Northern District of Georgia
Press releases recorded for this federal judicial district.
Former Georgia Department of Revenue Employees Indicted for Accepting BribesRead the Press Release
ATLANTA - Brenda Joyce Davidson, Gwendolyn Lockett, Sheryl Monique Taylor, and Keresa Foster, have been arraigned on indictments returned by a federal grand jury on March 12, 2014, charging them with accepting cash bribes in exchange for issuing Georgia car titles.
“These defendants are charged with taking official actions that were motivated by their personal financial gain instead of their duty to serve the citizens of this state with integrity,” said United States Attorney Sally Quillian Yates. “Thanks to the collaborative efforts of federal and state law enforcement agencies, the defendants are no longer in a position to subvert Georgia’s car titling system for their personal gain.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption at all levels erodes the public’s trust placed in not only those individuals but also the organization they represent. The FBI will continue to provide significant investigative resources toward public corruption related matters, noting that it is one of the FBI’s top criminal investigative priorities.”
Staci Guest, Director of the Office of Special Investigations, stated: “The suspect’s indictments show how serious the State of Georgia is at finding individuals who erode public trust and confidence. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat individuals who commit fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: Davidson, Lockett, Taylor, and Foster were all customer service representatives at the Georgia Department of Revenue’s Motor Vehicle Division, responsible for processing and issuing car titles and registration documents. In 2012 and 2013, each of the defendants accepted bribes from individuals they believed to be customers in need of car titles. The individuals were actually FBI agents posing as customers or other individuals working under the direction of the FBI. Soon after accepting the bribes, each defendant accessed Georgia’s official car titling databases to process, print, and provide the fraudulent car titles. The defendants would meet with the purported customers outside of normal business hours and at various locations throughout the metropolitan Atlanta area. During those meetings, the defendants would accept cash bribes, obtain titling paperwork, and provide the fraudulent titles.
At the time the defendants provided the car titles, they knew or suspected that the titling paperwork was incomplete or fraudulent. On one occasion, a defendant accepted a cash bribe in exchange for processing and printing a car title. The defendant soon discovered that she could not print the car title because the Department of Revenue changed its title printing policy for individual car owners. Later, in order to circumvent the Department of Revenue’s title printing restrictions, the defendant accessed Georgia’s car titling database to obtain the name of a defunct car dealer, provided that dealer’s name to the purported customer, and processed fraudulent paperwork containing the dealer’s name despite knowing that the dealer was not involved in the unlawful transaction.
Brenda Joyce Davidson, 55, Gwendolyn Lockett, 49, Sheryl Monique Taylor, 31, and Keresa Foster, 44, all of the Atlanta, Ga. area, were 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 Federal Bureau of Investigation and the Georgia Department of Revenue.
Assistant United States Attorney Nekia S. Hackworth 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/.
DeKalb Man Sentenced to 17 Years as Part of Robbery CrewRead the Press Release
ATLANTA - Larry Pratt has been sentenced in federal court to 17 years in prison to be followed by a five years of supervised release for his part in a robbery crew.
“By impersonating police and invading houses in residential areas, this robbery crew undermined the public’s trust in real law enforcement officers,” said United States Attorney Sally Quillian Yates. “Citizens must be able to trust that those who look like police are, in fact, really police. Although it may be tempting to characterize this as merely drug dealer on drug dealer crime; the fact that this robbery crew also used SWAT-like tactics, kidnapped victims, and exchanged gun fire on residential streets to steal drugs and cash demonstrates a lack of respect for people’s lives. Their arrest and prosecution is an important way to maintain public trust.”
"Individuals who impersonate law enforcement and pursue a criminal path of armed robberies and home invasions threaten the safety of our communities,” said ATF Acting Special Agent in Charge Ray Brown. “ATF along with our law enforcement partners remain on the frontline of preventing such criminal activities.”
According to United States Attorney Yates, the charges and other information presented in court: Pratt and the five other men indicted with him by the Fulton County District Attorney’s Office belonged to a robbery crew that targeted suspected drug dealers. The robbers used tracking devices they secretly put on the victims’ cars to learn their habits and where their intended victims stored drugs and money. The armed robbers would dress like police, including wearing bullet-proof vests, raid jackets, and hats with the word “POLICE” printed on them. They would then storm the victims’ houses in a “SWAT”-like tactic – yelling “Police, get down.” From there, they would tie up and beat the victims until they provided the locations of the drugs and money.
In one robbery, on the evening of January 14, 2010, Pratt and nine other robbers targeted a residence in DeKalb County, Ga. Dressed as police, the robbers approached the house just as the victim was walking out the front door. The robbers rushed the victim, and had him in handcuffs on the front lawn when the victim’s friend drove up. The robbers shot at the victim’s friend, and a gunfight between the friend and the robbers took place in the front yard. The robbers then kidnapped the victim in an attempt to get him to tell them where the drugs were located. The robbers drove the victim around for several hours, all the time keeping him handcuffed in the back of the vehicle. The victim was certain he would be killed. The ordeal ended only when the robbers drove the victim to his residence in Conyers, Ga., and his girlfriend recognized that something was wrong and called police.
Pratt, 40, of Decatur, Ga., was sentenced to 17 years in prison, and five years of supervised release. Pratt pleaded guilty on November 10, 2011, and his sentencing was delayed until after the trial of his co-defendants.
Besides this robbery, the crew committed other robberies including ones in Rockdale, Fulton, Bartow and Cobb Counties. The crew included three men from Baltimore, Maryland, who travelled here for the sole purpose of committing these robberies: Torrez Seymore, who was sentenced on March 7, 2013, to 13 years, eight months in prison, Kenneth Patterson, who was sentenced on November 8, 2013, to ten years and one month in prison, and Rashaad Wilson, who is scheduled to be sentenced on April 15, 2014. Two members of the crew are from Atlanta, Ga.; Charles Hutcheson, aka Charlie Boy, who was sentenced July 12, 2013, to 19 years, six months, and Taylor Richardson, who is scheduled to be sentenced on April 15, 2014. One other member of the crew, Ryan Whitt, of Decatur, Ga., was sentenced on January 6, 2013, to 16 years in prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Kim S. Dammers and Leslie Abrams 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/.
Identity Thief Sentenced for Filing Tax Returns in the Names of the Attorney General and OthersRead the Press Release
ATLANTA – A federal judge sentenced Yafait Tadesse to one year and one day in prison for using the identities of over ten individuals, including the Attorney General of the United States, to file false and fraudulent tax returns.
“Identity theft affects people from all walks of life, from hardworking taxpayers trying to make ends meet, to senior government officials,” said United States Attorney Sally Quillian Yates. “Identity thieves should be aware that we will continue to aggressively pursue them no matter who their victims happen to be.”
“Identity thieves have figured out that if they can obtain your Social Security Number they can file false tax returns with the IRS,” said Veronica Hyman-Pillot, IRS Special Agent in Charge IRS Criminal Investigation. “It does not matter your political position, economic status, or social standing, you are susceptible to identity theft. No one is immune.”
FBI Atlanta, Special Agent in Charge J. Britt Johnson said, “This investigation serves as a warning to those who conspire to devise schemes to defraud and steal money from hard-working citizens through embezzlement and identity theft. Regardless of whom the victims may be, the FBI takes these violations very seriously and will continue to work with our Federal law enforcement partners in investigating violations of income tax refund fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: From November 2012 through April 2013, Tadesse and co-defendant Eyaso Abebe carried out a scheme to obtain the names and social security numbers of unsuspecting victims from various websites and use this information on false tax returns that claimed fraudulent refunds. The tax returns falsely claimed that the victims earned similar wage and withholding amounts and worked at Wal-Mart. The returns all claimed fraudulent refunds that were to be loaded onto pre-paid debit cards. These pre-paid debit cards listed Tadesse’s apartment complex in Carrollton, Ga., as the mailing address.
While the IRS stopped several of the false returns from being fully processed, several fraudulent refunds were directed onto prepaid debit cards. Surveillance videos showed that Tadesse used one of these prepaid cards at stores in Carrollton, Ga.
One of the tax returns filed by Tadesse and Abebe used the name, social security number, and date of birth of U.S. Attorney General Eric H. Holder, Jr. There is no indication that the Attorney General was specifically targeted as a result of his position. The defendants obtained their victims’ information from publicly available websites that publicize the names, social security numbers, and other personally identifying information of unsuspecting individuals.
The other individuals targeted in this scheme were not government officials and were located across the United States. One of the victims wrote in a letter to the sentencing judge that at the time of the offense, his wife was pregnant with the couple’s seventh child and that the defendant’s actions prevented the couple from getting their legitimate tax refund, causing a financial burden to the family.
Tadesse, 21, of Dekalb County, Ga., was sentenced by United States District Judge Amy Totenberg to one year and one day in federal prison and three years of supervised release, and ordered to pay $4,014 in restitution to the IRS. The Court also ordered Tadesse to forfeit his interest in computers that were used to carry out this offense. Tadesse pleaded guilty on November 13, 2013, to theft of government funds. The co-defendant in this case, Eyaso Abebe, pleaded guilty on October 16, 2013, to theft of government funds and will be sentenced on August 7, 2014.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of 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 Attorneys Thomas J. Krepp and Steven D. Grimberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Cobb County Man Sentenced in Identity Theft SchemeRead the Press Release
ATLANTA – Bradford Thomas has been sentenced to ten years and one month in prison for using stolen identities of prisoners to file false federal income tax returns that claimed millions of dollars in fraudulent refunds.
“This defendant used the stolen identities of prisoners to steal millions of taxpayer dollars and enrich his own lifestyle,” said United States Attorney Sally Quillian Yates. “This case exemplifies our continuing efforts to combat identity-theft schemes designed to steal tax dollars, which have grown to disturbing levels.”
“We would like this sentence to serve as a strong message that there are consequences for stealing and using other individual’s personal identifying information,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Be assured that we will continue to be proactive in the investigation of individuals who engage in similar behavior.”
According to United States Attorney Yates, the charges, and other information presented in court: From January 2010 through May 2013, Thomas orchestrated a scheme to file over 1,200 false tax returns using the names and Social Security numbers of various victims, many of whom were incarcerated in jails or prisons throughout the country. These false tax returns claimed over $5.5 million in fraudulent tax refunds which were directed to be deposited into bank accounts controlled by Thomas or individuals working with him. The scheme caused an actual loss of over $1.6 million in taxpayer money.
In conjunction with the arrest of Thomas in August 2013, federal agents searched two locations from which the tax returns were electronically submitted to the IRS, including a business named “Immaculate Autos” at 2691 McCollum Parkway, Suite E, Kennesaw, Ga., and Bradford Thomas's primary residence in Acworth, Ga. At those locations, investigators uncovered $438,080 in cash, two handguns, jewelry, and various luxury automobiles, including a 2005 Rolls Royce Phantom, a 2008 Maserati Granturismo, a 2005 Bentley 2D, a 2006 Mercedes Benz, a 2003 Hummer H2, a 2007 Mercedes Benz S550, a 2004 Land Rover Range Rover, and a 2002 GMC Denali XL.
Thomas, 47, of Cobb County, Ga., was sentenced by United States District Judge Steve C. Jones to ten years and one month in federal prison and three years of supervised release, and ordered to pay $1,663,035 in restitution to the IRS. The Court also ordered Thomas to forfeit his interest in the cash, weapons, jewelry, and luxury automobiles found at his business and residence. Thomas pleaded guilty on November 22, 2013, to wire fraud and aggravated identity theft.
This case was 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 Attorneys Thomas J. Krepp and Mary F. Kruger 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/.
Fulton County Man Sentenced to 25 Years in Federal PrisonRead the Press Release
ATLANTA – Michael Winfield has been sentenced to 25 years in federal prison for using a firearm in the commission of an armed bank robbery.
“Winfield’s persistence in pursuing a life of crime is matched by law enforcement’s commitment to requiring him to face justice for those crimes,” said United States Attorney Sally Quillian Yates. “The sentence imposed should serve as notice to others that if you choose to participate in violent crimes, you will be subject to severe penalties.”
According to United States Attorney Yates, the charges and other information presented in court: Winfield was identified and arrested by agents from the FBI after they received an anonymous tip and confirmed Winfield’s identity by bank surveillance videos. The FBI was able to confirm that Winfield had committed three different robberies of two banks and one grocery store. On February 4, 2013, Winfield robbed a Kroger Grocery Store located in Smyrna Ga.; on February 11, 2013, he robbed a BB&T Bank, located in Alpharetta, Ga.; and on February 19, 2013, Winfield robbed a Wells Fargo Bank, located in Tucker, Ga. On December 4, 2013, Winfield pleaded guilty to carrying a firearm during the commission of a crime of violence.
Mr. Winfield had previously been convicted in federal court of armed bank robbery and was sentenced to prison. In 2013, he began to repeat his pattern of committing armed bank robberies. A second federal conviction of carrying a firearm during the commission of a violent crime carries a 25-year mandatory minimum sentence.
Based upon the charge to which he pleaded guilty and his criminal history, Winfield, 42, of Atlanta, Ga., was sentenced by U.S. District Court Judge Stephen C. Jones, to a mandatory minimum sentence of 25 years in prison, to be followed by ten years of supervised release, and ordered to pay restitution in the amount of $8,136.00. Winfield pleaded guilty on December 4, 2013.
This case was investigated by Federal Bureau of Investigation Special Agent Perry Meador.
Assistant United States Attorney Stephanie Smith 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/.
Griffin, Ga. Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
ATLANTA - Buffy Drake has pleaded guilty to one count of wire fraud by filing false federal tax returns claiming fraudulent refunds in excess of $2.5 million.
“Filing false tax returns is stealing money right from the pockets of millions of honest taxpayers,” said United States Attorney Sally Quillian Yates. “Dishonest tax return preparers who choose to conduct business this way will be caught and prosecuted.”
“Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like this,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This defendant stole from the American taxpayer by filing false tax returns and today she is being held responsible for her actions.”
According to United States Attorney Yates, the charges and other information presented in court: Drake operated a tax preparation business in Griffin, Ga., named “Imagine That.” While operating “Imagine That,” Drake filed hundreds of false tax returns that claimed millions of dollars in fraudulent refunds. In total, from 2011 through 2012, Drake filed tax returns claiming in excess of $2,500,000 in fraudulent refunds. Drake retained a substantial portion of the proceeds from this scheme.
Drake, 43, of Griffin, Ga., has agreed to pay restitution to the IRS in the amount of $2,611,928.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Sentencing is scheduled for May 20, 2014, at 10:00 a.m. before United States District Judge Timothy C. Batten Sr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Division with the assistance of the City of Griffin Police Department.
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 Newnan Division is http://www.justice.gov/usao/gan/.
Defendant Sentenced for Brokering over 100 Sham MarriagesRead the Press Release
ATLANTA - Rex Anyanwu has been sentenced to federal prison for arranging fraudulent marriages that allowed illegal aliens to remain in the U.S, alien harboring, obtaining his own citizenship in violation of the law, and conspiracy to commit visa fraud.
“Anyanwu abused the same immigration system that allowed him to become a U.S. citizen,” said United States Attorney Sally Quillian Yates. “His price for defrauding the government is high – not only will he spend a significant amount of time in jail, Anyanwu will also lose his United States citizenship and be deported to his native Nigeria upon completion of his sentence.”
“Providing a legal avenue for the spouses of United States citizens to immigrate to our country is one of the bedrock principles of our immigration system,” said Special Agent in Charge Brock D. Nicholson of Homeland Security Investigations in Atlanta. “The defendant exploited that avenue for his own enrichment. The investigation by HSI, U.S. Citizen and Immigration Services and the Diplomatic Security Service will ensure that he pays for his crimes and loses something even more precious, his citizenship.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning at least by February 2001 and continuing until his arrest in 2012, Rex Anyanwu ran a fraudulent marriage factory, the product of which was sham marriages designed to deceive immigration. U.S. citizens testified at trial that “Rex” would drive from the Atlanta area to Huntsville, Ala. and lure them into a marriage with a stranger with the promise of quick, easy money. One young woman testified that she recruited for Anyanwu, and was paid to find approximately 50 other U.S. citizens willing to engage in sham marriages, primarily to Africans from Kenya and Nigeria. The U.S. citizens were paid approximately $700 for the marriage; they could earn additional payments of approximately $500 for trips to Atlanta to participate in Citizen and Immigration Services interviews designed to establish that the couple shared their lives and had a valid marriage. Frequently, the “couple” did not even live in the same state, much less together. Anyanwu would coach the U.S. citizen and the alien on how to answer the questions to make it appear that the marriage was real.
Some of the alien spouses testified at trial that they came to “Rex” because they heard he could help them stay in the United States. Anyanwu not only introduced them to the U.S. spouse, but also provided fraudulent documents required by Immigration such as lease agreements, verification of employment, W-2s and 1040 income tax returns. Anyanwu charged an additional fee for the fraudulent documents. The aliens further testified that they paid Anyanwu as much as $10,000 and often met their intended spouse the same day and place they were to marry them. From the number of marriages he arranged, Anyanwu earned at least a million dollars.
Immigration policy provides that a marriage between a U.S. citizen and a foreign-born spouse who is a citizen of another country is one path through which an alien can become a U.S. citizen. However, participating in a marriage solely to obtain citizenship is a crime. Evidence at trial showed that Anyanwu filed fraudulent applications for visas on behalf of the aliens who hired him and would forge U.S. citizen names on the paperwork submitted to Immigration.
One alien witness testified that after Anyanwu was under investigation he contacted her and told her that if anyone asked about him, “Say you don’t know me.” Another U.S. citizen witness stated that he was scared of Anyanwu, who threatened that if he did not show up for the Immigration interview Anyanwu would have others hurt him. Anyanwu’s efforts to obstruct the investigation did not succeed, and cost him more time in jail.
Anyanwu, 51, of Lithia Springs, Ga., was found guilty by a jury on November 15, 2013. He was sentenced by United States District Judge Thomas W. Thrash to five years and ten months in prison to be followed by three years of supervised release, and he was ordered to pay a special assessment in the amount of $6,000. Anyanwu was also stripped of his U.S. citizenship.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. United States Citizenship and Immigration Services, Fraud Detection and National Security Unit, and U.S. Department of State, Diplomatic Security Service also assisted in the case.
Assistant United States Attorney Susan Coppedge, Special Assistant United States Attorney Njeri Maldonado and Intern Annalise Lisson 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/.
Cherokee County Man Charged with Extorting Teen Girls for Pornographic ImagesRead the Press Release
ATLANTA – Destin Whitmore has been arraigned and detained on charges of extortion, enticement of a minor, and distribution and possession child pornography. Whitmore was indicted by a federal grand jury on February 19, 2014.
“This defendant preyed on teenage girls and attempted to extort them to create and send him pornographic images,” said United States Attorney Sally Quillian Yates. “He threatened to post compromising images of the girls on the internet and to send them to their friends and family. This is a stark reminder of the need for parents to talk with their children about internet safety.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “This case exemplifies the need to remain vigilant against child predators and others who would exploit the vulnerabilities of minor children over the internet. The FBI remains uniquely positioned to investigate and bring forward for prosecution those individuals who would exploit and harm our nation’s children and we ask that anyone with information regarding such activity to call their nearest FBI field office.”
