Northern District of Georgia
Press releases recorded for this federal judicial district.
Man Pleads Guilty to Bribing Federal OfficialRead the Press Release
Defendant Sought Immigration Benefits in Pay-to-Play Scheme
ATLANTA – Ibrahim Barrie pleaded guilty in federal court for his role in a bribery conspiracy seeking immigration benefits.
“This defendant attempted to subvert the immigration process by offering bribes to a federal agent whom he believed would help him,” said United States Attorney Sally Quillian Yates. “In the end, he faces significant jail time and likely deportation for his actions.”
“The ICE Office of Professional Responsibility takes bribery of ICE officials very seriously and makes it a priority to thoroughly pursue investigation of such allegations. In this case, Mr. Barrie ignored the lawful route to pursue immigration benefits in favor of offering monetary bribes for expediting his residency status as well as other benefits. As a result, he is instead facing the possibility of prison time followed by deportation,” said David P. D’Amato, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility for the Southeast Region.
According to United States Attorney Yates, the charges and other information presented in court: Beginning in September 2010, and continuing until at least July 2012, Barrie paid bribes to a special agent with the Department of Homeland Security who was working in an undercover capacity, in exchange for immigration benefits as well as other benefits. Over a two-year period, he paid thousands of dollars to the undercover special agent for what he believed was assistance with his immigration status in the United States, including obtaining a permanent resident card, commonly known as a green card.
Barrie, 32, of Atlanta, could receive a maximum sentence of five years in prison and a fine of up to $75,000. The defendant likely faces removal from the United States. However, 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 September 30 2013, at 10:00 a.m. before United States District Judge Steven P. Jones.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility.
Assistant United States Attorney Skye Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Drug Thieves Sentenced to Federal PrisonRead the Press Release
Defendants Tried to Rob a Government Cooperator at Gunpoint
ROME, Ga. - Ospicio Olea Aguilar has been sentenced for his role in conspiring to steal cocaine and marijuana from a man he thought was a drug dealer, but who in reality was working at the direction of law enforcement officers.
“These seven defendants played a risky game when they tried to rob a drug dealer at gunpoint,” United States Attorney Sally Quillian Yates said. “Thanks to the quick action of law enforcement, the armed robbery ended not in tragedy but in the arrests of all the men involved in this conspiracy.”
According to United States Attorney Yates, the charges and other information presented in court: In October 2011, Aguilar, and co-defendants Tedrick Whiters and Sergio Jovanny Bibiano Vasquez, approached a man in Marietta, Ga., who they believed would be able to sell them cocaine. Unbeknownst to them, this man had previously cooperated with law enforcement, and he contacted officers to let them know what happened. He agreed to work at the direction of law enforcement.
Over the following weeks, the cooperator spoke and met with Aguilar, Vasquez and Whiters to discuss the drug deal. Whiters attempted to have the drug deal take place in Atlanta, but the cooperator stated that his supplier was from Dalton, Ga., and would only go as far south as Cartersville. Whiters, Aguilar and Vasquez convinced the cooperator to go to Atlanta on one occasion to discuss the deal. The real purpose of the meeting was to rob him of the drugs in case he happened to have the drugs with him. Co-defendant Frederico Jerburshio Jones followed the cooperator, and was prepared to rip off the cooperator at gunpoint if he had the drugs with him. Eventually, Whiters, Aguilar and Vasquez asked the cooperator to provide five kilograms of cocaine and 150 pounds of marijuana for a total cost of $217,500. They agreed that the deal would take place on November 2, 2011, at the Cracker Barrel restaurant off I-75 exit 290 in Cartersville.
Around 11:00 a.m. on November 2, 2011, law enforcement set up surveillance in an area overlooking Cracker Barrel. As they set up surveillance, they noted that co-defendants Willie Charles Townsend, Corwin Jackson Finsley and Maurice Jammorow Beavers were setting up counter surveillance. These three men left their first meeting site and moved to different locations, some of them out of the line of sight of law enforcement.
