Northern District of Georgia

Press releases recorded for this federal judicial district.

MS-13 Members Sentenced for A Murder and Shooting
2015-02-13 · Northern District of Georgia
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ATLANTA – Miguel Guevara, Irvin Mejia Cruz, and Walter Aldana - members of the street gang known as Mara Salvatrucha 13, or MS-13 - have been sentenced for violent crimes they committed, including the murder of one man and the shootings of two others, one of whom was a 14-year-old boy.

“The gratuitous acts of violence these now-convicted gang members committed were intended to spread fear of their gang throughout the community,” said Acting United States Attorney John Horn. “Gangs like MS-13 have worked to establish a foothold in counties outside of Atlanta for years, and this case reveals the worst of the senseless violence that can arise from their activities—shooting at cars on the highway, or firing a gun into a group of middle school students playing basketball. This case also highlights the difficulties faced by youths who try to escape from the gang culture, as a murder occurred simply because a gang member wanted to drop out. Our strategy in cases like this is to decimate the entire gang structure, and eradicate the gang activity so that our citizens can go about their lives safely.”

“Violent criminal street gangs like MS-13 threaten everyone in our communities,” said Ryan L. Spradlin, acting special agent in charge of ICE Homeland Security Investigations in Atlanta. “These sentences, and the dozens of other convictions that resulted from this massive investigation, have made Atlanta neighborhoods safer places to live.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lengthy federal prison sentences handed down to these three violent members of MS-13, a Central American based gang known for its violence, will not only make our community safer but will send a message to other gang members that the FBI and its law enforcement partners will aggressively continue its efforts to disrupt and dismantle these organized crime groups such as MS-13.”

According to Acting United States Attorney Horn, the charges and other information presented in court: MS-13 is an international gang that has operated in the greater Atlanta, Ga, area since at least 2005. During the course of this investigation, which ended in 2010, more than 75 MS-13 members were arrested, charged, and/or deported. MS-13 members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS-13. Each clique had a leader, often referred to as “the first word,” who conducted weekly meetings. At these meetings, members discussed their crimes against rival gang members and their plans to retaliate against rivals. The clique leaders collected dues from the gang members, which they used to buy guns and post bail for jailed gang members. Clique leaders often sent money back to MS-13 leaders in their home countries of El Salvador and Honduras, and clique leaders often reported back to MS-13 leaders in their home countries about MS-13 activities in the Atlanta area. The gang members staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders, and armed robberies.

The evidence gathered during the investigation reflected that Miguel Guevara, a/k/a Blacky, was a member of MS-13 in 2006. He decided that he wanted to become less active in the gang and sought permission to “calm down” from the leader of his clique, Miguel Alvarado-Linares, a/k/a Joker. Alvarado-Linares discussed this with other members at a meeting of the clique on December 23, 2006. Everyone agreed that Guevara would have to shoot at a suspected rival gang member before he could become inactive. They went to the nightclub El Chaparral on Buford Highway, in DeKalb County, Ga., where they waited outside looking for suspected rival gang members.

In the early morning hours of December 24, 2006, they saw Celso Villalobos and Angel Gonzales walk out of the nightclub and drive away in a Toyota Corolla. As the Corolla pulled out of the parking lot, multiple MS-13 members began following it. The Corolla got onto I-85 and headed north. Guevara was in the passenger side of a Ford truck following the Corolla. The Ford truck pulled alongside the Corolla as it exited I-85 onto Highway 316 in Gwinnett County, Ga. At that moment, Guevara fired multiple shots. He hit the passenger, Angel Gonzales, in the head. He also struck the driver, Celso Villalobos, in the arm. Villalobos drove Gonzales to the Gwinnett County Medical Center, where he died of the gunshot wound to the head.

The evidence gathered during the investigation also showed that Irvin Mejia Cruz, a/k/a Triste, a/k/a Lil Triste, and Walter Aldana, a/k/a Goofy, belonged to the same clique of MS-13. On August 21, 2008, Mejia Cruz told Aldana that he would have to shoot someone if he wanted to earn more respect within the gang. Mejia Cruz then gave a gun to Aldana. Aldana left Mejia Cruz’s house and went a short distance where he saw a group of 13- and 14-year-olds gathered, some of whom were playing basketball. Aldana asked, “Who do you claim?” (that is, what gang do you belong to?). Without waiting for an answer, he started firing into the crowd and struck a 14-year-old boy in the back. Aldana then called out “Mara Salvatrucha” as he fled on foot. He returned the firearm to Mejia Cruz. The 14-year-old boy underwent surgery to have the bullet removed.

Miguel Guevara, a/k/a Blacky, 31, of Fort Walton Beach, Fla., has been sentenced to 30 years in prison to be followed by five years of supervised release. Guevara was convicted on these charges on Oct. 29, 2013, after he pleaded guilty.

Irvin Mejia Cruz, a/k/a Triste, a/k/a Lil Triste, 24, of Duluth, Ga., has been sentenced to nine years in prison to be followed by five years of supervised release. He was convicted on these charges on Oct. 21, 2013, after he pleaded guilty.

Walter Aldana, a/k/a Goofy, 24, of Norcross, Ga., has been sentenced to ten years in prison to be followed by five years of supervised release. Aldana was convicted of these charges on Oct. 21, 2013, after he pleaded guilty.

To date, 22 defendants have been convicted of RICO conspiracy for their participation in the violent activities of MS-13. 16 of the 22 defendants have already been sentenced. An additional 14 members of MS-13 were charged in separate indictments and have already been convicted and sentenced in federal court for their crimes as gang members.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Bureau of Investigation, Gwinnett County Police Department, and DeKalb County Police Department.

Assistant United States Attorney Paul R. Jones and U.S. Department of Justice, Organized Crime and Gang Section, Trial Attorney Joseph K. Wheatley 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/.
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Immigration Attorney Faces Additional Charges for Alleged Immigration Fraud and Witness Tampering
2015-02-11 · Northern District of Georgia
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ATLANTA - Bonnie Monique Youn has been arraigned on additional federal charges that she submitted false documentation on behalf of three new clients who were aliens seeking immigration status in the United States. She has been charged with two new counts of visa fraud, two new counts of alien harboring, and two new counts of witness tampering.

“The additional charges against this attorney reflect that her illegal actions on behalf of certain immigration clients are more extensive. Instead of working within the bounds of the law, she filed false immigration documents with the U.S. Government and encouraged several clients to lie to federal agents who were conducting an investigation,” said Acting United States Attorney John Horn.

“The defendant, who swore to uphold the law, instead allegedly sought to enrich herself by undermining the integrity of our immigration system by filing false documents,” said acting Special Agent in Charge Ryan L. Spradlin, ICE Homeland Security Investigations in Atlanta. “To compound these initial crimes, the defendant now stands accused of tampering with witnesses in the investigation in a failed attempt to conceal her illicit activities. Creating vulnerabilities in our immigration system raises serious national security concerns that HSI will vigorously investigate.”

According to Acting United States Attorney Horn, the charges and other information presented in court: From February 9, 2009, to the present, for her personal financial gain, immigration attorney Bonnie Monique Youn encouraged and induced three aliens to reside in the United States in violation of the law. Youn also engaged in visa fraud by filing documents that were false with respect to material facts. Then, once the investigation into Ms. Youn was underway, she engaged in witness tampering by telling two aliens to provide false information to federal agents when they were questioned. Youn also attempted to persuade one of the aliens to provide a false statement to a Federal grand jury.

Bonnie Monique Youn, 45, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Gerrilyn G. Brill. The superseding indictment, which added charges against Youn, was returned by a federal grand jury on January 27, 2015. Youn was previously released on a $25,000 unsecured bond, and ordered to surrender her United States passport.

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 Homeland Security Investigations (HSI) Document Benefit Fraud Task Force comprised of Special Agents with HSI, the United States Department of Labor-Office of the Inspector General, the United States Department of State, Diplomatic Security Service, as well as Fraud Detection/National Security Officers of the United States Citizenship and Immigration Services.

Assistant United States Attorneys Susan Coppedge and William L. McKinnon, Jr. 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/.
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Alleged Head of Atlanta-Based Investment Fraud Scheme Arraigned
2015-02-11 · Northern District of Georgia
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ATLANTA - Andrew Avery has been arraigned on federal charges of wire fraud and mail fraud stemming from an alleged investment fraud scheme. He was indicted by a federal grand jury on October 7, 2014. Avery fled the country, but was extradited from Thailand and arrested on January 26, 2015. He is currently in federal custody.

“This defendant is charged with taking advantage of unknowing investors, stealing millions of dollars with false promises and misrepresentations about the profitability of purported Real Estate Investment Notes sold by New Day Atlanta Financial,” said Acting United States Attorney John Horn.

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI fully understands that investment fraud in not a victimless crime and it is hoped that the indictment, apprehension and return to the U.S. of Mr. Avery will illustrate that to the many victims in this case.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: From April 2007 through May 2010, the defendant allegedly operated a company called New Day Atlanta Financial (NDA). Avery represented to potential investors that NDA sold “Real Estate Investment Notes,” or REINs, in a fund of “premium real estate investments” called “the Magnolia Fund.”

According to NDA’s website and prospectus, the REINs were promissory notes that would mature after a one- to five-year period, earning the investors up to 13% interest. The term “REIN” was invented by Avery, and a REIN is not an investment vehicle actually used by financial institutions. The Magnolia Fund was a purported $6 million dollar portfolio of Atlanta, Ga., properties that would be profitable through rental income, lease purchase income, or future sales.

Avery allegedly concealed the fact that NDA’s properties were worth far less than $6 million dollars. In addition, Avery used investor funds to purchase businesses in his own name, and for his own personal expenses. Over the course of NDA’s operation, over 70 investors lost over $3 million as a result of Avery’s misrepresentations.

In May 2010, the United States Securities and Exchange Commission filed a civil lawsuit in the Northern District of Georgia to shut down NDA. Shortly after being deposed by the SEC in connection with the lawsuit, Avery left the United States for Thailand. He was extradited from Thailand and arrested on January 26, 2015, and is currently in federal custody. Andrew Avery, 39, was arraigned before United States Magistrate Judge Gerrilyn G. Brill.

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 Shanya J. Dingle is prosecuting the case.

This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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/.
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Former Douglas County Elementary School Principal Sentenced to Prison for Attempting to Entice A Minor
2015-02-06 · Northern District of Georgia
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ATLANTA - John Harold McGill, the former principal of Mt. Carmel Elementary School in Douglas County, Ga., has been sentenced to ten years in prison for using emails and text messages to attempt to entice a minor to engage in unlawful sexual activity. McGill was arrested on March 2, 2014, and was convicted after a two-day trial in December 2014.

“It is deeply disturbing and disappointing that an elementary school principal would attempt to have sex with a thirteen-year-old girl,” said Acting United States Attorney John Horn. “We will continue to devote every resource possible to protecting children and prosecuting those who prey upon them.”

According to Acting United States Attorney Horn, the charges, and evidence presented in court: On Saturday, March 1, 2014, McGill responded to an Internet advertisement named “casual encounters,” purportedly posted by a mother who was seeking a man to introduce her thirteen-year-old daughter to sexual intercourse. McGill communicated with who he thought was the girl's mother by email and text throughout the evening and into early Sunday morning, March 2, 2014.

With his wife out of town at a conference, McGill put his children to bed, and then drove more than 50 miles from Douglasville, Ga., to Lithonia, Ga. He arrived at the mother's house at 1:45 a.m. with a condom in his pants pocket. But the “mother” was an FBI Task Force Officer, and McGill was arrested.

In addition to sentencing John Harold McGill, 57, of Douglasville, Ga., to ten years in prison, United States District Judge William S. Duffey ordered that McGill remain on supervised release for the rest of his life after his imprisonment ends.

This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Cobb County Police Department, and the DeKalb County District Attorney’s Office.

Assistant United States Attorney William G. Traynor 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/.
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Final Defendants Sentenced in 28-Defendant Investigation of Criminal Activity by North Georgia Motorcycle Gangs
2015-02-06 · Northern District of Georgia
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GAINESVILLE, Ga. - Walt Verrill, who was a member of the Black Pistons Motorcycle Club, and Tony Parrott, who was an affiliate of the same motorcycle club, are the last two defendants in a long-term investigation of motorcycle gangs in North Georgia. Both have been sentenced for possessing methamphetamine with intent to distribute.

“These sentencings close a comprehensive investigation into drug trafficking and illegal gun and explosives offenses by members of motorcycle gangs operating in North Georgia,” said Acting United States Attorney John Horn. “The case reflects our commitment to make sure the communities in North Georgia are safe, and prevent gang members involved in drug and gun offenses from establishing a foothold there.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing concludes an extensive investigation by the FBI and its law enforcement partners into criminal activities associated with several biker groups located in the North Georgia region. The FBI is well positioned to conduct and coordinate such investigations and will continue to work with area law enforcement in making sure that North Georgia remains free from such individuals and groups attempting to set up organized criminal enterprises.”

According to Acting United States Attorney Horn, the charges and other information presented in court: Beginning in mid-2010, the FBI conducted a long-term undercover investigation in north Georgia into allegations that members of the Outlaw Motorcycle Club, the Black Pistons Motorcycle Club, and other motorcycle clubs were engaged in various forms of criminal activity, including drug distribution and illegal firearms and explosives offenses. An undercover agent posed as a drug dealer from Florida who was looking to expand his drug dealing into North Georgia. He was introduced to members of the motorcycle clubs by a club member who was working as an informant for the FBI.

The undercover agent conducted actual and ruse drug deals in which he either bought methamphetamine from motorcycle club members or recruited club members to assist him in moving what they were led to believe were significant quantities of methamphetamine or cocaine from North Georgia to Tennessee. The undercover agent also obtained firearms from convicted felons and engaged two defendants in discussions about making an unregistered explosive device for him.

The investigation also took a side route into the Hispanic SUR-13 gang, which was operating in Hall County, Ga. A second informant introduced SUR-13 gang members and affiliates to the undercover agent, and they then moved what they were led to believe were significant quantities of cocaine through Hall County, Ga., to Tennessee. The undercover agent also conducted illegal firearms transactions with SUR-13 gang members.

In mid-July 2012, the FBI learned that members of the Outlaw Motorcycle Club suspected that one of the FBI’s informants was working for the FBI. The undercover investigation was terminated at that time. On August 16, 2012, 22 defendants were arrested on drug, firearms, and obstruction of justice charges. Six other defendants were arrested later. Since then, 20 defendants have pleaded guilty to various charges, two defendants were convicted after jury trials, and five defendants were acquitted at trial. One defendant, David Rizo-Troncoso, absconded after he was released on bond. Rizo-Troncoso remains a fugitive.
The investigation was conducted by the FBI with assistance from the North Georgia Major Offenders Task Force and the Georgia Bureau of Investigation.

Assistant United States Attorneys William L. McKinnon, Jr. and Sally B. Molloy prosecuted these cases.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao/gan/.
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Atlanta Man Sentenced in Fraud Conspiracy for Submitting Fraudulent Car Loan Applications
2015-02-05 · Northern District of Georgia
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ATLANTA - Nicholas L. Thomas has been sentenced to serve three years and ten months for conspiring to commit bank fraud by submitting fraudulent loan applications to a local car dealer.

“Thomas’s scheme represents a classic fraud conspiracy where false paperwork for car loans enabled him to steal the bank’s money and walk away with the cars,” said Acting United States Attorney John Horn.

“The United States Secret Service will continue to collaborate with our law enforcement partners to investigate and arrest those who commit bank fraud. Today’s sentencing shows that those who ignore the law for their personal gain will face the consequences in court,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to Acting United States Attorney Horn, the charges and other information presented in court: In September 2013, Thomas and unindicted coconspirator C.W. met with a salesman at a Ford dealership in Sandy Springs, Georgia, and agreed to purchase three 2013 Ford Fusions in the name of a Georgia company whose identity they had stolen. During the negotiations, Thomas and C.W. fraudulently represented that Thomas owned the company and was authorized by the company to purchase the vehicles. Thomas and C.W. provided false information and fraudulent documents to the dealership and submitted false credit applications to a federally insured bank in order to obtain financing for the vehicles.

In reliance upon the false information and documents provided by Thomas and C.W., the bank made three loans totaling approximately $75,000, and the dealership delivered the vehicles to Thomas. The evidence showed that Thomas and C.W. had engaged in similar conduct prior to this, and that the total loss to various banks as a result of the conspiracy exceeded $400,000.

Thomas, 31, of Atlanta, Ga., has been sentenced to three years, ten months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $400,518.19. Thomas was convicted on these charges on October 10, 2014, after he pleaded guilty.

This case was investigated by the United States Secret Service.

Assistant United States Attorney J. Russell Phillips prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Former Cobb County Parks and Recreation Employee Sentenced to 20 Years in Prison for Child Pornography
2015-02-03 · Northern District of Georgia
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ATLANTA - Ryan Hornback, a former Cobb County Parks and Recreation employee who also ran a photography business as a second job, has been sentenced to 20 years in prison for producing child pornography.

“Hornback desired access to more child pornography, and his solution was to produce more on his own to trade in the online community,” said Acting United States Attorney John Horn. “Victimizing the children he viewed online wasn’t enough, so he tragically brought yet another innocent victim to face the horrors of child porn on a personal level. This office devotes significant resources to combat child pornography, and will always focus on those offenders who take the despicable step of producing it.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Our community and its children are much more safe with this lengthy prison sentence handed down to Mr. Hornback. The FBI’s Violent Crimes Against Children Program will continue to provide significant investigative resources toward those individuals like Mr. Hornback who choose to prey on and exploit our nation’s children.”