According to United States Attorney Yates, the charges, and other information presented in court: In April 2012, a teen girl in Arizona reported that she was contacted using a popular social media website by an individual using a profile name “Ralph Jenkins.” The individual using the Jenkins profile, later identified as the Defendant, Destin Whitmore, sent the teen compromising images of herself and threatened to send those images to others, including her family members, if she did not immediately create additional images for him. A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington” showed that both profiles were used by the Defendant, along with his own social media accounts, to transmit pornographic images of numerous teen girls to the girls to extort them for additional images. If they did not comply with his wishes, he threatened to distribute the pornographic images to others and post them on various websites for public consumption. Many of the girls Whitmore extorted were known to him through personal relationships or through long term communications using web cameras with the girls online.
The indictment charges Whitmore, 22, of Canton, Ga., with five counts of extortion, one count of enticing a minor to engage in sexual activity, three counts of distribution of child pornography and five counts of possession of child pornography.
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 Cobb County Police Department and the Federal Bureau of Investigation.
Assistant United States Attorney Jill E. Steinberg 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/.
California Couple Sentenced to Federal Prison for Credit Card Fraud and Identity Theft CrimesRead the Press Release
ATLANTA - Elton Lee Flenaugh and Deje D. Silas have been sentenced to federal prison for credit card fraud and identity theft crimes.
“Identity theft and credit card fraud exacts both a financial and emotional toll on its victims, harming credit histories, bank accounts, and emotional well-being,” said United States Attorney Sally Quillian Yates. “Undoing the damage can be agonizing for individual victims. Financial institutions spend untold resources investigating, detecting, and deterring such schemes. These defendants callously ignored the consequences of their scheme, and will now serve justly deserved terms in federal prison.”
“This case validates the impact of identity theft on innocent victims and our communities. The United States Secret Service will continue to collaborate with its law enforcement partners and prosecutors to ensure those nefarious individuals that commit these crimes are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: Flenaugh and Silas had a romantic relationship dating back several years. On February 9, 2013, Flenaugh and Silas were scheduled to fly from Atlanta to Los Angeles. During the pre-flight security screening process in Atlanta, alert TSA security officers noticed a suspicious package in Flenaugh’s carry-on bag and, upon further inspection, found nearly 100 fraudulent credit cards secreted inside a double-sealed manila envelope, which had been hidden inside an empty, foil-lined Lay’s potato chip bag. Thirty-three of the cards were embossed in Silas’ name, 28 were embossed in three different aliases used by Flenaugh, and 21 were blank and had not yet been embossed. Subsequent searches by the Atlanta Police Department revealed fraudulent driver’s licenses inside the protective case attached to Silas’ cell phone and underneath the removable insole of one of Flenaugh’s shoes in the carry-on bag.
Additional investigation revealed fraudulent credit cards, licenses, and stolen credit card account and identity information of hundreds of people. These were found in personal items seized from and during searches of Google e-mail accounts controlled by Flenaugh and Silas, an Apple iPad seized from them at the airport, and a 2007 BMW M6 automobile registered to one of Flenaugh’s aliases.
The investigation showed that the scheme began at least by early 2012 and continued until Flenaugh and Silas’ arrests in February 2013. The scheme involved obtaining credit and debit card account information of hundreds of people, which were then used to manufacture fraudulent credit cards. The cards were made to appear as if they had been issued by major financial institutions such as Chase Bank, U.S. Bank, and Capital One. The defendants also obtained personal identifying information—including Social Security numbers, dates of birth, and credit information—of dozens of people, which were used to create fraudulent driver’s licenses to use with the fraudulent credit cards. The fraudulent credit cards were then embossed with the names used on the fraudulent driver’s licenses. The issuing banks and the names embossed on the fraudulent credit cards were merely a front to make them appear legitimate. The magnetic stripes on those cards were encoded with the actual debit and credit card account information of account holders at dozens of financial institutions throughout the country, but primarily at credit unions located in California, Florida, Georgia, Oregon, and Washington.In at least three instances identified to date, Flenaugh and Silas opened fraudulent credit card accounts in one of the stolen identities and made thousands of dollars in unauthorized charges.
Elton Lee Flenaugh, a/k/a Josh Ford, a/k/a Ali Waheed, 34, of Richmond, Calif., was sentenced today to nine years, three months in federal prison, to be followed by four years of supervised release. Flenaugh was convicted on these charges on December 4, 2013, after he pleaded guilty. At sentencing, the court held Flenaugh responsible for using the credit and debit card account information and identity information of over 100 different victims to make counterfeit credit cards and driver’s licenses, and for losses between $200,000 and $400,000.In a separate case, Deje D. Silas, 22, of San Francisco, Calif., was sentenced on August 28, 2013 to three years, 5 months in federal prison, to be followed by three years of supervised release. Silas was convicted on these charges on May 21, 2013, after she pleaded guilty.
This case was investigated by the United States Secret Service. Valuable assistance was provided by the Hartsfield-Jackson Atlanta International Airport division of the Atlanta Police Department, the Office of the Chief Counsel of the Transportation Security Administration, the city of Atlanta Department of Aviation, the Miami-Dade State’s Attorney’s Office, the San Francisco Field Office of the Federal Bureau of Investigation, the Investigations Division of the California Department of Motor Vehicles, and the Oakland Police Department.
Assistant United States Attorney David M. Chaiken prosecuted the case.
Anyone who believes they may be the victim of identity theft is strongly encouraged to request and review their credit reports from the three nationwide consumer credit reporting companies; Equifax, Experion, and Trans Union, to be sure everything on the reports are authorized, and that they request a fraud alert from the companies. It is also suggested that they immediately close any accounts that have been compromised or opened fraudulently. Those who do online banking or manage other accounts online, check these accounts regularly and be sure passwords are strong. To report identity theft, contact the Federal Trade Commission at: http://www.consumer.ftc.gov/articles/0277-create-identity-theft-report or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Two Men Charged in Robbery and Shooting of Postal Truck DriverRead the Press Release
ATLANTA - Kendrick Watkins and Charles Jackson have been indicted by a federal grand jury for conspiracy, armed postal robbery, and discharge of a firearm during a crime of violence, in connection with the robbery and near-fatal shooting of a postal truck driver in Conley, Ga., on December 20, 2013.
“The victim in this case--an on-duty postal employee--was shot, bound, and left for dead,” said United States Attorney Sally Quillian Yates. “Postal Service employees should not have to work in fear of attack as they carry out their duties. We will prosecute violent criminals with such little regard for human life.”
“The safety and security of Postal Service employees and customers is core to the mission of the U.S. Postal Inspection Service,” said George Frazier, Assistant U.S. Postal Inspector in Charge of the Atlanta Field Office. “These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.”
According to United States Attorney Yates, the charges, and other information presented in court: On December 20, 2013, a postal truck driver conducting a routine mail pick-up in Conley, GA, was approached by two robbers, Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga. Jackson and Watkins demanded the keys to the postal truck, and when the victim did not immediately comply, the men shot him in the torso, nearly killing him. Jackson and Watkins also bound the victim’s feet and took his cell phone so that he could not run or call for help. They then drove away with the stolen truck and all its contents. The victim was forced to crawl several hundred feet to the nearest road where he flagged down a passerby for help.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the United States Postal Inspection Service.
Assistant United States Attorneys Mary Kruger and John Ghose are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former HUD-OIG Special Agent in Charge IndictedRead the Press Release
ATLANTA - Herschell Harvell, Jr. made his initial appearance in federal court on charges of making false statements to a bank to obtain a mortgage loan and conspiring to obstruct an investigation into his real estate transactions by the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG). Until he was terminated last year, Harvell was the Special Agent in Charge of HUD-OIG’s Atlanta office, which encompasses several southeastern states. Harvell’s co-defendant and nephew, Tavus A. Wright also made his initial appearance on federal charges of conspiracy, obstruction of justice, and perjury.
“As a federal law enforcement officer, Harvell was entrusted with supervising mortgage fraud investigations," said United States Attorney Sally Quillian Yates. “It is particularly troubling that someone responsible for investigating mortgage fraud is charged with committing it and with obstructing justice to cover up his crimes.”
“It is a regrettable day for the dedicated, hard-working men and women of our organization. We cannot tolerate or condone the abuse of trust and the violation of the very laws that Mr. Harvell was sworn to investigate and that is why I brought this matter to the attention of the U.S. Attorney,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development. “I am profoundly disappointed at that break down of our former employee’s ethical and moral compass.”
According to United States Attorney Yates, the charges, and other information presented in court: Between 2007 and 2012, Harvell served as a supervisory Special Agent in several HUD-OIG offices, including as a Special Agent in Charge in Fort Worth and Atlanta. Harvell also owned residential homes in the Atlanta area as investment properties. During 2007 and 2008, he acquired and refinanced several more homes with mortgage loans. In addition, in January and February 2008, Harvell purchased a Precision Tune automobile care franchise, incurring significant expenses in connection with that purchase.
On March 25, 2008, Harvell refinanced one of his rental homes and received over $23,000 in cash. Harvell’s loan application represented that he had a $70,000 certificate of deposit and that he received $6,180 in monthly rental income from six residential homes. The indictment alleges that these representations were false. It is alleged that Harvell had cashed in the certificate of deposit more than a month before, during the time period that he was purchasing the Precision Tune Franchise. In addition, it is alleged that Harvell’s houses were not rented or producing the rental income as stated on his loan application. For example, it is alleged that Harvell in fact received less than $900 in rent in March 2008 and for the year to date, had received less than $6,000 total in rental income.
The indictment alleges that during the course of the HUD-OIG investigation of the accuracy of Harvell’s loan application, Harvell’s nephew, Tavus Wright, provided false information to agents and perjured himself before the grand jury about whether he had signed a document used to demonstrate to Harvell’s lender that one of his houses was rented.
Harvell, 53, of Conyers, Ga., and Wright, 32, of Milledgeville, Ga., were indicted by a federal grand jury on February 25, 2014. Harvell and Wright are charged with one count of conspiring to obstruct justice under 18 U.S.C. § 371 and two counts of obstruction of justice under 18 U.S.C. § 1505. Wright also is charged with three counts of perjury under 18 U.S.C. § 1623. Harvell also is charged with two counts of making a false statement to a bank under 18 U.S.C. § 1014.
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 Department of Housing and Urban Development, Office of Inspector General, Special Investigations Division, Washington, DC.
Assistant United States Attorney Douglas W. Gilfillan is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Florida-Based Oxycodone Suppliers Sentenced to Federal PrisonRead the Press Release
ROME, Ga. – Gerald Young and Rodney Strachan, two Florida men who supplied large amounts of the prescription narcotic Oxycodone to pill distributors in northwest Georgia, have been sentenced to prison.
“The significant sentences imposed reflect our office’s continued commitment to ending the illegal distribution of prescription painkillers in our community,” said United States Attorney Sally Quillian Yates. “The defendants sentenced today supplied a drug trafficking organization with tens of thousands of Oxycodone tablets. In recent years, the abuse of Oxycodone has risen to epidemic proportions, and fatal overdose rates continue to rise. We will pursue anyone involved in the illegal acquisition and distribution of pain killers, including unscrupulous doctors, pharmacists, and clinic owners.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “One of DEA’s top priorities are addressing the problem of the diversion and abuse of controlled pharmaceuticals. These pill peddling perpetrators trafficked scores of Oxycodone pills. Now, they are deserving of the prison term they received. This case was successful because of the unified efforts of our federal, state and local law enforcement partners.”
According to United States Attorney Yates, the charges and other information presented in court: An investigation by the Drug Enforcement Administration, the Lookout Mountain Judicial Circuit Drug Task Force, and the Catoosa County Sheriff’s Office, revealed that John Gregory Alvarez was the leader of a thirteen-person conspiracy to distribute Oxycodone and launder the proceeds of the illicit sales of the pills. This drug trafficking organization obtained the vast majority of its pills from Florida. Specifically, co-defendant Alvarez, and later co-defendants that he recruited, would travel to Florida on a monthly basis to obtain prescription Oxycodone painkillers from both Young and Strachan.
Young and Strachan stockpiled copious amounts of Oxycodone pills, which they would then provide to Alvarez and his co-conspirators on consignment. Members of the Alvarez organization would sell the pills for a profit, and then reinvest the proceeds into the organization by using the funds to pay for the previous month’s supply of narcotics. The reach of this organization’s illegal Oxycodone distribution included not only the northwest Georgia area, but also extended into Tennessee, West Virginia, and Kentucky. Investigators determined that this conspiracy was responsible for trafficking hundreds of thousands of Oxycodone pills.
Young, 69, of Ft. Lauderdale, Fla., and Strachan, 58, of Pompano Beach, Fla., were sentenced by United States District Judge Harold L. Murphy. Young was sentenced to ten years, one month in prison to be followed by three years of supervised release. Strachan was sentenced to nine years in prison to be followed by three years of supervised release. Both are the last defendants to be sentenced for their roles in this Oxycodone distribution ring based in Rossville, Ga.
For his role in leading the northwest Georgia drug trafficking organization, on October 21, 2011, Alvarez was sentenced to 21 years, ten months in prison to be followed by six years of supervised release.
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.
This case was investigated by Special Agents of the Drug Enforcement Administration, officers of the Lookout Mountain Judicial Circuit Drug Task Force, and deputies of the Catoosa County Sheriff’s Office.
Assistant United States Attorney C. Brock Brockington prosecuted 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 home page for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Three Men Charged with Conspiracy to Possess Destructive DevicesRead the Press Release
ROME, Ga. - Brian Cannon and Cory Williamson appeared in federal court today for preliminary and bond hearings on federal charges of conspiring to receive and possess unregistered destructive devices, specifically pipe bombs and thermite devices. According to a federal complaint filed this week, the defendants sought to obtain the explosive devices as part of a militia operation.
"This case is a stark reminder of the threat we face not just from abroad, but from within our own borders from our own citizens,” said United States Attorney Sally Quillian Yates. “When plans turn violent, law enforcement must step in to protect our communities from harm. Fortunately, the FBI was able to stop these defendants before they were able to carry out their plans."
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI can no longer wait to respond to the aftermath of a radicalized individual's or group's threats. Instead, we have to bring our investigative and analytical assets to bear in getting ahead of those threats and potential attacks and do so within the rule of law. The FBI would like to thank the Bartow-Cartersville Drug Task Force, Floyd County Police Department, Polk County Police Department, Rome Police Department, and the Bartow County Sheriff's Office for their investigative and operational assistance in this matter.”
According to United States Attorney Yates, the charges, and other information presented in court: Between January 23, 2014, and February 15, 2014, Cannon, Williamson, and Terry Eugene Peace, the third defendant, participated in online chat discussions during which they discussed carrying out an operation against the government. During on online chat on January 23, 2014, Peace spoke about a mission that was to be launched in February. Peace encouraged members of the militia to review guerilla warfare tactics, small unit tactics, accumulate supplies, and prepare their families. Peace also identified targets such as “…TSA, DHS, non-emergency FEMA, road blocks, etc.” The discussions were reported to the FBI, and the FBI then began consensually monitoring the communications.
Pursuant to this mission, Peace asked a cooperating witness to provide them with 12 pipe bombs and two thermite grenades. Peace, Cannon and Williamson subsequently planned to meet with the cooperating witness in order to take possession of the items after the items were made.
On February 15, 2014, Peace, Cannon and Williamson drove to a location in Cartersville to meet the cooperating witness. Prior to their arrival, the cooperating witness was provided with 12 inert pipe bombs and 2 inert thermite devices that were constructed to look like real explosives. The three defendants were arrested as they were taking possession of the devices.
Terry Peace, 45, Brian Cannon, 37, and Cory Williamson, 28, of Rome, Ga., all had initial appearances before Walter E. Johnson, United States Magistrate Judge, on February 18. Cannon and Williamson were detained at the conclusion of today’s hearing. All three were charged in a criminal complaint on February 18, 2014.
Members of the public are reminded that the criminal complaint 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.
Assistant United States Attorneys Tracia King and Ryan Buchanan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Former Clayton County Police Officer Assigned to U.S. Marshals Service Fugitive Task Force Sentenced to Ten Years in Prison for Drug TraffickingRead the Press Release
ATLANTA – Dwayne Penn, formerly a police officer with the Clayton County Police Department assigned to the U.S. Marshals Service Fugitive Task Force, was sentenced today to ten years in prison for conspiring to distribute cocaine.
“The public rightfully expects police officers to protect them from drug dealers, not go into business with them,” said United States Attorney Sally Quillian Yates. “The defendant crossed over to become one of the bad guys, and now he will suffer their fate.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI, as the lead investigative agency and coordinating body for the Atlanta Public Corruption Task Force consisting of numerous local, state, and other federal agencies, regards all public corruption matters, in particular those involving law enforcement officials, to be a priority investigative matter. As such, the FBI asks that anyone with information regarding such activity to contact their nearest FBI field office.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “It is always disturbing when someone in a position of trust such as a law enforcement officer tarnishes the badge by violating his or her oath. Law enforcement officers are held to a higher standard and any misconduct that they engage in will not be tolerated. Penn’s actions were deplorable and he is deserving of the sentencing handed down today.”
According to United States Attorney Yates, the charges, and other information presented in court: In August 2013, Penn, who was employed with the Clayton County Police Department at the time, conspired with Adrian Austin, an Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains. Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin.
In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation. Penn drove his police car to the planning meetings. While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply. Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement. They would divide up the seized cocaine among themselves according to the plan. As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location. During one of the meetings, Penn even drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day. Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.
As planned, on the morning of August 28, 2013, Penn and Austin arrived at the appointed Decatur parking lot. Penn drove his police car and parked it in view of where the drug deal was to occur. While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases. Penn also called task force officers with the DeKalb County Police Department and DeKalb County Sheriff’s Office and asked if DeKalb County had any surveillance vehicles that fit the description of vehicles Penn saw in the parking lot that morning. Penn rebuffed offers of assistance from his fellow officers, claiming he was just doing surveillance.
Before the deal’s consummation, the confidential informant met with Austin in Austin’s car in the parking lot. Austin relayed information between the confidential informant and Penn over his cellphone. The confidential informant and Austin discussed the imminent deal, with the confidential informant’s describing where s/he would put the drugs after receiving them.
The confidential informant exited Austin’s car and shortly thereafter met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn. The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat.After the confidential informant emerged from his/her vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving. Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant. Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat. Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did. Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down. Penn then ushered the confidential informant into Penn’s police car. The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag. Penn walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car. Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.
Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot. Each had a loaded firearm with a round in the chamber. The shopping bag with substituted cocaine was recovered from Penn’s vehicle.
On August 28, 2013, Penn was terminated from the Clayton County Police Department and the Marshals Service Task Force.
Penn pleaded guilty to conspiring to distribute over five kilograms of cocaine, pursuant to a negotiated plea agreement, on January 21, 2014. His codefendant, Adrian Austin, pleaded guilty to the same charge on January 14, 2014.
In addition to the ten-year term of imprisonment, Penn was also sentenced by United States District Judge Amy Totenberg to five years of supervised release, 120 hours of community service following his release from prison, and ordered to pay a $100 special assessment.
