so doing, he admitted he substantially underreported his income to the IRS for the 2011 tax year. Despite Brooks’ misappropriation of Universal Humanities and GABEO funds, his tax return for the 2011 tax year falsely reported a salary of only approximately $35,000 annually.
Brooks, 68, of Atlanta, Georgia, pleaded nolo contendere guilty to five counts of mail and wire fraud and fully admitted his guilt as to one count of tax fraud.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine, Richard S. Moultrie, Jr. 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/gan/.Church Custodian Arraigned on Child Pornography ChargesRead the Press Release
NEWNAN, Ga. - Emmett Winston Smith, a/k/a Everett Smith, a former facilities assistant and Sunday school teacher at a church in Newnan, Georgia, has been arraigned on federal charges of distributing, receiving, and possessing child pornography. Smith was indicted by a federal grand jury on March 24, 2015.
“Smith allegedly traded images and videos of child pornography with others, and went into Internet chat rooms looking to make contact with others who shared his same interests,” said Acting U.S. Attorney John Horn. “This case, which began with a lead from the Royal Canadian Mounted Police, illustrates our strong partnership with international law enforcement to combat child pornography and to identify and prosecute those who trade images of the sexual abuse of children.”
“The child pornography discovered during this investigation shows the abuse of numerous innocent children who are re-victimized each time images of their sexual exploitation are traded,” said Acting HSI Atlanta Special Agent in Charge Ryan Spradlin. “HSI Special Agents are actively working to disrupt the trade of these illegal images, and will continue to coordinate with our foreign and domestic law enforcement partners to identify and seek prosecution of criminals who possess them.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In 2014, the Royal Canadian Mounted Police investigated a person on allegations that he traded in child pornography. That investigation revealed that the Canadian subject had traded more than 200 e-mails containing child pornography with a person using an e-mail address that eventually led back to a house in Newnan, Georgia. Canadian law enforcement passed this information on to Special Agents of the Department of Homeland Security, who continued the investigation.
Homeland Security Investigations agents identified Emmett Winston Smith as the person trading e-mails with attachments of child pornography. They obtained a federal search warrant for Smith’s house in Newnan and executed it on March 5, 2015, where they found child pornography on three computers at the house. Smith was arrested that same day.
At the time of his arrest, Smith was working as a custodian at a large church in downtown Newnan that had a pre-school attached to it. He was also a Sunday school teacher at that same church.Smith, 66, of Newnan, Georgia, was arraigned today before U.S. Magistrate Judge Gerrilyn G. Brill. He was indicted on March 24, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Millennium Capital Exchange CEO Arrested for Running Foreign Exchange Market Ponzi SchemeRead the Press Release
ATLANTA - Stafford S. Maxwell, the former owner of Millennium Capital Exchange, Inc., has been arraigned on charges of orchestrating a multi-million dollar foreign exchange market Ponzi scheme. He was indicted March 17, 2015.
“Maxwell allegedly lured investors to his forex firm with false promises of trading success,” said Acting U.S. Attorney John Horn. “Even with an improving economy, investment fraud schemes are as popular as ever, and citizens need to be careful when choosing where to entrust their hard earned money.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The investigation that led to the indictment and arrest of Maxwell reflects the FBI’s commitment to the many victims that have suffered significant financial losses and hardships as a result of this fraudulent investment scheme as alleged in the indictment. Investors are reminded to be cautious of investment pitches that promise exceptionally high rates of return such as those allegedly promised in this case.”
According to Acting United States 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.
According to the indictment, 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 the indictment alleges. 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.
Stafford S. Maxwell, 46, of Mableton, Georgia, was indicted on March 17, 2015, on ten counts of wire fraud.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Late-Night Business Owner Pleads Guilty to Bribing DeKalb County Zoning Board of Appeals MemberRead the Press Release
ATLANTA – Ismail Sirdah has pleaded guilty to bribing a member of the DeKalb County Zoning Board of Appeals to secure a variance for his late-night billiard hall, Lulu Billiards in Tucker, Georgia.
“Zoning rules exist to protect neighborhoods from businesses and establishments that might disrupt the residential aspect of our communities,” said Acting U.S. Attorney John Horn. “This case illustrates how greed and cash payments can sell out the legitimate interests of our citizens.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the FBI’s focus in public corruption matters is primarily with that of the public official, it can readily shift to those individuals who attempt to corrupt those officials. That was seen in this case involving Mr. Sirdah, an area business owner, who purchased the vote of a DeKalb County Zoning Board member in a county action that impacted his business. This guilty plea of Mr. Sirdah for those criminal actions should serve as a reminder that the FBI will not tolerate efforts to unduly and illegally influence government officials in this manner.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In November 2008, the DeKalb County, Georgia, Board of Commissioners passed a zoning ordinance that regulated the operation of late-night establishments and nightclubs. As a general matter, the ordinance required that new businesses must obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be grandfathered in under the 2008 zoning ordinance change.
Ismail Sirdah is the owner and Chief Executive Officer of 2841 Investments, Inc., which does business as LuLu Billiards. LuLu Billiards is a pool hall and bar located in Tucker, DeKalb County, Georgia.
Based on the new zoning ordinance, in November 2011, the DeKalb County Department of Planning and Sustainability informed LuLu Billiards in writing that it was grandfathered in only as a late-night business – and thus could neither operate as a nightclub nor have a dance floor. Notwithstanding the notice, Lulu Billiards operated as a nightclub and possessed a dance floor.
In September 2012, the Department of Planning and Sustainability issued a warning to Sirdah through LuLu Billiards for operating as a nightclub with a dance floor. In the warning, Sirdah was again advised that under the new zoning ordinance, LuLu Billiards could not operate as a nightclub or have a dance floor without a Special Land Use Permit.
Sirdah responded that LuLu Billiards had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule.
Sirdah appealed not being able to operate LuLu Billiards as a nightclub to the Zoning Board of Appeals. The Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error.
Prior to the hearing on the appeal, Sirdah met with Jeremy “Jerry” Clark, who was a member from the Zoning Board of Appeals. During those meetings, Sirdah made it clear to Clark, that if the Zoning Board of Appeals approved Sirdah’s petition to operate as a nightclub, Clark would be rewarded.
In November 2012, the Zoning Board of Appeals approved Sirdah’s request to operate as a nightclub. Clark voted in favor of LuLu Billiards being able to operate as a nightclub. In return for the vote, Sirdah paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.
On February 19, 2015, Clark, 42, of Lithonia, Georgia, pleaded guilty to accepting a bribe from Sirdah. Clark is scheduled to be sentenced on April 30, 2015, at 10:00 a.m., before United States District Court Judge Leigh Martin May.
On March 25, 2015, Sirdah, 53, of Duluth, Georgia, was charged via a criminal information with one count of bribery. Sirdah pleaded guilty to that charge. The sentencing hearing for Sirdah is scheduled for June 15, 2015, at 11:00 a.m., also before Judge May.
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/gan/.
Former DeKalb County and Georgia World Congress Center Official Pleads Guilty to Public Corruption ChargesRead the Press Release
ATLANTA - Patrick Jackson, a former janitorial services manager for the DeKalb County Government and Georgia World Congress Center (GWCC), has pleaded guilty to conspiracy to commit honest services fraud, admitting that he used his position as a public official to obtain benefits for himself.
“Jackson abused his position as a public official by accepting a bribe in exchange for helping a company attain and maintain government contracts at both the Georgia World Congress Center and DeKalb County,” said Acting U.S. Attorney John A. Horn. “This dishonest conduct threatens to undermine the integrity of the contracting system and the quality of the goods and services produced pursuant to those contracts. Today Jackson admitted his wrongdoing.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI will continue to make public corruption cases at all levels a priority matter and asks that anyone with information regarding such matters to contact their nearest FBI field office.”
According to Acting U.S. Attorney Horn, the charges, the plea agreement, and other information presented in court: From 2006 through 2012, Jackson simultaneously worked for two governmental entities: DeKalb County and GWCC. He served as the manager of janitorial services for both entities without the knowledge of either entity. In court, Jackson admitted to using his position as a public official to obtain favors from a company (identified in the Indictment as “Company A”) that provided janitorial services to both DeKalb County and GWCC. Jackson worked for “Company A” before he began working for DeKalb County and GWCC.
While employed by DeKalb County and GWCC, Jackson lived in a luxury apartment in Atlanta, Georgia, that “Company A” furnished and paid for. In exchange, Jackson used his position as a public official to benefit “Company A” in its business dealings with DeKalb County and GWCC. During that time, “Company A” obtained governmental contracts well in excess of one million dollars with the entities. Jackson did not disclose to either employer that “Company A” paid for his apartment. By accepting these bribes, Jackson deprived his employers of their right to his honest services.
Patrick Jackson, 56, of Loganville, Georgia, pleaded guilty before United States District Judge William Duffey. Jackson was indicted by a federal grand jury on September 9, 2014.
This case is being investigated by the Federal Bureau of Investigation and the 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/gan/.
Lockheed Martin Agrees to Pay $2 Million to Settle Allegations That It Overbilled the GovernmentRead the Press Release
ATLANTA – Lockheed Martin Corporation (“Lockheed”) has agreed to pay $2 million to settle allegations that it overbilled the government for fuel it used while manufacturing C-130 aircraft for the United States Air Force.
“The resources of the United States Government are limited and must be protected. We expect companies doing business with the United States to be circumspect and forthright in billing the United States and using its resources,” said Acting U.S. Attorney John Horn. “Here, in causing the government to pay for fuel that was the company’s financial responsibility, Lockheed failed to live up to the terms of the contracts and caused financial injury to the government. The settlement reflects our resolve to ensure that companies that overbill or overcharge the Government will be identified and held responsible for their actions.”
“This settlement illustrates the diligent work exhibited by a joint Air Force Office of Special Investigations and DCIS investigative team, that sifted through and unwound dense and complicated data to reveal the overcharges,” said Lloyd Clark, Assistant Special Agent in Charge, AFOSI Procurement Fraud Detachment Five.
“This settlement is the culmination of the tireless investigative efforts of DCIS agents working closely with our Air Force OSI partners,” said John F. Khin, Special Agent in Charge, Southeast Field Office. Combatting waste and abuse in Department of Defense contracts to protect the integrity of our national defense programs, remains a top priority for the Defense Criminal Investigative Service.”
Between 2006 and 2013, Lockheed manufactured C-130s for the U.S. Air Force at its Marietta facility. Pursuant to the underlying contracts, the Government provided Lockheed with up to 22,000 gallons of fuel (characterized as government furnished property or “GFP”) per aircraft, which could be used for the engine runs, fuel operations and test flights necessary to manufacture C-130s. Once Lockheed exhausted its 22,000 gallon allotment on a particular aircraft, Lockheed, not the Government, was financially responsible for any additional fuel.