According to Acting United States Attorney Horn, the charges and other information presented in court: On April 18, 2014, a federal search warrant was executed at Hornback’s residence in Kennesaw, Ga., based on information that he was actively trading child pornography. During a search of the home, Hornback acknowledged he used a Google email address to send child pornography he produced to another suspect in the state of Washington. He confessed he liked to trade the images with other people to get more child pornography for himself. He also acknowledged that he produced sexually explicit images of a minor victim over Thanksgiving in 2013, keeping these pictures on a thumb drive he owned. FBI agents were later able to identify the minor victim in the case through interviews and other investigative steps.

Hornback, 28, of Kennesaw, Ga., has been sentenced by United States District Court Judge Thomas W. Thrash to 20 years in prison to be followed by five years of supervised release. Hornback was convicted on these charges on October 7, 2014, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Kurt R. Erskine prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Atlanta Man Sentenced for Attempted Armed Bank Robbery
2015-02-02 · Northern District of Georgia
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ATLANTA – Gerry Sanders has been sentenced to fourteen years and six months in prison for the attempted armed robbery of a Citizens Trust Bank in Decatur, Ga. in September 2012.

“This defendant’s use of a toy gun during an armed bank robbery led the security guard of the bank to fire his weapon several times, seriously harming not only the defendant, but also a bank teller,” said Acting United States Attorney John Horn. “His violent acts led to both physical and emotional injuries to innocent people.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case represents the dangerous consequences set in motion when a person goes into a bank and announces a robbery. The defendant in this case demonstrated a complete disregard for others when he chose to rob the Citizens Trust Bank and, having a history for such reckless criminal behavior, he will now be held accountable with a lengthy prison sentence.”

“The reprehensible acts of this defendant put the lives of innocent people at risk and left physical and emotional scars that will last a lifetime, “said Interim DeKalb Police Chief James Conroy. “I only hope the sentencing of this defendant helps the healing process for these innocent victims.”

According to Acting United States Attorney Horn, the charges and other information presented in court: On September 19, 2012, at approximately 9:10 a.m., Sanders burst through the front doors of the Citizens Trust Bank, located in Decatur, Ga., and pointed what appeared to be a semi-automatic handgun as he quickly approached a bank teller. He then pushed aside a customer whom the teller was assisting and stated, “Give me all the hundreds you have,” while pointing the weapon at the teller. Sanders also pushed a light colored pillow case through the porthole of the glass at the teller's window.

As the teller was putting cash from her teller drawer into the pillow case, the bank security guard yelled at Sanders to “Freeze, drop the gun!” Sanders turned, pointed his weapon at the bank security guard, and started moving toward him. The guard fired several shots, striking Sanders in the leg. A bullet also grazed the leg of a bank teller, resulting in a serious and long-lasting injury. The bank security guard detained Sanders until DeKalb County Police Officers and FBI agents arrived. After Sanders was arrested, the weapon he used was determined to be a toy gun.

Sanders, 42, of Atlanta, Ga., was sentenced to fourteen years, six months in prison, to be followed by five years of supervised release. Sanders was convicted of these charges on October 1, 2014, after a jury trial.

This case was investigated by the Federal Bureau of Investigation and the DeKalb County Police Department.

Assistant United States Attorney Suzette A. Smikle prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Atlanta Businessmen Arrested on Market Manipulation Charges
2015-01-28 · Northern District of Georgia
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ATLANTA - Marc E. Bercoon and William A. Goldstein have been indicted and arrested on federal charges that they manipulated the market for shares of Medcareers Group, Inc., a publicly traded company, and that they carried out a second investment fraud scheme using a new business corporation that they organized as the bait for investors.

“These defendants are charged with manipulating the stock of a publicly traded company by carrying out pump and dump schemes,” said Acting United States Attorney John Horn. “They are also charged with orchestrating an investment fraud scheme using a separate, private company, and laundering the proceeds of that fraud. This office is committed to fighting all types of investment fraud – including securities fraud involving publicly traded companies.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Investment based fraud is not a victimless crime and the FBI will continue to dedicate significant resources toward identifying, investigating, and presenting for prosecution those individuals involved.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: From July 2009 through September 2011, the defendants conspired with each other and others to manipulate the market for shares of Medcareers Group, Inc., a publicly traded company quoted on the over-the-counter bulletin board under the ticker symbol MCGI. The conspiracy culminated in two “pump and dump” schemes carried out in March and May 2010. To carry out the pump and dump schemes, Bercoon and Goldstein arranged for Medcareers Group, Inc. to issue a series of misleading press releases and SEC filings, at the same time as co-conspirators sent out mass emails touting the stock. While the price of MCGI and the demand for the stock were both artificially high because of these efforts, the defendants orchestrated a massive sell-off of their stock, coordinating activity in multiple “nominee” accounts, which were titled in the names of other people and entities to hide the defendants' involvement.

The indictment further alleges that from May 2009 through June 2010, Bercoon and Goldstein also carried out a second investment fraud concerning a privately held company. Specifically, Bercoon and Goldstein organized a private corporation, Findcom Acquisition, Inc., and then solicited investments from dozens of individuals. Bercoon and Goldstein told investors, and induced brokers working for them tell investors, that their funds would be used to develop an Internet search engine named “Find.com.” In fact, Bercoon and Goldstein used the bulk of the over $1.5 million raised from investors for unrelated purposes, such as subsidizing their other business ventures and making payments to themselves and their family members. In fact, much of the $1.5 million invested in Find.com was simply withdrawn from the bank in cash shortly after being invested.

As part of the scheme, investors were provided with written offering materials. In addition to stating that the investments would be used to develop the Find.com Internet search engine business, the written materials stated that investors were being offered the opportunity to buy stock at a uniform price of $1.00/share, and that no more than 12.5% of investments would go toward commissions. Despite these representations in the written offering materials, Bercoon and Goldstein sold stock to some investors at heavily discounted prices, without informing other investors, and paid commissions of up to 35% to brokers on some investments.

These charges flow from a securities fraud investigation conducted by the Federal Bureau of Investigation, in which court-authorized wiretaps were used to intercept telephone conversations.

Marc E. Bercoon, 54, of Dunwoody, Ga. and William A. Goldstein, 51, of Atlanta, Ga., were arrested and had initial appearances and bond hearings before Linda T. Walker, United States Magistrate Judge, on federal charges of conspiracy, mail fraud, wire fraud, securities fraud, and money laundering in connection with two fraudulent schemes. Goldstein was also arraigned at the court hearing. Bercoon and Goldstein were indicted by a federal grand jury on January 21, 2015.

Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation. Valuable assistance has been provided by the staff of the U.S. Securities and Exchange Commission.

Assistant United States Attorneys Alana R. Black and Stephen H. McClain are prosecuting the case.

This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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/.
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Sex Traffickers Sentenced for Smuggling Women into the U.S. and Then Forcing Them into Prostitution
2015-01-22 · Northern District of Georgia
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ATLANTA - Odilon Martinez Rojas, a/k/a Chino, a/k/a Saul, and Arturo Rojas Coyotl, a/k/a Taco, a/k/a Jonathan have been sentenced for sex trafficking by force, fraud and coercion two young women from Guatemala and one young woman from Mexico.

“Sex trafficking is a horrendous crime that robs the victims of their freedom and dignity, leaving them feeling isolated and powerless,” said Acting United States Attorney John Horn. “This case hits new lows in depravity given the number of times these girls were victimized each day. These defendants are being held accountable by U.S. laws which protect all victims of human trafficking.”

“Human trafficking is modern-day slavery-- period. No matter the label, the of use violence, intimidation, psychological coercion, deception, or fear to exploit fellow human beings is repugnant,” said Acting Deputy Attorney General Sally Quillian Yates. “The long sentences handed down today are just one of the latest examples of the Justice Department's unshakable resolve to dismantle human trafficking networks and prosecute those who would commit these unspeakable crimes against some of the most vulnerable in our society." Yates’ previous service as United States Attorney from 2010 to 2015 included making her district—the Northern District of Georgia—one of several key U.S. districts engaged in the Bilateral Human Trafficking Enforcement Initiative.

“These defendants targeted vulnerable individuals, preying on their hopes and dreams, dominating and deceiving them, and selling their bodies to strangers, all so the defendants could collect thousands of dollars in prostitution proceeds while the victims lived in fear, denied control over their own lives,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Civil Rights Division is unwavering in its commitment to bringing human traffickers to justice and restoring the rights and dignity of the courageous survivors of all forms of modern-day slavery.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case represents one of the worst examples of human trafficking and why it is such a priority matter for not only law enforcement but for the many non-government agencies who help law enforcement in reporting human trafficking and providing assistance to those with nowhere else to turn. The FBI urges anyone with information regarding human trafficking activities to contact authorities and help put an end to modern day slavery.”

“The defendants mercilessly manipulated, abused and exploited these women in a criminal scheme that is all too common in our communities,” said Ryan L. Spradlin, Acting Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Sex trafficking and other forms of human trafficking are a scourge on our society that HSI is dedicated to ending.”

According to Acting United States Attorney Horn, the charges and other information presented in court: In February 2006, Rojas Coyotl romanced a young woman in Mexico City, Mexico, telling her he loved her and wanted a life with her. He told the young woman that she should travel with him to the United States to work in a legitimate job and make money for their future life together. After smuggling the young woman across the border, he sent her to his uncle and co-defendant, Martinez Rojas. Martinez Rojas informed the victim that she was here illegally, owed a large smuggling debt, and the only way to earn the money to repay her debt was through prostitution. Rojas Coyotl and Martinez Rojas used violence and threats, fear and intimidation, trickery and deception, and emotional and psychological manipulation to compel the victim to prostitute in the Atlanta, Ga., area, and in Alabama, until she managed to escape in November 2007.

In March 2007, Rojas Coyotl and Martinez started romancing two young Guatemalan women and lured them to the United States in October 2007, under the same false pretenses. The defendants then employed a nearly identical coercive scheme to compel the young women to prostitute in Georgia and Alabama before they escaped at separate times in early 2008. The defendants had made the young women fearful of law enforcement and, thus, the victims did not immediately come forward. Once investigators did find and speak to them, the details of the trafficking emerged: The defendants ran a high volume, low cost business compelling the young women to have sex, at times with upwards of 20 men a night in 15 minute increments, for payment of $30- $35. The money earned by the victims was split between the defendants and others who drove the young women to the clients. One of the young women became ill and suffered great pain due to the repeated commercial sex acts she had to endure.

Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative, aimed at strengthening high-impact prosecutions under both U.S. and Mexican law, in order to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers.

Arturo Rojas Coyotl, 28, of Tenancingo, Mexico, has been sentenced to 16 years in prison to be followed by five years of supervised release and a $600 special assessment. Odilon Martinez Rojas, 43, of Tenancingo, Mexico, has been sentenced to 21 years, ten months in prison to be followed by five years of supervised release and a $600 special assessment. Each defendant was ordered to pay restitution in amount of $190,000 which will be divided between three victims. Rojas Coyotl was convicted on these charges on October 27, 2014, after he pleaded guilty. Martinez Rojas was convicted on these charges on October 28, 2014, after he pleaded guilty.

A third co-defendant, Daniel Garcia-Tepal, pleaded guilty to related immigration offenses. A fourth co-defendant, Severiano Martinez-Rojas, remains a fugitive.

This case was investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. If anyone has information pertaining to human trafficking, they are encouraged to call the national human trafficking hotline at 1-888-373-7888 or the local office of the FBI at 404-679-9000.

Assistant United States Attorney Susan Coppedge and Department of Justice Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit 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/.
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Former Spalding County Battalion Chief and Firefighter Sentenced to Prison for Tipping Off Drug Dealers
2015-01-21 · Northern District of Georgia
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NEWNAN, Ga. – Former Spalding County Fire Battalion Chief Dwayne Tyrone Coggins and former Firefighter Michael Owens have been sentenced for tipping off drug dealers to police activity in the Griffin, Ga., area. Both were convicted in October 2014, after a jury trial.

“The police thought there was no safer place to gather than a fire station. Instead, Coggins and Owens reported what they saw and heard to drug dealers operating in the area without ever considering the safety of the officers who trusted them with sensitive information,” said Acting United States Attorney John A. Horn. “The Court’s sentences in this case demonstrate that there are real consequences that come from tipping off criminals to police activity.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these two former Spalding County firefighters concludes an unfortunate but very necessary investigation and prosecution. Those who serve within the public safety community should be able to depend on each other, to include their own safety and security as they carry out their duties, and that was not the case with former Spalding County Fire Battallion Chief Coggins and former firefighter Owens. The FBI will continue to provide significant resources toward identifying, investigating, and presenting for prosecution those individuals who betray their badges and their oaths of office.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: Coggins was employed by the Spalding County Ga., Fire Department since 1990 and, most recently, served as a Battalion Chief. Owens had been employed by the Spalding County Ga., Fire Department as a firefighter for approximately four years.

Police regularly gathered at the Spalding County Fire Department before scheduled police activity such as serving arrest warrants. In April and May 2014, Coggins and Owens warned drug dealers about law enforcement activity in the area before it occurred because they had been told by the police about the investigation or had seen officers gathering near the fire station.

Police were unaware that Coggins and Owens were tipping off drug traffickers until they heard the drug dealers talking about the tips on a wiretapped telephone. During a series of wiretapped calls, the drug dealers discussed the specific information provided by the firefighters as well as how they could dispose of the drugs before the police arrived. In one recorded call, Owens himself was intercepted asking whether the drug dealer had already cleaned out the drugs before police executed a search warrant. Owens cautioned the drug dealer that he should immediately remove the drugs out of his stash house before it was too late.

Coggins, 47, of Griffin, Ga., was sentenced to four years in federal prison followed by one year of supervised release, and 100 hours of community service. Owens, 37, also of Griffin, Ga., was sentenced to two years, six months in prison followed by one year of supervised release, and 100 hours of community service. Both were sentenced before United States District Court Judge Timothy Batten.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Kurt R. Erskine and Jeffrey W. Davis prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the 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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Owner of Allergy Lab Sentenced for Faking Allergy Test Results
2015-01-09 · Northern District of Georgia
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ATLANTA - Rahsaan Jackson Garth has been sentenced to federal prison for committing health-care fraud by faking the results of allergy tests that patients’ doctors had ordered.

“Garth endangered the health and safety of citizens, including children, by faking their allergy test results and misleading their doctors,” said United States Attorney Sally Quillian Yates. “People trust doctors to make decisions that could permanently affect a patient’s health based on those results. Garth put his own financial wealth ahead of people’s health.”

“The defendant placed the pursuit of his own prosperity ahead of the well-being of patients, many of whom were children and the elderly” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Today’s sentence should serve as an example of the OIG’s commitment to pursue those who seek to exploit the trust and confidence of patients and doctors for their own gain.”

According to United States Attorney Yates, the charges and other information presented in court: The defendant, Rahsaan Jackson Garth, a/k/a/ R. Jackson Garth, opened an allergy laboratory in 2011, named Polaris Allergy Labs, Inc., located in East Point, Ga. Doctors sent their patients’ blood samples to Polaris Allergy Labs, Inc. to be tested for food and environmental allergies. Beginning in approximately September 2012, and continuing through February 2014, Garth directed his allergy laboratory technician not to test some of the blood samples for allergens in order to save money by not using the allergen reagents necessary for testing. Instead of testing the blood, Garth created fake allergy test result reports for the patients, and then had the fake test result reports sent back to the patients’ doctors.

Sometimes Garth created results showing no allergic reaction, and other times he created results showing an allergic reaction, in order to avoid raising the suspicions of the doctors to whom he sent fake test result reports. The patients’ doctors were unaware that Garth was sending them fake allergy test results for their patients, putting each of those patients at risk.

After creating a fake allergy test report for a patient, Garth caused a bill to be submitted to the patient’s health care benefit program, even though no service had in fact been provided.

During the investigation, law enforcement officials notified the doctors and patients who were potentially affected by Garth’s fraudulent testing activities.

Garth, 40, of Hampton, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr., to three years and ten months in federal prison, three years of supervised release, ordered to pay $246,536.50 in restitution, and perform 100 hours of community service. On July 22, 2014, Garth pleaded guilty to one count of healthcare fraud.

This case is being investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General.

Assistant United States Attorney Mary L. Webb 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/.
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California Man Sentenced to Ten Years for Defrauding Delta and Northwest Air Lines of More Than $36 Million
2015-01-09 · Northern District of Georgia
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ATLANTA – Michael Yedor has been sentenced to ten years in prison for his role in orchestrating a scheme to defraud Northwest and Delta Air Lines of more than $36 million.

“The scope and magnitude of this fraudulent scheme is astounding,” said United States Attorney Sally Quillian Yates. “The millions of dollars the defendants stole hurt the honest operations of an important company and its many customers, as well as other honest vendors who play by the rules.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Yedor represents the end of not only a complex scheme to defraud Northwest Airlines and Delta Airlines but also the resulting extensive federal investigation into those involved. The FBI remains well positioned to investigate these types of complex white collar based crimes and will continue to remain responsive to the needs of the corporate sector when these cases are uncovered.”

According to United States Attorney Yates, the charges and other information presented in court: Yedor’s co-defendant Paul 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, Minn., office.

From at least 1999 through 2013, Yedor and Anderson orchestrated a scheme to defraud Northwest and, later, Delta, by submitting numerous false invoices on behalf of a company, Airborne Voice and Data, purportedly owned by Yedor. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data. In fact, as both Anderson and Yedor knew, Yedor’s company had not provided any goods or services to the airlines.

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 at least $36 million from the airlines during the scheme.

Michael Yedor, 62, of Los Angeles, Calif., was sentenced by United States District Judge Timothy Batten to ten years in prison, to be 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. Yedor was indicted on June 10, 2014, and pleaded guilty on October 20, 2014, to conspiracy to commit mail fraud.

Co-defendant Paul Anderson pleaded guilty to conspiracy to commit mail fraud on September 15, 2014. He is scheduled to be sentenced on January 23, 2015.

Delta Air Lines cooperated fully with the investigation.

This case is being investigated by the Federal Bureau of Investigation.