Sentencing for Austin is scheduled for April 10, 2014, at 2:00 p.m. also before United States District Judge Totenberg.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.
Assistant United States Attorney Scott Ferber 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Atlanta Doctor Sentenced for Defrauding Medicare and IRSRead the Press Release
ATLANTA – Lawrence Eppelbaum has been sentenced to 50 months in prison and fined $3.5 million following his trial conviction on health care fraud, tax fraud and money laundering charges.
“Our Medicare system is premised on the ability of patients to make a choice about their doctor and their treatment without undue interference, and our tax system is based on each taxpayer paying his or her fair share,” said United States Attorney Sally Quillian Yates. “The defendant cheated both systems by illegally enticing his patients with gifts and then evading paying taxes on the substantial income he earned from treating those patients. His choice to practice fraud along with medicine has earned him substantial time in federal prison.”
“Those who swindle and deceive the Medicare program should expect to pay dearly for their crimes,” said Derrick L. Jackson, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services Atlanta Region. “Having been outsmarted by federal law enforcement, Eppelbaum was aggressively prosecuted and will now do years of hard time.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Dr. Eppelbaum should serve as a reminder to others considering similar such fraudulent and criminal activities targeting our publicly funded health care programs that federal agencies, including the FBI, are prepared to investigate them and hold them accountable for those criminal actions.”
“In addition to abusing the Medicare system, Eppelbaum committed tax fraud by claiming contributions to charitable organizations that he did not make,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “The sentence announced today reinforces the commitment by law enforcement and the United States Attorney’s Office that individuals who steal from the government will be held accountable.”
According to United States Attorney Yates, the charges and other information presented in court: Eppelbaum is a physician who is licensed to practice medicine in Georgia and operates the “Atlanta Institute of Medicine and Rehabilitation” (“AIMR”) and the “Pain Clinic of AIMR” in Atlanta. In 2004, Eppelbaum created the “Back Pain Fund,” a purported charitable organization that he controlled both directly and indirectly. Eppelbaum, through the Back Pain Fund, paid for Medicare patients to travel to Atlanta to receive medical treatment from his practice, then travel to Florida to visit a local hot spring for approximately four days, before returning to Atlanta to receive additional treatment.
Eppelbaum was the primary donor to the Back Pain Fund and paid the vast majority of its operating expenses. Eppelbaum tried to disguise his financial control over the Back Pain Fund by entering into an arrangement with the Torah Day School, a Jewish Day School in Atlanta, whereby the parents of students attending the Torah Day School were instructed to make their tuition checks payable to the Back Pain Fund instead of to the school, and in turn, Eppelbaum repaid the Torah Day School for the amount of the tuition, plus an additional 25 percent. Eppelbaum entered into similar arrangements with other organizations, and even caused patients who were treated at his medical practice to make their checks payable to the Back Pain Fund. Between 2004 and 2009, Eppelbaum treated hundreds of Back Pain Fund patients and received approximately $16 million for their treatment from Medicare.
Eppelbaum also utilized the Back Pain Fund as a vehicle for committing tax fraud. Between 2006 through 2008, Eppelbaum deducted as charitable donations all the payments he made to the Back Pain Fund, the Torah Day School, and other organizations with which he had a financial arrangement, even though Eppelbaum derived substantial personal income from treating Back Pain Fund patients. Eppelbaum evaded approximately $1 million in federal income taxes through his scheme.
Eppelbaum, 54, of Roswell, Georgia, was sentenced by United States District Judge Amy Totenberg. He was charged with 27 counts of healthcare fraud, tax fraud and money laundering. Following a two-week trial in June 2013, the jury found him guilty of all 27 counts.
This case was investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; and the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Steven D. Grimberg and 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 is www.justice.gov/usao/gan.Man Who Attempted to Buy Child for Sex Sentenced to Ten Years in PrisonRead the Press Release
ATLANTA – Carl Skow, who attempted to purchase a fourteen year old girl from an undercover federal agent, has been sentenced to ten years in federal prison for enticing a child to engage in illegal sexual activity.
“It is shocking that this defendant would endeavor to buy a young girl, imported from another country, as his personal sex slave,” said United States Attorney Yates. “Sex trafficking is a horrendous trade. Those who insist on preying on innocent people this way should expect jail in their future. We commend Homeland Security Investigations for its proactive work in identifying child predators and removing them from our community.”
“The defendant’s attempt to purchase an underage girl from Guatemala makes plain the fact that human trafficking is indeed a form of modern day slavery,” said Special Agent in Charge Brock D. Nicholson, who oversees Homeland Security Investigations operations in Georgia and the Carolinas. “Protecting children from these malicious predators is a top priority for my agency, and we will continue to work closely with the U.S. Attorney’s Office to identify them and bring them to justice.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: In June 2011, an undercover federal agent responded to an ad posted by Skow on an online classifieds website in which Skow offered a younger girl money for sex. Between early June 2011 and July 6, 2011, Skow and the agent communicated several times through electronic mail, by telephone, and in person, regarding Skow’s interest in purchasing a minor female from Guatemala for sexual services. Skow agreed to pay the agent $2,500 for a year of her services and made a down payment of $1,250 for the minor. The agent and Skow agreed to meet at Hartsfield-Jackson International Airport on July 6, 2011, where Skow planned to pick up the minor female, and make the final $1,250 payment to the undercover agent. On that date at the agreed meeting location, Skow was arrested in possession of the final payment. Also on July 6, 2011, agents executed a search warrant on Skow’s home and found, among other items, a large collection of child pornography on his home computer. They additionally found posted on a wall a list of rules for the minor female to follow, including the rule that she have sex with Skow whenever he chose.
Skow, 37, of Norcross, Ga., was sentenced today by United States District Judge Charles A. Pannell, Jr. to ten years in prison to be followed by lifetime supervised release. He was also ordered to pay a $100 special assessment. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement.
Assistant United States Attorney Jill E. Steinberg 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Tax Return Preparer Sentenced to Federal Prison in Fraud and Identity Theft SchemeRead the Press Release
ATLANTA – A federal judge has sentenced Bernando O. Davis to 21 years and seven months in prison for using stolen identities to file false federal income tax returns that claimed millions of dollars in bogus refunds.
“This lengthy prison sentence reflects the serious damage suffered by more than 15,000 victims across the country at the hands of a prolific identity thief and tax cheat,” said United States Attorney Sally Quillian Yates said. “Mr. Davis lied to his victims to steal their personal information, which he then used to file over $19 million in phony tax returns, making this one of the largest stolen identity tax return cases prosecuted in this district. Given the unfortunate popularity of these schemes, the stiff sentences received by these defendants should send a strong message to identity thieves to get out of this business.”
“The IRS is deeply concerned about those individuals who may have been the victims of stolen identity refund fraud,” stated Veronica Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “Identifying, investigating and vigorously prosecuting those individuals involved in these tax related identity theft schemes remains a top priority for IRS Criminal Investigation.”
“A large part of the U.S. Postal Inspection Service’s mission is to ensure public trust in the mail. When that trust is challenged, Postal Inspectors will aggressively investigate and remain steadfast in its resolve to seek justice against those who would seek illegal profiting from the U.S. mail.” said George Frazier, Assistant U.S. Postal Inspector in Charge, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: From approximately July 2010 to January 2013, Davis operated “Davis Tax Service,” a tax preparation business in Clayton County, Ga. Davis, working with others, including Kevin J. Sonnier of Ellenwood, Ga., and Carla L. Jefferson of Lancaster, Ca., led thousands of victims to believe that they could apply for “government stimulus payments” or “free government money” from the federal government by providing their names and Social Security numbers. Davis and his conspirators used toll-free telephone numbers, web sites, flyers, and radio advertisements to advertise the “stimulus payments” and collected victims’ personal information when they applied for the payments. They also recruited “runners” who promoted the scheme by word of mouth and collected victims’ personal information.
In addition to the “stimulus” charade, Davis and his co-conspirators acquired names from a variety of sources, including prisons and homeless shelters, to use in the fraud. Many victims testified that they had never heard about the “stimulus payments,” but their identities were nonetheless used by Davis and his co-conspirators to file bogus tax returns.
In actuality, no stimulus program existed, and Davis and his co-conspirators instead used the victims’ personal information to file fraudulent tax returns that claimed a total of over $19 million in bogus refunds. On the returns, Davis claimed false income amounts and student credits to generate the bogus tax refunds. In many of the returns, Davis directed the IRS to pay the refund amounts to bank accounts controlled by him or his co-conspirators. The victims did not know that Davis had filed tax returns in their names. The scheme affected over 15,000 victims in virtually every state across the country.
The evidence at trial showed that Davis had over 1,600 tax refund checks sent to his home address in Stockbridge, Ga., by listing his home address as the victims’ address on the tax returns he filed in their names. In addition to the checks, Davis received thousands of letters addressed to the victims from the IRS, Social Security Administration, and other government agencies. After seeing such a large number of Treasury checks coming to Davis’ home address, a mail carrier seized over 1,000 of these checks and provided them to law enforcement.
Federal agencies executed a search warrant at Davis’ and Sonnier’s business location in February 2013. There they found numerous lists of names, Social Security numbers, and birth dates of victims which were used to file tax returns. They also found tax forms with victims’ signatures taped onto the forms to make it look like the victims had authorized the tax returns. In reality, Davis and his co-conspirators had cut the signatures from the “stimulus” applications and taped them to the tax forms to make their business appear legitimate if anyone asked any questions. When agents first entered the business to execute the search, Davis fled out of the back of the building and was arrested with the assistance of Clayton County law enforcement.
Davis also faxed a fraudulent Georgia driver’s license and tax forms to a Texas detective in 2012, when the detective asked questions about a tax return Davis had fraudulently filed in a Texas victim’s name. Davis falsely represented that the license had been given to him by the taxpayer. Numerous text messages were also introduced at trial where co-conspirators sent Davis names and Social Security numbers, including from prisoners, for use in the scheme.
Davis, 28, of Stockbridge, Ga., was sentenced by United States District Judge Charles A. Pannell, Jr. to 21 years and seven months in federal prison and three years of supervised release, and ordered to pay $7 million in restitution. On December 12, 2013, a jury convicted Davis of one count of conspiracy, 15 counts of wire fraud, and 15 counts of aggravated identity theft. Over 20 victims testified at trial. Davis was detained after the verdict.
On January 9, 2014, Sonnier, 45, of Ellenwood, Ga. was sentenced to eight years in prison and three years of supervised release, and ordered to pay $7 million in restitution. The Court also ordered Sonnier to forfeit his interest in 17 separate pieces of real estate located throughout Clayton County, thousands of dollars that were previously seized from his bank accounts, and over 80 electronic devices and items of jewelry that were previously seized by the government. Sonnier pleaded guilty on May 22, 2013, to conspiracy, wire fraud, and aggravated identity theft.
On November 20, 2013, Jefferson, 48, pleaded guilty to conspiracy for her role in the scheme. Her sentencing is scheduled for March 19, 2014, before Judge Pannell.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and Postal Inspectors with the United States Postal Inspection Service. 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 Attorneys Stephen H. McClain and Thomas J. Krepp 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.
Former Leader of Hindu Temple of Georgia Charged with Defrauding His Followers and Temple’s CreditorsRead the Press Release
ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, has been charged in a superseding indictment with 32 counts of fraud and obstruction-related charges.
“This defendant is charged with using his position in the temple to promote his fraud schemes,” said United States Attorney Sally Quillian Yates. “We urge anyone who believes they may have been defrauded by this defendant to notify law enforcement.”
"Annamalai exploited his position as a leader and spiritual adviser to enrich himself, by fleecing the people who trusted him with their most personal information," stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. "IRS Criminal Investigation has 'followed the money trail' to ensure that these actions do not go unpunished."
According to United States Attorney Yates, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai allegedly caused the followers’ credit card numbers to be charged on multiple occasions, in excess of the agreed amount and without authorization. If the followers disputed the charges with their respective credit card companies, Annamalai allegedly submitted false documentation to the credit card companies in support of the unauthorized charges.
For example, in some instances Annamalai delivered a free magazine to the followers through the United States mail with a certified mail receipt. The followers had not requested the free magazine, but it is alleged that Annamalai later submitted the signed certified mail receipt to the followers’ credit card companies in a false attempt to demonstrate that the followers had agreed to the disputed charges. The superseding indictment charges Annamalai with seven counts of bank fraud for causing false documents to be submitted to his followers’ credit card companies. The superseding indictment further alleges that the income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.
The superseding indictment also charges Annamalai with willfully filing a false tax return for the 2007 year, for failing to disclose his financial interest in foreign bank accounts held in India.
Annamalai, 48, of Baytown, Texas, and a co-defendant are also charged with one count of conspiring to commit bankruptcy fraud and 10 counts of bankruptcy fraud, in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. It is alleged that Annamalai and his co-defendant concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to bank accounts in the name of a different entity. Annamalai is also charged with 10 counts of money laundering for allegedly using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.
Finally, Annamalai is charged with three counts of obstruction or false statements in connection with the grand jury investigation and the bankruptcy proceeding. It is alleged that Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. The superseding indictment also alleges that Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding. Annamalai was detained following his arrest in November 2013, and remains in custody.
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 Special Agents of the Internal Revenue Service Criminal Investigation. The United States Trustee’s Office provided valuable assistance throughout the investigation.
Individuals who believe they have been the victims of these alleged schemes are encouraged to call 404-338-7533.
Assistant United States Attorney Steven D. Grimberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Georgia Woman Arraigned for Social Security FraudRead the Press Release
ATLANTA - Cathy Thomas has been arraigned in federal court on charges arising out of a scheme to obtain benefits that should have been used for a disabled, mentally incompetent beneficiary.
“This Defendant was entrusted with the responsibility of making certain that the Social Security benefits were used to care for this defenseless woman who was unable to care for herself, and could not even communicate her name to others" said United States Attorney Sally Quillian Yates. "Instead, the Defendant stole her money and let her languish in various hospitals where they did not even know her true identity."
“The Office of the Inspector General has no higher priority than the protection of those Social Security beneficiaries least able to defend themselves,” said Thomas Caul, Special Agent in Charge, of the Office of the Inspector General for the Social Security Administration. “Representative payees are appointed to ensure the well-being of a beneficiary when the beneficiary is unable to administer his or her own affairs, and the violation of that trust will be prosecuted. We are gratified to see this case brought to a successful conclusion, and appreciative of the U.S. Attorney’s commitment to helping us protect those most in need.”
According to United States Attorney Yates, the indictment, and other information presented in court: In August 2010, an unidentified, mentally incompetent woman was abandoned at an Alabama hospital emergency room. Because she was unable to communicate she remained unidentified until August 2013, when the Alabama Bureau of Investigation, working in connection with the Georgia Bureau of Investigation, was able to identify her. The Social Security Administration (SSA) determined that the woman was a Supplemental Security Income (SSI) beneficiary. They further determined that Cathy Thomas was the woman’s representative payee, and was continuing to receive the woman’s monthly SSI benefits.
Thomas, 59, of Douglasville, Ga. was arraigned on February 7, 2014, on an indictment that charged her with one count of wire fraud in violation of Title 18 USC Section 1343, three counts of false statements to a federal agency in violation of Title 18 USC Section 1001, and one count of representative payee fraud in violation of Title 42 USC Section 1383a(a)(4).
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 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/.
Major Drug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
ATLANTA – Jerome Bushay has been sentenced to prison for trafficking more than 185,000 pills of ecstasy (MDMA), methamphetamine, BZP (which is a drug similar to ecstasy), and ketamine.
“Bushay headed an organization that distributed a staggering amount of drugs in this district,” said United States Attorney Sally Quillian Yates. “Through his conduct, Bushay earned every day of his prison sentence. Once again, to those enticed by the allures of the drug trade— like money, cars, and clubs – be warned. It’s more likely that you will end up sitting behind bars than you will end up drinking at them.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, "Ecstasy is anything but what its name implies – it offers only addiction, pain, and in some instances, death.” Ketamine, often referred to as “Special K,” and BZP, commonly referred to as “Legal Ecstasy,” are all dangerous and sometimes deadly synthetic drugs. Operation Rude Beast illustrates how DEA and its local, state and federal partners are committed to removing such dangerous substances from our streets. This defendant will now have plenty of time in prison to think about his unlawful acts.”
According to United States Attorney Yates, the charges and other information presented in court: From late-2009 to late-2010, several state, federal, and international agencies conducted an investigation of an Atlanta drug trafficking organization with ties to a corrupt federal customs officer. The investigation (code named Operation Rude Beast) led to the arrest, indictment, and conviction of more than 15 defendants, including Bushay.
Bushay organized and supplied countless drug transactions – in addition to supervising several lower-level drug traffickers. In total, Bushay distributed over 185,000 pills. Bushay also used former-Customs and Border Protection Officer Devon Samuels to transport his drug money (Samuels was sentenced to 8 years for his conduct). For example, on November 12, 2010, Bushay had Samuels smuggle $40,000 in drug money into Atlanta’s Hartsfield-Jackson International Airport. Inside the airport, Samuels used his badge to bypass airport security, which resulted in the bag not being screened. Thereafter, Samuels gave the bag to Bushay’s associate, who was destined for Texas.
On December 15, 2010, law enforcement officers executed a coordinated take-down of Operation Rude Beast. As part of the take-down, agents executed a search warrant on Bushay’s home, where they recovered an arsenal of weapons and cache of drug paraphernalia. Specifically, agents recovered: (1) a Cobra 9mm pistol; (2) a .40 caliber semi-automatic pistol; (3) a Bushmaster Assault Rifle; (4) a .22 caliber rifle; (5) a Sturm Ruger Ranch Rifle with a scope; (6) a Glock semi-automatic pistol with a laser sight; (7) a Sten-Type 9mm machine gun; and (8) approximately 700 rounds of ammunition, including ballistic tipped and hollow point rounds. In addition to the weapons, agents found narcotics ledger, an electronic money counter, two digital scales, and a baseball hat with “Customs and Border Protection” embroidered on it.
Bushay, 35, of Lithonia, Ga., has been sentenced to 15 years in prison to be followed by three years of supervised release. Bushay pleaded guilty on November 22, 2013.
This case was investigated by the Drug Enforcement Administration; Immigration Customs Enforcement (ICE); ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigations; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Delta Airlines Corporate Security.
Assistant United States Attorneys Jeffrey W. Davis, Dahil Goss, and L. Skye Davis 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/.
Last of Armored Car Robbery Crew Pleads GuiltyRead the Press Release
ATLANTA - Quentin Booker who participated in five robberies of armored car couriers in the Metro Atlanta area, pleaded guilty today to the charges of aiding and abetting the armed robberies, and aiding and abetting the carrying and use of a firearm during the commission of those crimes of violence.