Eventually, Vasquez called the cooperator and said that they were near exit 290. Vasquez showed up in a car driven by Finsley, with Jones in the front passenger seat. Jones got out of the car, confirmed that the cooperator had the drugs, and told him that they should move the deal next door to the Shell gas station, which, unlike Cracker Barrel, did not have surveillance cameras. The cooperator agreed and moved his vehicle to the Shell station.
When he got out of his car, Jones pulled a gun on him and ordered him to get into Jones’s car. The cooperator struggled with Jones and was able to wrestle the gun away. He threw the gun under a car and ran into the Shell station convenience store. Jones ran after him, but the cooperator held the doors to the store shut. The cooperator was wearing a wire while all of this was happening. Law enforcement knew that what was supposed to be a buy-bust operation was turning into a drug rip and attempted kidnapping. Agents moved in and arrested Jones as he attempted to flee, and also stopped the car that Finsley was driving. Law enforcement drew their firearms on Finsley as he attempted to reach under his seat, where officers later found a 9mm Kel-Tech pistol. Officers also stopped the car that Townsend and Beavers were in as they attempted to drive away. Because Whiters and Aguilar were in a different area overlooking the scene, they were able to drive away. But, they were arrested later that day in Atlanta.
Aguilar was the last of seven defendants to be sentenced for this crime. The defendants were charged with one count of conspiracy to attempt to commit a robbery and one count of possessing firearms in relation to the robbery. They were also charged with one count of conspiracy to possess with intent to distribute cocaine and marijuana and one count of possessing firearms in furtherance of drug trafficking. The defendants were sentenced as follows:
•Aguilar, 28, of Atlanta, Georgia, has been sentenced to 15 years in prison to be followed by 5 years of supervised release. Aguilar was convicted of these charges on April 15, 2013, after he pleaded guilty.
•Whiters, 39, of Atlanta, Georgia, was sentenced on July 23, 2013, to 17 years in prison to be followed by 5 years of supervised release. Whiters was convicted of these charges on April 15, 2013, after he pleaded guilty.
•Vasquez, 24, of Atlanta, Georgia, was sentenced on August 30, 2012, to 15 years in prison to be followed by three years of supervised release. Vasquez was convicted of these charges on June 7, 2012, after he pleaded guilty.
•Jones, 41, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release. Jones was convicted of these charges on July 26, 2012, after he pleaded guilty.
•Townsend, 35, of Atlanta, Georgia, was sentenced on January 10, 2013, to 15 years in prison to be followed by five years of supervised release. Townsend was convicted of these charges on October 18, 2012, after he pleaded guilty.
•Finsley, 43, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release. Finsley was convicted of these charges on July 26, 2012, after he pleaded guilty.
•Beavers, 29, of Atlanta, Georgia, was sentenced on July 23, 2013, to 15 years in prison to be followed by 5 years of supervised release. Beavers was convicted of these charges on April 18, 2013, after he pleaded guilty.
This case was investigated by the FBI Bartow-Cartersville Drug Task Force with assistance from the United States Marshals Service.
Assistant United States Attorneys William G. Traynor and Paul R. Jones 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Attorney Sentenced for Stealing over $1.3 Million from Injured ClientsRead the Press Release
ROME, Ga. - Miles Lamar Gammage, a recently disbarred attorney, has been sentenced for defrauding more than 50 of his seriously injured worker’s compensation clients out of settlement funds they were owed.
“This attorney violated the trust placed in him by his clients,” said United States Attorney Sally Quillian Yates. “Instead of helping his clients receive the compensation that they were owed and needed for the treatment of their injuries, he pocketed the money, stealing from people who were already hurting.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office stated: “While today’s sentencing concludes the Government’s case against Mr. Gammage, the enormous damage left behind will be felt by his former clients for quite some time. It is our sincere hope that those many victims of Mr. Gammage’s greed will take some solace in the fact that he has been held accountable for his criminal actions.”