Assistant United States 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/.
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Appalachian Community Bank Vice President Convicted of Bank Fraud
2015-01-09 · Northern District of Georgia
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GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon, has been convicted by a federal jury of carrying out a scheme to defraud Appalachian Community Bank, in Ellijay, Ga.

“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded. These failures have significantly affected the economy, making these cases important to safeguard the nation’s financial health.”

“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the conviction of Mr. Beamon for his role in a fraudulent scheme that caused harm to Appalachian Community Bank,” said Fred W. Gibson, Principal Deputy Inspector General, Federal Deposit Insurance Corporation. “One of our top priorities is to investigate and prosecute cases where trusted insiders abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud comes in many forms but when it comes in the form of the bank’s own vice president, it becomes all the more intolerable. Mr. Beamon, as a banking executive, should have protected his bank and its assets from fraud but instead he saw an opportunity to enrich his own bank account. The federal sentencing handed down to Mr. Beamon will be not only the closing note to one man’s banking career but also to the bank that he caused to fail.”

“Beamon was convicted after a jury found him guilty of using his position at TARP-applicant Appalachian Community Bank to defraud the bank in order to line his own pockets,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Beamon’s greed and self-dealing at the expense of the bank left holes in the bank’s books that the bank tried to fill when it applied for TARP funds. SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of fraud related to TARP.”

According to United States Attorney Yates, 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 the Appalachian’s foreclosure liquidation department. In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Ga. 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.

William R. Beamon, Jr., a/k/a “Rusty” Beamon, 54, of Atlanta, Ga., was convicted on five counts of bank fraud. Sentencing has not yet been scheduled.

This case is being 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 and Douglas W. Gilfillan 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 Gainesville Division is http://www.justice.gov/usao/gan/.
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Two Men Sentenced for Robbery and Shooting of Postal Truck Driver
2015-01-07 · Northern District of Georgia
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ATLANTA – Kendrick Watkins and Charles Jackson have been sentenced to 18 years, 4 months, and 19 years in federal prison for their respective roles in the robbery and near-fatal shooting of a postal truck driver on December 20, 2013, during a routine pick-up at the Conley, Ga. post office.

“These defendants shot the victim, tied up his legs and threw away his cell phone so that he could not run or call for help,” said United States Attorney Sally Quillian Yates. “Watkins and Jackson’s callous disregard for human life nearly cost the victim his for simply doing his job. The lengthy sentences imposed are an appropriate response for this heinous crime.”

“Protecting the employees of the Postal Service is a top priority of the U.S. Postal Inspection Service. When someone attempts to take the life of one of our employees, we stop at nothing to identify those responsible,” stated Inspector in Charge Tom Noyes. “We extend appreciation to the DeKalb Police Department for their assistance and would like to thank the U.S. Attorney's Office for their continued support in the prosecution of those who assault postal employees.”

According to United States Attorney Yates, the charges, and other information presented in court: Kendrick Watkins and Charles Jackson worked together with co-defendant Latonya Evans, a former postal employee in Jackson, Ga., to develop a scheme to rob a postal truck just before Christmas in 2013, when postal volume was at its highest. Evans provided Watkins and Jackson with non-public information that enabled them to plan and carry out the robbery.

On December 20, 2013, at the post office in Conley, Ga., Watkins and Jackson approached the postal truck they had targeted and demanded keys from the truck’s driver as Jackson brandished a loaded pistol. When the driver did not immediately comply with these demands, Jackson shot the driver through the torso, lacerating the victim’s internal organs and nearly taking his life. The robbers then bound the victim’s feet with zip-ties and took his cell phone, leaving him for dead. Watkins and Jackson drove away with the stolen truck and all its contents. The victim struggled to reach the nearest road where he eventually flagged down a passerby for help, after waiting almost 20 minutes. Watkins met with Evans later that same evening to discuss the robbery and how to divide up the proceeds.

Kendrick Watkins, 40, of Rex, Ga., was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to 18 years, four months in prison, to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $14,888. Watkins was convicted on these charges on August 13, 2014, after he pleaded guilty to armed postal robbery and discharge of a firearm during a crime of violence, pursuant to a negotiated plea agreement.

Charles Jackson, 56, of Griffin, Ga., was sentenced by Judge Thomas W. Thrash, Jr., to 19 years in prison, to be followed by five years of supervised release. He also has been ordered to pay restitution in the amount of $14,888. Jackson was convicted on these charges on August 5, 2014, after he pleaded guilty to armed postal robbery and discharge of a firearm during a crime of violence, pursuant to a negotiated plea agreement.

Latonya Evans, 44, of Jackson, Ga., was sentenced by Judge Thrash on November 21, 2014, to 15 years, eight months in prison, to be followed by three years of supervised release. Evans was also ordered to pay restitution in the amount of $14,888. Evans was convicted on September 9, 2014, after pleading guilty to conspiring to interfere with commerce by robbery, pursuant to a negotiated plea agreement.

This case was investigated by the United States Postal Inspection Service and the DeKalb County Police Department.

Assistant United States Attorneys Mary Kruger, John Ghose, and Angela Garland 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/.
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Three Members of Mexican Cartel Sentenced to Prison for Conspiracy Involving Liquid Methamphetamine
2015-01-07 · Northern District of Georgia
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ATLANTA - Three drug traffickers have been sentenced to federal prison for conspiracy to possess with the intent to distribute methamphetamine stemming from their roles in the delivery of liquid methamphetamine to residences in Austell, Ga., and Mableton, Ga.

“Over a period of many months, these defendants shipped liquid methamphetamine to Atlanta from the Mexican border and then distributed it throughout the Atlanta metropolitan area,” said United States Attorney Sally Quillian Yates. “Given that law enforcement seized record amounts of methamphetamine at the Mexican border in 2014, this case reflects both a disturbing trend in trafficking methamphetamine produced in Mexico and our efforts to disrupt this trend.”

“Methamphetamine continues to ravage many communities in our nation,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. “Because of the positive results yielded in this case, other methamphetamine traffickers in the Atlanta metropolitan and surrounding areas are being put on notice that DEA and its law enforcement partners will not tolerate their continued efforts to manufacture and distribute this insidious drug.”

“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We are proud to have contributed our financial expertise in order to dismantle the drug-trafficking operation that has been targeting the metro Atlanta citizens.”

According to United States Attorney Yates, the charges and other information presented in court: In October 2012, DEA and IRS agents were investigating Gabriel Jimenez-Antunez, a known local distributor for a Mexican drug trafficking cartel, who was coordinating the delivery of shipments of liquid methamphetamine to the metro-Atlanta, Ga., area and laundering the proceeds of that drug trafficking activity to Mexico. In early spring 2013, agents learned that Jimenez recruited his brother-in-law, Pablo Saucedo Aparicio, and associate Martin Ascencio, to carry out the day-to-day activities of the organization, including receiving methamphetamine shipments from couriers at residences in Mableton, Ga., and depositing drug proceeds at local banks.

In the early morning hours of May 12, 2013, agents tracked the delivery of liquid methamphetamine to a residence in Austell, Ga. Agents determined that the liquid methamphetamine was stored inside the gas tank of a Ford F-350 vehicle. That evening agents observed Jimenez, assisted by Saucedo, arrive at the residence with thermoses, which were to be used to transfer and store the liquid methamphetamine before it was further distributed. Ascencio was in the process of removing the gas tank containing approximately 75 liters of diesel fuel and liquid methamphetamine when agents arrested the defendants and seized the drugs. Agents executed search warrants at this and related residences, recovering another ten pounds of crystal methamphetamine and other evidence.

Three defendants, who pleaded guilty in 2014, have been sentenced by U.S. District Court Judge Orinda D. Evans:
- Gabriel Jimenez-Antunez, a.k.a. “Negrito,” 39, of Mexico, was sentenced to 25 years in prison, to be followed by five years of supervised release.
- Pablo Saucedo-Aparicio, 38, of Mexico, was sentenced to 16 years and eight months in prison, to be followed by five years of supervised release.
- Martin Ascencio, 49, of Mableton, Ga., was sentenced to five years in prison, to be followed by five years of supervised release.
This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with valuable assistance provided by agents at ICE-Homeland Security Investigations.

Assistant United States Attorney Laurel R. Boatright prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Atlanta Man Sentenced for Theft of Government Funds
2015-01-06 · Northern District of Georgia
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ATLANTA - Rupert Morgan has been sentenced to two years, and three months in federal prison for theft of VA and Social Security funds paid to a beneficiary who died in 1997.

“Morgan stole more than $400,000 to which he was not entitled,” said United States Attorney Sally Quillian Yates. “This case is particularly troubling because he had a successful and lucrative career in the legal profession during the entire time period that he was committing this fraud on the United States government.”

Special Agent in Charge Monty Stokes, U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) – Southeast Field Office, said “this sentencing is a testament to the excellent interagency cooperation with VA OIG, Social Security Administration, and the Department of Justice. We are committed to aggressively pursuing those who commit fraud against our nation’s veterans, the Department of Veterans Affairs and its programs.”

“The Social Security Office of the Inspector General is committed to pursuing those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits, sometimes for many years. We are working closely with Social Security and the Department of Justice to identify and prosecute these people and recover stolen funds, as one of our many efforts to protect the integrity of Social Security’s programs for those who rely on them now and into the future,” said Thomas Caul, Special Agent-in-Charge of the SSA OIG’s Atlanta Field Division.

According to United States Attorney Yates, the charges and other information presented in court: In December 1996, Morgan was a paralegal who has been employed by various law firms in the Atlanta area, and R.V., a VA disability and Social Security Administration (SSA) retirement beneficiary, was a patient at a personal care home owned and operated by Morgan’s now ex-wife. Morgan and R.V. opened a joint SunTrust bank account into which R.V.’s benefits were deposited. R.V. died in November 1997. After R.V.’s death, the defendant kept the joint bank account open while VA and SSA benefits continued to be deposited into the account.

In 2007, ten years after R.V.’s death, the defendant opened a second joint bank account in both his and R.V.’s names. He then frequently transferred money from the original joint account to the second joint account. Morgan often let large sums of money accumulate in the accounts before he spent it. When the SSA discovered the fraud, it was able to reclaim over $101,000 that was sitting in the defendant’s and R.V.’s joint bank account. In total, the defendant stole $258,045.00 from the VA and $142,372.00 from the SSA.

Morgan, 53, of Atlanta, Ga., has been sentenced to two years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $299,164.75. Morgan was convicted of these charges on September 26, 2014, after he pleaded guilty.

This case was investigated by the Social Security Administration, Office of the Inspector General and Department of Veterans Affairs, Office of Inspector General.

Special Assistant United States Attorney Diane C. Schulman prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Hall County Deputy Sheriff Charged with Accepting Bribes
2015-01-01 · Northern District of Georgia
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January 1, 2015
GAINESVILLE, Ga. - David M. Treadwell, a Hall County Deputy Sheriff, has been arraigned on federal charges of accepting bribes and conspiring to possess with intent to distribute marijuana. Treadwell was indicted by a federal grand jury on January 28, 2015.

“When a police officer becomes the exception and betrays his badge to protect criminals and promote crime, he undermines the dedication and sacrifices of his fellow officers that allow our citizens to trust and respect law enforcement,” said Acting United States Attorney John A. Horn. “This case unfortunately follows too closely on the heels of other instances of police corruption in this district, but we are committed to aggressively investigating and prosecuting these cases to ensure that people have faith and confidence in our police.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Allegations of public corruption at all levels is a priority concern to us at the FBI, but allegations involving a law enforcement officer offer additional challenges and concerns. The FBI, upon receiving such allegations in this case, worked aggressively with its law enforcement partners to quickly investigate those allegations and present that investigation to federal prosecutors.”

“When you have a seasoned deputy sheriff who makes the conscious choice to violate his oath of office and seek illegal financial gain it must be dealt with expeditiously,” said Hall County Sheriff Gerald Couch. “I will not tolerate this kind of criminal action and I am thankful for the duty-bound officers who brought these heinous activities to the forefront.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: Treadwell was employed as a deputy sheriff with the Hall County Sheriff's Office. On five occasions in late 2014, Treadwell accepted $200 or $300 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.

David M. Treadwell, 33, of Gainesville, Ga., was arraigned before United States Magistrate Judge J. Clay Fuller. 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 that includes members of the Hall County Sheriff’s Office which assisted in the investigation.

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/.
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Baggage Handler at Hartsfield-Jackson Airport Arrested for Smuggling Guns into Airport by Evading Security
2014-12-23 · Northern District of Georgia
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ATLANTA - Eugene Harvey, a baggage handler at Hartsfield-Jackson International Airport, has been arrested on a federal complaint charging him with trafficking in firearms and entering the secure areas of the airport in violation of security requirements.

“The complaint alleges that Harvey repeatedly evaded airport security with bags of firearms, some of which were loaded,” said United States Attorney Sally Quillian Yates. “He then passed the guns off to an accomplice who transported them as carry-on luggage to New York, where they were illegally sold.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI has dedicated significant investigative resources at our nation’s airports to not only address those special jurisdiction cases involving air travel itself, but also to provide assistance to those agencies responsible for the security of those airports and all that travel through them. This case represents a serious security breach at Atlanta's Hartsfield Jackson airport and the FBI's Atlanta Field Office continues to work with its various law enforcement partners in addressing this breach and preventing future ones.”

According to United States Attorney Yates, the charges, and other information presented in court: On at least five occasions in 2014, Harvey, a baggage handler for Delta Air Lines, worked with another former Delta employee to smuggle firearms through airport-controlled security checkpoints for Delta employees, and thus he was not required to go through the screening performed for passengers by TSA. Once through the airport-controlled security checkpoints, the firearms were carried in carry-on baggage into the passenger cabins of aircraft. Each time, Harvey’s accomplice flew to New York with the guns, where they were illegally sold.

The federal investigation into Harvey began when the New York Police Department and the Kings County 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 New York Police Department had identified and arrested the New York seller of the illegal firearms, and was investigating how the guns were being smuggled into New York. Since January 2014, Harvey’s accomplice has trafficked approximately 129 firearms between Georgia and New York. The last shipment on December 10, 2014, contained 18 firearms, 7 of which were loaded.

Upon learning of the information, Delta Air Lines worked closely with law enforcement to identify Harvey and immediately terminated him.

Eugene Harvey, 31, of College Park, Ga., made his initial appearance Monday before Linda T. Walker, United States Magistrate Judge. Harvey was arrested Saturday on federal charges of trafficking in firearms and entering the secure areas of the airport in violation of security requirements. He was released on bond.

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, the U.S. Federal Air Marshal Service, and the Transportation Security Administration.

Assistant United States Attorney L. Skye 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/.
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Norcross Clinic Owner Sentenced for Healthcare Fraud
2014-12-22 · Northern District of Georgia
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ATLANTA - Shinkweon Park has been sentenced for conspiring to commit healthcare fraud by submitting false claims for doctor visits, acupuncture, and physical therapy to Medicare and Blue Cross Blue Shield.

“Park cheated our healthcare system by filing over $2 million in fraudulent claims, diverting precious healthcare resources,” said United States Attorney Sally Quillian Yates. “He is now being held accountable for his crimes.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case not only provides an example of the problems facing the health care industry by those who engage in such extensive schemes to defraud that industry, but also the government’s efforts to eradicate the fraud that is putting such a strain on this industry. The FBI continues to work with its corporate healthcare partners such as Blue Cross Blue Shield, as well as its law enforcement partners, including the U.S. Health and Human Services Office of Inspector General, in stemming the tide on such damaging healthcare fraud cases that divert programs and services away from those who truly need them.”

“Shin Park used his position to take advantage of the Medicare program by submitting fraudulent claims for services he never rendered for hundreds of Medicare beneficiaries who placed their trust in him to do the right thing,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “Today’s sentence demonstrates that HHS OIG is committed to combatting fraud and protecting America’s most vulnerable citizens, and shows how quickly justice can be achieved when we work closely with our fellow federal law enforcement partners and civilian counterparts.”

          According to United States Attorney Yates, the charges and other information presented in court: From November 2009 through May 2012, Park owned and operated the LOMA Clinic in Norcross, Ga. Beginning in April 2010, the clinic began submitting false claims to Medicare in three ways. First, Park, a licensed acupuncturist, submitted claims for acupuncture treatments, which were not reimbursable by Medicare under any circumstances. Second, LOMA billed for massage and physical therapy services that were not performed by licensed physical therapists or physical therapy assistants, as required by Medicare. Third, LOMA billed Medicare for office visits purportedly performed by a medical doctor. In fact, the doctor hired by LOMA to serve as medical director of the clinic never examined or treated patients. However, all of LOMA’s claims were submitted using his unique provider code. Similar false claims were made to Blue Cross Blue Shield.

          Over two years, LOMA submitted over $1.6 million in false claims to Medicare, along with an additional $475,000 in false BCBS claims. Based upon the claims, Medicare paid LOMA over $969,000, and LOMA received over $210,000 from BCBS.

          Park, 43, of Suwanee, Ga., was sentenced by United States District Judge Thomas W. Thrash, Jr., to two years, nine months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,190,166.31. Park was convicted on these charges on January 6, 2014, after he pleaded guilty to one count of conspiracy to commit healthcare fraud.

          This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of the Inspector General.

          Assistant United States Attorney Shanya J. Dingle 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/.
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Members of Fraud Ring Sentenced to Federal Prison for Stealing from the Home Depot
2014-12-18 · Northern District of Georgia
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ATLANTA - Robert Lee Hatcher III, Willie Dewayne Lynch, Andrew Oliver, and Arthur James Freeman have been convicted and sentenced for defrauding and conspiring to defraud The Home Depot, Inc.

“These defendants executed a long-term, sophisticated scam to defraud The Home Depot out of more than $600,000,” said United States Attorney Sally Quillian Yates. “Security measures at The Home Depot helped uncover and stop this scheme before they could steal more. This case should remind those who believe they have concocted the perfect scam that they will be caught.”