However, the Government’s investigation indicated that between 2006 and 2013, Lockheed routinely used fuel in excess of the 22,000 gallons, but failed to reimburse the government for the excess. Additionally, the evidence suggests that Lockheed used the fuel on other unrelated projects, where the government was either not a party, or had not agreed to furnish fuel.
This matter was investigated by the United States Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and Defense Contract Audit Agency.
Assistant United States Attorney Paris A. Wynn handled 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/gan/.
Fake Movers Who Allegedly Stole Household Goods in Multiple Locations Are ArraignedRead the Press Release
ATLANTA - Tasheen Raphael Pickett and Shedrick Giles have been arraigned on federal charges arising from the theft of personal property that was entrusted to them as they held themselves out to be professional movers. Pickett and Giles were indicted by a federal grand jury on March 10, 2015.
“While acting as a professional movers, the defendants allegedly took innocent victims’ belongings—clothes, furniture, and other personal items—and simply never returned them,” said Acting U.S. Attorney John Horn.
“This action demonstrates the Department of Transportation’s commitment to combat those household goods movers who take advantage of customers by stealing their belongings or holding their goods hostage,” said Marlies T. Gonzalez, Department of Transportation Office of Inspector General Special Agent-in-Charge. “Working with our law enforcement colleagues across government and Federal Motor Carrier Safety Administration (FMCSA) officials, we will continue our efforts to ensure that movers adhere to Federal laws and regulations designed to protect the public.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Since November 2013, Pickett and Giles traveled the United States, acting as professional movers while picking up innocent victims’ personal property shipments and promising to deliver those shipments to agreed-upon locations. Instead of delivering the property, however, Pickett and Giles would allegedly take control of the property, keeping some of it for themselves.
After a criminal complaint was filed against Pickett in Amarillo, Texas, in July 2014, the Department of Transportation Office of Inspector General (DOT-OIG) was notified. In September 2014, DOT-OIG agents searched storage units at a Public Storage Facility in East Point, Georgia. There it was discovered that the units were stacked full with approximately 14 individuals’ personal property—property that had allegedly been taken by Pickett months prior and never delivered.
Other property allegedly taken by Giles was discovered in a second Public Storage Facility in Decatur, Georgia, in January 2015. Although both Pickett and Giles have worked as movers for the last several years, neither is authorized to transport household goods by the Federal Motor Carrier Safety Administration, the federal agency tasked with providing oversight over household goods movers.
Tasheen Raphael Pickett, 40, of College Park, Georgia, and Shedrick Giles, 43, of Brentwood, New York, were arraigned before Chief U.S. Magistrate Judge Janet F. King. Pickett was arraigned on March 11, 2015, and Giles was arraigned on March 18, 2015. They are charged with conspiracy, transportation of stolen property, and possession of stolen property.Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Transportation – Office of Inspector General.
Assistant United States Attorney Samir Kaushal is prosecuting the case.
More than 5,800 household goods moving companies are registered with the FMCSA. In 2014, FMCSA received more than 2,800 consumer complaints about household goods movers, down from more than 3,100 in 2013. Among the most common complaints are shipments being held hostage, loss and damaged goods, delay of shipments, unauthorized movers, and deceptive practices such as unwarranted overcharges. Consumers can report unsafe and unlawful moving companies by calling FMCSA’s nationwide complaint hotline at 1-888-368-7238 (1-888 DOT-SAFT) or by visiting the database at http://nccdb.fmcsa.dot.gov. Consumers can visit www.protectyourmove.gov to find out more about the “red flags” of moving fraud.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Decatur Drug Dealers Who Robbed Letter Carriers at Gunpoint Sentenced to Federal PrisonRead the Press Release
ATLANTA – William Wilkins and Michael Fairnot-Woods have been sentenced to 18 years and 15 years in federal prison, respectively, for their roles in an armed robbery spree that targeted U.S. Postal Service letters carriers in Decatur and Lithonia, Georgia. The robberies were part of a scheme to steal a rival drug dealer’s marijuana that was being shipped illegally through the mail. The conspirators also sought to steal financial documents and blank checks that were then used for bank fraud and identity theft.
“Postal workers perform an important public service and should not have their lives jeopardized simply for doing their jobs,” said Acting U.S. Attorney John Horn. “The fact that they were targeted in broad daylight while delivering mail in quiet residential neighborhoods is one more indication of the disregard those in the illegal drug trade have for other people’s lives.”
“The U.S. Postal Inspection Service is pleased with today's sentence. A large part of the Postal Inspection Service mission is assuring the safety of postal employees and we want them to have confidence that they can focus on their duties. These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.” said Tom Noyes, Postal Inspector in Charge of the Charlotte Division –Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: On August 18, 2012, in a residential area in Decatur, Georgia, William Wilkins and Michael Fairnot-Woods approached a U.S. Postal Service letter carrier, “K.W,” pointed a military-style assault rifle at her, and stole a package that she was in the process of delivering. The package contained marijuana shipped illegally by a rival drug dealer. Wilkins and Woods fled the area in a pick-up truck.
On November 20, 2012, at another residence in Decatur, Wilkins approached a letter carrier, “A.J.,” pointed a handgun at her, and stole several packages and a tray of mail from her postal vehicle. Wilkins fled the area in a car driven by Fairnot-Woods. Several blank checks stolen during this robbery were later altered and deposited fraudulently by a co-conspirator, Joshua Ellis.
On November 23, 2012, at a residence in Lithonia, Georgia, Wilkins approached a letter carrier, “D.C.,” pointed a silver handgun at him, and demanded the keys to his postal truck. D.C. resisted, and Wilkins then fled the scene empty-handed with Woods, who was waiting in a car nearby.
On January 24, 2013, in a residential area in Decatur, Wilkins approached a letter carrier, “C.C.,” pointed a handgun at him, and directed him to open the back door of his postal vehicle. Wilkins jumped into the truck and began rifling through various packages until he located the particular package containing marijuana that he was looking for. Wilkins fled the scene with the package in a car driven by Woods. After receiving a tip about 30 minutes later, DeKalb County Police stopped the car Wilkins and Woods were traveling in and located the stolen marijuana package, the firearm used during the robbery, and other evidence linking the defendants to this crime. An investigation by federal agents later connected Wilkins and Woods to the earlier robberies and attempted robbery described above.
William James Wilkins, 28, of Decatur, Georgia, pleaded guilty to two counts of armed postal robbery, one count of brandishing a firearm during a crime of violence, and one count of possessing marijuana with the intent to distribute it. Wilkins was sentenced to 18 years in prison on March 24, 2015, to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $2,895.37.
Michael Anthony Fairnot-Woods, 27, of Decatur, Georgia, pleaded guilty to two counts of armed postal robbery, one count of brandishing a firearm during a crime of violence, one count of possessing marijuana with the intent to distribute it, and one count of illegally possessing a firearm after receiving a felony conviction. Fairnot-Woods was sentenced to 15 years in prison on March 27, 2015, to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $2,895.37.
Joshua Ellis, 22, of Decatur, Ga., pleaded guilty to one count of bank fraud and one count of possessing stolen mail. Ellis was sentenced to three years on probation on March 27, 2015. He was also ordered to pay restitution in the amount of $2,895.37.
This case was investigated by the United States Postal Inspection Service and the DeKalb County Police Department.
Assistant United States Attorneys John S. Ghose, Katherine M. Hoffer, and Mary F. Kruger 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/.
Four Men Sentenced for Stealing Millions from Bank of New York MellonRead the Press Release
ATLANTA - Zachary Vaughn, Derek Spinks, Harry Cobb, and William Leese have been sentenced for their respective roles in a conspiracy to steal more than $4 million from the Bank of New York Mellon.
“In 2009, Defendant Vaughn brazenly stole more than $4 million and for years manipulated bank accounts to cover his tracks, all for the benefit of himself and his coconspirators who enjoyed the fruits of the theft,” said Acting U.S. Attorney John Horn. “Citizens trust financial institutions with their money every day and have the right to expect that bank employees handling their accounts have the utmost integrity. Those who enrich themselves by stealing someone else’s money will be caught and prosecuted.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these four defendants brings to a close an extensive and expensive bank fraud scheme. With restitution amounts in excess of $4 million dollars, these individuals will have many years to contemplate their bad decisions.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From 2005 to 2013, Zachary Vaughn was employed by the Bank of New York Mellon at its Atlanta, Georgia location. In his position, Vaughn had access to client funds that were held at the bank, including an account that held more than $4.3 million in reserve funds, which belonged to a customer of the bank. Vaughn and defendant Derek Spinks decided to steal the funds from the bank.
In December 2009, Vaughn wired $4.3 million from the Bank of New York to a bank account in the name of a business owned by Derek Spinks. Soon thereafter, Spinks and defendant William Leese decided to invest the money in C&L Logistics and Transportation, LLC, a business owned by Leese and defendant Harry Cobb. In January 2010, the defendants arranged to move the $4 million to a C&L bank account that was controlled by Leese and Cobb.
The defendants then used the stolen funds for C&L business expenses as well as for personal expenses, including purchasing personal vehicles, a suite at Atlanta Hawks basketball games, gold, and funding personal travel expenses. Vaughn, who remained employed at the Bank of New York until 2013, continually moved client funds from one account to another so that the original theft went undetected until 2013, when he left his employment with the Bank.
The defendants were sentenced by United States District Judge Orinda B. Evans as follows:- Vaughn, 35, of Atlanta, Georgia, was sentenced on February 19, 2015, to five years, three months in prison to be followed by five years of supervised release. Vaughn was convicted after pleading guilty on August 18, 2014.
- Spinks, 35, of Austell, Georgia, was sentenced March 26, 2015, to two years, nine months in prison to be followed by five years of supervised release. Spinks was convicted after pleading guilty on September 4, 2014.
- Cobb, 48, of Decatur, Georgia, was sentenced March 26, 2015, to one year, eight months in prison to be followed by five years of supervised release. Cobb was convicted after pleading guilty on September 15, 2014.
- Leese, 33, of Duluth, Georgia, was sentenced on February 19, 2015, to three years, one month in prison to be followed by five years of supervised release. Leese was convicted after pleading guilty on December 5, 2014.
Additionally, all of the defendants were ordered to pay restitution to the Bank of New York in the amount of $4,387,598.57.
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/gan/.
Sexual Predator Receives Lengthy Prison Sentence for Extorting Girls to Send Him Pornographic ImagesRead the Press Release
ATLANTA - Destin Whitmore has been sentenced to 17 years, six months for extortion, distribution of child pornography, and possession of child pornography. The defendant used a social media site, where he maintained two fake aliases as well as a personal account, to entice and then force nine minors to provide him pornographic images of them.