“These violent robberies terrorized the community,” said United States Attorney Sally Quillian Yates. “This is not the Wild West where robbers ride off into glory after a heist. This is reality. Violent criminals like these will be caught, and prosecuted, even the lookouts.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings some degree of closure to those many local, state and federal investigators and prosecutors who worked many long hours on this matter but the victims left in the wake of this violent robbery crew will live the rest of their lives with the scars inflicted by these robbers. The FBI will continue to work with its various law enforcement partners in ensuring that our streets are rid of such callous criminals.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant, Quentin Booker, was part of a group who robbed armored car couriers between October 7, 2010, and March 30, 2011. During the robberies, one or two gunmen would approach a courier after the courier made a cash pick-up from a location or as the courier was about to restock an ATM machine with cash. Other members of the robbery crew would act as lookouts during the robberies, with one being the designated getaway driver. Altogether, members of this crew were responsible for six robberies in which over $470,000 in cash was taken.
The evidence established that Booker specifically acted as a lookout during five robberies:
- The robbery of a Dunbar Armored courier just after he made a cash pick-up on October 7, 2010, at the Mex America Latino Services located in Marietta, Ga.
- The robbery of a Dunbar Armored courier who was restocking cash in an ATM machine on November 11, 2010, at a Bank of America located in Buford, Ga.
- The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on November 29, 2010, at a Wells Fargo Bank located in Snellville, Ga.
- The robbery of a Dunbar Armored courier who was heading to an ATM machine to restock it with cash inside the Mall of Georgia on December 7, 2010.
- The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on January 21, 2011, at a Wells Fargo Bank located in Stone Mountain, Ga. This courier was shot and seriously injured during the robbery.
In addition to these robberies, members of this robbery group, Stacey Dooley and Ashley Henderson, along with Ronnie Little committed a sixth armed robbery on March 15, 2011, outside the Kroger’s Grocery Store located on LaVista Road in DeKalb County, Ga. During the commission of that robbery, Garda Cash Logistics courier Gary Castillo was fatally shot after making a cash pick-up of $11,000.
Booker, 36, of Douglasville, Ga., pleaded guilty to five counts of Hobbs Act robbery (armed robbery of the couriers), and two counts of carrying and using a firearm during the commission of a violent crime.
In addition to Booker, the following persons have also entered guilty pleas as a result of their role in the robberies:
- Ashley Henderson, 29, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act Robbery, two counts of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.
- Stacey Dooley, 37, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act robbery, one count of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.
- Edwin Thornton, 31, of Atlanta, Ga., pleaded guilty to three counts of Hobbs Act robbery and one count of carrying and using of a firearm during the commission of a violent crime.
- Derrick Powell, 26, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Michael Johnson, 31, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Ronnie Little, 22, of Stone Mountain, Ga., pleaded guilty to one count of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Veronica Bullard, 35, of Lithia Springs, Ga., pleaded guilty to one count of Hobbs Act robbery.
- Desiree Jones, 29, of Snellville, Ga., pleaded guilty to two counts of unlawfully transferring a firearm knowing it would be used in a crime of violence.
Booker’s sentencing is scheduled for May 19, 2014, before United States District Judge Thomas W. Thrash.This case is being investigated by the Federal Bureau of Investigation with significant assistance and resources provided by the Gwinnett Police Department. Other departments providing invaluable assistance were the Gwinnett County District Attorney's Office, DeKalb County Police Department, the DeKalb County District Attorney's Office, Marietta Police Department, and the Cobb County District Attorney's Office.
Assistant United States Attorneys Tracia M. King and Jill E. Steinberg 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/.
Two Federal Inmates Found Guilty of Racially-Motivated MurderRead the Press Release
ATLANTA - A federal district court jury found Donald R. LaFond and Jason Robert Widdison guilty of second-degree murder. LaFond and Widdison are both federal prison inmates.
“This verdict shows that, even within the federal prison system, violent offenders must be prosecuted to the fullest extent of the law,” said United States Attorney Sally Quillian Yates. “The fact that this particular homicide was motivated by racial animus makes these defendants’ actions all the more reprehensible. The Department of Justice and its Bureau of Prisons endeavor to protect the life and safety of every federal inmate. We remain vigilant and will do everything we can to ensure that prisons are as safe as possible for every inmate and employee.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "The FBI, with assistance from the U.S. Bureau of Prisons, Special Investigations Section, was determined to bring these two violent inmates forward and hold them accountable for the murder of a fellow inmate with the firm understanding that within the federal prison system, the rule of law still applies."
According to United States Attorney Yates, the charges and other information presented in court: On March 1, 2011, LaFond and Widdison, both members of white supremacist prison gangs, were exercising inside the special housing unit recreation area of the United States Penitentiary in Atlanta, Ga. The victim, a white inmate who was not a gang member, joined the defendants in the area and attempted to make conversation and walk around with them.
After a short period of time, LaFond and Widdison suddenly began to punch the victim from both front and behind, knocking the victim to the ground. Both LaFond and Widdison then stomped on the victim’s head and neck, as many as ten times each. A correction officer witnessed the incident and intervened. Both men complied with the officers’ orders to stop beating the victim, but by then, the victim was unconscious. The victim was taken to a hospital but never regained consciousness. As a result of his injuries, the victim died on April 5, 2011.
The evidence at trial showed that, in the weeks leading up to the assault, Donald R. LaFond, Jr., 53, of New Bedford, Mass., and Jason Robert Widdison, 35, of Morgan, Utah expressed anger towards the victim because the victim refused to protest the fact that he had a black cellmate. The defendants pressured the victim to take any steps necessary to be reassigned to another cell. Further evidence showed that the victim refused to comply with the defendants’ demands and that the defendants regarded this refusal as a violation of their gang code.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Nekia S. Hackworth and Brent Alan Gray 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/.
Cyber Criminal Pleads Guilty to Developing and Distributing Notorious SpyEye MalwareRead the Press Release
ATLANTA – Aleksandr Andreevich Panin, a Russian national also known as “Gribodemon” and “Harderman,” has pleaded guilty to conspiracy to commit wire and bank fraud for his role as the primary developer and distributor of the malicious software known as “SpyEye,” which, according to industry estimates, has infected over 1.4 million computers in the United States and abroad.
“As several recent and widely reported data breaches have shown, cyber-attacks pose a critical threat to our nation’s economic security,” said United States Attorney Sally Quillian Yates. “Today’s plea is a great leap forward in our campaign against those attacks. Panin was the architect of a pernicious malware known as ‘SpyEye’ that infected computers worldwide. He commercialized the wholesale theft of financial and personal information. And now he is being held to account for his actions. Cyber criminals be forewarned: you cannot hide in the shadows of the Internet. We will find you and bring you to justice.”
“Given the recent revelations of massive thefts of financial information from large retail stores across the country, Americans do not need to be reminded how devastating it is when cyber criminals surreptitiously install malicious codes on computer networks and then siphon away private information from unsuspecting consumers,” said Acting Assistant Attorney General Mythili Raman. “Today, thanks to the tireless work of prosecutors and law enforcement agents, Aleksandr Panin has admitted to his orchestration of this criminal scheme to use ‘SpyEye’ to invade the privacy of Americans by infecting their computers through a dangerous botnet. As this prosecution shows, cyber criminals – even when they sit on the other side of the world and attempt to hide behind online aliases – are never outside the reach of U.S. law enforcement.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “This investigation highlights the importance of the FBI’s focus on the top echelon of cyber criminals. The apprehension of Mr. Panin means that one of the world’s top developers of malicious software is no longer in a position to create computer programs that can victimize people around the world. Botnets such as SpyEye represent one of the most dangerous types of malicious software on the Internet today, which can steal people’s identities and money from their bank accounts without their knowledge. The FBI will continue working with partners domestically and internationally to combat cyber-crime."
According to United States Attorney Yates, the charges, and other information presented in court: SpyEye is a sophisticated malicious computer code that is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs, and other personally identifying information. The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the infected computers through command and control (“C2”) servers. Once a computer is infected and under their control, cybercriminals can remotely access the infected computers, without authorization, and steal victims’ personal and financial information through a variety of techniques, including “web injects,” “keystroke loggers,” and “credit card grabbers.” The victims’ stolen personal and financial data is then surreptitiously transmitted to the C2 servers, where it is used to steal money from the victims’ financial accounts.
Panin was the primary developer and distributor of the SpyEye virus. Operating from Russia from 2009 to 2011, Panin conspired with others, including codefendant Hamza Bendelladj, an Algerian national also known as “Bx1,” to develop, market, and sell various versions of the SpyEye virus and component parts on the Internet. Panin allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information, as well as marketed versions that targeted information about specific financial institutions including banks and credit card companies. Panin advertised the SpyEye virus on online, invite-only criminal forums. He sold versions of the SpyEye virus for prices ranging from $1,000 to $8,500. Panin is believed to have sold the SpyEye virus to at least 150 “clients,” who, in turn, used them to set up their own C2 servers. One of Panin’s clients, “Soldier,” is reported to have made over $3.2 million in a six-month period using the SpyEye virus.
According to industry estimates, the SpyEye virus has infected over 1.4 million computers in the United States and abroad and it was the preeminent malware toolkit used from approximately 2009 to 2011. Based on information received from the financial services industry, over 10,000 bank accounts have been compromised by SpyEye infections in 2013 alone. Some cyber criminals continue to use SpyEye today, although its effectiveness has been limited since software makers have added SpyEye to malicious software removal programs.
In February 2011, pursuant to a federal search warrant, the FBI searched and seized a SpyEye C2 server allegedly operated by Bendelladj in the Northern District of Georgia. That C2 server controlled over 200 computers infected with the SpyEye virus and contained information from numerous financial institutions.
In June and July 2011, FBI covert sources communicated directly with Panin, who was using his online nicknames “Gribodemon” and “Harderman,” about the SpyEye virus. FBI sources then purchased a version of SpyEye from Panin that contained features designed to steal confidential financial information, initiate fraudulent online banking transactions, install keystroke loggers, and initiate distributed denial of service (DDoS) attacks from computers infected with the SpyEye malware.
On December 20, 2011, a Northern District of Georgia grand jury returned a 23-count indictment against Panin, who had yet to be fully identified, and Bendelladj. The indictment charged one count of conspiracy to commit wire and bank fraud, ten counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. A superseding indictment was subsequently returned identifying Panin by his true name.
Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Algeria. Bendelladj was extradited from Thailand to the United States on May 2, 2013. His charges are currently pending in the Northern District of Georgia.
Panin was arrested by U.S. authorities on July 1, 2013, when he flew through Hartsfield-Jackson Atlanta International Airport.The investigation also has led to the arrests by international authorities of four of Panin’s SpyEye clients and associates in the United Kingdom and Bulgaria.
On January 28, 2014, Panin pleaded guilty to conspiring to commit wire and bank fraud. Sentencing for Panin is scheduled for April 29, 2014 before United States District Judge Amy Totenberg.
The case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Scott Ferber of the Northern District of Georgia, Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Senior Litigation Counsel Carol Sipperly of the Criminal Division’s Fraud Section are prosecuting the case. Former Assistant United States Attorney Nicholas Oldham also participated in the prosecution while with the Criminal Division.Valuable assistance was provided by the Criminal Division’s Office of International Affairs and the following international law enforcement agencies: The United Kingdom’s National Crime Agency, the Royal Thai Police-Immigration Bureau, the National Police of the Netherlands - National High Tech Crime Unit (NHTCU), Dominican Republic’s Departamento Nacional de Investigaciones (DNI), the Cybercrime Department at the State Agency for National Security-Bulgaria, and the Australian Federal Police (AFP).
Valuable assistance also was provided by the following private sector partners: Trend Micro’s Forward-looking Threat Research (FTR) Team, Microsoft’s Digital Crimes Unit, Mandiant, Dell SecureWorks, Trusteer, and the Norwegian Security Research Team known as “Underworld.no”.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Lawrenceville Tax Return Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
ATLANTA - Roberta L. Allen has been sentenced for filing false tax returns that claimed over $600,000 in fraudulent refunds.
"The millions of honest, hard-working taxpayers who prepare and file their tax returns should be assured that those who evade their civic duty or try to 'game the system' will be investigated by the IRS and, where appropriate, criminally prosecuted," said United States Attorney Sally Quillian Yates.
“IRS does not endorse or recommend tax preparers but we do offer guidelines to help the public choose a reliable tax professional,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot, “these guidelines are available on the IRS website (irs.gov). Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, ‘If it sounds too good to be true, it probably is’.”
According to United States Attorney Yates, the charges and other information presented in court: Allen prepared fraudulent federal income tax returns at a tax preparation business named Refund Now Tax Services from 2009 through 2010. On the tax returns, Allen claimed fictitious capital losses and taxes paid which resulted in her clients receiving fraudulent tax credits. Allen also charged her clients exorbitant fees for preparing the returns. In total, Allen's preparation of false income tax returns resulted in over $600,000 in tax losses to the Department of the Treasury.
Allen, 49, of Lawrenceville, Ga., was sentenced to two years, nine months in prison to be followed by one year of supervised release, 100 hours of community service, and ordered to pay restitution in the amount of $641,421. Allen was convicted on these charges on October 8, 2013 after she pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Former Clayton County Police Officer Assigned to U.S. Marshal’s Service Fugitive Task Force Pleads Guilty to Drug TraffickingRead the Press Release
ATLANTA – Dwayne Penn, formerly a police officer with the Clayton County Police Department assigned to the U.S. Marshals Service Fugitive Task Force, has pleaded guilty to conspiring to distribute over five kilograms of cocaine.
“This Office is committed to protecting the public’s trust in law enforcement,” said United States Attorney Sally Quillian Yates. “Penn was a drug dealer with a badge. He used his official position to traffic drugs and now faces a significant sentence for his betrayal of trust.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings to an end one man’s law enforcement career while providing an opportunity for those many others working within the criminal justice system to re-examine their own oaths and re-dedicate themselves to those oaths. The FBI will continue to make public corruption matters, in particular those involving law enforcement officers, a priority investigative matter.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This case is a reminder that law enforcement officers are held to a higher standard and are not above the law. This officer is not representative of the honest and hard-working men and women in law enforcement who do not violate their oaths, but faithfully protect and serve the public daily.”
According to United States Attorney Yates, the charges, and other information presented in court: In August 2013, Penn, who was employed with the Clayton County Police Department at the time, conspired with Adrian Austin, an Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains. Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin.
In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation. Penn drove his police car to the planning meetings. While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply. Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement. They would divide up the seized cocaine among themselves according to the plan. As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location. During one of the meetings, Penn even drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day. Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.
As planned, on the morning of August 28, 2013, Penn and Austin arrived at the appointed Decatur parking lot. Penn drove his police car and parked it in view of where the drug deal was to occur. While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases. Penn also called task force officers with the DeKalb County Police Department and DeKalb County Sheriff’s Office and asked if DeKalb County had any surveillance vehicles that fit the description of vehicles Penn saw in the parking lot that morning. Penn rebuffed offers of assistance from his fellow officers, claiming he was just doing surveillance.
Before the deal’s consummation, the confidential informant met with Austin in Austin’s car in the parking lot. Austin relayed information between the confidential informant and Penn over his cellphone. The confidential informant and Austin discussed the imminent deal, with the confidential informant’s describing where s/he would put the drugs after receiving them.
The confidential informant exited Austin’s car and shortly thereafter met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn. The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat.
After the confidential informant emerged from his/her vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving. Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant. Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat. Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did. Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down. Penn then ushered the confidential informant into Penn’s police car. The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag. Penn walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car. Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.
Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot. Each had a loaded firearm with a round in the chamber. The shopping bag with substituted cocaine was recovered from Penn’s vehicle.
On August 28, 2013, Penn was terminated from the Clayton County Police Department and the Marshals Service Task Force. His codefendant, Adrian Austin, pleaded guilty to the same charge on January 14, 2014.
Pursuant to the negotiated plea agreements into which Penn and Austin entered, they each have agreed to a binding ten-year term of imprisonment, to be followed by five years of supervised release.
Sentencing for Penn is scheduled for February 21, 2014, at 2:00 p.m., before United States District Judge Amy Totenberg. Sentencing for Austin is scheduled for April 10, 2014, at 2:00 p.m. also before United States District Judge Totenberg.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.
Assistant United States Attorney Scott Ferber 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Georgia Department of Defense Employee Indicted for CorruptionRead the Press Release
ATLANTA – Raytosha Elliott, a former contracting official with the Georgia Department of Defense, has been indicted for allegedly awarding contracts in exchange for illegal kickbacks.
“Ms. Elliott took advantage of the trust her job afforded her to award no-bid contracts by giving them to her friends,” said United States Attorney Sally Quillian Yates. “The defendants pocketed nearly $75,000 from their scheme for work that was never completed, and denied services meant to maintain facilities supporting those who serve this country.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "This case is a direct result of government personnel detecting criminal financial irregularities and reporting them to the proper authorities. The FBI will continue to dedicate significant investigative resources to ensure that federal money is spent appropriately and as intended."
Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service, said, "In partnership with other law enforcement agencies, the Defense Criminal Investigative Service aggressively pursues all allegations of fraud and corruption impacting the Department of Defense and our warfighting mission, to ensure that American taxpayer dollars are not wasted or stolen.”
“The prosecution of individuals who manipulate normal business transactions in an effort to enrich themselves has always been a priority of IRS and our law enforcement partners”, stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We are proud to have contributed our financial expertise in order to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
“This case is an excellent example of federal and state law enforcement working together to fight corruption,” said Vernon M. Keenan, Director of the Georgia Bureau of Investigation.
Interim Inspector General Deb Wallace of the State of Georgia Office of Inspector General said, “Our office is dedicated to strengthening the trust between the citizens of Georgia and their public officials by continuously pursuing fraud, waste, abuse and corruption within the executive branch of state government. We would like to thank and recognize the Georgia Department of Defense for its vigilance and willingness to report irregularities within its contracting process. We appreciate the many investigative agencies who assisted on this case through countless hours of hard work to bring it to resolution.”
According to United States Attorney Yates, the charges and other information presented in court: From May 2007 through April 2012, Elliott worked for the Georgia Department of Defense, the state agency charged with coordinating and supervising all agencies and functions of the Ga. National Guard. Elliott worked as an Engineering Operations Manager out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta, Ga. In that position, Elliott worked with engineering firms to develop bid-ready construction projects, prepared bid documents, and oversaw no-bid purchase orders. Under the rules governing the contracting process that Elliott oversaw, projects that cost less than $5,000 did not need to go through a competitive bidding process, allowing Elliott to award the contracts. She then certified that the work had been completed for those projects, and facilitated payment to the vendors who allegedly completed such projects.
In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Lakeysha Ellis. In return, the friends and associates paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to them. Elliott falsely certified that work had been completed when, in fact, it had not been in order to facilitate payment. One of the vendor companies was Total Source Solution, LLC, owned by co-defendant Ellis. Elliott awarded Total Source Solution 17 contracts with a total value of approximately $75,000. Those contracts were for a variety of services supposedly to be performed by Total Source Solution, including electrical work, landscaping, and HVAC work. But the work was never done. Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, merchandise, and even liposuction treatment for Ellis. As part of the scheme, Elliott owned a company named Tech Group Investments, LLC. Ellis took money she had obtained from the Georgia Department of Defense contracts, and paid kickbacks to Elliott through this company.
The indictment also alleges that Ellis and Elliott conducted a similar fraud scheme from January 2009, through May 2011, when Ellis was an accountant at Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta. Her job responsibilities included payroll and paying vendors.