“The U.S. Secret Service and our law enforcement partners work tirelessly to protect our nation’s electronic financial payment systems,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This sentence should serve as a reminder that criminals will not get away with using Point of Sale terminals to fund their criminal activity.”

According to United States Attorney Yates, the charges and other information presented in court: Beginning in at least January 2011, Hatcher, Lynch, and Oliver entered Home Depot stores in Georgia, Alabama, Florida, Tennessee, North Carolina, South Carolina, Kentucky, Louisiana, Mississippi, and Texas, and selected merchandise for purchase. Prior to purchasing the merchandise, they covered the UPC labels on high-priced items with UPC labels they removed from lower-priced items – a practice commonly called “ticket-switching.” The defendants then took the merchandise to a sales terminal, where they purchased it for the lower price.

After fraudulently purchasing the merchandise, Hatcher, Lynch, and Oliver removed the lower-priced UPC label, revealing the original, higher-priced UPC label. Next, the defendants returned the fraudulently purchased merchandise to Home Depot stores and obtained refund cards in the amounts of the actual (and higher) price of the merchandise. Hatcher, Lynch, and Oliver then sold the refund cards to Freeman in exchange for cash at 60% of the actual value contained on the refund cards. Thereafter, Freeman used the fraudulently obtained refund cards to buy merchandise at Home Depot stores, which he used to stock two retail stores that he owned and operated in Atlanta, Ga., known as “Bargain Wholesale.”
- On October 28, 2014, Robert Lee Hatcher III, 32, of Atlanta, Ga., was sentenced to five years in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
- On October 28, 2014, Willie Dewayne Lynch, 30, of Atlanta, Ga., was sentenced to three years, nine months in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
- On October 6, 2014, Andrew Oliver, 62, of Stone Mountain, Ga., was sentenced to three years, four months in prison, followed by three years of supervised release, and was ordered to pay $86,858.46 in restitution.
- Finally, on December 18, 2014, Arthur James Freeman, 54, of Atlanta, Ga., was sentenced to six months in prison, eight months of home confinement, followed by three months of supervised release, and was ordered to pay $113,527.50 in restitution.
This case was investigated by the United States Secret Service, the Governor’s Office of Consumer Protection, the Gwinnett County Police Department, the Woodstock Police Department, and the Atlanta Police Department, with assistance from Corporate Investigators with The Home Depot, Inc.

Assistant United States Attorneys Jeffrey W. Davis and Teresa D. Hoyt 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 is http://www.justice.gov/usao/gan/.
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Eight Members of Mexican Drug Trafficking Organization Operating in Atlanta Sentenced to Federal Prison
2014-12-18 · Northern District of Georgia
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ATLANTA, GA – Eight drug traffickers have been sentenced to federal prison for conspiracy to possess with the intent to distribute methamphetamine.

“These defendants thought that their drug trafficking operations would go unnoticed in Clayton County neighborhoods,” said United States Attorney Sally Quillian Yates. “They were wrong. Due to the outstanding efforts of DEA agents and their local law enforcement partners, these traffickers are off our streets and headed to federal prison.”

“The success of this investigation is a tribute to the strong local, state, and federal partnerships that demonstrate our combined impact on targeting and dismantling those methamphetamine trafficking organizations that peddle poison to our neighborhoods,” said John S. Comer, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division.

According to United States Attorney Yates, the charges and other information presented in court: In or about 2012, Candido Ortuno Alvear, who was on parole in Texas for a cocaine trafficking offense, moved to the Atlanta, Ga. area to set up a methamphetamine manufacturing and distribution organization. Alvear recruited his then 19-year-old son, Victor Ortuno-Penaloza, brother-in-law Vicente Arana Galvan, cousin Tomas Sanchez Juarez, and associate Pablo Maldonado Penalosa to carry out the day-to-day operations of the organization. The organization rented several “stash houses” in Clayton County, Ga., which were used to manufacture, store, package, and distribute large quantities of methamphetamine, including homes on Needle Drive in Forest Park, Ga., and on Maple Avenue in Morrow, Ga. Alonso Alfonso Rivera, who resided in a home on Brian Court in Forest Park, served as a methamphetamine distributor for the organization.

On January 18, 2013, agents observed Maldonado Penalosa meet with Robert Dale Penland at the Maple Avenue residence in Morrow, to provide Penland with a quantity of methamphetamine. After Penland departed the residence, law enforcement conducted a traffic stop of Penland on Interstate 75 in Henry County, Ga., and located approximately 10 pounds of “ice” methamphetamine under the back passenger seat. Penland was traveling in the vehicle with his wife and ten-month-old grandson, who had in fact accompanied Penland into the garage of the Maple Avenue residence earlier that day.

Several days later, on January 22, 2013, Maldonado provided Octavio Cruz Albar with a quantity of methamphetamine outside of the Maple Avenue residence. Law enforcement conducted a traffic stop of Albar, who was traveling in a taxi, and located approximately two pounds of “ice” methamphetamine inside a shoebox where Albar had been seated. The investigation revealed that Juarez had manufactured the seized “ice” methamphetamine in the Needle Drive residence in Forest Park, in coordination with Alvear, Ortuno-Penaloza, and Galvan.

Later that evening, agents executed federal search warrants at the Maple Avenue and Needle Drive residences, and located methamphetamine and methamphetamine processing materials inside both houses. Agents also executed a search warrant at Rivera’s Brian Court residence, in Forest Park arrested Rivera, and located a 9mm Beretta 92FS handgun under a couch cushion. Agents arrested Juarez and Ortuno-Penaloza in a nearby motel and Galvan, Alvear, and Maldonado in a residence on Kennesaw Drive in Forest Park.
- Candido Ortuno Alvear, 40, of Forest Park, Ga., was sentenced to 21 years and ten months in prison, to be followed by five years of supervised release.
- Victor Ortuno-Penaloza, 21, of Forest Park, Ga., was sentenced to nine years and eight months in prison, to be followed by five years of supervised release.
- Vicente Arana Galvan, 44, of Morrow, Ga., was sentenced to ten years and eight months in prison, to be followed by five years of supervised release.
- Tomas Sanchez Juarez, 27, of Forest Park, Ga., was sentenced to twelve years and seven months in prison, to be followed by five years of supervised release.
- Pablo Maldonado Penalosa, 30, of Forest Park, Ga., was sentenced to nine years in prison to be followed by three years of supervised release.
- Octavio Cruz Albar, 29, of Atlanta, Ga., was sentenced to six years and six months in prison to be followed by three years of supervised release.
- Robert Dale Penland, 55, of Asheville, NC., was sentenced to eight years and five months in prison, to be followed by five years of supervised release.
- Alonso Alfonso Rivera, 31, of Forest Park, Ga., was sentenced to ten years in prison, to be followed by five years of supervised release. In addition to the methamphetamine conspiracy charge, Rivera was sentenced on the charge of possession of a firearm by an alien illegally and unlawfully in the United States.
All defendants were convicted of the above charges upon their pleas of guilty last year. They were sentenced by United States District Judge Amy Totenberg.

This case was investigated by DEA Special Agents and Task Force Officers with valuable assistance provided by the Bureau of Alcohol Tobacco and Firearms, Internal Revenue Service, Federal Bureau of Investigation, Georgia Bureau of Investigation, MCS (Marietta Cobb Smyrna) Narcotics Unit, Flint Circuit Drug Task Force, Georgia State Patrol, Clayton County Sheriff’s Office, Henry County Sheriff’s Office, and Henry County Police Department.

Assistant United States Attorney Michael Herskowitz 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 Information Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
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Atlanta Internet Entrepreneur Convicted of Hiding Income and Assets in Swiss Bank Account
2014-12-18 · Northern District of Georgia
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ATLANTA – Gregg A. Kaminsky has pleaded guilty to one count of 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.”

“This prosecution is a yet another reminder that the days of Americans hiding income and assets overseas are over,” said United States Attorney Sally Quillian Yates. “It also sends a strong message that U.S. taxpayers are required to report all of their taxable income to the IRS, whether that income is earned in the real world or 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 United States Attorney Yates, 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, Ga. From 2000 through 2008, 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 (FASFA) that he electronically filed with the U.S. Department of Education in order to qualify for need-based federal financial aid assistance to fund his tuition for an Executive MBA program at Emory University. At the time of the FASFA 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. accountholders 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, which 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 2011, 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 over $100,000.

Kaminsky, 46, of Atlanta, Ga., faces a maximum sentence of five years in prison and a criminal fine of up to $250,000. In addition, as part of his plea agreement with the United States, Kaminsky has agreed 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.

Sentencing is scheduled for March 4, 2015 at 10:00 a.m. before Senior United States District Judge Willis B. Hunt.

This case is being investigated by Special Agents of the Criminal Investigation division of the U.S. Internal Revenue Service. Valuable assistance has also been provided by Special Agents of the U.S. Department of Education, Office of Inspector General.

Assistant United States Attorney David M. Chaiken 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/.
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New Orleans Sheriff's Deputy Pleads Guilty to Theft of Government Funds
2014-12-16 · Northern District of Georgia
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ATLANTA - Janet Baquet, a former Sheriff's deputy in Orleans Parish, La., has pleaded guilty to charges that the she stole nearly $90,000 in Social Security benefits from the federal government.

“This defendant’s repeated acts of criminal conduct lasted for more than eight years and cost the United States Treasury nearly $90,000,” said United States Attorney Sally Quillian Yates. “She deliberately and methodically broke the law that she swore to uphold as a deputy sheriff.”

“The Social Security Administration, Office of the Inspector is grateful for the support and diligent efforts by the US Attorney’s Office in prosecuting those that seek to defraud the Social Security Administration’s benefit programs,” said Thomas Caul, Special Agent in Charge, of the Office of the Inspector General for the Social Security Administration.

According to United States Attorney Yates, the charges and other information presented in court: Baquet’s father, who was a Social Security retirement benefits recipient, died in May 2006, and her mother died one month later. After her parents death, her father’s Social Security benefits continued to be deposited in a bank account that Baquet’s parents shared. For more than eight years, Baquet stole her deceased father’s benefits by writing checks to herself out of her parents’ joint account, forging her deceased mother’s signature on the checks. In total, she received $89,379.13 of government benefits to which she was not entitled.

Sentencing for Baquet, 56, of New Orleans, La., is scheduled for March, 4, 2015.

This case is being investigated by the Social Security Administration - Office of the Inspector General.

Special Assistant United States Attorney Diane C. Schulman is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Girls Softball Coach Arraigned on Child Pornography Charges
2014-12-16 · Northern District of Georgia
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ATLANTA - Nicholas Mazza, who worked as a girls softball coach in Cobb County, Ga., has been arraigned on federal charges of distributing and possessing child pornography. Mazza was indicted by a federal grand jury on December 9, 2014.

“The victimization of children is one of the most heinous and despicable crimes imaginable,” said United States Attorney Sally Quillian Yates. “Distributing images of the sexual abuse of children on the Internet only compounds the harm done to the children. We will continue to vigorously pursue and prosecute those persons who collect and trade these images.”

According to United States Attorney Yates, the charges, and other information presented in court: In late October 2014, special agents of the Department of Homeland Security were monitoring a peer-to-peer program to identify individuals who were making child pornography available for others to download onto their computers. A peer-to-peer program allows users to share digital files directly with other persons who use the same program. The agents found that the defendant had child pornography videos available on his computer. After determining that this activity was occurring from his house in Powder Springs, Ga., they obtained a federal search warrant and executed it at the defendant's home on November 6, 2014. They found a computer and hard drive that contained thousands of images and videos of young girls being sexually abused.

Mazza, 66, of Powder Springs, Ga., was arrested on November 7, 2014. Prior to his arrest, he worked as a fast-pitch softball coach at “GeorgiaScout” in Cobb County for girls between the ages of 8 and 17 years. He was arraigned before United States Magistrate Judge Linda T. Walker.

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 Atlanta Division is http://www.justice.gov/usao/gan/.
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Former U.S. Postal Worker and Others Sentenced for Fraudulent Income Tax Refund Scheme
2014-12-16 · Northern District of Georgia
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ATLANTA - Kenneth Campbell, a/k/a “Scrilla,” Corey Thomas, a/k/a “Lil Corey,” Adrian Bridges, Juarez Johnson, Justin Cody, a/k/a “Decatur Slim,” and Aeshia Wilmore have been sentenced for their roles in a $1 million fraudulent income tax refund scheme.

“Identity theft unfortunately has become the crime of choice given the availability or stolen or lost personal information,” said United States Attorney Sally Quillian Yates. “With each offense, an innocent person’s financial livelihood is put at risk. We will continue to investigate and prosecute these crimes and will seek sentences that deter and punish this conduct.”

“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. "These defendants perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these individuals concludes an extensive criminal investigation that now holds those involved with victimizing so many accountable for their actions. The FBI will continue to work with its law enforcement partners in aggressively addressing these fraudulent tax refund schemes that not only victimize the U.S. Government but also those individuals whose identities have been stolen.”

According to Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General, “Adrian Bridges reflects just a very small percentage of employees who failed to uphold the trust and integrity placed in them. The U.S. Postal Service, Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law. The general public should be reminded that the majority of postal employees remain committed to exhibiting the highest moral character and trust that our customers expect and deserve.”

According to United States Attorney Yates, the charges and other information presented in court: From as early as July 2012 to October 2013, the defendants participated in a scheme to defraud the United States Department of the Treasury and the Michigan Department of Revenue by filing hundreds of fraudulent income tax returns using stolen identities. This type of scheme is commonly called stolen identity refund fraud. Campbell and Thomas used stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare numerous fraudulent tax returns, claiming over $400,000 in tax refunds. After the refunds were processed, Campbell and Thomas had the refunds applied to blank prepaid debit cards that they later used for their own benefit.

In order to increase the number of fraudulent tax refunds that they could receive at one time, Campbell and Thomas had the prepaid debit cards mailed to different addresses throughout the Atlanta area. Many of these addresses were associated with an apartment complex in Cobb County, Ga., where Bridges served as a mail carrier for the United States Postal Service. Working at the direction of Campbell, Bridges would retrieve the debit cards from the United States mail and deliver them to Campbell.

During the course of the scheme, Campbell recruited Johnson, then an employee of the Fulton County Ga., Superior Court Clerk's Office, to provide him with stolen identity information. In September 2013, Johnson accessed county databases on several occasions to obtain identity information for dozens of people who had been booked into the Fulton County Ga., Jail. Johnson later provided this identity information to Campbell.

Campbell also worked with other individuals to file fraudulent federal and state tax returns, including Justin Cody, a/k/a “Decatur Slim.” In a related case, Cody and his wife, Aeshia Wilmore, were charged for their involvement in a scheme similar to Campbell’s where they claimed over $600,000 in fraudulent tax refunds.

The defendants were convicted and sentenced by United States District Judge Steve C. Jones, as described below:
- Kenneth Campbell, a/k/a “Scrilla,” 31, of Atlanta, Ga., was convicted on charges of conspiracy to commit mail fraud and aggravated identity theft on August 26, 2014, after he pleaded guilty. On November 17, 2014, Campbell was sentenced to serve seven years and three months in federal prison and ordered to pay restitution in the amount of $139,610.
- Corey Thomas, a/k/a “Lil Corey,” 28, of Atlanta, Ga., was convicted on charges of conspiracy to commit mail fraud and aggravated identity theft on August 26, 2014, after he pleaded guilty. On November 20, 2014, Thomas was sentenced to serve five years and one month in federal prison and ordered to pay restitution in the amount of $114,754.
- Adrian Bridges, 43, of Mableton, Ga., was convicted on charges of conspiracy to commit mail fraud and mail theft on August 26, 2014, after he pleaded guilty. On December 16, 2014, Bridges was sentenced to serve four years in federal prison, three years of supervised release, and ordered to pay restitution in the amount of $81,878.
- Juarez Johnson, 30, of Atlanta, Ga., was convicted of identity theft on May 15, 2014, after he pleaded guilty. On July 30, 2014, Johnson was sentenced to serve one year of probation.
- Justin Cody, a/k/a “Decatur Slim,” 33, of Atlanta, Ga., was convicted on charges of theft of government funds and aggravated identity theft on November 22, 2013, after he pleaded guilty. On April 28, 2014, Cody was sentenced to serve seven years and three months in federal prison and ordered to pay restitution in the amount of $150,329.
- Aeshia Wilmore, 26, of Atlanta, Ga., was convicted of theft of government funds on November 22, 2013, after she pleaded guilty. On April 28, 2014, Wilmore was sentenced to serve two years in federal prison and ordered to pay restitution in the amount of $150,329.
This case is being investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Service Office of the Inspector General.

Assistant United States Attorney Nekia S. Hackworth 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/.
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Former Murray County Judge Found Guilty by Federal Jury
2014-12-12 · Northern District of Georgia
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ROME, Ga. – Former Murray County Chief Magistrate Judge Bryant L. Cochran has been found guilty by a federal jury for arranging the false arrest of a woman who alleged that she had been sexually propositioned by Cochran, for tampering with a witness, and for sexually assaulting a county employee.

“Cochran abused the trust placed in him by the people of Murray County,” said United States Attorney Sally Quillian Yates. “Cochran used the power and influence of his judicial position in a way that is the fundamental opposite of justice, arranging to have a citizen falsely arrested after she accused him of sexual misconduct. There is no greater breakdown in the justice system than when a judge uses his authority to wrongly seek to deprive a citizen of her liberty.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI continues to commit significant resources toward investigating allegations of criminal conduct by public officials. This conviction of former Magistrate Judge Cochran in federal court illustrates our commitment in following the facts in these otherwise sensitive investigations.”

“The GBI is committed to working with our federal partners to hold accountable those whom the public trust to uphold the law. When someone in a position of authority victimizes citizens, law enforcement must be prepared to fully investigate these abuses of power,” said Vernon Keenan, Director, the Georgia Bureau of Investigation.