“This case is a sad example of the dangers of the Internet for teens that aren’t careful,” said Acting U.S. Attorney John Horn. “This defendant victimized at least nine teenage girls by using their images to extort pornographic images, creating a vicious cycle of exploiting vulnerable victims.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In April 2012, a girl in Arizona reported that she had been contacted on Facebook by an individual using the profile name “Ralph Jenkins.” The individual using the Jenkins profile, later identified as Destin Whitmore, sent the teen compromising images of herself that she had previously sent to Whitmore, and he threatened to send those images to other persons, including her family members, if she did not immediately create additional images for him.
A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington,” showed that both profiles were used by Whitmore, along with his own Facebook account, to transmit pornographic images of numerous teen girls to the girls in order to extort them for additional images. He threatened to distribute the pornographic images to others and post them on various websites for public consumption if they did not comply with his demands. Whitmore knew many of the girls through personal relationships or through long-term communications using web cameras with the girls online. Some of the girls had previously sent sexually explicit images to Whitmore or had provided such images to others, which Whitmore subsequently obtained. The investigation revealed that Whitmore contacted and extorted at least nine minors over a period of six months.
Whitmore, 23, of Canton, Georgia, has been sentenced to 17 years, six months in prison to be followed by supervised release for life. Whitmore was convicted of these charges on September 22, 2014, when he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and Cobb County Police Department.
Assistant United States Attorneys Mary Webb and 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/gan/.
Griffin Men Indicted on Federal Gun Dealing ChargesRead the Press Release
ATLANTA - Rashard Jones, Octavious Hasting, Xzavius Ogletree, Tony Anthony Goodman, David Combs, Demetrice Coggins, and Shedrick Howard have been charged in two separate federal indictments with illegal firearms dealing, possession of firearms by convicted felons, illegal possession of “sawed-off” shotguns and rifles, and distribution of narcotics.
“These indictments, which are the result of an undercover investigation, highlight the commitment of federal and local law enforcement to work together to address the problem of illegal guns and drugs in our communities,” said Acting U.S. Attorney John Horn.
“This enforcement action is the product of collaborative efforts on the part of ATF, the Griffin Police Department, and other local and federal law enforcement partners aimed at eliminating perpetrators of violent crime,” said ATF Special Agent in Charge Carl Walker. “ATF will continue to dedicate our resources in conjunction with other law enforcement agencies to target violent criminal activity within the communities we serve.”
“I am appreciative of the cooperation between the police department and ATF,” said Griffin Police Chief Steve Heaton. “As a result of this investigation, we were able to remove several dangerous people and illegal weapons from our community.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: After learning that several Griffin men were allegedly involved in the illegal sales of firearms, ATF and the Griffin Police Department launched an investigation. This investigation led to the identification of two groups of defendants who allegedly were involved in the illegal sales of firearms and narcotics. Each of the defendants is a convicted felon and as a result was prohibited by federal law from possessing a gun, including unregistered “sawed-off” shotguns and rifles, in violation of the National Firearms Act.
Rashard Jones, Octavious Hastings, and Xzavius Ogletree are charged in one indictment with illegal firearms dealing. Defendant Jones allegedly sold guns directly to a confidential informant in addition to serving as a middle man between the confidential informant and Octavious Hastings and Xzavius Ogletree. In total, the defendants allegedly sold and possessed seven different firearms, including five hand guns, an assault rifle, and a shotgun -- many of which had previously been reported stolen. In addition to dealing in firearms, Defendant Jones is charged with distribution of cocaine.
A second indictment charges Tony Goodman, David Combs, Demetrice Coggins, and Shedrick Howard with illegal firearms dealing. Tony Goodman, aided and abetted by Demetrice Coggins, Combs, and Howard, allegedly was involved in the sale of ten different firearms including three “sawed-off” shotguns and a “sawed-off” rifle. Howard allegedly sold nine different firearms including a “sawed-off” shotgun. In total, the defendants allegedly sold and possessed 22 firearms, many of which had previously been reported stolen. Goodman and Howard are also individually charged with the distribution of MDMA.
All of the defendants listed below are from Griffin, Georgia:
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Rashard Jones, a/k/a Bulldog, 26;
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Octavious Hasting, a/k/a Tay Lay, 29;
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Xzavius Ogletree, a/k/a Zay, 35;
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Tony Anthony Goodman, 50;
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David Combs, a/k/a Bishop, 24;
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Demetrice Coggins, a/k/a Meechie, 37;
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Shedrick Howard, a/k/a Petro, 24.
Ogletree, Combs, and Coggins were arraigned before Chief U.S. Magistrate Judge Janet F. King on March 18, 2015. Goodman was arraigned before Judge King on March 20, 2015. After detention hearings, Ogletree, Combs, Coggins, and Goodman were detained pending trial. Jones, Hastings, and Howard are awaiting arraignment. All were indicted by a federal grand jury in two separate indictments on March 4, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Griffin Police Department.
Assistant United States Attorney Matthew S. Carrico 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 Newnan Division is http://www.justice.gov/usao/gan/.
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Colombian National Charged with Smuggling Stolen Firearms from Atlanta to Medellin-Based Drug CartelRead the Press Release
ATLANTA - David Andres Perez-Pelaez, a/k/a Andres Zapata has been arraigned on federal charges of unlawfully exporting firearms and fraudulently shipping firearms to Medellin, Colombia, and possessing and disposing of stolen firearms, including a handgun stolen from the Clayton County Police Department. Perez-Pelaez was indicted by a federal grand jury on March 10, 2015.
“Illegal gun trafficking is a major problem in Georgia, but what makes this case even worse is that the defendant is alleged to have shipped stolen guns to Medellin Cartel members in Colombia,” said Acting U.S. Attorney John Horn. “Colombian cartels don’t need more guns to promote their violent activities, and we at home don’t need a market to reward gun thieves for adding dangerous weapons to the drug trade. This defendant is alleged to have done both.”
“This arrest is a result of the collaborative efforts of ATF and our American and International law enforcement partners to protect communities from violent criminal organizations,” said ATF Special Agent in Charge Carl Walker. “During the course of this two year investigation, we utilized every available resource to eradicate firearms violence which threatens citizens both domestically and internationally.”
“This investigation and the charges being brought are excellent examples of law enforcement agencies working together to target firearms smuggling around the world,” said Douglas Hassebrock, Director of the Department of Commerce's Office of Export Enforcement.
“The illegal export of firearms from the United States to violent criminal organizations creates significant public safety hazards throughout the world,” said Acting Special Agent in Charge Ryan L. Spradlin from ICE Homeland Security Investigations in Atlanta. “With this arrest, American and Colombian law enforcement agencies worked together to identify and seal off an alleged source of weapons for these dangerous criminals.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: On March 1, 2013, Colombian Direccion de Antinarcoticos (DIRAN) personnel intercepted a package sent from Marietta, Georgia, destined for Medellin, Colombia, at the El Dorado International Airport in Bogota, Colombia. The package contained three disassembled firearms—two .40 caliber Glock pistols and a 9mm Taurus pistol—as well as five pistol magazines and a variety of ammunition, all concealed inside a piece of equipment. One of the Glock pistols was stamped as property of the Clayton County, Georgia, Police Department, and had been reported stolen. The other Glock pistol, also reported stolen, traced back to a seller and purchaser in Milledgeville, Georgia. The Taurus pistol had been reported stolen from a gun shop in Marietta, Georgia. The firearms and ammunition were not declared on customs or shipping labels, in violation of both U.S. and Colombian law, and the intended recipient was not a licensed firearm dealer.
Subsequent investigation by American and Colombian authorities revealed that the package had been sent, under the alias “Andres Zapata,” by the defendant, David Andres Perez-Pelaez, and was destined for individuals connected to the La Oficina de Envigado drug cartel, operating out of the Colombian cities of Medellin and Envigado. La Oficina de Envigado is known to be involved in international drug trafficking, extortion, and the collection of payments for criminal organizations in Antioquia, Colombia.
The investigation revealed that Perez-Pelaez started smuggling firearms to Colombia in June 2011, and continued through 2013. Perez-Pelaez hid the firearms and ammunition in everyday objects, such as garage door openers, and shipped them—without a truthful declaration of contents—via the freight carriers to Colombia. The defendant initially acquired these firearms from licensed firearms dealers and gun shows, but eventually started buying stolen firearms from the secondary market, so as to avoid detection. The defendant illegally shipped approximately 15 firearms in total, including 5.56 caliber rifles, 9mm and .40 caliber semiautomatic pistols, and other firearms and ammunition. Perez-Pelaez would receive payment from his Colombian buyers via Western Union, and would make up to $3,500 profit per rifle, and up to $2,000 per pistol.
David Andres Perez-Pelaez, a/k/a Andres Zapata, 30, a Colombian national living in Marietta, Georgia, was arraigned before U.S. Magistrate Court Judge Janet F. King on Tuesday, March 24, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Industry and Security’s Office of Export Enforcement, and the Department of Homeland Security, Homeland Security Investigations, with assistance from Colombian authorities, including Direccion de Antinarcoticos, and Unidad Nacional de Fiscalias Contra el Terrorismo.
Assistant United States Attorneys Tracia M. King and John S. Ghose 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/.
Florida Man Sentenced for $100 Million Surety Bond Fraud SchemeRead the Press Release
ATLANTA – Eric Campbell has been sentenced to four years, nine months in prison for operating a multi-million dollar surety bond fraud scheme which caused not only financial losses, but also created delays in construction projects across the country and compromised bids resulting in some contracts being awarded to unqualified construction companies.
“This defendant lied to building contractors and government agencies about his qualifications to issue surety bonds. When his fraud was uncovered and a new valid surety bond had to be found, the construction bidding process was compromised for various projects across the country. There were construction delays, and the construction firms that unwittingly purchased fraudulent surety bonds from the defendant lost hundreds of thousands of dollars in premiums they had paid,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The level of fraud seen in this case was costly in many ways to those doing business with Mr. Campbell. It is hoped that the sentencing of Mr. Campbell will send a clear message to others that these types of criminal schemes to defraud are destined to fail and those involved will be held accountable.”
“Mr. Campbell orchestrated a scheme whereby he defrauded numerous individuals, businesses, and state and local governments of money based on false representations and promises” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Hopefully the sentence today will send a message to other individuals like Campbell, that this conduct will not be tolerated.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From August 2012 until July 2013, Campbell used several corporations to sell fraudulent surety bonds on construction projects. Surety bonds are three party bonding agreements in construction projects where a surety company assures the project owner that a contractor will perform a construction contract. The federal government and many state and local governments require a surety bond for certain construction contracts.