“Criminals such as Gammage, who steal from those looking for help after being seriously injured at work, can expect to be brought to justice,” said Vernon Keenan, Director of the Georgia Bureau of Investigations.
According to United States Attorney Yates, the charges and other information presented in court: Gammage, 59, of Cedartown, Ga., was licensed to practice law in the state of Georgia from June 1979 through January 2012. He owned and operated The Gammage Firm in Cedartown, where he specialized in workers’ compensation cases and represented people who were seriously injured on the job. From approximately January 2008 through January 2012, Gammage converted more than $1.3 million of his clients’ settlement funds to his own use. He used the stolen funds to pay his own expenses and to pay his law firm’s payroll and operating expenses. Gammage also settled claims on behalf of clients without authorization; failed to notify clients that he had received their settlement checks; forged clients’ names on settlement checks and deposited those checks into bank accounts that he controlled; commingled clients’ funds with his own funds; and refused to provide clients with a full and accurate accounting concerning the disposition of their settlement funds.
When clients asked why they had not received their settlement funds, Gammage blamed the delay on others. He also delayed disbursing any portion of the settlement funds to clients as long as possible. When clients insisted that they needed money to pay medical bills and purchase medication, Gammage tried to pacify them by giving them partial payments, which he referred to as “advances” and “interest-free loans.” By engaging in such tactics, Gammage lulled his clients into a false sense of security and delayed their complaints to law enforcement authorities.
On January 8, 2013, Gammage pleaded guilty to a Criminal Information charging him with mail fraud. United States District Judge Robert L. Vining sentenced Gammage to serve five years and ten months in federal prison. He was also ordered to serve three years on supervised release following his prison term. Judge Vining is reviewing the amount of restitution owed to the victims and will announce his decision at a later date.
This case was investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorney Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Habersham County Woman Pleads Guilty to Making Pipe BombsRead the Press Release
GAINESVILLE, Ga. - Celia Alchemy Savage pleaded guilty in federal district court to making and possessing two pipe bombs found at her residence that were not registered in the National Firearms Registration and Transfer Registry, as is required by federal law.
“This defendant said she made and detonated pipe bombs as a hobby,” said United States Attorney Sally Quillian Yates. “Making bombs out of heavy metal pipe, explosive powder, and fuses is a serious crime, not a hobby, that carries significant penalties.”“The plea today is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Special Agent in Charge Christopher Shaefer.
According to United States Attorney Yates, the charges and other information presented in court: Savage came to the attention of federal agents after a concerned citizen reported seeing what appeared to be explosive devices in Savage’s home. Federal agents applied for and received a search warrant to search Savage’s residence. When federal, state, and local agents executed the search warrant on May 30, 2012, they found two completed pipe bombs, firearms, small amounts of controlled substances, drug paraphernalia, and material to manufacture more explosive devices in a bedroom. Savage was present at her residence when the search warrant was executed. She admitted that she had previously manufactured approximately five to seven pipe bombs of various sizes at her residence. She described the bedroom where the pipe bombs, materials for making more explosive devices, drugs, and drug paraphernalia were found as her “lab.” She also stated that she knew that it was unlawful to manufacture explosive devices, but that she had a passion for it and considered manufacturing and detonating explosive devices to be her hobby.
Savage, 24, of Cornelia, Ga., was indicted on June 26, 2012, on one count of making two unregistered pipe bombs, one count of possessing two unregistered pipe bombs, and one count of being a prohibited person in possession of firearms. Today Savage pleaded guilty to making and possessing the pipe bombs. She could receive a maximum sentence of 20 years in prison and a fine of up to $500,000. In addition, she could be ordered to serve up to six years of supervised release after any term of imprisonment.