According to United States Attorney Yates, the charges, and other information presented in court: From January 1, 2004, to August 15, 2012, Bryant Cochran served as the Chief Magistrate Judge in Murray County, Ga. In that position, Cochran sexually assaulted a Murray County employee and unlawfully searched the personal cellular telephone of another Murray County employee.

In addition, on April 9, 2012, Cochran met with a female citizen regarding a legal matter. During the meeting, Cochran made inappropriate sexual advances towards the citizen. By mid-July 2012, the allegations of Cochran’s sexual misconduct towards the citizen had become public. In response, Cochran called several local police officers providing them with a “tip” – that the citizen carried drugs in her vehicle.

In an effort to discredit the citizen, on or about August 12, 2012, Clifford J. Joyce (who was a tenant of Cochran’s and who has been convicted of conspiring to distribute a controlled substance based on the attempted “framing”) planted a metal tin containing five packets of methamphetamine under the citizen’s car.

Two days later, on August 14, 2012, Murray County Sheriff’s Office Deputy Joshua Greeson (who has since been convicted of witness tampering) conducted a traffic stop on a car occupied by the citizen. During the traffic stop, several officers and a police drug dog searched the car for approximately ten minutes – but did not find any drugs. Thereafter, Captain Michael Henderson (who is Cochran’s cousin and who has also been convicted of witness tampering) had an approximately two minute telephone conversation with Cochran. Following that call, Henderson told an officer at the scene that according to his information; the citizen hid her drugs in a magnetic box under the left, rear of her car. Upon receiving that information, Greeson found the metal box magnetically attached to the car in that precise location. Inside the box, Greeson recovered five small packets containing methamphetamine. Greeson then told the citizen that he had recovered drugs from her car. At that point, the citizen stated that she had been set up. Despite this, Greeson arrested the citizen and transported her to jail.

On August 15, 2012, the day after the arrest, Cochran resigned his position as Murray County’s Chief Magistrate Judge. On August 22, 2012, Joyce admitted to law enforcement officers that he planted drugs – after which the local District Attorney dismissed the charges against the woman. Finally, in an apparent effort to cover up the framing of the woman, Cochran tried to persuade a witness to provide false information to law enforcement officers.

On May 13, 2014, a federal grand jury indicted Cochran, 44, of Chatsworth, Ga. for: (1) Conspiracy against Rights; (2) Deprivation of Rights under Color of Law, (3) Conspiracy to Distribute a Controlled Substance, and (4) Tampering with a Witness. The trial in this case began on Tuesday, December 2, and the jury began deliberations on December 10, 2014. The jury returned guilty verdicts on all counts the following day, December 11, 2014. Cochran will be sentenced February 20, 2015, at 1:30 p.m.

This case is being investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.

Assistant United States Attorneys Jeffrey W. Davis and William L. McKinnon, Jr. are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
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Credit Card Fraud Results in 15 Year Sentence
2014-12-12 · Northern District of Georgia
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ATLANTA - Paul L. Black, a/k/a Marcus Lively and Ednecdia Sutina Johnson, a/k/a Tina Johnson have both been sentenced to 15 years in prison for access device fraud, possession of device-making equipment, possession of false identification documents, and possession of a document-making implement.

“This case demonstrates that so-called white collar crime can also give rise to incredible violence,” said United States Attorney Sally Quillian Yates. “This credit card lab and large volume of account numbers is a reflection of the increasingly sophisticated tools of identity thieves.”

“The defendants endeavored to use technology to their benefit and others’ detriment,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office, “This case illustrates that there are no victimless crimes and the sentences prove that those who commit crimes will be put behind bars.”

According to United States Attorney Yates, the charges and other information presented in court: Early in the morning of December 21, 2011, Clayton County officers responded to a 911 call reporting a home invasion at the residence of the defendants. When they arrived at the scene, officers found one of the presumed home invaders at the foot of the driveway with a bullet wound to his head. The officers also found the front door of the house kicked in and saw a sawed-off pump shotgun in a large pool of blood in the foyer. Blood was also on the columns in the foyer and the walls had multiple bullet holes.

The responding officers searched the house where they found more blood in the master bedroom, including on both doors and at the foot of the bed. The bedroom door also had been shot by a shotgun and the door that led from the bedroom to the backyard was also smeared with blood. The officers moved to the basement, where they discovered a trail of blood leading to a locked door that had blood smeared on its handle. Officers forced the door open and when they entered the room they found a highly sophisticated credit card lab that contained credit card presses, computers, printers, card embossers, stacks of blank credit cards and partially completed cards, cash, and two handguns.

Ultimately, the United States Secret Service determined that the lab had over 97,000 unique credit and debit card account numbers, over 800 completed fraudulent credit cards, and about 100 fake IDs. They also found $199,000 in cash, over $380,000 in jewelry, and gift cards worth more than $43,000.

Paul L. Black and Ednecdia Sutina Johnson lived alone at the house. As a result of the discovery of the credit card lab, fraudulent credit cards, and fake IDs, Black and Johnson were indicted by a federal grand jury in a four count indictment charging access device fraud, that is possession of counterfeit credit cards, possession of device-making equipment, the credit card making machines, possession of false identification documents, and possession of document-making implements. At the time of their arrest, Johnson was on supervised release relating to her earlier conviction for federal bank fraud.

Black, 48, of Jonesboro, Ga., has been sentenced by United States District Court Judge Richard Story to 15 years in prison to be followed by three years of supervised release. Black was convicted on these charges on March 18, 2014, after he pleaded guilty. Johnson, 48, also of Jonesboro, Ga., has been sentenced to 15 years in prison to be followed by three years of supervised release. Johnson was convicted on these charges on March 18, 2014, after she pleaded guilty.

This case was investigated by the United States Secret Service.

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/.
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Operators of Atlanta Stores Arraigned for WIC and Snap Fraud
2014-12-09 · Northern District of Georgia
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ATLANTA - Rodney Byrd and Reginald Byrd have been arraigned on federal charges of unlawfully purchasing vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (SNAP).

“These defendants are charged with stealing money that was intended to be used to provide nutritious food to low-income mothers and children,” said United States Attorney Sally Quillian Yates. “Our office will continue to pursue those individuals who seek to abuse government assistance programs for their own greed.”

“These defendants sought to benefit financially from their fraudulent activities” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Their actions also resulted in a loss to the government, but more importantly, they are charged with stealing from individuals who depend on the WIC program for assistance.”

According to United States Attorney Yates, the charges, and other information presented in court: Rodney Byrd owned and operated several Atlanta, Ga., metropolitan-area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP. The defendants caused employees to cash checks made out to the employees’ names and used the proceeds to purchase customers’ WIC vouchers and EBT cards.

Rodney Byrd, 39, of Lawrenceville, Ga., and Reginald Byrd, 38, of College Park, Ga., were arraigned before United States Magistrate Judge Janet F. King. Both defendants were indicted by a federal grand jury on November 24, 2014.

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 Agriculture, Office of the Inspector General, and Internal Revenue Service Criminal Investigation.

Assistant United States Attorney Thomas J. Krepp is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Former Grady Hospital Payroll Director Convicted of Embezzlement Scheme
2014-12-09 · Northern District of Georgia
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ATLANTA - Donald Thomas, the former payroll director for the Grady Memorial Hospital Corporation, has been convicted by a jury for stealing over $480,000 from one of Georgia’s largest hospitals.

“Thomas embezzled from a longstanding public institution that provides medical care to the poor and underserved in the Atlanta area and beyond,” said United States Attorney Sally Quillian Yates. “By its guilty verdict, the jury has held him accountable for stealing from taxpayers and Grady’s patients.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “At a time when health care institutions such as Grady Hospital are under the strain to meet the needs of their community, to include those served by publicly funded programs, the criminal actions of former Grady Hospital Payroll Director Thomas are all that more egregious. The conviction of Thomas should serve as a reminder that the FBI is part of an oversight process involving any and all allegations of thefts from federal health care programs and their related institutions and anyone involved in such activity could find themselves in front of a jury trial on similar charges.”

According to United States Attorney Yates, 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”). Grady is one of the largest providers of charitable care in the state of Georgia. It relies significantly on federal funding, including Medicare and grants, to provide medical services regardless of ability to pay.

From January 2008 until June 2011, Thomas oversaw payroll for all 5500 Grady employees. He had access to and knowledge of Grady’s payroll system, which he used to falsify additional vacation pay and severance pay for terminated Grady employees. Since the employees had already left Grady, Thomas calculated that it was less likely that his fraud would be detected. After adding the additional compensation to the terminated employees’ payroll records, Thomas then removed their bank account numbers and replaced them with his own. As a result, the fraudulent payments were deposited into his own bank accounts. A total of 134 fraudulent payments were made in this manner.

Additionally, in two instances, Thomas falsified pay and created paper checks for the additional compensation. The checks were made payable to terminated Grady employees; however, Thomas forged the employees’ signatures to endorse the checks, and deposited them into his own bank account.

The scheme was discovered when a terminated employee contacted Grady to inform the payroll staff that her 2011 W-2 tax form showed more compensation than she had actually earned. Further investigation revealed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas. Though Thomas had attempted to cover up his embezzlement by reversing most of the fraudulent changes, in a few instances, he had failed to do so. As a result, additional wages and compensation were added to several employees’ year-end W-2 tax forms.

Over the course of the scheme, Thomas obtained over $480,000 in falsified vacation and severance pay.

The jury convicted Thomas, 55, of Atlanta, Ga., of six counts of theft from an organization receiving federal funds and six counts of wire fraud related to the fraudulent direct deposit payments. He was also convicted of two counts of bank fraud related to the forged checks. Sentencing is scheduled for February 25, 2015, at 10:30 a.m. before United States District Judge Charles A. Pannell, Jr.

This case is being investigated by the Federal Bureau of Investigation.

Assistant United States Attorneys Shanya Dingle and G. Scott Hulsey 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/.
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Former Elementary School Principal Convicted of Attempting to Entice A Minor
2014-12-03 · Northern District of Georgia
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ATLANTA - John Harold McGill, the former principal of Mt. Carmel Elementary School in Douglas County, Ga., has been convicted after a jury trial, of using emails and text messages to attempt to entice a minor to engage in unlawful sexual activity.

“The idea that an elementary school principal would attempt to have sex with a thirteen-year-old girl is disgraceful,” said United States Attorney Sally Quillian Yates. “McGill violated a public trust and all sense of common decency, and a jury has held him criminally responsible.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s Violent Crimes Against Children program, along with the FBI Atlanta based Metro Atlanta Child Exploitation (MATCH) Task Force, remains ever vigilant for individuals such as Mr. McGill, who not only represent a threat to our children, but who are also in a position of trust over those very children. The conviction by jury trial of Mr. McGill, a former elementary school principal, on federal charges of attempting to entice a minor child for sex removes a very real and serious threat from our community. The FBI and its MATCH Task Force will continue to work with its area law enforcement partners as it maintains it’s much needed vigilance in protecting our children from those who would exploit them.”

According to United States Attorney Yates, the charges, and evidence presented in court: On Saturday, March 1, 2014, McGill responded to an Internet advertisement named “casual encounters” purportedly posted by a mother who was seeking a man to introduce her thirteen-year-old daughter to sexual intercourse. McGill communicated with who he thought was the girl’s mother by email and texts throughout the evening and into early Sunday morning, March 2, 2014. With his wife out of town at a conference, McGill put his children to bed, and then drove more than 50 miles from Douglasville, Ga., to Lithonia, Ga. He arrived at the “mother’s” house at 1:45 a.m., with a condom in his pants pocket. However, the “mother” was an FBI Task Force Officer, and McGill was arrested.

McGill, 57, of Douglasville, Ga., was the principal of Mt. Carmel Elementary School in Douglas County, Ga., until he was arrested on March 2, 2014. He was convicted after a two-day trial. Federal District Judge William S. Duffey, Jr., remanded McGill into custody and set sentencing at 9:30 a.m. on February 6, 2015.

This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Cobb County Police Department, and the DeKalb County District Attorney’s Office.

Assistant United States Attorney William G. Traynor 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/.
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Alleged PCP Distributor Who Shot A DEA Agent Arraigned on Federal Narcotics and Assault Charges
2014-12-02 · Northern District of Georgia
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COLUMBIA, SC – Joel Perrin Robinson has been arraigned on federal drugs and weapons charges in relation to the shooting of a DEA Agent while a search warrant was being executed at his home on October 20, 2014.

“This defendant is charged with opening fire on federal agents while they were serving a federal narcotics search warrant. A DEA Special Agent was seriously injured,” said United States Attorney Sally Quillian Yates. “This office will continue to work with its law enforcement partners to ensure that he is held accountable for his actions.”

John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division stated, “The wounding of our agent during the execution of a Federal Search Warrant reinforces the daily dangers law enforcement officers face while conducting narcotics investigations. The DEA will work closely with our federal, state and local counterparts to assist the US Attorney’s Office in the prosecution of this matter.”

David A. Thomas, Special Agent in Charge of the FBI’s Columbia Field Office said, “This case is the result of an unfortunate reality that happens far too often to law enforcement officers working selflessly to make our communities safer. It is a grim reminder of the violence associated with the illegal drug trade and the dangers faced by law enforcement officers trying to stop it.”

According to United States Attorney Yates, the charges, and other information presented in court:   Beginning in 2007, Robinson, along with co-conspirators Coleman Warnock and Adrian Banks (both have been charged with narcotics offenses in the Northern District of Georgia) allegedly purchased, stored, brokered, distributed and used a number of chemicals, including piperidine, a PCP precursor, to manufacture large quantities of PCP, a controlled substance. At the direction of Warnock, Banks transported chemicals used to manufacture PCP from the Atlanta, Ga., area to Robinson, who stored the chemicals at his residence in Orangeburg, SC. Then, Robinson, Warnock and Banks allegedly transported chemicals used to manufacture PCP from South Carolina to other jurisdictions.

On July 6, 2013, Warnock and two other individuals were processing chemicals associated with PCP manufacturing at a residence located in Fairburn, Ga. On that date, a green GMC Canyon pickup truck registered to a relative of Robinson was located at the residence, along with two trailers which had been used by Warnock, Banks, and Robinson to transport chemicals associated with PCP manufacturing. One of the trailers was purchased and titled in the name of a relative of Robinson. At some point during the processing of the chemicals, a fire erupted and burned for two days - destroying the residence.

On or about December 4, 2013, at the direction of Warnock, another individual transported a trailer which contained, among other items, 55-gallon drums of piperidine to Robinson’s Orangeburg residence.

On October 20, 2014, at approximately 6:15 a.m., DEA Special Agents and Task Force Agents were executing a federal search warrant to search Robinson’s Orangeburg residence for evidence of a drug trafficking crime while announcing “police, search warrant” in a loud and continuous manner. The indictment alleges that Robinson fired four shots from his bedroom. Then, he walked out of his bedroom into the pool area of the residence. At that time, Robinson allegedly used a laser sight on his .45 caliber pistol and fired an additional two rounds at DEA agents who were part of the search warrant team, providing coverage for agents executing the search warrant in the garage area. One of the rounds fired by Robinson struck a DEA Special Agent in the right elbow, causing the agent serious injury. Robinson then surrendered to law enforcement and was placed under arrest.

During the search of the residence, agents also located an AR-15 rifle with three magazines and Aim Shot scope, a 16-gauge shotgun, a semi-automatic rifle, a .22 caliber semi-automatic rifle, a 12-gauge shotgun, a bolt action rifle, a .22 caliber revolver, a .38 caliber revolver with laser grip sight, and a 380 handgun with magazine and laser sight. A bulletproof vest was also recovered from Robinson’s bedroom.

A federal grand jury seated in the District of South Carolina returned the indictment for Joel Perrin Robinson, 32, of Orangeburg, SC., on November 20, 2014.   He was arraigned before a United States Magistrate Judge in Columbia, SC.

The United States Attorney’s Office for the Northern District of Georgia is handling the prosecution of Robinson as the United States Attorney’s Office for the District of South Carolina has voluntarily recused itself from the case.
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.

Special Agents and Task Force Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation are conducting the investigation of this case.   Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.

Assistant United States Attorneys Michael Herskowitz, and Vivek Kothari, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, are prosecuting the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Two Members of MS-13 Sentenced to Prison
2014-11-21 · Northern District of Georgia
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ATLANTA - Emmanual Hidalgo, and Edwin Menjivar, have been sentenced for their participation in violent crimes that they committed as members of the street gang known as Mara Salvatrucha 13, or MS-13.

“MS-13 preyed on innocent civilians and suspected rival gang members,” said United States Attorney Sally Quillian Yates. “They spread fear and terror through large swaths of Gwinnett and DeKalb counties. People who choose to join gangs and commit violent crimes will learn firsthand that they will be held accountable for their actions and will spend time in prison.”

“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of our communities.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these violent MS-13 gang members to federal prison will have a meaningful and positive impact on public safety in those areas of metro Atlanta that this gang for so long called their home. This case truly represents the problem posed and what is required to address these transnational gangs that bring their level of organized crime from their countries into ours. The FBI will continue to dedicated extensive investigative resources toward the combatting of these violent groups.”