While employed as Baumueller-Nuermont’s accountant, Ellis fraudulently funneled money to the defendants’ two sham companies, Total Source Solution and Tech Group Investments. Ellis wrote corporate checks to Total Source Solution, signed her name on the checks, and forged the signature of the Vice President on the checks, to ensure that the checks could be negotiated. Ellis recorded these payments in the check registry to reflect falsely that the checks had been issued to true vendors (such as American Express) when in fact they went to Ellis’ company.
As part of the scheme, Ellis also falsified employee records in the corporation’s payroll system to disguise payments to the defendants’ two companies. Ellis created at least two phantom employees by altering the names of real employees (by switching their first and last names) and slightly changing their Social Security numbers. She then caused the payroll system to make fraudulent salary payments to Total Source Solution and Tech Group Investments for these new, non-existent employees.
Baumueller-Nuermont lost about $85,000 from this scheme.
The ten count indictment charges Elliott, 33, and Ellis, 36, both of Atlanta, Ga., with two counts of conspiracy and seven counts of wire fraud. Elliott is also charged with accepting a bribe or kickback as a public official.
Members of the public are reminded that the indictment contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation; the Georgia Bureau of Investigation; the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Internal Revenue Service Criminal Investigation; the U.S. Army Criminal Investigation Command; and Deputy Inspectors General of the State of Georgia Office of the Inspector General.
Assistant United States Attorney Stephen H. McClain is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
AirTran Employee Sentenced for Bypassing TSA Security with A Machine GunRead the Press Release
ATLANTA - Rasondo Maurice Norris, who attempted to smuggle cocaine and a Mac-11 machine gun onto a commercial flight has been sentenced to ten years in prison.
“Security screening at our airports is vital to keeping citizens safe,” said United States Attorney Sally Quillian Yates. “By using his credentials to bypass security with backpacks of contraband, the defendant tried to allow drugs and a machine gun onboard a commercial flight. Public safety is a responsibility we take seriously, and our office will continue to prosecute those who are endangering our citizens.”
“The defendant abused his position to enrich himself without any regard for the harm that could have resulted from his actions,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “HSI special agents will continue to work closely with our partners at Hartsfield-Jackson to ensure the safety of the traveling public.”
“As an integral part of the David G. Wilhelm OCDETF Strike Force, IRS Criminal Investigation is proud to have worked with our Strike Force partners to pursue this individual who disregarded the public trust for his own financial benefit.” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation not only enforces the nation's tax laws, but we also take particular interest in cases where the public is at risk due to unlawful activity.”
According to United States Attorney Yates, the charges, and other information presented in court: Norris, 30, of Stone Mountain, Ga., worked as a baggage handler for AirTran Airlines at the Hartsfield Jackson International Airport. In May 2013, HSI Special Agents learned that, for a fee, Norris would help people engaged in criminal activity bring contraband onto airplanes by using his security clearance to bypass TSA security.
On or about May 23, 2013, an HSI Special Agent, acting in an undercover capacity, gave the defendant a backpack containing what was represented to be five kilograms of cocaine. Norris took the backpack from the undercover agent, bypassed security, and returned the backpack back to the agent once the agent cleared security. In a similar manner, on May 30, 2013, Norris again bypassed security with a backpack, this time containing what was represented to be $500,000 in drug proceeds. Finally, on June 5, 2013, Norris once more bypassed security with a backpack carrying what was represented to be three kilograms of cocaine, and a Mac 11 automatic firearm (which had been previously rendered inert by law enforcement agents), a magazine and a silencer. Norris was paid between $600 and $800 each time he bypassed security with the contraband.
Norris admitted in court that he violated the Hartsfield-Jackson International Airport’s security measures by bringing the Mac-11 machine gun, silencer, and magazine past the TSA security checkpoints and that he attempted to possess five kilograms of cocaine in the airport.
Norris was sentenced by United States District Judge Steven C. Jones to ten years in prison. Norris was convicted on October 10, 2013, after he pleaded guilty.
The agents who investigated this case are assigned to the David G. Wilhelm OCDETF Strike Force and are employed by the following law enforcement agencies: the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service Criminal Investigation; and the Drug Enforcement Administration.
Assistant United States Attorney Kamal Ghali prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Stone Mountain Woman Sentenced for Identity TheftRead the Press Release
ATLANTA - Cora Cadia Ford has been sentenced for filing false federal tax returns for refund using stolen identities, including those of homeless and disabled persons.
“Stealing someone's identity for personal gain is bad enough, but this defendant targeted some of the most vulnerable people in our community -- the homeless and disabled,” said United States Attorney Sally Quillian Yates. “Her crimes left people who were already disadvantaged to deal with yet another obstacle in their lives. The defendant’s significant sentence today will hopefully bring some solace to those who suffered from her greed.”
“Cora Ford thought she had figured out a clever scheme using the identities of people who were homeless, mentally challenged, and physically disabled to steal and defraud the American taxpayers,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Today's sentence clearly demonstrates that taking advantage, manipulating, and stealing from the American people will not be ignored or go unpunished.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2007 to May 2011, Ford prepared and filed false tax returns with the IRS, using the names and social security numbers of the poor, homeless and disabled. Ford intentionally prepared each tax return with false information so that it would generate a tax refund. Ford obtained the tax refund checks and deposited them into her own bank account or cashed the checks at check-cashing stores, and used the money for her own benefit. As a result of Ford’s crimes, many of the victims whose names and social security numbers were stolen had their social security disability benefits reduced or eliminated for a period of time.
Ford obtained the victims’ names and social security numbers in a variety of ways. Sometimes Ford convinced victims to provide her with their identifying information so that she could apply on their behalf for a homeless grant with the Government. In fact, no such Government grant existed. In other instances, Ford, who also ran a small church with her now-deceased husband, told her victims that she would file a tax return on their behalf and it would be “a gift from God.” Truthfully, Ford used the victims’ identifying information to prepare and file false tax returns, and kept the entire tax refund for herself. One victim, who testified that her social security disability benefits were reduced to approximately $27 per month as a result of Ford’s crimes, causing her to be unable to afford her own medications, stated that the defendant’s crimes had ruined her life.
Ford, 55, of Stone Mountain, Ga., was sentenced by United States District Judge Thomas W. Thrash, Jr. to nine years, three months in prison to be followed by threeyears of supervised release, and ordered to pay restitution in the amount of $101,015Ford was found guilty by a jury on September 20, 2013, on 30 counts of mail fraud, aggravated identity theft, and filing false claims with the Government.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Steven D. Grimberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Candidate for DeKalb County Superior Court SentencedRead the Press Release
ATLANTA - Michael Rothenberg has been sentenced on a charge of wire fraud for defrauding investors and using their money to fund his political campaign for a seat on the DeKalb County Superior Court.
“This defendant committed fraud at the very time that he was asking the voters of DeKalb County to trust him,” said United States Attorney Sally Quillian Yates. “Now he will spend time in federal prison.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Rothenberg will not only hold him accountable for his criminal conduct but will provide him with time to contemplate those actions and the harm that he caused others and, ultimately, to himself as well.”
According to United States Attorney Yates, the charges and other information presented in court: Michael Rothenberg, of DeKalb County, Ga., deceitfully persuaded the owners of WinterHawk Energy and Development Corporation (WinterHawk) into investing a total of $1.35 million. Rothenberg represented that the invested money would be placed in a trust account, controlled by him, which would be used to fund the trading of notes by large financial institutions. These notes, according to Rothenberg, would be split into “tranches,” and a ten percent profit would be earned each time a note or “tranch” was traded. Rothenberg told the investors that the investment involved no risk.
In fact, no investment existed and Rothenberg used the money paid by WinterHawk to fund his political campaign for a seat on the DeKalb County Superior Court as well as to pay personal expenses. He ultimately was unsuccessful in his bid for a judgeship. During the scheme, Rothenberg placated the investors’ concerns and lulled them into believing that the investment opportunity was real by emailing them fabricated bank statements, which made it appear as if the money they had invested remained in his trust account and that Rothenberg himself was wealthy. From time to time Rothenberg returned some of the money to the investors in response to their demands, and claimed falsely that he was making up for the shortfall by personally investing his own money. But Rothenberg did not invest his own money, and in fact spent the remaining proceeds – approximately $800,000 – without the investors’ knowledge or consent.
Rothenberg, 36, was sentenced today by United States District Judge Steve C. Jones to three years, five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $800,000. Rothenberg was convicted on these charges on September 11, 2013, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Steven D. Grimberg prosecuted the case. The DeKalb County District Attorney’s Office provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Defendants Plead Guilty to Hurricane Ike FraudRead the Press Release
ATLANTA – John A. Wheeler and Melody Lockett Carter pleaded guilty in federal court to fraudulently obtaining FEMA assistance funds intended for the victims of Hurricane Ike.
“These defendants stole over $50,000 in disaster relief funds that were intended to benefit those who truly suffered from the devastation of Hurricane Ike in 2008,” said United States Attorney Sally Quillian Yates. “Since the creation of the Disaster Fraud Task Force in 2005, we have remained committed to prosecuting those criminals who would take advantage of natural disasters to enrich themselves.”
James E. Ward, Special Agent in Charge for the U. S. Department of Homeland Security, Office of the Inspector General, said, “The Department of Homeland Security, Office of Inspector General is dedicated to investigating fraud related to DHS programs, specifically FEMA Emergency Disaster Relief Funds. The charges against these defendants serves as an example of our commitment to investigating FEMA fraud allegations and pursuing federal prosecution to the fullest extent of the law. DHS-OIG will continue to place a high priority on investigating these types of crimes which negatively impact FEMA’s Disaster Relief Funds that are intended for law abiding citizens.”
According to United States Attorney Yates, the charges and other information presented in court: Wheeler, 57, and Carter, 49, both of Wilmerding, Pa., and Angela Pratt Avery, 44, of Lawrenceville, Ga., worked together to file three fraudulent FEMA claims for Hurricane Ike disaster relief funds. The defendants filed the claims in September 2008 and January 2009, falsely claiming that Carter and Avery lived at a West Ventura Drive address in Galveston, Texas, at the time of Hurricane Ike and that their
personal property had been damaged by the storm. In fact, all three defendants lived in Norcross, Ga., at the time of Hurricane Ike and were not victims of the storm. The defendants received over $50,000 in disaster assistance from FEMA based on their fraud.On September 13, 2008, Hurricane Ike made landfall near Galveston, causing widespread damage along the Texas, Louisiana, Mississippi, and Florida coastlines and the surrounding areas. After Hurricane Ike struck the Texas coastline, FEMA provided financial disaster assistance to displaced individuals who resided in various counties in Texas. Those individuals could make an application for disaster assistance funds by filing a claim with FEMA that included the Texas address where they were living at the time of the hurricane.
Wheeler and Carter each pleaded guilty to one count of theft of government money. Sentencing for Wheeler and Carter will be scheduled at a later date.
This case is being investigated by Special Agents of the U.S. Department of Homeland Security, Office of Inspector General.
Assistant United States Attorney Stephen H. McClain is prosecuting the case.
In September 2005, the Attorney General established the Disaster Fraud Task Force to deter, detect, and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud, and insurance fraud related to the Hurricane Katrina disaster. As multiple disasters occurred in subsequent years, the Task Force expanded its mandate to all types of disaster fraud. The Task Force, chaired by Acting Assistant Attorney General Mythili Raman of the Criminal Division, includes the FBI, the Postal Inspection Service, the U.S. Secret Service, the Federal Trade Commission, the Securities and Exchange Commission, federal Inspectors General, and various representatives of state and local law enforcement.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former APS Chief Information Officer Pleads Guilty to Accepting KickbacksRead the Press Release
ATLANTA – Former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton has pleaded guilty to conspiring to receive kickbacks in exchange for using his influence at APS to award a $780,000 project to a computer vendor.
“Mr. Oberlton abused his position as APS’ Chief Information Officer when he took payoffs in exchange for the award of a lucrative computer contract,” said United States Attorney Sally Quillian Yates. “His fraud diverted scarce educational resources from the APS students who needed them to a vendor that was willing to pay to play.”
“IRS Criminal Investigation will continue to provide its investigative resources and expertise in exposing kickback schemes like the one Mr. Oberlton helped to orchestrate” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “We stand committed to weed out individuals who ignore the public's well-being and choose to take the path to financial success by using greed and corruption.”
According to United States Attorney Yates, the indictment, and information presented in court: Oberlton had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal (RFP) for a Data Warehousing (DW) project at the school system. The DW project was intended to centralize information relating to APS operations, including student information, so that it was maintained digitally in a secure, easily-accessible manner.
From the start of the project in January 2007, Oberlton and co-defendant Mahendra Patel conspired to influence the RFP process for the DW project, and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to Oberlton and Patel. While Patel did not work for APS, he had connections with a Detroit-based technology company that received the contract through the corrupted RFP process. In order to hide the bribes, Oberlton created two shell companies, Global Technology Partners (GTP) and, later, Global Technology Services (GTS), and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of GTP and GTS from APS even when questions arose in 2007. The kickbacks to Patel were disguised as sales commissions for non-existent consulting work that he supposedly performed for the shell companies. In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and the Detroit-based technology company and then signed fake sales consultant agreements to hide his role. The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton over almost six months and, in return, the company received $780,000 in APS project work.
Oberlton was the CIO for APS between June 2004 and August 2007 and, most recently, was the Chief of Staff for the Dallas Independent School District before he resigned in May 2013, shortly after he was indicted.Oberlton, 48, of Atlanta, Ga., pleaded guilty to conspiring with Patel and others to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $250,000. The parties have recommended to the Court that Oberlton receive a sentence of 41 months’ imprisonment, pay $735,130 in restitution and perform 1,000 hours of community service. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Sentencing is scheduled for March 24, 2014.
Mahendra Patel, 45, of Kennesaw, Ga., pleaded guilty on August 16, 2013, to conspiring with Oberlton to accept bribes.
These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine and Jill E. Steinberg 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former CEO Sentenced for Shipping Commercial Industrial Machines to IranRead the Press Release
ROME, Ga. - Mark Mason Alexander, a/k/a Musa Mahmood Ahmed, has been sentenced to 18 months in prison for conspiring to send water-jet cutting machines to Iran in violation of the United States trade embargo.
"Today's sentence demonstrates that the United States will continue to vigorously pursue and bring to justice those who evade our economic sanctions," said United States Attorney Sally Quillian Yates. “The trade embargo against the Islamic Republic of Iran is not limited to those who specifically seek to supply the country with military items or with items for use in its nuclear weapon proliferation program. Rather, businesses and individuals who engage in commercial transactions with businesses and individuals in the Islamic Republic of Iran are cautioned that they are still subject to prosecution under existing sanctions.”
"This is the latest example of the commitment of the U.S. Department of Commerce's Office of Export Enforcement to protect our national security through effective enforcement of U.S. export control laws" said Robert Luzzi, Special Agent-in-Charge of the Office of Export Enforcement's Miami Field Office. "We will continue to work aggressively with our law enforcement partners including Homeland Security Investigations, Atlanta Field Office, to investigate arrest and convict those individuals who illegally export U.S technology to state sponsors of terrorism."
"The magnitude and scope of the threats facing the United States is complex and wide-ranging, and that's why HSI investigates individuals who try to export sensitive technologies to hostile nations," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "Homeland Security Investigations, along with our partners like the Department of Commerce, take pride in protecting our country, and today's sentencing is just the latest example of our effective investigative efforts."
According to United States Attorney Yates, the charges and other information presented in court: Between October 2006 and June 2008, Alexander conspired with two Iranian businessmen to sell Hydrajet water-jet cutting systems to customers located in Iran. Hydrajet Technology, located in Dalton, Ga., manufactured the water-jet cutting systems which were used for the precision cutting of materials such as aluminum, glass, granite and steel. These machines were distributed to customers in the Middle East through Hydrajet Mena, another company that Alexander partly owned which was located in the United Arab Emirates and for which Alexander worked as the CEO.
In 2007, as part of the conspiracy, Alexander negotiated the sale of two water-jet cutting systems to companies located in the Islamic Republic of Iran: the Parand Machine Company and the Negin Sanat Sadr. Company.
In July 2007, after Alexander negotiated the terms of these sales and before the machines were shipped to the Islamic Republic of Iran, the Department of Commerce had conducted a community outreach meeting with Alexander, as the CEO of Hydrajet Technology. This outreach program was designed to make exporters, like Alexander, aware of the various export restrictions, including the trade embargo against Iran, and to educate exporters about the process for legally exporting items from the United States.
The evidence further established that the machines that Alexander conspired to sell were in fact manufactured in Dalton, Ga. He concealed the true destination of these machines by causing them to be trans-shipped to the Islamic Republic of Iran via Alexander’s company in the United Arab Emirates. Alexander additionally instructed Hydrajet Mena employees to travel to Islamic Republic of Iran to install the machines and to conduct software training for the Iranians who would operate them.Alexander, 53, of Roswell, Ga., was sentenced on Monday January 6, 2013, by United States District Judge Harold L. Murphy to 18 months in prison to be followed by three years of supervised release. Alexander was found guilty by a jury on September 26, 2013, of Conspiracy to violate the International Emergency Economic Powers Act.
This case was investigated by the U.S. Department of Commerce and the Department of Homeland Security.
Assistant United States Attorney Tracia King prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Husband and Wife Sentenced for Tax Defiance SchemeRead the Press Release
ATLANTA – Timothy Thomas, 51, and Mary Beth Thomas, 47, of Jackson County, Ga., have been sentenced for their respective roles in a criminal tax scheme.
“For over a decade, these two failed to file their federal tax returns and sent in a blizzard of obstructive correspondence to the IRS,@ said United States Attorney Sally Quillian Yates. “Individuals who seek to obstruct the tax system and cheat hardworking taxpayers will be exposed and prosecuted.”
“The term voluntary compliance means that each of us is responsible for filing a tax return when required and for paying the correct amount of tax,” stated Special Agent in Charge, IRS Criminal Investigation, Veronica Hyman-Pillot. “That responsibility should not be taken lightly. The defendants chose to take extreme measures in order not to file and pay taxes and they are now convicted with a prison term to serve.”
According to United States Attorney Yates, the charges and other information presented in court: In the 1990s, Timothy and Mary Beth Thomas, who were married and jointly owned and operated a deck and patio construction business in Maysville, Ga., stopped filing federal income tax returns. They then hired American Rights Litigators (ARL), an organization that sold and promoted tax defiance schemes, to send obstructive and harassing materials to the IRS on their behalf. The IRS repeatedly sent notices to the couple notifying them that they had to pay their federal income taxes and that they had to comply with the tax laws.
After the IRS shut down ARL as a result of fraudulent anti-tax actions, Timothy and Mary Beth Thomas continued to send a variety of obstructive, frivolous and harassing documents to IRS and Department of Treasury officials instead of paying their taxes. These documents included statements that they were not United States citizens but instead were AAmerican citizens@; that they were not subject to the federal income tax laws; and that paying income tax was voluntary. At one point, Timothy Thomas sent a letter to the personal residence of an IRS revenue agent that stated he was “a non-tax payer” and then mailed the IRS a letter stating that a commercial lien had been filed against two IRS employees.