Campbell caused fraudulent surety bonds to be submitted to DeKalb County, Georgia; McDonough, Georgia; the U.S. Veterans Administration; Palo Alto, California; the Commonwealth of Kentucky; American Somoa; the Army Corps of Engineers; Nogales, Arizona; and several United States military bases, among others.
The defendant fraudulently held himself out to contractors and government agencies as having the authority to execute or issue surety bonds on behalf of Federal Insurance Company and Pacific Indemnity Company, affiliates of the Chubb group. To perpetuate the scheme, Campbell created fraudulent surety bonds, embossed the bonds using a counterfeit seal and forged the signatures of Chubb group officials. Campbell and his associates issued bonds with a face value of more than $100 million and received premium payments of more than $2.2 million during the course of the fraud. In addition to financial losses, Campbell’s fraud scheme caused delays in several construction projects and compromised the construction bidding process because contracts were sometimes awarded to unqualified construction companies.
Campbell, 57, of Orange Park, Florida,was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,904,376.67. Campbell was been convicted on this charge on October 20, 2014, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the 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 Dunwoody Police Detective Pleads Guilty to Running Fraudulent Warrant Checks in Return for Airline Tickets and Other KickbacksRead the Press Release
ATLANTA – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.
“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn. “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause. The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”
“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department. The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant.
In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database. Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them. In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time.
Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose. Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.
Assistant United States Attorney Garrett L. Bradford 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 Dunwoody Police Detective Pleads Guilty to Running Fraudulent Warrant Checks in Return for Airline Tickets and Other KickbacksRead the Press Release
ATLANTA – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.
“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn. “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause. The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”
“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department. The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant.
In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database. Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them. In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time.
Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose. Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.
Assistant United States Attorney Garrett L. Bradford 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/.
Arrest Made in Investigation of Explosive Device Left in Vickery Creek ParkRead the Press Release
ATLANTA - Michael C. Sibley made his initial appearance on federal charges that he intentionally conveyed false information relating to the unlawful use of an explosive device, and attempting to damage federal property by use of an explosive device, in connection with a device found in Vickery Creek Park in Roswell, Georgia, in November, 2014. Sibley was arrested by the FBI pursuant to a criminal complaint on March 21, 2015.
“The defendant allegedly placed a bag containing what appeared to be pipe bombs in Vickery Creek Park. This arrest should reassure the community that serious crimes like this will be investigated thoroughly and all leads followed to identify the perpetrator,” said Acting U. S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Reports of backpacks containing possible explosive devices are obviously taken seriously by the FBI and its Joint Terrorism Task Force (JTTF). The law enforcement response by Roswell Police, the FBI and its JTTF, as well as a significant response by area Explosives Ordnance Disposal units, was not only time consuming but costly to the taxpayers.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: On November 4, 2014, a citizen reported the presence of a suspicious package in Vickery Creek Park, located in Roswell, Georgia. That day, Roswell, Georgia, police officers found a backpack along a trail in the park that contained two partially assembled improvised explosive devices, also referred to as pipe bombs. The backpack also contained a Falcons schedule, a MARTA schedule and other papers, books and clothing.
On March 20, 2015, FBI agents identified Sibley as the individual who placed the device in the park and arrested him on a criminal complaint. The complaint charges Sibley with 1) intentionally conveying false information under circumstances where such information reasonably indicated that a violation of a federal statute prohibiting the unlawful use of an explosive device would take place, in violation of 18 U.S.C. Section 1038; and 2) attempting to damage federal property by use of an explosive device, in violation of 18 U.S.C. Section 844(f)(1).
Michael C. Sibley, 67, of Marietta, Georgia, appeared today before United States Magistrate Judge Linda T. Walker.
Members of the public are reminded that the Criminal Complaint 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 Tracia M. King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Two Former U.S. Army Soldiers Sentenced for Stealing $2.7 Million in Government Funds While Stationed in Saudi ArabiaRead the Press Release
NEWNAN, Ga. - Jasen Minter and Louis E. Nock have each been sentenced to four years, nine months in prison for stealing more than $2.7 million from a United States Government bank account while they were on active duty in the United States Army stationed in Riyadh, Saudi Arabia.
“This was an egregious abuse of trust by two former U.S. Army soldiers who had access to millions of dollars of government money,” said Acting U.S. Attorney John Horn. “Their conduct betrayed their trust and honor as servicemembers and took substantial funds away from the United States Military Training Mission in Saudi Arabia.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentencing of both former U.S. Army Captain Jasen Minter and Sgt. First Class Louis Nock will finally hold them accountable for their criminal actions in stealing over two million dollars in government monies, it remains to be seen if they will be able to repay the government in spite of the fact that, as part of their sentencing, they are ordered by the court to do so. While both Minter and Nock were stationed in Saudi Arabia, their purpose as Finance Officers was to support the war fighter through the U.S. Military Training Mission. They, instead, literally sent boxes of U.S. cash back to the States for their own personal gain. This has been an extensive and protracted investigation initiated by the U.S. Army Criminal Investigative Division and the Department of Defense- Office of Inspector General. The FBI will continue to work with its military components in ensuring that U.S. funds designated for military use are used as intended and not diverted to personal bank accounts as was seen in this case.”
“Instead of serving their country honorably while stationed overseas in a sensitive assignment, these two U.S. Army finance officers betrayed it by abusing their positions of trust and embezzling more than $2.7 million in American taxpayer funds,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This sentencing should serve as a constant reminder that DCIS and our law enforcement partners will relentlessly pursue corruption, fraud, and abuse within Department of Defense programs anywhere in the world, and bring violators to justice.”
“This sentencing is another great example of the work our special agents do on a daily basis,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The defendants attempted to profit by compromising the readiness of our servicemembers during a time of war, but this joint investigation unraveled their scheme and now they are being held responsible for betraying the trust placed in them.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Minter and Nock served as the Finance Officer and Deputy Finance Officer, respectively, for the United States Military Training Mission in Riyadh, Saudi Arabia from 2006 to 2007. As part of their duties in the Finance Office, Minter and Nock had access to a U.S. government bank account that was held at the Saudi American Bank.
In June 2006, the defendants withdrew approximately $1.2 million in cash from the bank account and kept those funds for their own benefit. In August 2006, they made another withdrawal of more than $1.5 million in cash, and again kept the funds for their own use instead of returning them to the Finance Office. Before leaving Saudi Arabia, both defendants falsely affirmed in Finance Office records that there were no missing funds from the bank account. An audit conducted by the Department of Defense later revealed the theft of funds.Jasen Minter, 44, of Fayetteville, Georgia, has been sentenced to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,216,617.97. Minter was convicted on these charges on November 21, 2014, after he pleaded guilty.
Louis E. Nock, 48, of Orlando, Florida, has been sentenced to four years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,216,617.97 to the United States Army. Nock was convicted of these charges on January 5, 2015, after he pleaded guilty.
This case was investigated by the United States Army Criminal Investigation Division, the Federal Bureau of Investigation, the United States Air Force Office of Special Investigations, and the Department of Defense, Office of the Inspector General.
Assistant United States Attorney Jamie 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 Newnan Division is http://www.justice.gov/usao/gan/.
Former Employee Charged with Embezzling over $2.5 Million from Marietta, Ga., Hair Products CompanyRead the Press Release
ATLANTA - Veria Fields, a former employee of Bronner Bros., Inc., has been arraigned on nine counts of mail fraud relating to theft from her former employer. Fields was indicted by a federal grand jury on March 4, 2015.
“Small businesses depend on their finance and accounting personnel to safeguard the financial health of the company and its employees,” said Acting U.S. Attorney John Horn. “This defendant is charged with violating this trust and helped herself to millions of the company’s dollars over several years.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The loss amount in this case is significant and, with the federal indictment and arrest of Ms. Fields, the former Accounts Receivable Manager at the victim company, this matter will have its day in court.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Fields was the Accounts Receivable Manager for Bronner Bros. Inc., a wholesaler of African American hair care products headquartered in Marietta, Georgia, Fields also informally performed customer service functions for the company. From 2006 through 2010, Fields allegedly embezzled over $2.5 million from Bronner Bros. by offering customers unauthorized discounts of five to ten percent in exchange for cash payments made directly to her. Thereafter, customers continued to submit orders with the expectation that they would receive the cash discounts promised by the defendant. To conceal the unauthorized discounts and her theft from Bronner Bros, Fields allegedly used her position as Accounts Receivable Manager to create false and fraudulent accounting entries.
Fields, 54, of Atlanta, Georgia, was arraigned on March 19, 2015, before U.S. Chief Magistrate Judge Janet F. King.Members of the public are reminded that the indictment contains only 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 Bernita B. Malloy 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 DeKalb County Commissioner Sentenced for Stealing County FundsRead the Press Release
ATLANTA – Elaine Boyer, former Commissioner of District 1 in DeKalb County, Georgia, has been sentenced for embezzling county funds and misusing her government credit card.
“Elaine Boyer helped herself to over $75,000 in taxpayer funds which were intended to benefit and improve DeKalb County,” said Acting U.S. Attorney John A. Horn. “Instead, she used the money for things like her personal travel and for purchases at high-end department stores. The citizens of DeKalb County deserve to be represented by honest elected officials who put the interests of the public first.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of former Dekalb County Commissioner Boyer concludes a lengthy career serving the people of Dekalb County. In spite of her otherwise admirable service to her community, Ms. Boyer lost her way and crossed the line of the law, resulting in the end of her public service career and time in federal prison to reflect on it all.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners (“BOC”) serves as the legislative branch of the DeKalb County Government. The BOC 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, Ms. 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. Among other responsibilities, Ms. Boyer sat on the BOC’s Finance, Budget, and Audit Committee and was the Chairwoman of the Employee Relations and Community Services Committee. Although Boyer’s term of office did not expire until 2016, she resigned on August 25, 2014, the day before she was charged in this case.
In September 2009, as the Commissioner of District 1, Ms. Boyer retained an individual (“Advisor”) supposedly to assist her with government consulting and advisory duties on issues that affected her constituents. From September 2009 to November 2011, false invoices were submitted to Ms. Boyer’s office for consulting services purportedly rendered by the Advisor. In fact, the Advisor performed no services for Ms. Boyer, District 1 constituents, or DeKalb County. Ms. Boyer used the false invoices as a basis to authorize payments to the Advisor. Based on requisition requests from Ms. Boyer, DeKalb County issued approximately 35 checks to the Advisor for consulting services that were never performed. In total, DeKalb County paid the Advisor approximately $80,000, believing that legitimate services had been performed for the county.
After being paid by DeKalb County, the Advisor funneled approximately 75% of the money received from DeKalb County into Ms. Boyer’s personal bank account. Between September 2009 and November 2011, the Advisor deposited approximately $60,000 in DeKalb County funds into Ms. Boyer’s personal bank account (while retaining the remainder of the money). In turn, Ms. Boyer used the money deposited into her account to pay personal expenses, including purchases at hotels and high-end department stores.