According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang whose members come primarily from Central American countries. By 2005, MS-13 had established a presence in the Atlanta area, staking out Norcross and Chamblee as their strongholds. Members of MS-13 violently attacked suspected rival gang members. They also committed countless armed robberies of civilians as well as businesses. The defendants were sentenced today for their participation in the following crimes:
- Emmanual Hidalgo, also known as Scooby, along with other gang members, planned to rob a suspected drug dealer at a hotel in DeKalb County in April 2007. When the suspected drug dealer turned out to have his own gun, Hidalgo and his fellow MS-13 members engaged in a shootout with him that spilled outside the hotel room. Surveillance video showed one of the MS-13 members stopping to pick up the suspected drug dealer’s weapon, which he later showed off as a trophy.
- Edwin Menjivar, also known as Vago and Chilly Willy, drove fellow gang member Ernesto Escobar in October 2007 on a mission to shoot suspected rival gang members. They went to an apartment complex in Gwinnett County where many members of the gang SUR-13 lived. As Menjivar drove, Escobar fired shots, hitting one man in the neck as he was standing outside his apartment patio. The police later recovered the firearm that Escobar used underneath Menjivar’s bedroom mattress. Ernesto Escobar was charged in the same indictment; was convicted after a jury trial; and is now serving a life sentence.
The court sentenced the defendants as follows:
- Emmanual Hidalgo, 25, of Chamblee, Ga., has been sentenced to 25 years in prison to be followed by five years of supervised release. Hidalgo was convicted on these charges on August 2, 2013, after he pleaded guilty RICO conspiracy and use of a firearm in relation to a crime of violence.
- Edwin Menjivar, 33, of Norcross, Ga., has been sentenced to eleven years in prison to be followed by three years of supervised release. Menjivar was convicted on these charges on June 7, 2013, after he pleaded guilty to RICO conspiracy and Violent Crime in Aid of Racketeering.
These defendants will be deported upon completion of their prison sentences. There is no parole in the federal system.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Gwinnett County Police Department and DeKalb County Police Department.

Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and Department of Justice Organized Crime and Gang Section Trial Attorney Joseph K. Wheatley 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/.
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Letter Carrier Sentenced to 15 Years in Prison for Plotting Robbery of Fellow Postal Worker
2014-11-21 · Northern District of Georgia
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ATLANTA - LaTonya Evans, a former United Stated Postal Service employee, has been sentenced to federal prison for participating in a conspiracy that culminated in the robbery and shooting of a postal truck driver on December 20, 2013, in Conley, Ga.

“By providing her co-defendants with inside information, Evans enabled a robbery that nearly killed her co-worker,” said United States Attorney Sally Quillian Yates. “Evans used her knowledge of the Postal Service for personal gain and violated the trust of the public and her fellow postal workers.”

“The safety and security of Postal Service employees is core to the mission of the Postal Inspection Service. Postal Inspectors are committed to bringing to justice those who commit violent crimes against postal employees.” said Thomas Noyes, Postal Inspector in Charge of the Charlotte Division.

According to United States Attorney Yates, the indictment, and other information presented in court: LaTonya Evans helped develop a scheme, with co-defendants Kendrick Watkins and Charles Jackson, to rob a postal truck driver. During phones calls and face-to-face meetings, Evans provided Watkins and Jackson with non-public information that enabled them to commit the robbery. On December 20, 2013, during a routine pick-up in Conley, Ga., Jackson and Watkins approached the postal truck they had targeted and demanded keys from the driver. When the victim did not immediately comply, Jackson shot the victim through the torso, nearly taking his life. The robbers bound the victim’s feet and took his cell phone so that he could not run or call for help. Jackson and Watkins drove away with the stolen truck, and all its contents, and met with Evans later that same evening to discuss the robbery. The victim struggled to reach the nearest road where he eventually flagged down a passerby for help, after waiting almost 45 minutes.

LaTonya Evans, 44, of Jackson, Ga., was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to 15 years and eight months in prison, followed by three years of supervised release. Evans was convicted on September 9, 2014, after pleading guilty to conspiring to interfere with commerce by robbery.

Co-defendants Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga., were convicted on August 13, 2014, and August 5, 2014, respectively, after both men pleaded guilty to armed postal robbery and discharge of a firearm during a crime of violence. Watkins and Jackson will be sentenced on January 7, 2015. They both face a maximum sentence of life imprisonment.

This case was investigated by the United States Postal Inspection Service.

Assistant United States Attorneys Mary Kruger, John Ghose and Angela Garland prosecuted this case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Medical Clinic Owners Indicted for Medicare and Medicaid Fraud
2014-11-19 · Northern District of Georgia
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ATLANTA – Miguel Angel Hernandez and Maria del Pilar Moreira have been indicted on charges of conspiracy and healthcare fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program.

“These defendants are charged with preying on senior citizens to steal millions of dollars in Medicare and Medicaid funds,” said United States Attorney Sally Quillian Yates. “They are now being held accountable for their outrageous conduct.”

“Health care business owners who try to make a quick buck by billing taxpayer-funded health care programs for services they never actually provided will instead pay a high price for their greed-fueled fraud,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.

Attorney General Sam Olens said, “The alleged scam by the defendants in this case is reprehensible. We work diligently to protect our Medicaid dollars, and we will not allow our finite funds to be used as a personal piggy bank for dishonest providers. We look forward to working with the U.S. Attorney’s Office in prosecuting this case.”

According to United States Attorney Yates, the charges and other information presented in court: Hernandez and Moreira owned and operated two medical clinics, East Point Medical Center in East Point, Ga., and Family First Medical Center, in Chamblee, Ga. From 2010 to 2013, the defendants allegedly submitted false claims to Medicare and Medicaid for medical services that were never provided to their clinics’ patients.

As part of the alleged scheme, the defendants transported patients in vans daily from locations including senior centers, with up to 60 patients arriving for treatment each day. Physical therapists sometimes led the patients in group exercises, but other times unlicensed aids supervised the patients. Although these patients received little medical treatment, the defendants allegedly submitted bills claiming falsely that each patient had received multiple physical therapy procedures. The defendants billed Medicare and Medicaid over $2 million for various individual physical therapy procedures they claimed to have provided to patients. A Medicare audit revealed that on occasion the defendants billed more than 24 hours’ worth of medical services in a single day.

The defendants also allegedly billed Medicare and Medicaid for numerous trigger point injections that were never given. Although some patients received a limited number of trigger point injections as a treatment for pain, the defendants billed for many more injections than were actually given. The defendants sometimes gave patients Vitamin B-12 injections and then billed them as trigger point injections. This part of the fraud was particularly profitable, because Medicare paid $0.66 for a B-12 shot whereas it paid $58.52 and $60.56 for two kinds of trigger point injections.

The defendants submitted the bills to Medicare and Medicaid under the name of a medical doctor who did not perform the services claimed. The doctor was in the clinic only a couple of days a week and saw a limited number of patients, yet his name appeared as the provider for most of the services billed by the defendants.

The defendants also designed and implemented promotions to attract patients to their clinic. They offered the patients massages, cash, gift cards, food, dollar prizes, and raffles for televisions, to induce the patients to visit the clinic on a regular basis. They also held Bingo games at the clinic and hosted holiday luncheons for the patients.

Three holiday luncheons are described in the indictment. On November 28, 2011, the defendants had patients driven to a Thanksgiving party at Big Daddy’s Dish restaurant in College Park, Ga. On December 30, 2011, patients were driven to a Christmas party at Piccadilly restaurant in Atlanta, Ga. On May 14, 2012, patients were driven to a Mother’s Day party again at Piccadilly restaurant. The defendants submitted bills to Medicare and Medicaid for physical therapy procedures and trigger point injections allegedly provided to the patients on the days of these parties, even though the patients received no medical services there. At the Thanksgiving and Christmas parties, the defendants held raffles and gave away televisions.

A federal grand jury indicted Hernandez, 58, and Moreira, 47, both formerly of Atlanta, Ga. The indictment charges the defendants with one count of conspiracy to commit healthcare fraud and 24 counts of healthcare fraud. The defendants’ whereabouts are currently unknown. Anyone with information about the location of these defendants is asked to contact the U.S. Department of Health and Human Services, Office of Inspector General toll-free at 1-888-476-4453, or submit this form: https://forms.oig.hhs.gov/hotlineforms/fugitive-form.aspx.

Members of the public are reminded that the indictment contains only allegations. 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 Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General, and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.

Assistant United States Attorney Stephen H. McClain and Georgia Assistant Attorney General Lyndie M. Freeman are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
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Defendants in ATM Skimming Ring with over 5,000 Victims Sentenced to Federal Prison
2014-11-19 · Northern District of Georgia
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ATLANTA – Michael J. Ellis has been sentenced for stealing the bank debit card numbers and passwords of individuals in Georgia and Florida through an ATM skimming device.

“This sentencing marks the end of an ATM skimming ring that victimized over 5,000 people in Georgia and Florida,” said United States Attorney Sally Quillian Yates. “Identity theft is a growing problem that damages the good names and credit of too many innocent people, and we remain committed to combatting this insidious crime in all of its various forms.”

“The Secret Service, in conjunction with our law enforcement partners, will continue to arrest those that commit crimes that prey on unsuspecting victims,” 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 defrauding victims and ignoring the consequences of their actions.”

According to United States Attorney Yates, the charges and other information presented in court: Ellis, working with co-defendants Zira M. Bailey and Bryan S. Kees, used illegal skimming devices to steal over $130,000 from bank customers by installing the devices at SunTrust automated teller machines (ATM’s) in Georgia and Florida. When a customer used the ATM with a skimming device installed, the device electronically recorded the customer’s debit card number and a small camera in the device video recorded the ATM keyboard as the customer entered his or her password.

The defendants then downloaded the information from the device to a computer. Using a magnetic stripe card reader/writer, they re-encoded gift cards with the stolen account information. They then used the altered gift cards at ATMs to drain money from the victims’ bank accounts. Over 500 victims were linked to Bailey, Ellis, and Kees from the SunTrust ATMs.

On December 28, 2012, Bulgarian Customs officials notified the United States Secret Service in Atlanta that a DHL parcel containing illegal skimming devices was being shipped to the United States. The Secret Service obtained a federal search warrant for the package and found three skimming devices. The package was addressed to a UPS Store in Atlanta, Ga. Ellis, Bailey, and another co-conspirator, WB Wohrman, were listed as authorized recipients of mail to the UPS box. In a later search of a garage controlled by Ellis, law enforcement found 250 financial transaction cards, magnetic reader/writers, false ATM overlays, laptops with ATM videos and debit card information, and a wig.

Ellis, 36, of Decatur, Ga., was sentenced by United States District Judge Orinda D. Evans to eight years and five months in federal prison and three years of supervised release, and ordered to pay $136,374.31 in restitution.

Judge Evans previously sentenced Kees, 37, of Savannah, Ga., to seven years in federal prison, and Bailey, 27, of Picayune, Miss., to five years and five months in federal prison. Kees and Bailey were also sentenced to three years each of supervised release and $136,374.31 in restitution. All three defendants pleaded guilty to conspiracy, access device fraud, and aggravated identity theft.

In a related case, Plamen Atanasov, Stoyno Filtshev, Tsvetil Iliev, Nedyalko Palazov, and WB Wohrman were charged with using ATM skimming devices at Bank of America, JP Morgan Chase, and Wells Fargo ATMs in the metro Atlanta area. These defendants stole over $380,000 from bank customers, and over 4,700 victims were linked to this related scheme. Iliev, 34, formerly of Atlanta, Ga., is currently a fugitive, having fled the United States after his indictment with the assistance of Kees and Bailey. The other four defendants pleaded guilty to conspiracy, access device fraud, and aggravated identity theft. Judge Evans sentenced those four defendants as follows:
- Atanasov, 31, of Sandy Springs, Ga., was sentenced on April 25, 2014, to seven years in prison, three years of supervised release, and $386,951.12 in restitution.
- Filtshev, 53, of Atlanta, Ga., was sentenced on April 25, 2014, to seven years and eleven months in prison, three years of supervised release, and $386,951.12 in restitution.
- Palazov, 29, of Atlanta, Ga., was sentenced on April 25, 2014, to eight years and eleven months in prison, three years of supervised release, and $386,951.12 in restitution.
- Wohrman, 37, of Buford, Ga., sentenced on April 28, 2014, to eight years and three months in prison, three years of supervised release, and $386,951.12 in restitution.
This case was investigated by Special Agents of the United States Secret Service.

Assistant United States Attorney Stephen H. McClain prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Corporate Vice President Sentenced for Healthcare Fraud Scheme
2014-11-19 · Northern District of Georgia
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ATLANTA – Daniel K. Lane, Jr. has been sentenced for conspiring to commit healthcare fraud by filing fraudulent claims with Medicare, Blue Cross Blue Shield, and other insurers.

“This healthcare fraud scheme reached all the way up to the Vice President of Compass Healthcare,” said United States Attorney Sally Quillian Yates. “While serving as Vice President and CFO, the defendant set up the business to automatically bill insurance companies for expensive medical equipment never provided to customers, and then forged prescriptions to make the claims look legitimate. Corporate executives who engage in healthcare fraud face federal prison.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Mr. Lane’s criminal conduct was driven by personal greed and today’s sentencing will not only hold him accountable for those actions but will serve as a reminder to others that the FBI and its law enforcement partners will identify, investigate, and present for prosecution those individuals involved in similar such activities.”

“Today’s sentence demonstrates that regardless of one’s position within a corporation, if you defraud Medicare you will be held accountable,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “Falsifying patients’ medical files in order to generate more corporate revenue at tax payers’ expense will not be tolerated and we will vigorously pursue all such cases.”

According to United States Attorney Yates, the charges and other information presented in court: Daniel K. Lane, Jr. was the Vice President and Chief Financial Officer for Compass Healthcare, Inc., a durable medical equipment business headquartered in St. Louis, Mo., with offices in Atlanta, Ga. and other cities. Compass Healthcare specializes in providing compression stockings to patients who have been diagnosed with medical conditions such as chronic venous insufficiency and edema. Doctors may prescribe compression stockings, which come in different levels of tightness, as treatment for these conditions.

Lane’s position included the responsibility for billing insurance companies for the compression stockings that Compass Healthcare provided to individuals who were covered by insurance. He fraudulently set up the company’s billing system so that in most instances it would automatically bill the insurers for the highest compression stocking, regardless of which stocking had actually been provided to the individual, in order to generate higher payments from Medicare, Blue Cross, and other insurers. As a result, Compass Healthcare routinely “upcoded” the claims it submitted to insurers for the stockings it had provided to individuals.

Lane conspired with an Office Manager for Compass Healthcare, Holly Keisker, and others, to submit these false claims and conceal the fraudulent upcoding. Also as part of the scheme, Compass Healthcare included false diagnoses on its insurance claims to ensure payment. These false claims represented that Compass Healthcare customers had been diagnosed with various medical conditions, including chronic venous insufficiency and edema, to support the claims for high compression stockings, when in fact the customers had not been diagnosed by a doctor. Instead, Compass Healthcare used “blanket” diagnosis codes that were false to support insurance claims for compression stockings provided to customers who had no medical condition. Lane, Keisker, and others conspired to forge and alter doctors’ prescriptions so that they would support the fraudulent claims that had been submitted to insurers. They altered the prescriptions to falsely reflect that a high compression stocking had been prescribed and that the patient had been diagnosed with a medical condition. In 2011, Lane submitted altered prescriptions to Blue Cross in response to an audit conducted by the insurer.

Lane, 57, of St. Louis, Mo., was sentenced by United States District Judge Willis B. Hunt, Jr. to one year and six months in federal prison and three years of supervised release, 100 hours of community service, and ordered to pay $597,304.76 in restitution. On August 27, 2014, Lane pleaded guilty to one count of conspiracy to commit healthcare fraud.

On September 19, 2013, Keisker, 62, also of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit healthcare fraud. Her sentencing is scheduled for December 10, 2014, at 10 a.m., before Judge Hunt.

This case was investigated by Special Agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General.

Assistant United States Attorneys Stephen H. McClain and Jeffrey W. Davis prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
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The DeKalb County School District Reaches Settlement Agreement with Federal Authorities for Harassment Based on Religion and National Origin
2014-11-18 · Northern District of Georgia
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ATLANTA - The United States Attorney’s Office and the Department of Justice reached a settlement agreement with the DeKalb County, Ga., School District to resolve the Department’s inquiry into the district’s ability to prevent and effectively respond to harassment based on national origin and religion.

“Every child should be able to attend school without the fear of being taunted and physically assaulted based on his religion or national origin,” said United States Attorney Sally Quillian Yates. “I am encouraged that DeKalb County School District has demonstrated a commitment to ensure that its schools are free of harassment.”

“We commend the DeKalb County School District’s commitment to ensuring that all students – including Sikhs, Muslims, Arabs, and South Asians – can grow and learn in a safe and supportive environment free from discrimination based on religion or national origin,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “DeKalb County school district has worked hand-in-hand with the department to identify and expand those policies that are successful at protecting kids while modifying those practices that need improvement, and we are confident that the district will continue its work to eliminate harassment in its schools.”

The agreement ensures that the more than 100,000 students in DeKalb County School District (DeKalb County) will be protected by clear and comprehensive anti-harassment policies and procedures in compliance with federal civil rights laws. It also ensures that parents and students will have access to essential information, including discipline policies and procedures, in their preferred language.

In May 2013, DeKalb County, the Department of Justice (DOJ), and the United States Attorney’s Office reached a settlement agreement that resolved specific allegations of religious and national origin harassment of a Sikh student. At the time of the 2013 agreement, the DOJ, the United States Attorney’s Office, and DeKalb County agreed to continue working collaboratively to resolve the remaining concerns regarding the content and implementation of the school district’s anti-harassment policies and the training of employees and students on such policies. Since then, DeKalb County has worked with the DOJ and the United States Attorney’s Office to develop a plan for enhancing anti-harassment protections and increasing access to information for all parents and students; today’s agreement is the result of that collaboration.

The agreement requires, among other things, that the DeKalb County School District develop and implement annual age and position appropriate trainings on religious and national origin harassment for all students, staff who interact with students (including administrators, teachers, counselors, and bus drivers), and district-level administrators who interact with students or who are involved in addressing harassment or bullying in the district. The training will include topics related to post-9/11 backlash and harassment that perpetuates negative stereotypes impacting the Sikh, Muslim, Arab-American, and South Asian communities.

The enforcement of Title IV is a top priority of the DOJ’s Civil Rights Division. Additional information about the Civil Rights Division of the DOJ is available on its website at www.justice.gov/crt.