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 the negotiated plea agreement filed in Court today the Government and the defendant agreed to jointly recommend a calculation of the Sentencing Guidelines that could result in an advisory Sentencing Guidelines range of 57-71 months of incarceration. However, Savage retains her right to advocate at her sentencing hearing for a sentence that is below the advisory Sentencing Guidelines range.
Sentencing will be scheduled before United States District Judge Richard W. Story after a pre-sentence report is prepared.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.
Assistant United States Attorney William L. McKinnon, Jr. is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former National Guard Transportation Officer Pleads Guilty to Accepting an Illegal GratuityRead the Press Release
Officer Awarded Contracts to Freight Shipper in Return for Cash and Plane Tickets
ATLANTA - Keith Glenn, a former Installation Transportation Officer for the Georgia Army National Guard, pleaded guilty to one count of accepting an illegal gratuity for accepting cash and other benefits from a private freight shipper to whom he awarded contracts to transport military equipment.
United States Attorney Sally Quillian Yates said, “This defendant was responsible for ensuring that contracts to move Georgia Army National Guard military equipment were awarded in compliance with federal rules and regulations. He personally profited from his position by accepting cash and gifts from a freight shipper and will now be held accountable for breaking the law and the public trust.”
“We are fully committed to tirelessly pursuing all those who knowingly attempt to defraud the government or accept bribes with respect to military contracts, particularly while we at war,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Our commitment is to ensure taxpayer dollars are not wasted or stolen and we will continue to fully investigate those who think they are above the law. During the last 10 years alone, Army CID Special Agents have been instrumental in recovering and returning millions of dollars to the Treasury and the Army from fraudulent practices involving contractors.”
According to United States Attorney Yates, the charges and other information presented in court: In 2008, Glenn became the Installation Transportation Officer for the Georgia Army National Guard (the “Guard”) facility located on Confederate Avenue in Atlanta. As the Installation Transportation Officer, Glenn was a federal employee working in the United States Property and Fiscal Office (“USPFO”). The USPFO is the primary focal point for federal funds and property allotted to the Guard. The Transportation Office of the USPFO is responsible for the award and oversight of all commercial transportation contracts (paid with federal funds) for the movement of Guard equipment and personnel. Glenn’s responsibilities included supervising the Transportation Office’s day-to-day operations and awarding contracts to private freight carriers for Guard freight shipments.
In March 2008, soon after he began working in the USPFO Transportation Office, Glenn met an individual who owned and controlled multiple companies in the freight shipping or brokerage business. Several months later, the USPFO Transportation Office began awarding business to that individual’s companies to ship Guard equipment and freight. Glenn selected the individual’s companies and awarded them shipment contracts to move Guard equipment and freight.
In making these selections, Glenn violated federal rules and regulations governing the selection of freight carriers and the process for awarding freight contracts. Glenn accepted cash and other personal benefits, including plane tickets, from that individual for or because of the contracts he awarded to the individual’s companies. On one occasion, the individual placed $5,000 in cash in Glenn’s car while meeting him at a local restaurant. Shortly before this payment, Glenn awarded multiple shipping contracts to the individual’s companies.
On June 4, 2013, Glenn, 48, of Lilburn, Georgia, was charged in a Criminal Information with one count of accepting an illegal gratuity. Today he pleaded guilty to the information and could receive a maximum sentence of two 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.
Sentencing is scheduled for September 27, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.
This case is being investigated by the United States Army Criminal Investigation Command.
Assistant United States Attorney Doug 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Key Atlanta Drug Distributors SentencedRead the Press Release
ATLANTA - Glenn A. Cook has been sentenced to serve over ten years in federal prison on charges of conspiracy to possess and distribute cocaine, money laundering, and possession of a firearm during a drug offense.
“A four-month investigation of two Atlanta area cocaine suppliers led to the prosecution of numerous individuals in the distribution chain and stopped key players from continuing to sell cocaine throughout Georgia,” said United States Attorney Sally Quillian Yates. “The combined effort of federal, state, and local law enforcement led to the removal of dangerous drugs and guns from our community.”