Additionally, in her capacity as a Commissioner, DeKalb County issued Ms. Boyer a Visa Purchasing Card (“P-Card”) to make county-related purchases. On January 14, 2010, she signed a Cardholder Users’ Agreement stating she would not use the P-Card to make personal purchases.
From October 2010 to February 2014, Ms. Boyer made more than 50 personal purchases on her P-Card, including purchasing airline tickets and hotel rooms for herself and her family for personal travel. In total, she made over $15,000 worth of purchases on her P-Card for personal goods and services.
On September 3, 2014, Elaine Boyer, 58, of Stone Mountain, Georgia, pleaded guilty to one count of conspiring to commit mail fraud and one count of wire fraud. Today, Boyer was sentenced to one year, two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $87,350.
On February 20, 2015, Elaine Boyer’s husband, John Boyer, 62, of Stone Mountain, Georgia, also pleaded guilty to one count of conspiring to commit mail fraud. Mr. Boyer is scheduled to be sentenced on May 6, 2015, at 2:00 p.m., before the Honorable Orinda D. Evans.
This case is being investigated by Federal Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Kurt R. Erskine 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/.
Former Jailer Arraigned on Bribery and Drug Charges After Attempting to Smuggle Cocaine into Hall County JailRead the Press Release
GAINESVILLE, Ga. - Austin Herring has been arraigned on federal charges of accepting bribes and conspiring to possess with intent to distribute cocaine in relation to his efforts to smuggle cocaine into the Hall County Jail. Herring was indicted by a federal grand jury on March 3, 2015.
“This former corrections officer allegedly accepted bribes on two occasions to smuggle what he believed to be cocaine into the Hall County Jail,” said Acting U.S. Attorney John Horn. “We are committed to doing what we can to eradicate drugs and other contraband from jails. Jails are the single place above all others where citizens should have confidence that the inmates are no longer breaking the law.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI takes all allegations of public corruption within law enforcement very seriously and acted on its investigation involving former Hall County Detention Officer Herring promptly. While these cases are disheartening to those working them, it should be noted that the vast majority of those in law enforcement are dedicated to their sworn oaths of office. The FBI would like to thank Hall County Sheriff Gerald Couch and his staff for their understanding and cooperation during this investigation.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Herring was employed as a jailer with the Hall County Sheriff's Office. On two occasions in February 2015, Herring was paid $500 to take a package he was told contained cocaine to an inmate inside the jail. After Herring delivered each package to the inmate who was cooperating with the investigation, the inmate then turned the package over to investigators. Herring did not open or tamper with either package, but on each occasion he was specifically told by the person who gave it to him that the package contained cocaine from Mexico. In actuality, neither package contained a controlled substance.
Herring, 19, of Murrayville, Georgia, was arraigned March 16, 2015, before United States Magistrate Judge J. Clay Fuller. He was arrested on these charges on February 20, 2015.
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 North Georgia Major Offenders Task Force and the Hall County Sheriff's Office.
Assistant United States Attorney William L. McKinnon, Jr. 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 Gainesville Division is http://www.justice.gov/usao/gan/.
Ephren Taylor Sentenced to Federal PrisonRead the Press Release
ATLANTA - Ephren Taylor II, and Wendy Connor have been sentenced in connection with the fraud scheme they perpetrated while officers at City Capital Corporation. The scheme victimized over 400 people who invested over $16 million.
“Taylor’s ‘Building Wealth’ tour accomplished exactly the opposite, victimizing hundreds of investors and leaving many of them financially ruined,” said Acting U.S. Attorney John Horn. “At churches across the country he touted himself as a socially conscious investor, but his investment opportunities were nothing but a Ponzi scheme designed to build his own personal wealth. This sentencing brings a measure of justice to those who remain devastated by his actions.”
“These defendants are habitual fraudsters and world-class manipulators,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “Taylor and Connor knew that the investments they were touting were based entirely on deception and lies, which were driven by their insatiable greed. Today, Taylor and Connor have to face the choices they have made and live with the consequences.”
“This case demonstrates the wide-reaching effects of fraudulent investment schemes and their impact on innocent victims. The fact that Ephren Taylor took advantage of people during a time of reverence and trust is particularly heinous,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “Today’s sentence should serve as a reminder that criminals will not get away with taking advantage of unsuspecting victims without bearing the consequences.”According to Acting U.S. Attorney Horn, the charges and other information presented in court: Taylor, the CEO of City Capital Corporation, directed a nationwide Ponzi scheme. All told, he defrauded over 400 victims and convinced them to invest over $16 million. From at least April 2009, when Wendy Connor joined City Capital, through October 2010, 278 victims were defrauded of over $5.8 million.
As part of the scheme, Taylor traveled around the country on a “Building Wealth Tour,” where he gave wealth management seminars to church congregations and where he targeted the African American and Christian communities. During this tour, Taylor claimed to be a socially conscious investor and falsely claimed that 20% of profits were donated to charity. One of the churches on the “Building Wealth Tour” was the New Birth Missionary Baptist Church in Lithonia, Ga. While there, Taylor and Connor met potential investors to discuss possible investments. Over 80 individuals from Georgia lost more than $2 million because of Taylor’s scheme.
The investments pushed by Taylor and Connor included purchasing promissory notes, where the funds invested would be used to support small businesses, such as laundries, juice bars, and gas stations. Taylor and Connor falsely represented the revenues and returns for these businesses knowing that they were not profitable.
Taylor and Connor also pushed an investment in sweepstakes machines. Sweepstakes machines are computers loaded with various games that allow players to win cash prizes. City Capital published offering materials that falsely claimed the average sweepstakes machine would generate 300% investor returns. As part of the fraud scheme, Taylor and Connor also promised that the sweepstakes machine investments were 100% risk free.
Taylor and Connor knew that the investments he was touting were not profitable and that investors were not receiving actual returns from their investments.
As part of the scheme, Taylor and Connor encouraged investors to use self-directed IRAs to make their investments. Many victims transferred their retirement savings to trust companies that act as custodians for self-directed IRAs, expecting these funds to be used to fund the investments pushed by Taylor.
After victims funded their self-directed IRAs, Taylor and Connor directed the use of those funds. The money was not invested as promised, but rather was used to pay ongoing business expenses of City Capital, pay personal expenses for Taylor and Connor, and in some limited instances, to pay supposed returns to earlier investors.
In late 2010, the scheme collapsed and Taylor's victims lost virtually all of their investments.
Taylor, 32, of Overland Park, Kansas, was sentenced by United States District Judge William S. Duffey, Jr., to 19 years, seven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $15,590,752.81. Wendy Connor, 46, of Raleigh, North Carolina, was also sentenced by Judge Duffey to five years in prison, to be followed by three years of supervised release, the first eighteen months of which are home confinement, and ordered to pay restitution in the amount of $5,818,299.13. Taylor was convicted on these charges on October 8, 2014, after he pleaded guilty to conspiracy to commit wire fraud. Connor was convicted on these charges on October 8, 2014, after she pleaded guilty to the interstate transportation of money taken by fraud.This case was investigated by the United States Secret Service and Internal Revenue Service Criminal Investigation with significant assistance from the United States Securities and Exchange Commission.
Assistant United States Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Indictment Unsealed and Additional Defendant Charged for One of the Largest Reported Data Breaches in U.S. HistoryRead the Press Release
ATLANTA - A criminal indictment was unsealed yesterday against Viet Quoc Nguyen and Giang Hoang Vu, both citizens of Vietnam, who resided for a period of time in the Netherlands, for their role in a massive data breach of Email Service Providers all over the United States. In addition, a federal grand jury returned an indictment this week against David-Manuel Santos Da Silva, a citizen of Canada, who is charged with conspiring with Nguyen and others to money launder the proceeds of Nguyen’s computer hacking offenses.
“This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney John Horn. “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”
“These men — operating from Vietnam, the Netherlands, and Canada — are accused of carrying out the largest data breach of names and email addresses in the history of the Internet,” said Assistant Attorney General Caldwell. “The defendants allegedly made millions of dollars by stealing over a billion email addresses from email service providers. This case again demonstrates the resolve of the Department of Justice to bring accused cyber hackers from overseas to face justice in the United States.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Large scale and sophisticated international cyber hacking rings are becoming more problematic for both the law enforcement community that is faced with the challenges of identifying them and laying hands on them, but also the Fortune 500 companies that are so often their targets. The federal indictments, apprehensions, and extradition in this case represents several years of hard work as the FBI and its cadre of cyber trained agents and technical experts acted quickly to stop the ongoing damage to the numerous victim companies as a result of these individuals’ hacking activities. In August, 2012, the FBI, with the assistance of its legal attachés stationed abroad, and in conjunction with Dutch law enforcement officials, executed a search warrant in the Netherlands that disrupted continued compromises of those companies while allowing U.S. authorities to advance its investigation. That investigation targeted not only the hackers but the businesses that helped monetize the data that was stolen from those victim companies. This case further reflects the productive partnership of the FBI and the U.S. Secret Service in aggressively addressing this 21st century crime problem.”
“Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Reginald Moore, Special Agent in Charge of the Atlanta Field Office. “The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice. This case demonstrates there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”
“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation is committed to 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: Between approximately February 2009 and June 2012, Viet Quoc Nguyen allegedly hacked into at least eight Email Service Providers (ESPs) all over the United States, including two ESPs based in the Northern District of Georgia, and stole confidential information, including proprietary marketing data containing over one billion email addresses.
Email Service Providers are companies that generally offer legitimate email marketing or bulk email services to their clients. Clients hire ESPs to assist with sending bulk emails to customers or potential customers who have opted to receive such emails. “Spam,” by contrast, is a commonly-used term for unsolicited email. ESPs generally take affirmative steps to ensure that their email campaigns are not blocked or classified as “spam” by the recipients’ email programs.
Nguyen allegedly hacked into the ESPs’ computer databases and, in conjunction with Vu, used his unauthorized access to launch spam attacks on tens of millions of email recipients. The data breach into certain ESPs was the subject of a congressional inquiry and testimony before a U.S House of Representatives subcommittee on June 2, 2011.
The indictment alleges that Nguyen used various methods to gain unauthorized access into the ESPs’ computer databases. In some instances Nguyen allegedly directed email phishing campaigns at employees of the ESPs, which are fraudulent emails designed to resemble emails from trustworthy persons or entities, but in fact are designed to trick the recipients into clicking a link on the email. Nguyen’s phishing campaigns allegedly delivered malware, which allowed him backdoor access to the ESP employees’ computer systems and enabled him to steal sensitive information, including the employees’ access credentials for the ESPs’ computer systems. Using stolen access credentials, Nguyen was not only able to allegedly steal confidential information by downloading the information from the ESPs’ computer systems to a server that he controlled in the Netherlands, but was also able to utilize the ESPs’ computer systems to launch spam attacks on tens of millions of stolen email addresses.