Finally, after a decade of not filing tax returns, the couple submitted four false tax returns claiming over $1,000,000 in fraudulent refunds from the IRS. That same year, they also submitted fictitious financial instruments to the federal government, to include a document purporting to be a $100 billion private registered bond, and instructed the government to use this bogus bond to pay any of their debts to the government.Timothy Thomas, 51 of Jackson County, Ga., was sentenced to serve two years in federal prison. Mary Beth Thomas, 47, also of Jackson County, Ga., was sentenced to ten months in federal prison by United States District Judge Thomas W. Thrash, Jr. On May 10, 2013, Timothy Thomas pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service and Mary Beth Thomas pleaded guilty to one count of wilfully failing to file an income tax return.
Despite earning substantial money from their business, Timothy Thomas and Mary Beth Thomas failed to pay over $350,000 in federal income taxes from 2003 to 2012. At sentencing, the couple was ordered to pay $506,350.57 in back taxes, interest, and penalties to the IRS.
In a separate case, Timothy Thomas’s brother, Stephen Paul Thomas, 47, and Patricia Denese Anderson, 52, both of Lawrenceville, Ga., were convicted for a similar tax defiance scheme and they were both sentenced January 3, 2013, here in the Northern District of Georgia. Stephen Paul Thomas was sentenced to five years in prison and Patricia Denese Anderson was sentenced to four years, three months in federal prison.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Sally B. Molloy and Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Defendants Plead Guilty in Large ATM Skimming OperationRead the Press Release
ATLANTA - Stoyno Filtshev, Plamen Atanasov, Nedyalko Palazov, and WB Wohrman have pleaded guilty in a case involving a scheme to steal the bank debit card numbers and passwords of over 4,700 individuals through the use of a skimming device the defendants connected to ATMs in the metro Atlanta area.
“Victims in this case were devastated to learn that merely by using an ATM, they had unwittingly handed over their debit card information to criminals who in turn used the information to drain their bank accounts,” said United States Attorney Sally Quillian Yates said. “The victims continue to suffer, from having to worry about what else may be done with their personal information to spending valuable time trying to clear their good names and credit. Identity theft takes many forms but always creates havoc in the lives of good people.”
“Technology has forever changed the way we do business. Unfortunately, some endeavor to use those changes to their benefit and others’ detriment,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The Secret Service, in conjunction with our law enforcement partners, will continue to actively investigate and arrest those that commit crimes that prey on unsuspecting victims.”
According to United States Attorney Yates, the charges and other information presented in court: From about August 2011 through January 2013, Filtshev, Wohrman, Atanasov, and Palazov, working with co-defendant Tsvetil Iliev, used illegal skimming devices to steal over $380,000 from bank customers by installing the devices at Bank of America, JP Morgan Chase, and Wells Fargo automated teller machines (ATMs) in the metro Atlanta area. When a customer used the ATM with a skimming device installed, the device would electronically record the customer’s debit card number and a small camera in the device would video record 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 withdraw money from the victims’ bank accounts.
Filtshev, 53, of Atlanta, Ga., and Atanasov, 30, of Sandy Springs, Ga., were arrested in Kennesaw, Ga., in June 2012 using re-encoded gift cards to take money from customers’ accounts at a Bank of America ATM. On them and in their car, which was registered to Filtshev, they had 279 re-encoded cards. Each re-encoded card had the customer’s ATM password written on the front.
On September 27, 2012, Wohrman, 36, of Tennessee, was arrested by the Gwinnett County Police Department pursuant to a federal arrest warrant for violating the terms of his federal supervised release. A search of Wohrman’s vehicle at that time revealed, among other items, a skimming device and several financial transaction cards.
On December 28, 2012, Bulgarian Customs officials notified the Secret Service in Atlanta that they had identified a DHL parcel being shipped to the United States as containing illegal skimming devices. The Secret Service obtained a federal search warrant for the package, found three skimming devices, and then disabled them before returning them to the mail stream. The package went to a UPS Store in Atlanta, Ga. Wohrman and other co-conspirators were listed as authorized recipients of mail to the UPS box. On January 8, 2013, Palazov, 28, of Atlanta, Ga., came to the UPS Store and retrieved the package.
Filtshev, Wohrman, Atanasov, Iliev, and Palazov were indicted by a federal grand jury on January 22, 2013, for conspiracy, access device fraud, and aggravated identity theft. Palazov and Iliev fled Atlanta before they were arrested. Palazov was arrested during a stopover in Munich, Germany after he boarded a plane in Mexico headed for Bulgaria. Palazov was extradited from Germany and is now in custody in Lovejoy, Ga. Iliev, 34, of Atlanta, Ga., remains a fugitive.
The investigation has identified over 4,700 bank customers whose account information was stolen by the five defendants. The defendants withdrew over $380,000 from these customers’ accounts.
On December 18, 2013, Wohrman pleaded guilty to one count each of conspiracy, access device fraud, and aggravated identity theft. On December 27, 2013, Filtshev and Atanasov pleaded guilty to one count each of conspiracy, access device fraud, and aggravated identity theft. Palazov pleaded guilty on January 2, 2013, to one count of conspiracy, access device fraud, and aggravated identity theft. The conspiracy charge carries a maximum sentence of five years in prison, the access device fraud count carries a maximum sentence of 15 years in prison, and the aggravated identity theft charge carries a mandatory two-year sentence. The two-year sentence for aggravated identity theft must run consecutively to any other sentence imposed. Each count also carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
In a related case, on November 19, 2013, a federal grand jury returned an indictment against Zira M. Bailey, 26, of Picayune, Miss., Michael J. Ellis, 35, of Atlanta, Ga., and Bryan S. Kees, 36, of Savannah, Ga., for participating in an ATM skimming operation and targeting SunTrust ATMs in metro Atlanta, Savannah, Ga., and Florida. Bailey and Ellis received mail at the UPS Store box where the skimming equipment arrived from Bulgaria. The investigation also determined that these three defendants assisted Palazov and Iliev in fleeing the United States after their indictment. An additional 500 victims are linked to Bailey, Ellis, and Kees from the SunTrust ATMs.
Sentencing for Filtshev, Atanasov, Palazov, and Wohrman is scheduled for March 26, 2014, at 2 p.m. before United States District Judge Orinda D. Evans.
This case is being investigated by Special Agents of the United States Secret Service.Assistant United States Attorneys Stephen H. McClain and Christopher C. Bly are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Atlanta Man Charged in Nationwide Identity Theft SchemeRead the Press Release
Shabazz Deceived Prisoners into Applying for “Prisoner Benefits” and Used Their Information to Seek Over $12 Million in False Tax Refunds
ATLANTA - Qadir Shabazz had his initial appearance today on federal charges of conspiracy to defraud the Internal Revenue Service, wire fraud, aggravated identity theft, and theft of government funds.
United States Attorney Sally Quillian Yates said, “This defendant is charged with concocting a scheme that used the identities of inmates in prisons across the country to file fraudulent tax returns that in total sought millions of dollars in tax refunds. With the tax filing season rapidly approaching, identity thieves like him should be aware that there are severe consequences for those who seek to steal government funds using stolen identities.”
“Individuals who commit refund fraud and identity theft of this magnitude will be prosecuted to the fullest extent of the law,” stated Veronica F. Hyman-Pillot, IRS Special Agent in Charge of the Atlanta Field Office. “We, along with our law enforcement partners and the United States Attorney’s Office, will continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen.”
“The U.S. Postal Inspection Service is committed to bringing to justice those who use the U.S. mail to commit identity theft and defraud the government of money that rightfully belongs to taxpayers,” said George Frazier, Assistant Postal Inspector in Charge of the Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court: From November 2009 through May 2012, Shabazz orchestrated a nationwide scheme to file thousands of false and fraudulent federal income tax returns that claimed millions of dollars in fraudulent refunds. Shabazz, and others conspiring with him, operated a business named “Indigent Inmate” in the state of Georgia. Working through Indigent Inmate, Shabazz distributed literature and applications to prisoners located in incarceration facilities throughout the United States. Prisoners were told that if they submitted their names, social security numbers, and dates of birth to Indigent Inmate they would be eligible for prisoner benefits. As a result, prisoners submitted over 13,000 applications to Indigent Inmate seeking these benefits.
Shabazz, and others working with him, used the prisoners’ personal information to file over 2,000 false federal income tax returns that claimed over $12,000,000 in fraudulent refunds. These tax returns listed addresses in Georgia, Pennsylvania, and Tennessee that were under the control of Shabazz and others working with him.
Shabazz, 38, of Atlanta, Georgia, was indicted by a federal grand jury on November 5, 2013. The indictment charges one count of conspiracy to defraud the IRS, 15 counts of wire fraud, 15 counts of aggravated identity theft, and two counts of theft of government funds. Each wire fraud count carries a maximum sentence of 20 years in prison, each theft of government funds count carries a maximum sentence of 10 years in prison, and the conspiracy count carries a maximum sentence of 5 years of incarceration. The aggravated identity theft charges carry at least one mandatory two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000. The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.
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, United States Postal Inspection Service, and Georgia Department of Revenue, Office of Special Investigations. The Office of the Attorney General for the Commonwealth of Pennsylvania and the Office of Pennsylvania Department of Revenue, Bureau of Criminal Tax Investigations uncovered this scheme and launched a separate state investigation.
Assistant United States Attorneys Thomas J. Krepp and Mary L. Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Woodruff Arts Center Employee Sentenced for EmbezzlementRead the Press Release
ATLANTA - Ralph Clark has been sentenced for embezzling more than $1.1 million from the Woodruff Arts Center while serving as the Center’s Director of Facilities.
“When the defendant embezzled over $1 million from the Woodruff Arts Center, he not only stole from the Arts Center, but the entire community served by the Center,” said United States Attorney Sally Quillian Yates. “His greed and betrayal has fairly landed him in prison.”Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing brings to close an unfortunate tale of betrayal and greed. This case, in addition, illustrates the FBI’s responsiveness to assist those non-profit organizations, such as the Woodruff Arts Center, when needed.”
According to United States Attorney Sally Quillian Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark, 42, of Ellenwood, Ga., embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business - Lowe’s Services - which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received an invoice, it generated checks from Woodruff’s checking account. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark was sentenced by United States District Judge Julie E. Carnes to two years, six months in prison to be followed by three years of supervised release, and was ordered to pay approximately $1 million in restitution. Clark was convicted of these charges on April 23, 2013, upon his plea of guilty.This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
National Drug Trafficking and Money Laundering Organization in Sandy Springs DismantledRead the Press Release
ATLANTA – Jiles and Shannon Johnson, a husband and wife who owned the now closed KC Pit BBQ Restaurant in Sandy Springs, Ga., and Matthew Ware, the accountant for the restaurant, have been sentenced to federal prison.
“Businesses and professionals who use legitimate organizations to filter laundered drug proceeds denigrate legitimate earnings while destroying the jobs of those who work in those businesses,” said United States Attorney Sally Quillian Yates. “Illegal drugs lure many into that lifestyle with offers of big money, easily made. In the end, what really happens is lives are destroyed, businesses close, and the dealers go to jail. We will continue working to remove harmful drugs from our streets.”
“All of the defendants in this case are deserving of the sentences handed down. Several of these individuals masked themselves as legitimate businessmen, while everyone lined their pockets with excessive profits gained from drug trafficking,” said Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division. “These sentences should serve as a clear reminder to those business operators who facilitate fraud and money laundering schemes, that while you think you may be flying under the radar, you are not. It’s just a matter of time before you get caught and brought to justice. I express gratitude to the law enforcement partners who helped make this case a success.”
George Frazier, Assistant Postal Inspector in Charge of the Atlanta Field Office stated, “This investigation was an excellent example of a partnership between local, state and federal law enforcement agencies across the country, working together to bring down a nationwide organized drug ring. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing these individuals in this case to justice.”
“We are proud to have worked with our law enforcement partners in disrupting this organization’s money laundering ability, the trafficking of drugs and the commission of crimes against our community,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Pretending to operate legitimate businesses will not thwart law enforcement’s efforts in determining the true nature of the businesses and the crimes they promote.”
“This case goes to show the success of task force investigations, where local police detective’s team up with our federal counterparts and share our resources, experience and knowledge to bring down criminal enterprises. This is a great example of the effectiveness of working together to reach a common goal, which is the protection of our community,” said Police Chief Kenneth DeSimone, Sandy Springs Police Department.
According to United States Attorney Yates, the charges, and other information presented in court: This large scale drug trafficking and money laundering organization coordinated (1) the distribution of thousands of kilograms of cocaine imported from Mexico and transported from California to Kansas City, Philadelphia and Washington D.C., and (2) the laundering of millions of dollars in drug proceeds in Georgia. The organization coordinated its efforts through the KC PIT BBQ Restaurant in Sandy Springs, with the assistance of other businesses and professionals.
In 2003, Jiles and Shannon Johnson were the owners of the KC PIT BBQ Restaurant. Jiles Johnson was also a commercial truck driver. To supplement his restaurant income, he began driving kilograms of cocaine from California to Philadelphia on behalf of Mark Walker. Mark Walker was a Philadelphia cocaine distributor with access to street-level dealers, including his brother Sidney Walker, Ronald Martin, Lloyd Ellis and others. Johnson also supplied cocaine to Kansas City and Washington D.C.
As Johnson and Walker generated cash from cocaine sales, they purchased real estate in Georgia through Linda Tong, a local real estate broker. Tong made “structured” deposits of over $500,000 into bank accounts. “Structuring” occurs when a person breaks down over $10,000 in cash into smaller deposits under $10,000 to avoid the filing of a Currency Transaction Report (CTR) by a financial institution. The Johnsons invested over three million dollars in real estate holdings, including an 80 acre motorcycle racetrack in Twiggs County.
Matthew Ware, the accountant for the KC PIT BBQ Restaurant, accepted bags of cash in excess of $10,000 from Jiles Johnson. Ware provided the cash to some of his accounting firm’s clients and they repaid him with checks made payable to Johnson and his businesses. When the cash volume increased, Ware connected Johnson to another client, financial planner Jacques Degaule, to assist with the laundering. Degaule traveled to banks in Georgia, Missouri, Pennsylvania and New Jersey where he deposited over seven million dollars. No IRS 8300 Forms were filed, which are required when a trade or business receives cash over $10,000. The Johnsons used these laundered funds to underwrite their investments and their restaurant’s operations. Evan Francis, a local car broker, coordinated the delivery of loads of cocaine, solicited customers, and structurally deposited cash. Schawn Lemon Wortham laundered Mark Walker’s funds while he remained incarcerated.
The cocaine originated from Mexico and was supplied from California by Jose Gastelum and Lorenzo Vargas. When Johnson experienced financial losses, Gastelum and Vargas collateralized his drug debt on behalf of the source of supply by taking ownership interests in his restaurant and racetrack. Ware, the accountant, assisted them in the process.
The organization unraveled in 2010 when Thallas Amie, Lavern Simon and Jiles Johnson attempted to deliver 35 kilograms of cocaine to Philadelphia. The cocaine was intercepted by law enforcement which ultimately led to the organization’s dismantlement.
All sentenced defendants entered guilty pleas except for the accountant, Ware, who was convicted after a jury trial in January 2013. The sentencing’s were before United States District Judge Richard W. Story, as were other members of the organization who were sentenced for their respective roles as follows:
- Jiles Delwin Johnson, 47, of Sandy Springs, Ga., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine and one count of money laundering conspiracy in the Northern District of Georgia, and one count of distribution of cocaine in the Eastern District of Pennsylvania. On December 19, 2013, Mr. Johnson was sentenced to 15 years in federal prison, followed by five years of supervised release.
- Mark Lamont Walker, 46, of Cumming, Ga., and Philadelphia, Penn., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine and one count of money laundering conspiracy. On September 3, 2013, Mr. Walker was sentenced to eight years, six months in federal prison to run consecutively to an existing nine year sentence he received in the Eastern District of Pennsylvania. Combined, Mr. Walker’s sentence was 17 years, six months in federal prison, to be followed by five years of supervised release.
- Jose Marcial Gastelum, 33, of Chula Vista, Ca., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine. On May 16, 2013, Mr. Gastelum was sentenced to 12 years, three months in federal prison, followed by five years of supervised release.
- Lorenzo Vargas, 32, of Fullerton, Ca., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine. On October 13, 2011, Mr. Vargas was sentenced to ten years in federal prison, followed by five years of supervised release.
- Sidney Walker, 45, of Huntington, Penn., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine and one count of money laundering conspiracy. On December 20, 2013, Mr. Walker was sentenced to 11 years and three months in federal prison, followed by five years of supervised release.
- Ronald Martin, 67, of Philadelphia, Penn., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine. On November 26, 2013, Mr. Martin was sentenced to six years in federal prison, followed by five years of supervised release. Mr. Martin received no credit against his imposed sentence for time previously served.
- Lloyd Ellis, 43, of Philadelphia, Penn., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine. On October 10, 2013, Mr. Ellis was sentenced to 11 years in federal prison, followed by five years of supervised release.
- Evan Francis, 48, of Lawrenceville, Ga., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine and one count of money laundering conspiracy. On September 3, 2013, Mr. Francis was sentenced to ten years, one month in federal prison, followed by five years of supervised release.
- Thallas Amie, 32, of Sandy Springs, Ga., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine. On September 4, 2013, Mr. Amie was sentenced to six years, six months in federal prison, followed by five years of supervised release.
- Laverne Simon, 54, of Forest Park, Ga., entered a guilty plea to one count of conspiracy to possess with the intent to distribute cocaine. On September 4, 2013, Mr. Simon was sentenced to seven years in federal prison, followed by five years of supervised release.
- Matthew Ware, 57, of Tucker, Ga., was convicted after a jury trial in January 2013, on one count of money laundering conspiracy. On October 29, 2013, Mr. Ware was sentenced to six years in federal prison, followed by three years of supervised release.
- Jacques Degaule, 52, of Atlanta, Ga., entered a guilty plea to two counts of interstate transportation in aid of racketeering enterprises. On September 4, 2013, Mr. Degaule was sentenced to three years in federal prison, followed by one year of supervised release. Mr. Degaule received no credit against his sentence for time previously served.
- Shannon Renee Johnson, 46, of Sandy Springs, Ga., entered a guilty plea to one count of money laundering conspiracy. On December 19, 2013, Ms. Johnson was sentenced to three years in federal prison, followed by three years of supervised release.
- Schwan Lemon-Wortham, 52, of Sandy Springs, Ga., entered a guilty plea to one count of money laundering conspiracy. On November 26, 2013, Ms. Wortham was sentenced to two years, six months in federal prison, followed by three years of supervised release.
- Linda Tong, 68, of Alpharetta, Ga., entered a guilty plea to one count of Structuring. On September 4, 2013, Ms. Tong was sentenced to three years of probation with the special condition of ten months home detention.
In addition, related cases were filed against defendants in the Western District of Missouri, the Eastern District of Pennsylvania, and the Southern District of New York.