According to United States Attorney Yates, the charges and other information presented in court: Cook is the last of five defendants to be sentenced in this case, which arose from an investigation of regional cocaine distributors in Georgia that took place from October 2010 through January 2011. Cook and co-defendant Vincent Lamar Hall, known as “the Million Dollar man,” served as the two main sources of cocaine for another defendant, T’Michael Djuan Jones. Together, Cook and Hall distributed a total of 676 kilograms of cocaine to Jones and others. Jones in turn distributed cocaine to co-defendants Phillip La Shawn Massey and Anthony Gasque as well as others in the Macon and Brunswick areas.
During the investigation, law enforcement used Title III wiretaps to disrupt a two-kilogram cocaine transaction on October 11, 2010, that was worth $60,000 to Jones and Massey. Massey fled on foot from law enforcement, leaving behind the drugs and a gun.
On October 25, 2010, law enforcement also recovered four kilograms of cocaine that had been discarded by Gasque once he became aware the police were following him. Once the four kilograms of cocaine were tossed, Jones and Massey came up with a plan to rob Cook near his residence to replace the lost cocaine. Jones and Massey targeted Cook’s couriers, but the gun misfired and the couriers got away. As Cook was unaware of this plan, Jones continued to order large quantities of cocaine from Cook, some of which were intended for Massey.
Cook and Hall each lived in lavish homes with surveillance cameras on their properties to detect any individuals coming onto the property. Both men forfeited their personal residences, more than $50,000 in cash and bank funds, numerous high-end automobiles, including a Maserati and a fully-restored 1959 Thunderbird, two waverunners and an ATV, jewelry valued at more than $20,000, and assorted electronic equipment.“This organization’s cocaine trafficking activities clearly fed many illicit drug users. Because of the large volume of drugs involved, their sentences are appropriate and they will spend well-deserved time in prison,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. “I commend our local law enforcement counterparts who played a crucial role in conducting this investigation.”
“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 occurring in our neighborhoods,” stated Veronica Hyman-Pillot, Special Agent in Charge. “We are proud to have contributed our financial skills in a united effort to thwart this organizations ability to launder money and commit crimes against our community.”
Cook, 41, of Atlanta, Ga., pleaded guilty on May 2, 2012, to conspiracy to possess at least 50 kilograms of cocaine, with the evidence demonstrating that he was responsible for approximately 646 kilograms. Cook was sentenced to ten years and one month in prison to be followed by five years of supervised release, and 100 hours of community service.
The other defendants previously sentenced in the case include:
- Vincent Lamar Hall, 42, of Lithonia, Ga., on October 11, 2012, received 12 years, 7 months in prison for conspiracy to possess at least 5 kilograms of cocaine, money laundering, and tax evasion. Hall was responsible for at least 30 kilograms of cocaine and numerous guns were found during the search of his residence.
- T’Michael Djuan Jones, 39, of Conyers, Ga., on August 6, 2012, received 12 years, 3 months in prison for possession of cocaine, conspiracy to possess at least 5 kilograms of cocaine, and possession of a firearm during a drug offense.
- Phillip La Shawn Massey, 35, of Hampton, Ga., on December 10, 2012, received 10 years, 3 months in prison for conspiracy to possess at least 5 kilograms of cocaine and possession of a firearm during a drug offense.
- Anthony Gasque, 34, of Fairburn, Ga., on August 3, 2012, received 5 years, 3 months in prison for conspiracy to possess at least 5 kilograms of cocaine.
Each of these defendants also received 5 years of supervised release to follow their term in prison and was ordered to perform 100 hours of community service.