A federal grand jury returned a 29-count sealed indictment against Nguyen, 28, and Vu, 25, on October 3, 2012. The indictment was unsealed in its entirety for the first time yesterday. Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014. On February 5, 2015, Vu pleaded guilty to conspiracy to commit computer fraud. He is scheduled to be sentenced on April 21, 2015, at 10:00 am, before the Honorable Timothy C. Batten Sr. Viet Quoc Nguyen is not in custody and remains a fugitive.
On Wednesday March 4, 2015, David-Manuel Santos Da Silva, 33, of Montreal, Canada, was indicted by a federal grand jury for conspiracy to commit money laundering with Nguyen and others. Da Silva was arrested by criminal complaint at Ft. Lauderdale International Airport, in Florida, on February 12, 2015, and will be arraigned today at 3:00 p.m., before U.S. Magistrate Judge E. Clayton Scofield III, in Atlanta, Georgia.
It is alleged that Da Silva, the co-owner, President and a Director of 21 Celsius, Inc., a Canadian corporation that ran Marketbay.com, entered into an affiliate marketing arrangement with Nguyen that allowed him to generate revenue from his computer hacks. As an affiliate marketer, Nguyen allegedly received a commission on sales generated from internet traffic that he directed to websites promoting specific products. Nguyen allegedly used his computer hacks into the ESPs to direct “spam” attacks to tens of millions of stolen email addresses. The unsolicited emails received through Nguyen’s and Vu’s spam attacks enticed the recipients by promoting specific products and providing hyperlinks for the recipients to purchase the products. The hyperlinks directed the recipients to one of Nguyen’s affiliate marketing websites associated with Marketbay.com.
Da Silva allegedly knew that Nguyen was spamming to stolen email addresses in order to direct high volumes of internet traffic to his affiliate marketing websites with Marketbay.com. Da Silva allegedly conspired with Nguyen and others to promote Nguyen’s hacking and spamming activities by providing him with a platform, through Marketbay.com, to generate sales commission from his computer hacks into the ESPs. Between approximately May 2009 and October 2011, Nguyen and Da Silva received approximately $2 million for the sale of products derived from Nguyen’s affiliate marketing activities.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with the valuable assistance of the United States Secret Service and Internal Revenue Service Criminal Investigation. Law enforcement in the Netherlands also provided valuable assistance.
Assistant United States Attorney Steven D. Grimberg and Trial Attorney Peter Roman with the U.S. Department of Justice Computer Crime and Intellectual Property Section are prosecuting the case.
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 Georgia Department of Corrections Employees and Accomplice Indicted for Stealing State Restitution FundsRead the Press Release
ATLANTA - Tammi Stephens, Daynna Gregory, and Richard Cantrell have been arraigned on federal charges of theft of public funds and conspiracy stemming from an alleged check fraud scheme to steal from a victims’ restitution fund controlled by the Georgia Department of Corrections, where Stephens and Gregory worked until recently.
“These defendants are charged with stealing from a fund set up to compensate victims of crime,” said Acting U.S. Attorney John Horn. “At the time of their alleged actions, Stephens and Gregory were Georgia Department of Corrections employees, holding positions in which they were responsible for issuing checks to crime victims.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The allegations contained within this federal indictment involve a serious breach of trust by these defendants. The FBI remains committed toward investigating and presenting for prosecution those individuals who would use their positions of trust within government for personal gain.”“The abuse of public trust by Stephens and Gregory as state employees, and their betrayal of the victims we serve are actions that won’t be tolerated,” said Homer Bryson, Commissioner of the Georgia Department of Corrections. “We appreciate the swift response by the FBI, and the diligence of our staff in identifying this serious breach. We are committed to fully cooperating and assisting with the investigation and prosecution of these former employees,” added Bryson.
According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: From September 2013 to June 2014, Stephens and Gregory used their positions as clerks in the Georgia Department of Corrections’ banking unit to issue fraudulent checks drawn on a fund established to provide restitution to victims of other crimes. The indictment further alleges that Stephens and Gregory made the checks payable to a flower shop owned by Cantrell, who was not an employee of the Department. The defendants purposely issued fraudulent checks to the flower shop in order create the appearance that the restitution checks were being paid to real crime victims. After printing the fraudulent checks, Stephens and Gregory allegedly altered the Department’s financial records to hide their theft. The fraudulent checks were then delivered to Cantrell, who cashed them and split the proceeds with Stephens and Gregory. In total, the defendants allegedly stole more than $232,000, which they then spent at big box stores and department stores.
Tammi Stephens, 37, of Forsyth, Georgia, Daynna Gregory, 41, of Lithonia, Georgia, and Richard Cantrell, 54, of Marietta, Georgia were indicted by a federal grand jury on March 3, 2015. All three defendants were arraigned this afternoon before Magistrate Judge E. Clayton Scofield, III.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 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/gan/.
Former UBS Client Sentenced to Federal Prison for Hiding Income and Assets from IRS in Foreign Bank AccountsRead the Press Release
ATLANTA - Gregg A. Kaminsky has been sentenced for wilfully failing to file a Foreign Bank Account Report with the U.S. Department of Treasury in connection with his concealment of income and assets in accounts in Switzerland, Hong Kong, and Thailand over several years, as well as his failure to report certain income earned in the virtual world, “Second Life.”
“Federal tax revenue is crucial to protecting our borders; fighting terrorism, cybercrime, and other national security threats; providing disaster relief; and to performing other critical government functions,” said Acting U. S. Attorney John Horn. “This office is committed to investigating and prosecuting those who intentionally avoid paying their fair share, whether their schemes involve income earned or hidden offshore, here at home, or even in a virtual world.”
“U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally,” stated IRS Criminal Investigation Special Agent in Charge, Veronica F. Hyman-Pillot. “Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Citizens and residents of the United States who have a financial interest in, or signature authority over, a financial account in a foreign country with an aggregate value of more than $10,000 at any time during a calendar year are required to file with the U.S. Department of Treasury a “Report of Foreign Bank and Financial Accounts,” commonly referred to as the “FBAR.” The FBAR for the applicable year must be filed by June 30 of the following year.
Kaminsky is an Internet entrepreneur who serves as the Chief Executive Officer of Circlenet LLC, based in Atlanta, Georgia. From 2000 through mid-2009, Kaminsky owned and controlled a foreign bank account with Union Bank of Switzerland AG (“UBS”), one of the biggest banks in Switzerland and largest wealth managers in the world. By 2006, Kaminsky’s UBS account held approximately $1.1 million. From time to time between 2002 and 2009, Kaminsky caused funds to be wire-transferred from his UBS account in Switzerland to other foreign bank accounts controlled by him in Thailand and Hong Kong. Also during that time, Kaminsky caused his income from at least two different U.S. companies to be direct-deposited into his UBS account in Switzerland.
Yet, over this period, Kaminsky did not disclose his UBS account or other foreign financial accounts to the U. S. Treasury Department as required, and thereby concealed several hundred thousand dollars in taxable income, interest, and dividends from the U.S. Internal Revenue Service (IRS).
In addition, in 2007 and 2008, Kaminsky omitted his UBS account and associated income from Free Applications for Federal Student Aid (FAFSA) that he electronically filed with the U.S. Department of Education in order to qualify for need-based federal financial aid to fund his tuition for an Executive MBA program at Emory University. At the time of the FAFSA applications, Kaminsky controlled over a half million dollars in his UBS account, which would have made him ineligible for federal student loan assistance.
On June 30, 2008, the U.S. Department of Justice sought court approval to compel UBS to disclose the identities of U.S. account holders who may be using UBS accounts to hide assets overseas and thereby evade U.S. taxes. The request and the order authorizing it were widely reported by the media throughout the United States, and this coverage continued throughout 2008 and 2009 as the U.S., UBS, and Switzerland negotiated a resolution and UBS began disclosing U.S. account holders to the IRS.
Following this news, Kaminsky closed his UBS account and transferred the balance of his UBS account to an account that he controlled at HSBC Bank in Hong Kong. Further, in spring 2010, Kaminsky filed FBARs for his Swiss and Hong Kong accounts for the very first time, also filing amended individual income tax returns for 2007 and 2008 that disclosed the previously unreported income in his UBS account. However, in his amended 2007 and 2008 returns, and in his subsequently filed returns for 2009 through 2012, Kaminsky still failed to report nearly $150,000 in taxable income earned from his business activities in the virtual world, “Second Life.”
Participants in Second Life, referred to as “residents,” can engage in a wide variety of business activities, including buying, renting, and sub-leasing virtual land and buying and selling other virtual goods, services, and experiences for their “avatars.” Transactions are conducted using a virtual currency, “Linden Dollars.” Linden Dollars can be bought and traded on the “Linden Exchange,” and are redeemable for cash.
Including his virtual world income, Kaminsky failed to report over $400,000 in income to the IRS between 2000 and 2012, resulting in a loss to the IRS of approximately $125,000.
Kaminsky, 46, of Atlanta, Georgia, was sentenced today to serve four months in federal prison to be followed by two years of supervised release, two months of home confinement, and 200 hours of community service. Kaminsky was also ordered to pay restitution to the IRS in the amount of $91,983. Kaminsky was convicted on these charges on December 18, 2014, after he pleaded guilty. As part of his plea agreement with the United States, Kaminsky was also required to pay a civil penalty to the IRS in the amount of $250,635.20, which is equivalent to fifty percent of the value of the balance in Kaminsky’s HSBC account in Hong Kong as of June 30, 2009.
This case was investigated by Special Agents of the Criminal Investigation Division of the Internal Revenue Service. Valuable assistance was also provided by Special Agents of the U.S. Department of Education, Office of Inspector General.
Assistant United States Attorney David M. Chaiken prosecuted the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, 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/gan/Former Grady Hospital Payroll Director Sentenced for Embezzling from GradyRead the Press Release
ATLANTA - Donald Thomas, the former payroll director for the Grady Memorial Hospital Corporation, was sentenced to seven years, three months in prison for stealing nearly half a million dollars from the longstanding public institution.
“As a result of the defendant’s embezzlement, Grady Hospital lost hundreds of thousands of dollars that otherwise would have gone towards patient care,” said Acting U.S. Attorney John Horn. “Grady has made monumental changes to restore its financial health, and Thomas used his position of trust at the hospital to harm these efforts simply for his own personal gain. Today he goes to prison.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing is the price paid for stealing funds from a valued health care institution such as Grady Hospital. The FBI will continue to provide investigative assistance to help protect these institutions that give so much back to their community as Grady does.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From December 1994 through June 2011, Thomas served as Assistant Controller for Grady Memorial Hospital Corporation. Grady Hospital has provided health care to thousands of Atlanta-area residents – a large portion of whom are uninsured – for over one hundred years. It has long provided low-cost or free medical care to indigent patients.