The investigation and prosecution of this case was a coordinated effort with the Drug Enforcement Administration (DEA), the United States Postal Inspection Service (USPIS), the Internal Revenue Service-Criminal Investigations (IRS-CI), and the Sandy Springs Police Department through the Atlanta-Carolinas HIDTA High Intensity Drug Trafficking Area (HIDTA) Task Force and the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. Other agencies that assisted in the investigation include the United States Marshal Service; Federal Bureau of Investigation (FBI) Philadelphia; Gwinnett County District Attorney=s Office; Gwinnett County Police Department; Georgia Bureau of Investigation; Georgia Department of Corrections; Forsyth County Sheriff=s Office; Atlanta Police Department; Heard County Sheriff=s Office; New Mexico State Police, Arkansas State Police; Los Angeles Police Department; Philadelphia Police Department and the Tennessee Highway Patrol. Other United States Attorney=s Offices that assisted in this investigation include: the Eastern District of Pennsylvania; Southern District of New York; District of Massachusetts; Eastern District of Missouri; Southern District of California; Southern District of Florida; and the Western District of Arkansas.
Assistant United States Attorneys Michael Smith, C. Brock Brockington, R. Scott Ferber and G. Jeffery Viscomi 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/.
Man Who Extorted Minors to Produce Child Pornography SentencedRead the Press Release
ATLANTA - Tremain Hutchinson, who coerced minors to produce child pornography, has been sentenced to life in prison.
“This sexual predator used the anonymity of the internet to prey on young girls – mentally, physically, and emotionally violating them,” said United States Attorney Sally Quillian Yates. “His crimes certainly warrant the prison sentence he received, and the stiff sentence will protect our children from this vicious predator.”
“The exploitation of children is one of the most heinous crimes we investigate,” said Brock Nicholson, Special Agent in Charge of Homeland Security Investigations Atlanta, which oversees all of Georgia and the Carolinas. “This case was especially egregious due to the offenses committed and the number of juvenile victims. Let this sentence be a warning to individuals who prey on innocent children – we will find you, arrest you and ensure you are prosecuted to the fullest extent of the law.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in or about November 2011, Hutchinson, who was 26 at the time, used a social media site called Tagged.com to contact the victims, young girls ranging from 11 to 16 years old. Hutchinson by-passed the safety features of website by posing as a 15 to 18 year-old teenager. When he made contact with the girls he targeted, he immediately asked the victims to send him nude photos of themselves. After the victims sent the initial photographs, Hutchinson then demanded more sexually graphic images. Typically, the girls refused, and Hutchinson would verbally abuse and threaten them. The threats included Hutchinson saying that he would find out where they lived and harm them or their families, or saying that he would upload the girls’ earlier, nude photos to their schools' websites or to social media sites like Facebook.
The investigation began when DeKalb County Police learned that someone with an account on Tagged.com had forced a teenage girl to molest her younger brother and to send him images of the molestation. DeKalb County Police identified Hutchinson during the course of their investigation and obtained a subpoena for records of his Tagged.com account. A search of Hutchinson’s computer and cell phone revealed hundreds of images of young girls in various stages of nudity and engaged in sexual conduct.
Hutchinson admitted in court that he had raped two of the girls he contacted on Tagged.com. In one instance, Hutchinson contacted a girl using Tagged.com and enticed her to send him nude photos of herself. He then threatened her until she sent him several videos depicting her engaging in sexually explicit conduct. Hutchinson continued to demand that the victim send him more videos and pictures and threatened to kill her and her family if she did not comply. He also threatened to post the photos she had previously sent on the internet. In February 2012, Hutchinson went to the victim’s home and raped her. He also raped a 13 year-old he met on Tagged.com.
Then, again posing as a teenage boy, Hutchinson contacted an 11 year-old girl on Tagged.com. The victim refused to send nude images of herself to him. Two years later, Hutchinson contacted the victim again and coerced her into sending him various nude images. When she refused to send additional pictures, Hutchinson threatened to post naked pictures of other girls using the victim's name and phone number on the internet. He told her that people would think it was her in the photos. Hutchinson also sent the same victim a photograph of his genitals and tried to meet the victim in person to have sex with her.
Hutchinson, 28, of Mableton, GA, was sentenced today by United States District Judge Timothy Batten to life in prison. Hutchinson was convicted of these charges on October 10, 2013, after he pleaded guilty. He will be required to register as a sex offender if he is released from prison.
This case was investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the DeKalb County Police Department.
Assistant United States Attorneys Yonette Buchanan and Leslie J. Abrams 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/.
VA Employee Charged with Theft of Government FundsRead the Press Release
ATLANTA - Zerry Feaster, a/k/a Zerry Travis, a/k/a Zerry West has been arraigned on federal charges of theft of government funds and making false statements. Feaster was indicted by a federal grand jury on December 17, 2013.
“This defendant is charged with abusing her position with the VA by repeatedly using her government credit card to steal over $80,000,” said United States Attorney Sally Quillian Yates. “Money intended to support the men and women who have served our country was instead used by the defendant for gambling and at luxury stores.”
Monty Stokes, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, said “We are disappointed in Feaster’s alleged betrayal of public trust. She was hired to help veterans, but allegedly elected to abuse her position for her own personal gain. We are committed to safeguarding VA programs and resources to ensure veterans are afforded the care they have earned.”
According to United States Attorney Yates, the charges, and other information presented in court: Feaster was employed as a secretary in the Police Services division at the Department of Veteran Affairs Medical Center in Atlanta. From February 2010 through February 2012, Feaster allegedly engaged in a scheme to steal over $80,000 from the VA by misusing her government-issued credit card. The credit card was supposed to be used to purchase office supplies and other equipment for the Police Services division. Feaster instead allegedly misused her government credit card to purchase pre-paid gift cards, which she then used to buy personal items, such as luxury accessories and jewelry at stores such as Coach and Tiffany & Co., as well as to gamble. Feaster attempted to hide the gift card purchases by creating and submitting fake purchase orders to the VA, falsely claiming that she was using the government credit card to buy office supplies and equipment for Police Services.
The indictment charges Zerry Feaster, 45, of Ellenwood, Ga., with seven counts of theft of government funds and five counts of false statements. Each theft of government funds count carries a maximum sentence of ten years in prison and a fine of up to $250,000. Each false statement count carries a maximum sentence of five years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
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 Department of Veterans Affairs, Office of Inspector General.
Assistant United States Attorneys Mary L. Webb and Ryan Scott Ferber 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/.
Previously Convicted Sex Offender Sentenced to 25 Years for Child Sex TraffickingRead the Press Release
ATLANTA – Terrance Anderson, a/k/a/ Scooby, has been sentenced to federal prison on charges of sex trafficking of a minor and two counts of transporting adults in interstate commerce for prostitution.
“This defendant lived off the sexual exploiting of minors, even after previously serving a federal sentence for sex trafficking-related conduct,” said United States Attorney Sally Quillian Yates. “Our office will remain vigilant in our efforts to prosecute those who exploit children and young women in this district.”“For his own benefit, the defendant preyed upon women and girls, coercing them into prostitution,” said Jocelyn Samuels Acting Assistant Attorney General for the Civil Rights Division. “The Department of Justice will continue to devote its full efforts to prosecuting those who commit such heinous crimes.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing removes a dangerous individual from our streets who has repeatedly shown a callous disregard for the basic human rights of others. Human trafficking and child exploitation cases such as this reaffirm the FBI's mission as we work to protect and help those that may not be able to help themselves.”
According to United States Attorney Yates, the charges and other information presented in court: From February 2008 through December 2011, Anderson ran a prostitution ring in which he advertised the sexual services of a minor and young women, including victims K.B., T.B., A.C. and other victims on the Internet. He advertised on sites such as Backpage, Craig’s List and Eros, as well as his own website, Rentsomethingsexy.com. Anderson caused K.B., a 17-year-old girl, to engage in commercial sex acts in multiple states, requiring her to earn $1,000 a day, work seven days-a-week, and give all her earnings to him. Anderson also transported 18-year-old T.B., and 24-year-old A.C., from Georgia to Virginia, where he required the young women to perform numerous commercial sex acts for his financial gain.
Anderson previously pleaded guilty in August 2001 to using a cell phone, which is a facility of interstate commerce, to cause a juvenile to engage in prostitution, and to being a felon in possession of a firearm. He received a sentence of seven years in federal prison after providing information to federal investigators about other sex trafficking crimes and testifying at the trial of two other human traffickers. However, Anderson resumed his sex trafficking activities after completing his prison sentence.
Terrance Anderson, 42, of Ellenwood, Ga., was sentenced by United States District Judge Thomas W. Thrash to 25 years in prison to be followed by seven years of supervised release. Anderson was ordered to pay restitution to victims totaling $154,550. Anderson pleaded guilty to the charges on July 19, 2013.
This case was investigated by Special Agents of the Federal Bureau of Investigation. If anyone has any information about human trafficking, they are encouraged to report the information to the Federal Bureau of Investigation at 404-679-9000.
Assistant United States Attorney Susan Coppedge and Department of Justice Deputy Chief Karima Maloney 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/.
MS-13 Members Receive Life SentencesRead the Press Release
ATLANTA - Ernesto Escobar, a/k/a Pink Panther, a/k/a Flaco, Miguel Alvarado-Linares, a/k/a Joker, and Dimas Alfaro-Granados, a/k/a Toro have been sentenced to life in prison for their roles in committing murders and attempted murders in Gwinnett and DeKalb Counties.
“The defendants sentenced today were the local leaders of the notorious MS-13 gang,” said United States Attorney Sally Quillian Yates. “These defendants upheld MS‑13’s reputation for spreading fear throughout the community by committing brazen and indiscriminate acts of violence, including killing rival gang members and suspected cooperators. They have rightfully earned their life sentences.”
“Homeland Security Investigations, in partnership with our federal, state and local law enforcement partners, have made a priority of targeting the most violent members of transnational gangs who are involved in murder and mayhem and significantly escalate violence in our neighborhoods, and these three individuals fit that bill,” said Brock Nicholson, special agent in charge of HSI Atlanta. “Our communities are now safer because these heinous criminals will spend the rest of their lives behind bars”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "An investigation that helped secure life sentences for such violent offenders that have proven time and again that they have no respect for the lives of others is a very successful investigation. Such international gangs as MS-13 will continue to be the focus of a joint law enforcement effort at all levels with the goal to arrest those involved and to dismantle the organization as a whole."
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 area since at least 2005. During the course of this investigation, which ended in 2010, more than 75 MS-13 members have been arrested, charged, and/or deported. 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 at trial showed that the defendants committed the following crimes:
- Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006. Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder.
- In December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13. On Christmas Eve 2006, that gang member, following orders, shot at a car on Highway 316 that he believed contained rival gang members. The driver, Celso Villalobos, was shot, and his passenger, Angel Gonzalez, was murdered. Angel Gonzalez was 20 years old.
- On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13. Alvarado-Linares pulled out a gun and shot the men.
- A few weeks after the New Year’s Eve incident, Alfaro-Granados got into a fight with a suspected rival gang member at a nightclub. Alvarado-Linares, Alfaro-Granados, and Escobar later returned to the club, where Escobar shot a man walking through the parking lot.
- In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to the clique leader, who gave Escobar a .45 caliber semi-automatic handgun to retaliate. Escobar went back to the Shell station and shot one of the teenagers as he was painting lines in the parking lot. The victim, David Hernandez, was only 16 years old.
- In October 2007, Alvarado-Linares was in Gwinnett County and came across a suspected 18th Street member. Alvarado fired a shotgun and killed Pablo Archila-Baires. Archila-Baires was only 15 years old.
Ernesto Escobar, a/k/a Pink Panther, a/k/a Flaco, 30, of Norcross, Ga., was sentenced today to life in prison. Miguel Alvarado-Linares, a/k/a Joker, 25, of Norcross, Ga., was sentenced to life in prison on October 15, 2013, and Dimas Alfaro-Granados, a/k/a Toro, 30, of Duluth, Ga., was sentenced to life in prison on October 29, 2013. Escobar, Alvarado-Linares and Alfaro-Granados were found guilty by a jury on July 15, 2013. Parole has been abolished in the federal system.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Chamblee Police Department, and Gwinnett County Sheriff’s Office.
Assistant United States Attorneys Paul R. Jones and Kim S. Dammers 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/.
Former Villa Rica School Teacher Sentenced for Possession of Child PornographyRead the Press Release
ROME, Ga. – Joseph Monroe Wilson has been sentenced today to three years in federal prison for possessing images of child pornography on his home computer.
“This prosecution successfully removed a teacher from the classroom who not only ordered and collected child pornography, but who also had unfettered access to children as a school teacher,” said United States Attorney Yates. “Because children innocently trust teachers like this man, it is essential that we identify and prosecute such individuals.”
“The Postal Inspection Service is charged with enforcing the laws that defend the nation's mail system from illegal use. The use of the U.S. mail to exploit children is intolerable and those responsible will be held accountable, just as this defendant with today's sentencing,” said George Frazier, Assistant Postal Inspector in Charge of the U.S. Postal Inspection Service, Atlanta Field Office.
According to United States Attorney Yates, the criminal indictment, and material presented in court: In February and March 2011, Wilson ordered numerous images and movies containing sexually explicit images of young boys from a company based in Canada. In March 2012, the United States Postal Inspection Services executed a federal search warrant at Wilson’s home in Paulding County, Ga. During the search warrant, law enforcement found a large portrait of a young, naked boy hidden in Wilson’s closet and numerous images of child erotica and child pornography on Wilson’s home computer. At the time the search warrant was executed, Wilson was a teacher at New Georgia Elementary School in Villa Rica, Ga., and was in the process of adopting a seven‑year‑old boy. He is no longer teaching at the school and the adoption did not take place.
Wilson, 44, of Spartanburg, SC, was sentenced today by United States District Judge Robert L. Vining, Jr. to three years in prison to be followed by 30 years of supervised release. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by the United States Postal Inspection Service.
Assistant United States Attorneys Jill E. Steinberg and Brent A. Gray 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 is www.justice.gov/usao/gan.
College Park Policeman Indicted for Illegally Obtaining U.S. CitizenshipRead the Press Release
ATLANTA – Devon Campbell, a/k/a Wilmott Alvin Livingston, a former Jamaican police officer who illegally entered the United States and has since become a U.S. citizen and a College Park police officer, has been arraigned on charges relating to false statements he made on his applications to obtain U.S. citizenship and a passport, and other related crimes.
“According to the indictment, over the last 13 years, Campbell has been engaged in a pervasive scheme to deceive U.S. immigration authorities,” said United States Attorney Sally Quillian Yates. “Even more boldly, Campbell has used his fraudulently obtained citizenship to become a police officer. Simply stated, the citizens of College Park deserve police officers who will follow the laws that they have been sworn to enforce.”
"Law enforcement officers hold positions of public trust requiring the highest levels of integrity," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "The defendant has betrayed that public trust with a life of fraud and deceit. HSI special agents, with assistance from the HSI Jamaica attaché and the Jamaican Constabulary Force, have taken quick action to unmask this impostor and ensure he will never again wear a police officer's uniform in this country."
According to United States Attorney Yates, the charges, and other information presented in court: In 2000, Campbell lived in Jamaica, where he had previously worked as a police officer with the Jamaican Constabulary Force. On November 7, 2000, Campbell left Jamaica and entered the United States using a Jamaican passport bearing the fabricated name Wilmott Alvin Livingston with a false date of birth.
While in the United States, Campbell has lived under the Livingston alias. On April 19, 2001, Campbell (using the Livingston alias) married a United States citizen in Jonesboro, Ga. Shortly thereafter, Campbell (under the Livingston name) petitioned to become a Lawful Permanent Resident. On August 13, 2004, U.S. immigration authorities granted the application and Campbell become a permanent resident of the United States.
On October 15, 2007, Campbell, using the fake name and date of birth, filed an Application for Naturalization with U.S. immigration services. Although the application required Campbell to list any previously-used names, Campbell marked that section with the letters “N/A,” meaning “Not Applicable.” Campbell also signed the form under penalty of perjury using the name Wilmott Alvin Livingston. On April 11, 2008, Campbell (under the Livingston alias) became a naturalized U.S. citizen. Later that month, Campbell applied for and was issued a U.S. passport. On the passport application, Campbell falsely listed his name and date of birth. Campbell has used his fraudulently-obtained passport to travel back and forth to Jamaica.
Two months after becoming a U.S. citizen, on June 12, 2008, Campbell (under the Livingston identity) and his wife divorced. Eight days later, Campbell (under the Livingston identity) married another woman.
Since 2011, Campbell has served as a police officer with the College Park Police Department. In obtaining his Georgia Peace Officer Standards and Training certification, Campbell falsely claimed to be a naturalized United States citizen and submitted an unlawfully obtained Certificate of Naturalization.
On December 17, 2013, Campbell, 46, of Ellenwood, Ga., was indicted by a federal grand jury for one count each of: (a) Unlawfully Procuring Citizenship or Naturalization, (b) Making False Statements in a Passport Application, (c) Misusing Evidence of Citizenship, and (d) Using a Passport Secured by False Statements. The most serious of the charges carries a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
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 Homeland Security Investigations.
Assistant United States Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Business Owner Indicted for BriberyRead the Press Release
ATLANTA – Jae Jun Bae has been indicted by a federal grand jury for wire fraud and bribery.
“The defendant is charged with offering bribes to subvert the proper operation of Doraville’s government,” said United States Attorney Sally Quillian Yates. “As is usually the case, the government employees reported Bae’s misdeeds – allowing law enforcement officers to thwart his efforts to offer cash for favors.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption matters at all levels continue to be an investigative priority for the FBI because of the harm that it causes both with government operations and public trust. We ask the public to remain vigilant regarding criminal activities not only by public or elected officials, but also by those engaging the government, and ask that they report those activities to their nearest FBI field office.”
"Doraville is thankful to be able to work in partnership with the FBI,” said Doraville Police Chief John King. “Public corruption erodes the confidence and trust that our citizens have in our government officials and employees. Doraville Police Officers works tirelessly with the citizens and our partnering law-enforcement agencies to make sure that our city is free of corruption and filled with trust."
According to United States Attorney Yates, the charges, and other information presented in court: Bae is the owner of Moon Lingerie, a lingerie business located in Doraville, Ga. In April 2012, Bae bought a commercial building located on Buford Highway in Doraville. At the time of the purchase, the property was zoned for retail use and could not be used as a wholesale location as Bae wanted. In August 2012, Bae met with an employee of the City of Doraville and attempted to give the employee an envelope of cash, ostensibly in an effort to have the Buford Highway property re-zoned. The employee did not take the envelope and reported Bae’s attempt to local law enforcement authorities.
In October 2013, Bae asked to meet with an employee of Doraville’s Community Development Department. Based on the allegations from August 2012, the employee (“Doraville Employee”) reported Bae’s request for a meeting to law enforcement authorities and agreed to cooperate with them. Thereafter, the FBI and the Doraville Police Department conducted a series of undercover operations involving Bae. In particular, on October 17, 2013, Bae met with the Doraville Employee and an undercover officer (“UC”), who was posing member of Doraville’s Community Development Department. During the meeting, Bae agreed to pay approximately $100,000 to have the Buford Highway property re-zoned to permit wholesale uses. On October 18, 2013, Bae met with the UC and re-negotiated the price to obtain a wholesale re-zoning from $100,000 down to $70,000. On October 29, 2013, Bae made a $5,000 payment to the Doraville Employee as a deposit to get the Buford Highway property re-zoned. On the next day, Bae gave the UC a $3,000 payment, which the UC said would secure a vote in favor of Bae’s re-zoning application. On November 14, 2013, the FBI arrested Bae.