This case was investigated by Special Agents of the Drug Enforcement Administration and Special Agents of the Internal Revenue Service with assistance from the Georgia Bureau of Investigation, the East Point Ga. Police Department, the Fulton County Sheriff’s Office, the Warren County Sheriff’s Office, and the Georgia State Patrol.Assistant United States Attorney Cassandra Schansman, Susan Coppedge, and Michael J. Brown along with Thomas J. Jaworski of the Department of Justice, Tax Division, 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.
Former Mortgage Broker Indicted for Defrauding First Coweta BankRead the Press Release
GAINESVILLE, Ga. – Amy B. Williams, 48, of Buford, Ga., has been indicted by a federal grand jury on charges arising out of a scheme to defraud First Coweta Bank.
“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 78 banks failing – including First Coweta Bank, the bank this defendant is charged with defrauding.”
According to United States Attorney Yates, the indictment, and other information presented in court: Williams was the sole owner of United International Mortgage (UIM) Corporation in Buford, Ga., and was in the business of arranging construction loans for residential builders.
In April 2007, UIM closed three construction loans for one of its customers, Mainstreet Builders, Inc. The loans were intended to finance the cost of constructing three new houses in Suwanee, Ga. The loans, which totaled more than $1.7 million, were funded by First Coweta Bank.
Williams directed an unindicted coconspirator to forge signatures on loan documents and caused those documents to be faxed to First Coweta Bank. The bank then wire transferred the loan proceeds to an account controlled by Williams. Williams was required to hold the money in trust for the builder and to disburse the money to the builder on a draw basis, as work on the three houses progressed. Instead, she used more than $1.1 million of this money to pay off her personal debt at another bank, and wire transferred $60,000 into her personal checking account. After converting First Coweta Bank’s money to her own use, Williams attempted to cover up her crime by emailing false documents and misleading photos to the bank.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The actions of Ms. Williams, as alleged in the indictment, directly led to the failure of the First Coweta Bank and, as such, clearly demonstrates the serious nature and impact of those actions. The FBI will continue to coordinate its bank fraud investigations with its various law enforcement partners in an effort to effectively identify, investigate, and present for prosecution those individuals who do so much harm to the banking industry.”
Jason T. Moran, Special Agent in Charge, Federal Deposit Insurance Corporation- Office of Inspector General Southeast Region, said: “The Federal Deposit Insurance Corporation is committed to its partnerships with others in the law enforcement community as we address mortgage fraud and bank fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable.”
Williams was arraigned today before United States Magistrate Judge J. Clay Fuller in Gainesville, Ga.
The indictment charges one count of conspiracy and six counts of bank fraud. Each count carries 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.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the FBI and the FDIC Office of Inspector General.
Assistant United States Attorney Russell Phillips is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
MS-13 Members Convicted for Murders and Attempted MurdersRead the Press Release
Gang Wreaked Havoc in Gwinnett and DeKalb Counties
ATLANTA – After a four-week trial, a federal jury has convicted Miguel Alvarado-Linares, Ernesto Escobar, Dimas Alfaro-Granados, and Jairo Reyna-Ozuna, for committing multiple murders, attempted murders, armed robberies, and firearms offenses in Gwinnett and DeKalb counties.
“The defendants were the leaders of MS-13, an international gang known for its gratuitous murders,” said United States Attorney Sally Quillian Yates. “They spread fear throughout the community by killing suspected rival gang members and others who cross their path. We will continue to work with our law enforcement partners to protect our streets from turning into battlegrounds.”
“These four MS-13 members committed a host of brutal crimes that devastated countless lives in Northern Georgia,” said Acting Assistant Attorney General Raman. “As a result of the tireless work by the prosecutors and investigators who tackled this case, the defendants will be removed from the streets they have terrorized.”
“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of Atlanta communities.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, said: “Removing these violent gang members from the streets of metro Atlanta not only makes for a safer community but further weakens the Southeastern U.S. roots of this international criminal enterprise known as MS-13. The FBI will continue to work with its various law enforcement partners in targeting this group, and others like them, in a unified and effective manner.”