While serving as payroll director, Thomas had nearly exclusive control over Grady’s payroll systems. For over three of those years, he falsified additional vacation pay and severance pay for former Grady employees and had the funds deposited into his own accounts. Because Thomas was careful about reversing his fraudulent changes to the payroll system and had most of the funds deposited into a business account, rather than his own, the scheme went undetected. Thomas was laid off in a workforce reduction in 2011, before the fraud was discovered.
Prior to leaving Grady in 2011, Thomas became less careful about covering his tracks, and as a result, some of the falsified pay was reported as income on the former employees’ federal W-2 tax forms. In early 2012, one of those employees noticed the inflated income amount and reported it to Grady. Further investigation led to the discovery of 136 fraudulent transactions in all. Over the course of the scheme, Thomas stole over $480,000.
Thomas, 55, of Atlanta, Georgia, was sentenced by U.S. District Judge Charles A. Pannell, Jr. to seven years and three months in federal prison and three years of supervised release, and ordered to pay $482,851.76 in restitution to Grady Hospital. On December 5, 2014, a jury convicted Thomas of six counts of theft from an organization receiving federal funds, six counts of wire fraud, and two counts of bank fraud. At trial, witnesses from Grady explained how Thomas manipulated the payroll system, as well as the effect of the financial loss on Grady’s ability to provide medical services.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Shanya Dingle and G. Scott Hulsey 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/.Former Employee Sentenced for Embezzling More Than $1 Million from His CompanyRead the Press Release
ATLANTA - DeMarco Doxie has been sentenced to four years and five months in prison for his theft of more than $1 million from his former employer, Ennis Paint (currently known as Ennis-Flint).
“The defendant manipulated, lied to, stole from, and violated the trust of his employer. He created a fictitious company to bill Ennis for environmental and safety compliance work that his made-up company never performed, and then used a significant portion of the stolen money to upgrade and remodel his home,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Extensive white collar based fraudulent schemes can, over time, add up to significant loss amounts for the victim companies, as seen in this case. Mr. Doxie, the defendant in this matter, displayed extensive disregard for his employer and will now be held accountable for his criminal conduct.”
“In addition to stealing from his employer, Mr. Doxie concealed the income and failed to pay taxes on it,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Individuals who line their pockets with profits from fraudulent schemes should know the money is taxable and you will be held accountable."
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Doxie was the former Corporate Environmental Health & Safety Manager for Ennis Paint. Ennis, headquartered in Dallas, Texas, manufactures and sells a variety of road marking and pavement surface treatments. Ennis maintains a facility in Atlanta, Georgia, where Doxie worked.
During more than four years of his employment, from June 2007 through August 2011, Doxie used a sham business that he created and owned – Outlook Environmental & Safety Solutions, LLC (Outlook) – as his main vehicle to systematically embezzle large sums of money from Ennis.
Beginning in June 2007, Doxie began creating fictitious invoices for environmental work that Outlook had supposedly performed for Ennis Paint, when Doxie was well aware that Outlook had not performed any such work and had no employees. Ennis Paint was never informed by Doxie that he was the actual owner of Outlook while Doxie was submitting fraudulent invoices to Ennis Paint for payment to Outlook, and would never have paid the invoices had it known.
Doxie also defrauded Ennis by using an American Express Corporate Card issued by Ennis Paint that was supposed to be used for Ennis expenses. Doxie used the American Express company credit card to make payments to Outlook even though Outlook had not performed any work for Ennis. Ennis Paint paid the monthly bill on Doxie's American Express card. Ennis Paint would not have approved the payments if it knew that Doxie was the true owner of Outlook, a fact that Doxie intentionally concealed from Ennis. Doxie also paid for some of his personal expenses using his Ennis-issued credit cards in 2011. In total, Doxie stole more than $1 million from Ennis paint as a result of his fraudulent schemes. Additionally, Doxie was convicted of filing false tax returns, because he under-reported his actual income to the IRS for tax years 2008, 2009, 2010, and 2011 by failing to include the income that he had received from the fraud. As a result, Doxie underpaid his taxes by nearly $300,000.
Doxie, 44, of South Bend, Indiana, was sentenced to four years, five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,008,417.49 to Ennis Paint and $299,750 in restitution to the IRS. Doxie was convicted of these charges on September 29, 2014, after he pleaded guilty to all the charges in the indictment.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Glenn D. Baker and 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/gan/.
Brothers Sentenced for Methamphetamine TraffickingRead the Press Release
ROME, Ga. – Felix Moreno-Garcia and Fabian Pineda-Garcia have been sentenced for possessing over four pounds of methamphetamine with the intent to distribute.
“These brothers were significant contributors to the Northwest Georgia methamphetamine market,” said Acting U.S. Attorney John Horn. “Thankfully, DEA agents and the Lookout Mountain Drug Task Force successfully put an end to this family drug dealing business.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “These methamphetamine distributors were driven by greed and power. Today they stand powerless and will spend well-deserved time in prison. This case would not have been possible without the high level of cooperation between our law enforcement counterparts.”
According to Acting United States Attorney Horn, the charges and other information presented in court: In July 2012, the Lookout Mountain Judicial Circuit Drug Task Force (“Lookout Mountain Task Force”) initiated an investigation of a Mexican drug trafficking organization operating out of Chattooga County, Georgia. The Lookout Mountain Task Force developed an informant who provided information regarding Fabian Pineda-Garcia’s narcotics trafficking.
In August 2012, the DEA joined the investigation focusing on Fabian Pineda-Garcia’s brother, Felix Moreno-Garcia. Agents conducted a series of controlled purchases before successfully introducing an undercover officer to Moreno-Garcia in November 2013. Moreno-Garcia sold the undercover officer multi-ounce quantities of methamphetamine on several occasions. On March 19, 2014, Moreno-Garcia sold the undercover officer eight ounces of methamphetamine in the parking lot of the Wal-Mart in Trion, Georgia. Immediately after the sale, officers arrested Moreno-Garcia before he could leave the parking lot. Later that evening, agents executed search warrants at four locations, including a residence in Trion, Georgia. There, law enforcement officers discovered three and a half pounds of methamphetamine hidden under a mattress in a bedroom. Agents also located a 12-gauge shotgun in the corner of the bedroom. Agents arrested Fabian Pineda-Garcia and an unindicted coconspirator at the residence.
Both Moreno-Garcia and Pineda-Garcia were convicted of conspiring to distribute methamphetamine upon their pleas of guilty on November 19, 2014.
Felix Moreno-Garcia, 33, of Trion, Georgia, was sentenced to 15 years, four months in prison to be followed by five years of supervised release. Fabian Pineda-Garcia, 34, also of Trion, Georgia, was sentenced to ten years, one month in prison to be followed by five years of supervised release. Both were sentenced by United States District Judge Harold L. Murphy.
This case was investigated by the Drug Enforcement Administration and Lookout Mountain Judicial Circuit Drug Task Force.
Assistant United States Attorney C. Brock Brockington 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 Rome Division is http://www.justice.gov/usao/gan/.
Former Baggage Handler at Hartsfield-Jackson Airport ArraignedRead the Press Release
ATLANTA – Eugene Harvey, a former baggage handler for Delta Air Lines, has been arraigned on federal charges of conspiring to carry dangerous weapons on an aircraft, firearms trafficking, and illegally entering an airport area to evade security and commit crimes. Harvey was indicted by a federal grand jury on February 18, 2015.
“The indictment alleges that Harvey used his security badge again and again to bypass security and avoid screening, so that he could smuggle over one hundred firearms - many loaded - onto passenger planes” said Acting U.S. Attorney John Horn. “Reducing firearms trafficking is a priority for this office, especially when it threatens the safety of passengers at our airports.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI continues to play a vital role in working with its many law enforcement partners in ensuring that our nation’s airports and those traveling in and out of them remain safe. Those who violate procedures in place that jeopardize that security will be investigated and presented for federal prosecution.”According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Throughout 2014, Harvey, then a baggage handler for Delta Air Lines, worked with another former Delta employee to smuggle firearms through airport-controlled security checkpoints and onto planes. Specifically, after using his security badge to smuggle the firearms into the secure area of Hartsfield-Jackson, Harvey would transfer the firearms to his accomplice who would then conceal the firearms in his carry-on luggage and take the firearms into the passenger cabins of flights traveling between Atlanta and New York's JFK and LaGuardia Airports. Harvey's accomplice then flew to New York with the guns, where they were illegally sold.
The federal investigation into Harvey began when the New York Police Department (NYPD) and the Kings County, New York, District Attorney's Office notified the FBI that a then-unidentified individual was helping a gun-trafficker move guns illegally from Georgia into New York. By that time, the NYPD had identified and arrested the New York seller of the illegal firearms, and was working with Atlanta FBI to investigate how the guns were being smuggled into New York. Upon learning the firearms were being smuggled by passenger plane, Delta Airlines worked closely with law enforcement to identify Harvey and immediately terminated him.
Since January 2014, Harvey trafficked 135 firearms between Georgia and New York. The last shipment on December 10, 2014, contained 18 firearms, 7 of which were loaded.
Harvey, 31, of College Park, Georgia, was arrested on December 20, 2014, and was arraigned before U.S. Magistrate Judge E. Clayton Scofield III. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Federal Air Marshal Service, and the Transportation Security Administration.
Assistant United States Attorneys L. Skye Davis 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/gan/.Nurse Practitioner Indicted on Health Care Fraud and Aggravated Identity Theft ChargesRead the Press Release
ATLANTA - Daphne Maria Patterson has been arraigned on federal charges of health care fraud and aggravated identity theft. She allegedly stole patients and their family member’s identities and billed insurance providers for services she did not render. Patterson was indicted by a federal grand jury on February 17, 2015.
“This health care provider is charged with committing an egregious violation of her patients’ trust. The indictment alleges that she not only used patients’ information to submit false claims to insurance companies, she also tried to make even more profits by stealing the personal information of patients’ family members and filing additional false claims on their behalf,” said Acting U.S. Attorney John Horn. “When someone steals money through health care fraud, it’s not just a matter of illegal profit by the thief, as the theft impacts all of our medical costs.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Health care programs are critical to those who are truly in need. Such conduct by those individuals who would divert those much needed but limited funds for personal gain should not and will not be condoned. The FBI takes all allegations of health care fraud very seriously and will continue to work with its various law enforcement partners to present for prosecution those individuals involved in this criminal activity.”