On December 3, 2013, Bae, 34, of Duluth, Ga., was indicted by a federal grand jury on five counts of wire fraud and one count of bribery. The most serious of the charges (wire fraud) carries a maximum sentence of 20 years in prison and a fine of up to $250,000 on each count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Doraville Police Department.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Australian National Sentenced to Prison for Child EnticementRead the Press Release
ATLANTA - Geoffrey William Hine, who traveled to Georgia to have a sexual encounter with a 14-year-old girl, has been sentenced on charges of child enticement.
“This office will continue to aggressively pursue individuals who seek to exploit young children, including those who travel here from foreign countries for this purpose,” said United States Attorney Sally Quillian Yates. “Engaging in sexual acts with children is a vile and violent act, and perpetrators will be held accountable for this reprehensible conduct.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Hine, an Australian national, ensures that there will be one less dangerous child predator among us. This was a unique international based child exploitation case that not only speaks to the ambitious state of mind of a predator but also to the determination of law enforcement at all levels and jurisdictions to work together in apprehending these individuals. The FBI will continue to dedicate significant investigative resources toward identifying, investigating, and presenting for prosecution those that prey on and exploit our children.”
According to United States Attorney Yates, the charges and other information presented in court: In August 2011, Hine began a Facebook “relationship” with a 14-year-old girl who lived in Rome, Ga. At the time, Hine was a 33-year-old citizen of Australia. Hine and the girl had numerous online and phone conversations over the next few months. Hine even sent the girl's grandmother money on several occasions. Hine and the 14-year-old then planned a trip for him to come to the United States, specifically to visit her in Rome, Ga. Hine asked the girl if she would sleep in the same bed with him and engage in sexual activity when he visited. Hine continued to send sexually explicit texts to the young girl describing the sexual acts he intended to do with her. When Hine arrived in the U.S. on April 14, 2012, FBI agents met his plane at Hartsfield-Jackson International Airport and arrested him.
Hine, 35, of Western Australia, was sentenced to ten years in prison, to be followed by 30 years of supervised release.
This case is being investigated by the Federal Bureau of Investigation and the Floyd County Police Department.
Assistant United States Attorney Cassandra J. Schansman 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/.
Former Clarkston Councilwoman Pleads Guilty to Embezzlement SchemeRead the Press Release
ATLANTA – Former Clarkston City Councilwoman Joan Swaney has pleaded guilty to embezzling over $60,000 from a local community center.
“As a Clarkston councilwoman, Swaney’s personal motto was ‘live with purpose, act with integrity,’” said United States Attorney Sally Quillian Yates. “Unfortunately, she failed to live up to these ideals when she stole tens of thousands of dollars from the Clarkston Community Center.”
According to United States Attorney Yates, the charges and other information presented in court: The Clarkston Community Center (CCC) was established in 1994 in the former Clarkston High School and serves a diverse community in the Clarkston area. The CCC includes classrooms and an auditorium as well as activity fields for sports and other outdoor events. The CCC focuses on educational and recreational activities in the Clarkston area. Swaney was employed by the CCC from November 2003 until December 2012. During this time, Swaney was its office manager. Her responsibilities included bookkeeping and other administrative tasks.
In 2010, Joan Swaney, 67, of Clarkston, Ga., was elected to serve on the City Council in Clarkston. She also served as Clarkston's Vice Mayor during her tenure. Swaney resigned her position in October 2013 after she was indicted by a federal grand jury in this case.
As part of her normal duties, Swaney regularly received reimbursements for supplies she purchased on behalf of the CCC. Normally, receipts for expenses incurred and a purchase authorization form for CCC expenses were maintained for each transaction in order to document expenses. In 2010, Swaney began to write checks to herself from the CCC's bank account at BB&T. Between 2010 and 2012, she made the checks payable directly to herself and forged the signature of the CCC's Director. The checks were written without the authorization of the CCC's Director who managed the day-to-day affairs of the CCC.
Swaney deposited the forged checks into her personal account and used the CCC's funds to pay personal expenses and her personal credit card bills. During this period, she used CCC funds to pay for a variety of personal expenses including:
- Charges totaling $1,424 in June 2010 for a family vacation;
- Charges totaling approximately $3,000 in September 2010 for personal vehicle repairs; and
- Charges totaling $1,590 in June 2011 for a charter boat rental.
Swaney varied the check amounts and made fictitious entries in the memo lines of the checks in order to make it appear the funds had been spent on expenses relating to the CCC's operations. At the same time, she also used the CCC debit card to withdraw cash from the CCC's BB&T bank account, generally withdrawing between $300 and $600 at a time. Swaney made cash withdrawals using the debit card at least once or twice a month. The loss to the CCC exceeded $60,000.
The charges in this case carry a maximum sentence of 30 years in prison and a fine of up to $1,000,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Swaney’s sentencing is scheduled for March 6th, 2014, at 10:00 a.m.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Kurt Erskine 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/.
Emory Students Targeted by Identity ThievesRead the Press Release
ATLANTA - Maario Coleman and Angela Russell have been arraigned for operating a scheme to obtain thousands of dollars by stealing the identities of Emory University law and medical students and using them to apply for loans.
“The alleged actions of these two defendants demonstrates how every member of our community is vulnerable to identity theft and computer intrusions,” said United States Attorney Sally Quillian Yates. “The potential for causing damage to Emory students’ financial and professional futures cannot be overstated. We continue to work aggressively to combat this problem.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “This case illustrates the need for the law enforcement community to work together in order to stay ahead of today’s very capable and tech savvy individuals that are able to do much harm to many unsuspecting victims. The FBI’s Atlanta Cyber Task Force applauds the quick response of the Emory University Police Department and its continued assistance throughout this investigation.”
“The teamwork of Emory Police investigators, Emory's University Technology Services and school officials, allowed Emory to respond quickly to reports, initiate an investigation and take steps to prevent further fraud against our graduates,” says Emory Police Chief Craig Watson. “On behalf of the Emory Police Department, I greatly appreciate the productive partnership with the Federal Bureau of Investigation that has led to the arrest of these two individuals.”
According to United States Attorney Yates, the charges, and other information presented in court: Coleman obtained lists of students graduating in the class of 2013 by checking university websites and attending graduation ceremonies. Coleman and Russell used that information to obtain the students’ dates of birth and social security numbers from online databases. The defendants then used those personal identifiers to apply for post-graduate “bar loans” and “residency loans” at Discover Bank. “Bar loans” are designed to pay for living expenses and exam preparation while law school graduates studied for the bar exam. Similarly, “residency loans” assist medical school graduates with the costs of residency, relocation, and board exam review courses.
In many instances, Discover required school transcripts before it would approve and fund the loans. To satisfy this requirement, Coleman and others used the personal identifiers of the victims to obtain passwords to access Emory’s online portal and order the victims’ transcripts. The transcripts were mailed to other participants in the scheme, and Coleman then coordinated sending the transcripts to Discover. He also arranged for the loan proceeds to be deposited into bank accounts fraudulently opened in the victims’ names. After the loans were funded, other participants in the scheme obtained the funds via ATM withdrawals.
The investigation showed that the scheme began as early as May 2013, and continued until at least November 6, 2013. On that date, law enforcement officers, including federal agents, interviewed Russell regarding the scheme. Following the interview, the agents went to a second location, and then returned to Russell’s residence. When they arrived, agents became alarmed by a large volume of smoke they saw rising from Russell’s apartment. After entering the apartment, the agents found Coleman and Russell inside, with fire and smoke coming from the fireplace. The agents put out the fire with an extinguisher and discovered documents and computer equipment, including hard drives and at least one laptop, all either burned in the fire, dismantled or gouged.
To date, investigators have identified over $200,000 in false loan applications. In addition, over 100 students at Emory and other Georgia universities have had their personal information compromised. The fraud was discovered when several Emory students contacted the Emory Police Department after realizing that their personal information had been compromised. The investigation is ongoing.
The indictment charges Coleman, 27, of Decatur, Ga., with one count of conspiracy to commit bank fraud, three counts of aggravated identity theft, one count of computer fraud, and one count of tampering with computers and documents. Russell, 42, of Dunwoody, Ga., is charged with one count of conspiracy to commit bank fraud, one count of aggravated identity theft, and one count of tampering with computers and documents. Both appeared before Linda T. Walker, United States Magistrate Judge.
The bank fraud conspiracy and tampering charges each carry a maximum sentence of 20 years in prison. The computer fraud charge carries a maximum sentence of 5 years in prison. The aggravated identity theft charges carry at least one mandatory two-year consecutive sentence, in addition to any other sentence imposed. In addition, the bank fraud count carries a fine of up to $1,000,000, and the computer fraud and tampering counts each carry a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Emory University Police Department.
Assistant United States Attorney Shanya 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.
If you are a victim of identity theft, change the passwords to your online banking and other financial accounts because your information may have been stolen/ acquired over the Internet.
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/ .
Defendant Sentenced for Planting Drugs on Woman’s CarRead the Press Release
ROME, Ga. – Clifford J. Joyce has been sentenced to one year and six months in prison for framing a Murray County citizen for drug possession.
“By planting drugs on an innocent woman’s car, Mr. Joyce attempted to use the criminal justice system to serve his own personal agenda,” said United States Attorney Sally Quillian Yates. “In the end, however, it is Mr. Joyce, and not the Murray County woman, who will be headed to prison.”Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Mr. Joyce’s sentencing today serves to not only hold him accountable for his crime, but provides him time to reflect on this terrible deceptive act intended to harm another innocent individual. The FBI will continue to work with its various local, state and other federal law enforcement partners to identify and investigate any allegations of criminal conduct involving or adversely impacting our criminal justice system.”
“Vindicating an innocent person is as important as convicting the guilty. The GBI will continue to work with our federal law enforcement counterparts to ensure criminal cases are thoroughly investigated so the innocent remain free and the guilty are held accountable,” said Vernon Keenan, GBI Director.
According to United States Attorney Yates, the charges and other information presented in court: In July 2012, a Murray County citizen met with then-Chief Magistrate Judge Bryant Cochran regarding a legal matter. She alleged that during the meeting, Cochran made inappropriate sexual advances towards her.
In an effort to discredit the citizen, Joyce and others participated in a scheme to frame her for drug possession. On or about August 12, 2012, Joyce hid a metal tin containing five packets of methamphetamine under the tire well of the citizen’s car.
Two days later, on August 14, 2012, Murray County Deputy Sheriff Joshua Greeson (who has since been convicted of witness tampering for lying to law enforcement officers) conducted a traffic stop of the citizen’s car. During the traffic stop, Greeson searched the vehicle for drugs. Ultimately, after receiving information from Captain Michael Henderson (who has also been convicted of witness tampering), Greeson found the metal tin of methamphetamine under the tire well. After locating the drugs, Greeson and Henderson arrested the citizen and the driver of the car on narcotics charges. On August 24, 2012, the District Attorney dismissed the charges against the citizen.On June 14, 2013, Joyce, 27, of Dalton, Ga., pleaded guilty to conspiring to distribute methamphetamine. Today, United States District Judge Harold L. Murphy sentenced Joyce to one year, six months in prison to be followed by three years of supervised release, and 100 hours of community service.
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Michael V. Herskowitz 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.
Canton Man Charged with Distributing Hardcore Child PornographyRead the Press Release
ATLANTA - Billy Gene McCorkle, Jr. has been arraigned on charges of distributing and possessing child pornography of children under the age of 12. McCorkle was indicted by a federal grand jury on December 10, 2013. He was detained.
“The sexual exploitation of a child through the distribution of child pornography is a crime that preys on the most innocent in our society, the very ones who depend on us to protect them,” said United States Attorney Sally Quillian Yates. “This defendant is accused of trafficking sexually graphic images of very young children, with some of them even shown in bondage situations. This office is committed to prosecuting those who engage in this horrible trade.”
"The defendant stands accused of trading in the worst kinds of child pornography, in effect victimizing again children whose documented rapes will haunt them for the rest of their lives ," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "HSI special agents and our law enforcement partners will continue to tirelessly pursue these monsters and will use every tool we have available to hold them accountable for their crimes and keep them away from children."
According to United States Attorney Yates, the charges, and other information presented in court: In October 2013, special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations identified McCorkle as a Canton, Georgia resident using a Google email account to transmit hardcore images of pornography depicting very young children. Federal agents then obtained a search warrant to gain access to McCorkle’s email content. A review of those records revealed that between October 27, 2013, and sometime in November 2013, McCorkle used a cellular telephone connected to the Internet to transmit more than 208 photographs and 14 video files, depicting pornographic images of minors, including children under age 12. The photographs and video files included hardcore images of child pornography, some of which involved bondage.
The indictment charges McCorkle, 45, of Canton, Ga., with distributing child pornography, and possessing images of child pornography depicting minors under age 12. Because McCorkle was previously convicted of a sex offense, the distribution charge carries a mandatory minimum sentence of 15 years of imprisonment, up to a maximum sentence of 40 years of imprisonment, and a fine of up to $250,000. And because McCorkle possessed images of prepubescent minors, the possession charge carries a mandatory minimum sentence of 10 years of imprisonment, up to a maximum sentence of 20 years of imprisonment, and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
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 Richard S. Moultrie, Jr. 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/.
Tax Return Preparer Convicted of Fraud and Identity Theft In$19 Million SchemeRead the Press Release
ATLANTA – A federal jury today found Bernando O. Davis guilty of conspiracy, wire fraud, and aggravated identity theft for using stolen identities to file false federal income tax returns that claimed millions of dollars in bogus refunds.
“Almost every day we learn of another identity thief who has found a unique way to steal personal identifying information. The common theme is that the thieves always use the information they steal to commit a second theft: the theft of money,” said United States Attorney Sally Quillian Yates. “Today, a federal jury brought this defendant’s identity theft scheme to an end.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Today’s verdict clearly demonstrates that taking advantage, manipulating, and stealing from the American people will not go unpunished.”
“This case is just another prime example that demonstrates the hard work and collaborative law enforcement effort to fight against perpetrators committing fraudulent acts against the American public. The U.S. Postal Inspection Service will continue to aggressively investigate all crimes where illegal use of the U.S. mail is used to further fraudulent schemes." said Keith Fixel, Postal Inspector in Charge, U.S. Postal Inspection Service - Charlotte Division.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately July 2010 to January 2013, Davis operated “Davis Tax Service,” a tax preparation business in Clayton County, Ga. Davis, working with others, including Kevin J. Sonnier, and Carla L. Jefferson of Palmdale, Ca., led thousands of victims to believe that they could apply for “government stimulus payments” or “free government money” from the federal government by providing their names and Social Security numbers. Davis and his co-conspirators used toll-free telephone numbers, web sites, flyers, and radio advertisements to advertise the “stimulus payments” and collect victims’ personal information. They also recruited “runners” who promoted the scheme by word of mouth and collected victims’ personal information. In addition to the “stimulus” charade, Davis and his co-conspirators acquired names from a variety of sources, including prisons and homeless shelters, to use in the fraud. Many victims testified that they had never heard about the “stimulus payments,” but their identities were nonetheless used by Davis and his co-conspirators to file bogus tax returns.
In actuality, no stimulus payment existed, and Davis and his co-conspirators used the victims’ personal information to file fraudulent tax returns that claimed a total of over $19 million in bogus refunds. On the returns, Davis claimed false income amounts and student credits to generate the bogus tax refunds. In many of the returns, Davis directed the IRS to pay the refund amounts to bank accounts he or his co-conspirators controlled. Davis and his co-conspirators shared in the profits generated from this scheme. The victims did not know that Davis had filed tax returns in their names.
The evidence at trial showed that Davis had over 1,600 tax refund checks sent to his home address in Stockbridge, Ga., by listing his home address as the victims’ address on the tax returns he filed in their names. In addition to the checks, Davis received thousands of letters addressed to the victims from the IRS, Social Security Administration, and other government agencies. After seeing such a large number of Treasury checks coming to Davis’ home address, a mail carrier seized over 1,000 of these checks and provided them to law enforcement.
Federal agencies executed a search warrant at Davis’ and Sonnier’s business location in February 2013. There they found numerous lists of names, Social Security numbers, and birth dates of victims which were used to file tax returns. They also found tax forms with victims’ signatures taped onto the forms to make it look like the victims had authorized the tax returns. In reality, Davis and his co-conspirators had cut the signatures from the “stimulus” applications and taped them to the tax forms to make their business appear legitimate if anyone asked any questions. When agents first entered the business to execute the search, Davis fled out of the back of the building and was arrested with the assistance of Clayton County law enforcement.
Davis also faxed a fraudulent Georgia driver’s license and tax forms to a Texas detective in 2012, when the detective asked questions about a tax return Davis had fraudulently filed in a Texas victim’s name. Davis falsely represented that the license had been given to him by the taxpayer. Numerous text messages were also introduced at trial where co-conspirators sent Davis names and Social Security numbers, including from prisoners, for use in the scheme.
In June 2012, Davis, 27, of Stockbridge, Ga., entered into an “Assurance of Voluntary Compliance” with the Administrator of the Georgia Fair Business Practices Act, in which he agreed to modify his business practices. The evidence at trial demonstrated that despite entering into this agreement, he continued to file false tax returns using the identities of unsuspecting victims. Over 20 victims testified at trial. The scheme affected over 15,000 victims in virtually every state across the country.
The jury convicted Davis of one count of conspiracy, 15 counts of wire fraud, and 15 counts of aggravated identity theft. The wire fraud counts each carry a maximum sentence of 20 years in prison, the conspiracy count carries a maximum sentence of 5 years in prison, and the aggravated identity theft charges each carry a mandatory two-year sentence. At least one of the two-year sentences for aggravated identity theft must run consecutively to any other sentence imposed. Each count also carries a fine of up to $250,000. Davis was detained after the verdict.
On November 20, 2013, Jefferson pleaded guilty to conspiracy for her role in the scheme. On May 22, 2013, Sonnier, 44, of Ellenwood, Ga., pleaded guilty to conspiracy, wire fraud, and aggravated identity theft for his role. As part of his plea agreement, Sonnier agreed to forfeit his interest in 17 separate pieces of real estate located throughout Clayton County, thousands of dollars that were previously seized from his bank accounts, and over 80 electronic devices and items of jewelry that were previously seized by the government. In addition, Sonnier agreed to a money judgment of at least $7 million and full restitution to the IRS.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing for Davis is scheduled for February 19, 2014, at 10:00 a.m. before United States District Judge Charles A. Pannell, Jr. Sentencing for Sonnier is scheduled for January 7, 2014, at 11 a.m., before Judge Pannell. Sentencing for Jefferson is scheduled for February 18, 2014, at 10 a.m., before Judge Pannell.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation and Postal Inspectors with the United States Postal Inspection Service. 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 Attorneys Stephen H. McClain and Thomas J. Krepp 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.