Assistant United States Attorney Aileen Bell Hughes handled this matter on behalf of the United States Attorney’s Office.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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North Georgia Men Sentenced for Plot to Possess A Deadly Biological Toxin
2014-11-14 · Northern District of Georgia
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ATLANTA – Ray H. Adams and Samuel J. Crump have been sentenced to federal prison for possessing and conspiring to possess the biological toxin ricin for use as a weapon.

“Both the words and actions of these defendants supported an idea dangerous to our democracy – that violence is justifiable when citizens grow frustrated with government,” said United States Attorney Sally Quillian Yates. “This case demonstrates that we must remain vigilant in protecting our country, not only from the threat posed by international violent extremists, but also from those within our own borders who threaten our safety and security.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing of Adams and Crump concludes a thorough and extensive investigation as well as an equally extensive and intensive prosecution. On this occasion, we would like to remind the public that the FBI's absolute number one priority is to prevent another terrorist attack on U.S. soil. We believe that we did that here. While the FBI fully understands and respects our citizens' rights to free speech, our investigations into these matters always look at the overt actions taken in furtherance of the free speech. While only time would tell the true intentions of these individuals, the FBI and its law enforcement partners cannot wait and the public expects no less from us.”

According to United States Attorney Yates, the evidence, and testimony presented in court: Between March 2011 and November 2011, Ray H. Adams and Samuel J. Crump conspired to produce and possess ricin, a deadly biological toxin. During this time period both defendants and others attended meetings where participants discussed targeting various government officials, including employees of federal agencies. These meetings were monitored by FBI agents through the attendance of a confidential source, who recorded the meetings and provided the information to the FBI.

During a recorded meeting in September 2011, Crump stated that he wanted to make ten pounds of ricin and disperse it in various cities, including Washington, D.C. and Atlanta, Ga. Crump described a scenario for dispersing the ricin in Atlanta in which the toxin would be blown from a car traveling on interstates. Crump allegedly also said that he possessed the ingredient used to make the toxin and cautioned the source about the dangers of handling it.

On November 1, 2011, FBI agents arrested Crump and Adams and executed search warrants at their residences. During a search of Adams’ residence, agents recovered castor plants, castor beans, a recipe for extracting ricin from castor beans, five mason jars and other items. During a search of Crump’s residence agents also recovered castor beans. On December 1, 2011, agents searched a storage unit rented by Crump and recovered castor beans and a copy of the same ricin recipe recovered during a search of Adams’ residence.

In June 2013, after receiving information that Adams had successfully extracted ricin from the castor beans, FBI laboratory testing detected ricin in the five mason jars seized from Adams’ property. In July 2013, based on the presence of ricin in the five mason jars, the FBI obtained and executed a second search warrant at Adams’ residence and seized 28 additional mason jars, some labeled as fruit preserves. In November 2013, laboratory testing confirmed the presence of ricin in the 28 mason jars.

FBI experts found that the ricin detected in mason jars was in its non-active state and experts were unable to determine whether the ricin would have been lethal if it were inhaled or ingested. There is no evidence that Adams distributed any jars of preserves that contained ricin.

Adams, 58, of Toccoa, Ga., has been sentenced to ten years in prison to be followed by five years of supervised release. Crump, 71, also of Toccoa, Ga., has also been sentenced to ten years in prison to be followed by five years of supervised release. Adams and Crump were found guilty by a jury on January 17, 2014.

This case was investigated by the Joint Terrorism Task Force (JTTF), which includes agents of the FBI, Federal Protective Service (FPS), Georgia Bureau of Investigation (GBI), and Treasury Inspector General for Tax Administration (TIGTA). Assistance in this case has been provided by law enforcement agencies from Habersham County and Stephens County (Georgia), and the District Attorney’s Office for the
Mountain Judicial Circuit.

Assistant United States Attorneys Jeffrey A. Brown and William L. McKinnon, Jr. prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Florida Man Sentenced for Smuggling Albanian Citizens into the United States
2014-11-12 · Northern District of Georgia
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ATLANTA - Enkeleon Manati has been sentenced to three years in prison for his role in an alien smuggling operation based in Greece.

“It is imperative that we verify the true identities of those entering our country,” said United States Attorney Sally Quillian Yates. “Two people with fraudulent Greek passports, which the defendant helped them obtain, attempted to enter the U.S. Thanks to the diligence and training of Customs and Border Protection agents at Hartsfield-Jackson International Airport, both were detained and Manati’s criminal conduct was discovered.    Those who assist individuals in illegally entering the United States will be held accountable.”

“Preserving the integrity of our immigration system is a key aspect in upholding our national security,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “Thanks to some great screening work by U.S. Customs and Border Protection officers we have now sealed off a potential vulnerability in the system.”

According to United States Attorney Yates, the charges and other information presented in court: Beginning in or about October 2012, Enkeleon Manati and co-conspirator Matrona Koulga began smuggling Albanian citizens into the United States using fraudulently obtained Greek passports issued under assumed identities. According to Koulga, Manati referred Albanian citizens to Koulga who wished to travel to the U.S. but could not lawfully obtain visas. Manati arranged for at least six Albanian citizens to meet with Koulga in Greece for this purpose. Albanian family members in New York had contacted Manati for help in smuggling relatives into the United States.

In October 2012, for instance, Koulga and an Albanian citizen using a fraudulently obtained Greek passport, traveled from Switzerland to Florida. In April 2013, Koulga and two Albanian citizens using Greek passports issued under assumed identities, traveled from Italy to France to Atlanta, Ga. They then attempted to enter the United States at Hartsfield-Jackson International Airport using fraudulently obtained Greek passports that Manati and Koulga helped them acquire. According to these individuals, both of whom were called as witnesses during Manati’s trial, they each met Koulga in Greece, after which Koulga took them to Greek government offices to obtain officially issued Greek passports in assumed identities.

Manati traveled to Atlanta to meet with the family members of the Albanian citizens attempting to enter the United States. One family member testified that he brought $24,000 which he intended to pay Manati, once his relative, a nephew, was in the United States. But the plan was thwarted when U.S. Customs and Border Protection agents realized that these Albanian individuals, attempting to enter the United States through Atlanta on Greek passports, were unable to speak Greek. The Albanian citizens were promptly detained, and Manati and Koulga were later arrested.

On September 30, 2013, Koulga pleaded guilty to alien smuggling. She received a sentence of seven months of confinement and agreed to testify at Manati’s trial. Law enforcement in Greece investigated the smuggling operatives in that country and have made arrests in the case as well.

Following a jury trial on August 29, 2014, Manati, a/k/a Keli, 41, of Jacksonville, Fla., was convicted of conspiracy to commit, and commission of, alien smuggling. He was sentence to three years in prison, to be followed by three years of supervised release. Manati was also sentenced to perform 150 hours of community service.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection.

Assistant United States Attorney Susan Coppedge 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/.
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College Park Tax Return Preparer Sentenced
2014-11-12 · Northern District of Georgia
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ATLANTA - Ethel Elaine Daniels has been sentenced for filing false tax returns that claimed over $20 million in fraudulent refunds, including filing false tax returns in the names of over 1,000 stolen identity victims.

“This defendant victimized thousands of innocent citizens by misusing their identities to perpetrate her scheme,” said United States Attorney Sally Quillian Yates. “She also sought millions of dollars in fraudulent refunds from the U.S. Treasury over the course of three years. Those who try to profit by filing false returns will be prosecuted to the fullest extent of the law.”

“Daniels perpetuated a scheme that was driven by greed and a blatant disregard for the tremendous damage it inflicted on innocent victims” said Veronica F. Hyman-Pillot, Special Agent in Charge. “Today's sentencing of Daniels should serve as a stark reminder to others that such greed based criminal behavior comes with a cost, prison time.”

According to United States Attorney Yates, the charges and other information presented in court: Daniels owned and operated two tax preparation businesses in the metro-Atlanta, Ga., area. The first, Elaine Taxes, was located in College Park, Ga. The second, Elaine Taxes #2, was located in Riverdale, Ga. Daniels carried out two schemes from both tax preparation businesses.

From November 2010 through May 2013, Daniels and her co-conspirators obtained personal identifying information, including names and Social Security Numbers, of thousands of individuals without their knowledge or consent. Daniels and her co-conspirators got the stolen identities by recruiting people to work as runners to bring in lists of the stolen identity information. Then, unbeknownst to the stolen identity victims, Daniels and her co-conspirators electronically filed fraudulent tax returns in the victims' names. The false tax returns contained fabricated information such as fake claimed-income amounts, business losses, and tax refunds due. Daniels and her co-conspirators fabricated the information to insure that a tax refund would be issued. Daniels and her co-conspirators then shared the fraudulently obtained tax refunds.

Daniels and her co-conspirators also filed fraudulent tax refunds on behalf of individuals who actually visited Elaine Taxes and Elaine Taxes #2 to have their tax returns prepared. Daniels was the leader, and trained new employees to prepare the tax returns for customers by adding false income information and business loss and expense information to the tax returns to insure that a tax refund would be due. Daniels and her co-conspirators would keep a portion of the fraudulently obtained tax refund as a tax preparation fee.

In all, Daniels’ conspiracy obtained over $20 million in fraudulent income tax refunds through their two false tax return schemes run out of Elaine Taxes and Elaine Taxes #2.

Daniels used her illegally gotten funds to do things like take her extended family on a gambling trip to Biloxi, Miss., go on spending sprees for thousands of dollars of clothes and electronics, and buy cars for family and friends.

Daniels, 46, of Riverdale, Ga., has been sentenced to 16 years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $12 million. Daniels was convicted on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft on May 28, 2014, after she pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation.

Assistant United States Attorney Mary L. Webb 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/.
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Atlanta Man Sentenced for Armed Bank Robbery
2014-11-12 · Northern District of Georgia
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ATLANTA – Armed career criminal Tavares Keith has been sentenced to nineteen and a half years in prison for the armed robbery of a BB&T Bank in Riverdale, Ga.

“This defendant terrorized bank employees and customers during an armed bank robbery, leaving lasting psychological scars,” said United States Attorney Sally Quillian Yates. “His violent actions earned the lengthy sentence the court imposed on him today.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The quick response by the officers of the Riverdale Police Department set in motion not only the apprehension and prosecution of a career violent offender, but also to today's sentencing and his removal from our streets for many years. The FBI commends those officers and prosecutors who ensured that Mr. Keith would be held accountable for his criminal career with today's lengthy prison sentence."

According to United States Attorney Yates, the charges and other information presented in court: On March 10, 2014, Keith entered the BB&T Bank at 6375 Highway 85 in Riverdale, Ga., wearing a brown hooded sweatshirt and a black ski-mask. He pointed a loaded .40 caliber handgun into the bank manager’s stomach and yelled, “Give me all the money!” When the manager said he did not have any money, Keith forced the manager to take him to the teller line where Keith demanded that the tellers hand over the bank’s cash. While Keith pointed his weapon at the bank tellers, the bank manager ran into his office and called the police.

After robbing the bank of approximately $4,140, Keith ran from the bank. The police arrived quickly, and a witness pointed out the direction of Keith’s flight. The police pursued Keith on foot and apprehended him after a short chase. The police were able to recover all the money stolen from the bank, the black ski-mask, the brown hooded sweatshirt, a cell phone, a pair of gloves, and the loaded handgun.

Keith, 33, of Atlanta, Ga., has been sentenced to 19 years, seven months in prison to be followed by five years of supervised release. Keith was convicted of these charges on July 25, 2014, after he pleaded guilty. Keith, originally of Charleston, S.C., is an armed career criminal who had been previously convicted of multiple crimes, including at least four felonies.

This case was investigated by the Federal Bureau of Investigation and the Riverdale Police Department.

Assistant United States Attorney Suzette A. Smikle prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Mortgage Fraud Ring Sentenced
2014-11-06 · Northern District of Georgia
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ATLANTA – Patrice Hairston, Bonnie Rose, Sarah Hyldahl, and Ronnika Allen have been sentenced for their roles in a scheme to defraud mortgage lenders of over $2 million in mortgage loans.

“Mortgage fraud has dragged down our economy, blighted our communities, and put in jeopardy the financial security of many Americans. We will diligently pursue those who misuse the dream of home ownership to line their own pockets by fraud and deceit,” said United States Attorney Sally Quillian Yates.

“The U. S. Postal Inspection Service is committed to protecting the American Public from individuals who make misrepresentations to prey on innocent victims,” said Thomas L. Noyes II, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service. “The collaborative effort between federal agencies in this case is an excellent example of the partnerships that focus on bringing those to justice who violate the law and defraud hardworking citizens.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing of this group engaged in mortgage fraud represents the federal government's commitment toward combatting such criminal activities. The FBI will continue to work with its various law enforcement partners in identifying such individuals engaged in this activity.”

According to United States Attorney Yates, the charges and other information presented in court: Hairston, a licensed real estate agent, and Rose were long time business partners, operating an office rental business on Covington Highway in DeKalb County, Ga. In late 2007 or 2008, Hyldahl and Allen began working out of Hairston and Rose’s office space.

Beginning in 2008, Hairston, Rose, Hyldahl, and Allen worked together to locate properties, recruit straw borrowers, and obtain mortgage loans using false information about the borrowers’ employment, income, and assets. Hairston created false W-2s and pay stubs (or earning statements) that were submitted to the lenders to obtain mortgage loans, along with fake bank statements that the co-conspirators obtained from other sources. The false documents represented that the straw borrowers earned significant salaries working for a company owned by Hairston and Rose. When lenders attempted to verify the straw borrower’s employment by contacting the company, Hairston, Rose, or their co-conspirators falsely verified the straw borrower’s employment, posing as a human resources manager or other high-level employee of Hairston and Rose’s company.

In addition to helping obtain fraudulent loans for straw borrowers, Rose and Allen purchased homes for themselves to live in using the same kind of false qualifying information that they used for straw borrowers. Hairston helped a straw borrower obtain and close a loan for a home based on false qualifying information, and then moved into the straw borrower’s home.

For certain loans, the co-conspirators induced the mortgage lender and seller to pay a “marketing fee” to companies owned by the co-conspirators that ranged from $58,000 to $75,000 per property. When the lender questioned the purpose of the “marketing fee” for one such property Hairston created a fake invoice for Hyldahl to submit to the lender that falsely portrayed the fee as having been paid for legitimate services. When the loans closed, the co-conspirators split the proceeds among themselves. Hairston, a licensed real estate agent, also received real estate commissions in the range of $7,000 to $9,000 on three of the properties.

The co-conspirators also used the funds obtained as “marketing fees” to pay the straw borrowers kickbacks as much as $15,000 after closing. In addition, for certain loans, the co-conspirators advanced straw borrowers the down payment which they were supposed to make from their own funds. Rose provided a cashier’s check which enabled the loan to close and then was paid back plus a small profit out of the “marketing fee” when the loan closed.

On January 22, 2009, federal and state law enforcement agents stopped a loan closing for a straw borrower that was based on false qualifying information and arrested Hyldahl, who was present for the closing. The closing paperwork for this loan reflected that the co-conspirators were attempting to obtain over $75,000 as a false “marketing fee.” Hairston was arrested when she arrived at the closing with the straw borrower’s down payment check, which she had obtained from Rose before coming to the closing.

Before the fraud ring was broken, the co-conspirators obtained over $2.7 million in total loans. Lenders suffered an actual loss to date of $1.1 million on these loans, and may incur additional losses in the future as a result of these loans. In addition to the properties that three co-defendants moved into, the co-conspirators obtained or attempted to obtain over $220,000 in cash from these closing (i.e., the “marketing fees”) and an additional approximately $23,000 in real estate commissions.

The defendants were sentenced as described below:
- Hairston, 52, of Lawrenceville, Ga., was convicted at trial earlier this year on multiple charges of conspiracy and mail and wire fraud, and has been sentenced to five years, four months in prison to be followed by three years of supervised release, and restitution will be determined.
- Hyldahl, 32, of Marietta, Ga., pleaded guilty to conspiracy and cooperated with the Government, and has been sentenced to one year and one day in prison to be followed by three years of supervised release, and ordered to pay $798,299 in restitution.
- Rose, 54, of Jonesboro, Ga., pleaded guilty to conspiracy and cooperated with the Government, and has been sentenced to three years of probation, the first eight months of which will be served in home confinement, and ordered to pay $339,531 in restitution.
- Allen, 30, of Powder Springs, Ga., pleaded guilty to conspiracy and cooperated with the Government, and has been sentenced to two years of probation, the first 60 days of which are home confinement, and restitution of $192,458.
This case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation.

Assistant United States Attorneys Doug Gilfillan and Christopher Huber 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/.
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Alpharetta Man Sentenced for Investment Fraud
2014-10-31 · Northern District of Georgia
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ATLANTA - Robert A. Christy has been sentenced to four years and nine months in prison for stealing investor funds in a currency trading fraud scheme.

“This defendant defrauded victims from across the country and, like many investment fraudsters, he preyed on seniors, retirees, and others simply looking for safe and secure returns,” said United States Attorney Sally Quillian Yates said. “In the end, his fraud was revealed and he has been held accountable for his actions.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While it is easy to dismiss such financial fraud cases as being almost benign because of their lack of violence, there is, however, a very real victimization felt and lives are changed forever. At the end of the day, the sentencing of Mr. Christy to federal prison is really a small token of justice to those many victims who have suffered so much from his criminal activities.”

According to United States Attorney Yates, the charges and other information presented in court: From 2008 until approximately April 2012, Christy portrayed his firm, Crabapple Capital Group LLC, as a reputable and well-established investment firm, claiming that Crabapple profitably traded currency since 2006 and was affiliated with a larger investment firm, which purportedly had over $50 million in assets under management. Christy advertised a “conservative” currency trading investment strategy that targeted annual returns of approximately eight percent with a low risk of loss. Christy gave prospective customers marketing literature, including a formal disclosure document and monthly bulletins, which showed from 2006 to 2011: (a) average annual returns ranging from 15 percent to 20 percent; (b) 55 profitable months compared to only 10 unprofitable ones; and (c) the highest monthly losses reaching only negative 0.74 percent.