“Thanks to the combined efforts of my office and federal agencies, I believe we have stopped a major perpetrator of insurance fraud,” said Georgia Insurance Commissioner Ralph Hudgens. “I credit the excellent investigative work by all agencies with breaking this case open.”According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Daphne Patterson is a registered nurse practitioner and owner of Healthier U 4 Ever Wellness Center, a clinic in Stone Mountain, Georgia. The indictment alleges that while employed with another medical practice in Lawrenceville, Georgia, Patterson stole the personal information of her patients to file false claims with United Insurance Company for various allergy tests and treatment that the patients never received. Additionally, she used her access to the patients’ personal information in order to steal family members’ identifying information and to seek further reimbursement from United for services she had not rendered to patients she had never seen.
The indictment further alleges that after leaving the medical office and opening her own clinic in Stone Mountain, Patterson continued the fraudulent scheme by billing several insurance companies for allergy tests and treatments that she did not provide to her patients. In total, Ms. Patterson obtained more than $1 million from the insurance companies on the basis of her false claims.
Daphne Maria Patterson, 44, of Stone Mountain, Georgia, was arraigned before U.S. Magistrate Judge E. Clayton Scofield III. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Insurance.
Assistant United States Attorney Jamie 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Husband of Former DeKalb County Commissioner Boyer Charged with Stealing County FundsRead the Press Release
ATLANTA – John Boyer, the husband of former DeKalb County, Georgia, Commissioner Elaine Boyer, has pleaded guilty to stealing county money that was paid to a third party, who then funneled the funds into a personal bank account used by the Boyers. The plea stems from Elaine Boyer’s conviction on similar charges in September, 2014.
“John Boyer exploited his wife’s position as a DeKalb County Commissioner to steal thousands of dollars in county funds. The Boyers’ scheme put tax payer money in their pockets – and left the citizens of DeKalb County with the tab,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The use of public office for personal gain is a serious breach of trust that should not be tolerated. The FBI has ranked public corruption as its number one criminal program priority due to its vast harm created along many lines and asks that anyone with information regarding such activity to please contact their nearest FBI field office.”
According to Acting 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 in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. In August 2014, Elaine Boyer resigned as the Commissioner of District 1.
In 2009, Elaine and John Boyer experienced financial difficulties. As a result, John Boyer devised an unlawful kickback scheme 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 as a political advisor (“Advisor”), allegedly to assist her with government consulting.
From September 2009 to November 2011, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Advisor. In fact, Advisor performed no services for DeKalb County. Elaine Boyer used the false invoices as the basis to authorize payments to Advisor. Based on requisition requests from Elaine Boyer, DeKalb County mailed approximately 35 checks, via the United States Postal Service, to Advisor for consulting services that were never performed. In total, DeKalb County paid Advisor more than $80,000.
John Boyer then instructed Advisor to deposit the money that the Advisor received from DeKalb County into a bank account used by Elaine and John Boyer. Consequently, after being paid by DeKalb County, Advisor 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.
On September 3, 2014, Elaine Boyer, 58, of Stone Mountain, Georgia, pleaded guilty to one count each of conspiring to commit mail fraud and wire fraud. Ms. Boyer is scheduled to be sentenced before U.S. District Judge Orinda D. Evans on March 20, 2015, at 1:30 p.m.
John Boyer, 62, of Stone Mountain, Georgia, was charged via a criminal information with conspiring to commit mail fraud. Boyer pleaded guilty to that charge. In determining Boyer’s sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The sentencing hearing for Mr. Boyer is scheduled for May 6, 2015, at 2:00 p.m., also before Judge Evans.
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 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 Delta Air Lines Employee Sentenced to Six Years for His Role in Defrauding Delta and Northwest Air Lines of More Than $36 MillionRead the Press Release
ATLANTA - Paul Anderson has been sentenced to six years and eight months in prison for his role in a scheme to defraud Northwest and Delta Air Lines of more than $36 million. Anderson and his co-defendant Michael Yedor submitted false invoices to both airlines, for work that was not performed but was billed for by a company allegedly owned by Yedor.
“The defendant’s lucrative and long-running scheme came crashing down when Delta uncovered his deception and informed law enforcement,” said Acting U.S. Attorney John Horn. “For more than a decade, Anderson used his position of trust within these airline companies to steal millions of dollars from the airlines for himself and a codefendant.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains well positioned and committed toward investigating those individuals who would engage in such complex wire fraud based schemes that generate high loss amounts as seen in this case. The sentencing of Mr. Anderson brings to a close a lengthy fraud scheme that spanned almost 15 years and targeted two major airlines.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Anderson had been an employee of Northwest Airlines since 1979. In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became a managerial employee of Delta, working in its Minneapolis, Minnesota office.
From at least 1999 through 2013, Anderson and co-defendant Michael Yedor engaged in a scheme to defraud Northwest and later, Delta, by submitting numerous false invoices on behalf of a company purportedly owned by Yedor, Airborne Voice and Data. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data, when in fact both Anderson and Yedor knew that Yedor’s company had not provided any such goods or services.
In order to receive payment for the false invoices, Yedor sent the invoices to Anderson, who had the authority to approve them for payment. Once Anderson approved the invoices, falsely indicating that the goods or services had been received, the airlines issued payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The defendants acknowledged that they received more than $36 million from the airlines during the scheme.
Anderson, 57, of Apple Valley, Minnesota, was sentenced by U.S. District Judge Timothy Batten to six years, eight months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million and to forfeit his individual retirement accounts. Anderson was indicted on June 10, 2014, and pleaded guilty on September 15, 2014, to conspiracy to commit mail fraud.
Co-defendant Michael Yedor, 62, of Los Angeles, California, was sentenced on January 9, 2015, by U.S. District Judge Timothy Batten to ten years in prison, followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million, in addition to a personal money judgment of more than $36 million, and forfeiture of his interest in an array of real properties and luxury goods, including a Beverly Hills mansion and a 71.9 foot yacht.
Delta Air Lines cooperated fully with the investigation.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny 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/.
Milledgeville Couple Found Guilty of Tax FraudRead the Press Release
ATLANTA - Kenneth Horner and his wife Kimberly Horner have been found guilty of tax fraud following a three-day jury trial for skimming more than $1.5 million in cash from their business without disclosing the income.
“This jury recognized the defendants’ handling of cash for what it really was: a ploy to avoid disclosing income and paying taxes,” said Acting U.S. Attorney John Horn.
“In willfully failing to report their total business income to the IRS, the Horners cheated the system and dodged the same basic responsibility that millions of other business owners comply with every year: fairly and honestly reporting their earnings,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Today’s verdict establishes that those who engage in such criminal conduct will be held accountable. The Tax Division is committed to working with its law enforcement partners to identify, investigate and vigorously prosecute these offenders.”
“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Taxpayers deserve our vigilance in the investigation and prosecution of individuals who willfully underreport their income and evade the payment of their fair share of taxes.”
According to Acting United States Attorney Horn, the charges and other information presented in court: Kenneth and Kimberly Horner owned Topcat Towing and Recovery, Inc. (“Topcat Towing”), a towing business in Lithonia, Georgia. Between 2005 and 2008, Topcat Towing had an exclusive contract with DeKalb County, Georgia, for all county car tows needed from the south precinct of the county. Between 2005 and 2008, the defendants skimmed more than $1.5 million in cash receipts from their towing business and deposited those cash receipts into their personal bank account without disclosing the income to their tax return preparer or on corporate and personal tax returns filed with the IRS. The defendants tried to conceal their cash deposits from the government by “structuring” their deposits, which is the act of splitting up cash deposits that exceed $10,000 for the purpose of evading a Currency Transaction Report from being filed.
Most financial institutions, including banks, are generally required to file Currency Transaction Reports (CTRs) for cash transactions that exceed $10,000. CTRs are submitted to the U.S. Department of Treasury. In 2007 and 2008, the defendants used their unreported cash, in part, to build a custom home in Conyers that was appraised at more than $900,000. The defendants owe approximately $400,000 in taxes to the IRS for their unreported income.
The defendants were charged with filing false corporate and personal tax returns for the years 2007 and 2008. They were convicted of all four counts charged.
Sentencing for Kenneth Horner, 58, and Kimberly Horner, 53, both of Milledgeville, Georgia, is scheduled for May 6, 2015, at 10:00 a.m. before U.S. District Judge Timothy C. Batten Sr.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
DOJ Criminal Tax Division Trial Attorney Christopher J. Maietta and Assistant U.S. Attorney Steven D. Grimberg 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/.
Former DeKalb County Zoning Board of Appeals Member Pleads Guilty to BriberyRead the Press Release
ATLANTA – Jeremy “Jerry” Clark, a former member of the DeKalb County Zoning Board of Appeals, has pleaded guilty to a federal bribery charge. Clark accepted money in exchange for his vote allowing a business to operate as a late-night dance club.
“It took only $3,500 to subvert the purpose of this DeKalb zoning ordinance, which was to regulate the operation of late-night nightclubs,” said Acting United States Attorney John Horn. “This case demonstrates how a corrupt public official can sell out the legitimate interests of the communities and citizens he serves, solely for his own profit. DeKalb County citizens deserved better.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The guilty plea of Mr. Clark should remind those in public office of the serious consequences of succumbing to the temptations that can come their way. The FBI’s Public Corruption Program remains prepared to identify, investigate, and present for prosecution those individuals who would abdicate their integrity for personal greed.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: In November 2008, the DeKalb County (Georgia) Board of Commissioners passed a zoning ordinance that regulated the placement and operation of late-night establishments and nightclubs. As a general matter, the ordinance mandated that new businesses must obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be grandfathered in under the 2008 zoning ordinance change.
In DeKalb County, the Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error. From January 2009 to May 2013, Clark served as a member of the Zoning Board of Appeals.
Based on the zoning change, in September 2012, the DeKalb County Department of Planning and Sustainability issued a warning to the owner of a late-night establishment in Tucker, Ga., (“Business Owner”), advising him that the establishment could not operate as a nightclub without a Special Land Use Permit. The Business Owner responded that the establishment had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule. Notably, almost a year earlier in November 2011, the Department of Planning and Sustainability had advised the late-night establishment in writing that it was grandfathered in only as a late-night business, could not operate as a nightclub, and could not have a dance floor.
Ultimately, the Business Owner appealed the decision to the DeKalb County Zoning Board of Appeals. Prior to the hearing on the appeal, Clark met with the Business Owner. During those meetings, the Business Owner made it clear to Clark, that if the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub, Clark would be rewarded. In November 2012, the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub. Clark voted in favor of the Business Owner. Thereafter, the Business Owner paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.
On February 10, 2015, Clark, 42, of Lithonia, Ga., was charged in a criminal information with one count of bribery. The sentencing hearing is scheduled for April 30, 2015, at 10:00 a.m., before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey 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/gan/.