This performance history was fraudulent however, as Christy's actual trading records show consistent and significant losses from 2006 to 2011. Christy's claim that Crabapple was affiliated with a larger investment firm with $50 million in assets was also false. Christy recruited the majority of his investors during trade shows in Las Vegas, Nev. and Orlando, Fla., and through his affiliation with Grove City College, a Christian liberal arts college in Grove City, Penn. Christy, who is an alumnus of Grove City College, marketed himself as a Christian investor and solicited funds from Grove City College students, students’ families, and a faculty member.

To perpetuate his fraud scheme, Christy prepared and distributed false monthly account statements that fraudulently showed investors earning monthly profits on their investments, even in months when Christy was losing money in all his firm's trading accounts. Christy defrauded at least 20 investors who invested over $1.4 million dollars. Instead of using investors’ money to trade currency, Christy used it to pay for, among other things, travel, jewelry, restaurant meals, and other personal expenses, and made payments to members of his own family. In total, Christy stole over $1 million dollars.

Christy, 58, of Alpharetta, Ga., 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 $1,148,234.81. Christy was convicted of wire fraud on July 24, 2014, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Jeffrey Brown prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Atlanta Man Sentenced for WIC Fraud
2014-10-30 · Northern District of Georgia
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NEWNAN, Ga. - Michael E. Benton has been sentenced for theft of public funds for unlawfully purchasing vouchers of the Georgia Women, Infants and Children (WIC) program in exchange for cash.

“As an authorized vendor in the WIC program, this defendant made a commitment to sell nutritional foods to low-income mothers and children,” said United States Attorney Sally Quillian Yates. “Instead he repeatedly exchanged food vouchers for cash, undermining an important program designed to protect the health of pregnant women and young children.”

Karen Citizen-Wilcox, SAC, United States Department of Agriculture, Office of the Inspector General, stated, “Individuals such as Michael Benton continue to think that the fraud perpetrated by them against Agriculture programs, such as the EBT and WIC program, will go unnoticed and unprosecuted. USDA-OIG is committed to working with its partners at the Georgia Department of Human Resources, local police departments like the Griffin Police Department, and DOJ to ensure that individuals like Mr. Benton continue to be prosecuted and sentenced to prison for defrauding both the programs meant to help people and the tax payers who fund such programs.”

According to United States Attorney Yates, the charges and other information presented in court: Benton owned and operated a small food store, “Healthy Oasis,” in Griffin, Ga., from August 2008 until December 2010. Healthy Oasis became an authorized Georgia WIC vendor in March 2009. Georgia WIC is a program that provides supplemental foods to low-income women who are pregnant, nursing, or postpartum, and to infants and children up to the age of five who are found to be nutritionally at risk. The U.S. Department of Agriculture provides federal funds to the state of Georgia for the WIC program. WIC program participants receive paper vouchers which are to be used exclusively for the purchase of authorized food items from retail vendors. Vendors can only accept WIC vouchers in exchange for the purchase of authorized food items. Vendors then deposit the vouchers into their bank accounts, where they are processed similarly to checks.

An investigation of Healthy Oasis was initiated in January 2010 after the Griffin Police Department received a complaint that WIC vouchers were being purchased in exchange for cash at the store. During an undercover investigation conducted from January through September 2010, Michael Benton and one of his employees, acting at Benton’s direction, purchased approximately 117 WIC vouchers in exchange for cash paid to the undercover agents, who were posing as WIC program recipients. Benton deposited the vouchers into the business bank account for Healthy Oasis. Georgia WIC cancelled Healthy Oasis’s vendor authorization in September 2010. Analysis of Georgia WIC records and the Healthy Oasis bank account, which Benton exclusively controlled, showed that Healthy Oasis redeemed hundreds of thousands of dollars more in WIC vouchers than other WIC-authorized vendor stores of comparable size in the same geographic area during the same period of time that Healthy Oasis was in operation.

Benton, 56, of Atlanta, Ga., was sentenced today by United States District Judge Timothy C. Batten, Sr., to three years and five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,422,902.70 to the Georgia WIC program. Benton was convicted on these charges on June 6, 2014, after he pleaded guilty.

This case was investigated by the United States Department of Agriculture, Office of the Inspector General, with assistance from the Griffin Police Department.

Assistant United States Attorney Teresa D. Hoyt 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/.
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MS-13 Gang Member Sentenced to Life in Prison
2014-10-29 · Northern District of Georgia
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ATLANTA - Remberto Argueta, a/k/a Pitufo has been sentenced to two concurrent life sentences for his role in a gang-related murder and attempted murders in the Atlanta metropolitan area.

“Argueta helped MS-13 live up to its reputation as a ruthless, violent gang that spread fear throughout the community,” said United States Attorney Sally Quillian Yates. “He displayed a callous disregard for human life and has fittingly earned his place behind prison walls for the remainder of his life.”

“Nearly two dozen MS-13 members have been convicted as a part of this investigation, wiping out the leaders and top members of an international street gang that spread violence and fear throughout the Atlanta area,” said Assistant Attorney General Caldwell. “Sentences like the one handed down today help us to put MS-13 out of business in Atlanta and throughout the United States.”

“The world will be a safer place with this defendant behind bars for the rest of his life,” said Special Agent in Charge Brock D. Nicholson, ICE Homeland Security Investigations (HSI) in Atlanta. “HSI is strongly committed to working with our partners at the FBI and local law enforcement agencies to identify and arrest the dangerous transnational gang members victimizing our communities.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing of a hardened MS-13 gang member is one of a series of convictions and sentences of members of this gang known for their violence in the northern metro Atlanta area. While these dangerous gang members have now been neutralized, the FBI will continue to dedicate substantial investigative resources in this area to ensure that the void now created will not be filled by additional gang members or other gangs.”

According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang that has operated in the Atlanta, Ga., area since at least 2005. The gang members staked out Gwinnett and DeKalb Counties as their home territory and used violence to defend their territory, attack rival gang members and commit armed robberies. The evidence presented at trial showed that Argueta, along with other members of MS-13, planned to rob Arpolonio Rios-Jarquin, a suspected drug dealer, at a hotel in April 2007. When Rios-Jarquin turned out to have his own gun, Argueta and his fellow MS-13 members engaged in a shootout with Rios-Jarquin that spilled outside the hotel room. Rios-Jarquin died from the multiple gunshot wounds inflicted on him. Surveillance video showed one of the MS-13 members stopped to pick up Rios-Jarquin’s weapon, which he later showed off as a trophy.

Additional evidence showed that in October 2007, Argueta and several other MS-13 members were at an apartment complex in Gwinnett County when Argueta spotted suspected rival gang members. He approached them and asked them who they “claimed”—that is, what gang they belonged to. When Christian Escobar responded that he and his friend, Jose Garcia-Barajas, were members of the rival 18th Street gang, Argueta said, “You’re going to die.” Argueta pulled out a handgun and started chasing and shooting at Escobar and Garcia-Barajas. He shot Escobar in the back and Garcia-Barajas in the hip and arm. While shooting at them, Argueta also fired shots into the apartments of nearby residents. An elderly woman testified that one of Argueta’s bullets hit the headrest of an armchair that she had been sitting in just a few minutes earlier.

Argueta, 27, of Lilburn, Ga., has been sentenced to two concurrent life sentences in prison. On November 22, 2013, after a trial lasting three weeks, a jury found Argueta guilty of RICO conspiracy involving murder, violent crime in aid of racketeering involving murder, and using a firearm to commit a crime of violence. Parole has been abolished in the federal system.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation with assistance from the DeKalb County Police Department, Gwinnett County Police Department, and Gwinnett County Sheriff’s Office.

Assistant United States Attorney Paul R. Jones and U.S. Department of Justice, Organized Crime and Gang Section Trial Attorney Joseph K. Wheatley 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/.
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Final Defendant Sentenced in International Money Laundering Investigation
2014-10-29 · Northern District of Georgia
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ATLANTA – Heriberto Almonte-Reyes, the last of nineteen defendants in a large-scale money laundering organization, has been sentenced for his part in a conspiracy that laundered drug proceeds from Mexico, Australia, England, Spain, the Dominican Republic, Jamaica, the Bahamas, Guatemala, Miami, New York, and Puerto Rico.

“International drug trafficking is a sophisticated business, and money launderers provide the financial lifeline for the cartels,” said United States Attorney Sally Quillian Yates. “These defendants, most of whom were extradited from Columbia, were responsible for laundering tens of millions of dollars of drug money.”

John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug traffickers utilize a multitude of sophisticated methods in which to hide their assets, but one of DEA’s highest priorities is to relentlessly pursue and destroy these drug trafficking and money laundering organizations. This global money laundering investigation was a success because of the local, regional, national, and foreign law enforcement partnerships and our commitment to bring this organization to justice in the United States.

According to United States Attorney Yates, the charges and other information presented in court: In 2005, the DEA infiltrated an international money laundering organization through the use of a confidential informant. Targets of the investigation asked the informant to assist them in laundering drug proceeds across the globe. Undercover DEA agents and local agents picked up the drug money in Mexico, Australia, England, Spain, the Dominican Republic, Jamaica, the Bahamas, Guatemala, as well as Miami, Fla., New York and Puerto Rico. The drug money, totaling over $11 million was then deposited into undercover bank accounts in the Atlanta, Ga., area.

The investigation resulted in the seizure of over $15 million and resulted in the prosecution of high-level targets such as Severo Escobar Garzon, IV, who is reported to be the nephew of Pablo Escobar. Most of the defendants were extradited from Colombia to face federal charges, and two were extradited from the Dominican Republic and England. All of the defendants pleaded guilty to conspiring to launder drug proceeds. All of the defendants are expected to be deported to their country of origin after the completion of their sentences.

The defendants and their sentences are as follows:
- Victor Andres Murcia-Reyes, 40, of Bogota, Colombia, was sentenced to ten years in prison, on September 5, 2014.
- Luis Carlos Rodriguez-Vaca, 50, of Bogota, Colombia, was sentenced to nine years in prison, on December 16, 2010.
- Dario Vicente Caballero-Caballero, 51, of Barranquilla, Colombia, was sentenced to eight years, four months in prison, on April 16, 2014.
- Carlos Mario Becerra-Restrepo, 52, of Medellin, Colombia, was sentenced to eight years, four months in prison, on March 6, 2014.
- Alfredo Betancourt-Munoz, 66, of Bogota, Colombia, was sentenced to eight years in prison, on October 27, 2011.
- Heriberto Almonte-Reyes, 41, of Puerto Plata, Dominican Republic, was sentenced to seven years, three months in prison, on October 17, 2014.
- Severo Escobar Garzon, IV, 55, of Bogota, Colombia, was sentenced to six years, five months in prison, on January 12, 2012.
- Fernando Martinez-Borreaz, 49, of Bogota, Colombia, was sentenced to six years, four months in prison, on April 26, 2013.
- Juan Cenen Avila-Pena, 51, of Bogota, Colombia, was sentenced to six years in prison, on April 23, 2010.
- Carlos Mario Torres, 47, of Bogota, Colombia, was sentenced to four years, ten months in prison, on December 1, 2011.
- Oscar Eduardo Galvis-Pena, 41, of Bogota, Colombia, was sentenced to four years, five months in prison, on December 12, 2013.
- Hernando Valencia Munoz, 61, of Bogota, Colombia, was sentenced to four years, four months in prison, on January 13, 2012.
- Fabio Bravo-Russy, 59, of Bogota, Colombia, was sentenced to four years, four months in prison, on June 1, 2011.
- Ampara Balaquera-Zarta, 53, of Bogota, Colombia, was sentenced to four years in prison, on November 29, 2011.
- Alexander Salazar-Duarte, 43, of London, England, was sentenced to three years, four months in prison, on December 1, 2011.
- Jaime Moreno-Bravo, 70, of Bogota, Colombia, was sentenced to three years in prison, on July 22, 2011.
- Jersson Ramirez-Huertas, 38, of Bogota, Colombia, was sentenced to two years, six months in prison, on May 26, 2011.
- Martha Camacho-Roa, 48, of Bogota, Colombia, was sentenced to one year, eleven months in prison, on January 6, 2011.
This case was investigated by the Drug Enforcement Administration. Valuable assistance was provided by the Internal Revenue Service, the United States Postal Service, United States Customs and Border Patrol, international law enforcement partners, and the Doraville, Ga., Duluth, Ga., and Lawrenceville, Ga., Police Departments.

Assistant United States Attorneys Sandra Strippoli, Scott Ferber, and Jeffrey Viscomi 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/gan/.
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International Hacker Sentenced
2014-10-24 · Northern District of Georgia
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ATLANTA - Sergei Nicolaevich Tšurikov has been sentenced to eleven years in prison for conspiracy to commit wire fraud and computer intrusion for his involvement in an elaborate scheme which stole over $9.4 million from a credit card processor.

“A leader of one of the most sophisticated cybercrime rings in the world has been brought to justice and sentenced,” said United States Attorney Sally Quillian Yates. “In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted. Almost exactly one year later, the leaders of this attack were charged. This prosecution was successful because of the efforts of the victim, and unprecedented cooperation from various law enforcement agencies worldwide.”

According to United States Attorney Yates, the charges and other information presented in court: During November 2008, Tšurikov and others obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Ga. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.

Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts, and then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours.

The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.

Throughout the duration of the cashout, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.

Tšurikov, 30, of Tallinn, Estonia was sentenced by United States District Judge Steve C. Jones to eleven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $8,400,000. Tšurikov pleaded guilty to these charges on September 11, 2012.

This case was investigated by Special Agents of the Federal Bureau of Investigation. Assistance was provided by international law enforcement partners. The United States Secret Service also participated in the investigation. RBS World Pay immediately reported the crime and has substantially assisted in the investigation.

Assistant United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali prosecuted the case. Assistance was provided by the Justice Department Criminal Division’s Computer Crime and Intellectual Property Section and the Office of International Affairs.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Defendant Arraigned on Tax Fraud Charges
2014-10-20 · Northern District of Georgia
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NEWNAN, Ga. - Damian Alarcon-Morales has been arraigned for fraudulently using the identities of Mexican nationals to obtain income tax refunds. Alarcon-Morales was indicted by a federal grand jury on October 14, 2014.

“This defendant is charged with engaging in a cross-border scheme to defraud the tax system of over $700,000 in fraudulent refunds,” said United States Attorney Sally Quillian Yates. “Attempts to profit from fraudulent tax returns are increasing, and we will continue to aggressively investigate and prosecute these cases.”

“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who devise schemes to steal public money face federal prosecution and federal prison.”

According to United States Attorney Yates, the charges, and other information presented in court: On September 15, 2014, Alarcon-Morales was found in possession of federal income tax returns, Internal Revenue Service correspondence, Mexican identification documents, and handwritten notes. The documents contained personal identifiers that corresponded to over 200 individuals, most of whom are Mexican nationals. In most cases, the Mexican identification documents were used to obtain Individual Taxpayer Identification Numbers (“ITIN”) which are assigned to foreign nationals and others not eligible for Social Security Numbers, but who are required to file United States tax returns.

The identifiers in Alarcon-Morales’ possession were linked to at least 175 fraudulent tax returns filed between 2011 and 2014. Based upon these returns, the IRS issued over $700,000 in tax refund checks, which were dispersed to Alarcon-Morales and others. This conduct is commonly referred to as Stolen Identity Refund Fraud.

Damian Alarcon-Morales, 31, of Newnan, Ga., was arraigned before United States Magistrate Judge Justin S. Anand.

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Internal Revenue Service - Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).

Assistant United States Attorney Shanya J. Dingle is prosecuting the case.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 Newnan Division is http://www.justice.gov/usao/gan/.
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Registered Sex Offender Sentenced for Distributing Child Pornography
2014-10-14 · Northern District of Georgia
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ATLANTA – Billy Gene McCorkle, Jr., a registered sex offender, has been sentenced to 17 years in federal prison for distributing child pornography.

“McCorkle’s choice to continue to exploit children, even as a convicted sex offender has resulted in his exit from society” said United States Attorney Sally Quillian Yates. “Recidivist offenders like this defendant prey on the most innocent in our society who depend on us to protect them. We will continue to prosecute those who traffic in these horrific images and exhibit such blatant disregard for the welfare of young children.”

“The defendant’s repeated sexual exploitation of children is an egregious crime and well deserves this lengthy sentence,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “The distribution of child pornography continues the exploitation of its victims and creates a demand for the further abuse of other children. HSI is grateful to have such a strong partner in the U.S. Attorney’s Office for the Northern District of Georgia to aggressively investigate and prosecute the perpetrators of these vile crimes.”

According to United States Attorney Yates, the charges, and other information presented in court: On November 4, 2013, a special agent with the Department of Homeland Security Investigations (HSI) discovered that McCorkle had accessed a website used to exchange images of child pornography. On November 5, 2013, the agent, acting in an undercover capacity, sent an email to McCorkle, based on his profile information. During the email exchange that followed, McCorkle offered to, and did, send child pornography to the undercover agent depicting a young, nude girl who appeared to be about eight years old. The subsequent investigation revealed multiple occasions that McCorkle sent and received files containing child pornography.

On December 13, 2013, HSI special agents arrested McCorkle for distributing child pornography, and related offenses. At the time of his arrest, federal agents also seized a cellular telephone from McCorkle. When agents searched McCorkle’s telephone pursuant to a search warrant, they found more than 13,000 images of child pornography. Agents also learned that McCorkle was a registered sex offender, having been previously convicted of child molestation on February 22, 2006.

McCorkle, 46, of Canton, Ga., was sentenced to 17 years in federal prison, to be followed by lifetime supervised release. McCorkle pleaded guilty on May 8, 2014.

The case was investigated by the Department of Homeland Security.

Assistant United States Attorney Richard S. Moultrie, Jr. prosecuted the case.

This case is a 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/.
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