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 had been arrested, charged, and/or deported. MS-13 members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS-13. Each clique had a leader, usually 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 their rivals. The clique leader collected dues from the gang members. The leaders used the money to buy guns and post bail for jailed members. Some of the money was sent back to the MS-13 leaders in El Salvador and Honduras. Clique leaders communicated with MS-13 leaders in their home countries to update them on gang 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. They also sold cocaine as part of their gang activity. The evidence presented 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 passenger, Angel Gonzalez, was murdered. He was 20 years old.
- On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13. Alvarado-Linares pulled out a gun and shot the men.
- In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to Reyna-Ozuna, who was the gang leader at the time. Reyna-Ozuna gave Escobar a .45 caliber semi-automatic handgun to retaliate. Escobar went back to the Shell station and shot one of the teenagers as he was painting lines in the parking lot. The victim, David Hernandez, was only 16 years old.
- 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.
The sentencing for Miguel Alvarado-Linares, a/k/a Joker, 24, of Norcross, Ga., Ernesto Escobar, a/k/a Pink Panther, 30, of Norcross, Ga., Dimas Alfaro-Granados, a/k/a Toro, 30, of Duluth, Ga., and Jairo Reyna-Ozuna, a/k/a Flaco, 28, of Norcross, Ga., will be scheduled at a later date before United States District Judge Richard W. Story. Alvarado-Linares, Escobar and Alfaro-Granados were convicted of RICO conspiracy involving murder, which carries a sentence up to and including life. Reyna-Ozuna was convicted of RICO conspiracy, which carries a sentence of up to 20 years. Alvarado-Linares, Escobar and Alfaro-Granados were also convicted of committing Violent Crime in Aid of Racketeering, which carries a mandatory sentence of life in prison. All of the defendants were convicted of firearms offenses, which carry a sentence of up to and including life. Parole has been abolished in the federal system.
This case is being investigated by Special Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Norcross Police Department, Chamblee Police Department, and 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 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 Business Owner Sentenced for Receiving Child PornographyRead the Press Release
Defendant Possessed Thousands of Sexually Explicit Images of Children
ATLANTA –Thomas Joseph Schloeder, who was the co-owner of the Atlanta business Brushstrokes, has been sentenced for receiving thousands of images and videos of child pornography on his home computer.
“Collecting images and videos showing the sexual abuse of children is a despicable act,” said United States Attorney Sally Quillian Yates. “Our continued work to prosecute and punish individuals who possess, receive and distribute child pornography should serve notice to those who may consider engaging in this behavior that it will not be tolerated.”
“There are few crimes more heinous than the sexual abuse of a child,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “Protecting our children from those who exploit them is a top priority for HSI. We will continue to work closely with our partners at the DeKalb County Police Department to investigate these crimes and bring child predators to justice.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: In November 2012, a detective with the police department of DeKalb County, Ga., conducted an investigation of individuals using peer-to-peer technology to download child pornography and make it available to others. During that investigation, he determined that a computer located at Thomas Schloeder’s home had made available over 100 images of child pornography over the preceding months. On November 15, 2012, law enforcement officers executed a search warrant at his home and seized several computers and electronic storage devices. A subsequent forensic examination of those items revealed several thousand images and videos of child pornography, some of which contained depictions of minors being raped by adults and sex acts between minors and animals.
Schloeder, 47, of Brookhaven, Ga., was sentenced today to 8 years, 1 month in federal prison by United States District Judge Orinda D. Evans to be followed by a lifetime of supervised release. He was also ordered to pay a fine of $75,000. The defendant will be required to register as a sex offender when 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 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.
Youth Outreach Coordinator Indicted for Distribution and Possession of Child PornographyRead the Press Release
ATLANTA – Kevin Hickey, formerly the Director of Parish Outreach for Life Teen International in Atlanta, Ga., has been arraigned on federal charges of distribution and possession of child pornography.
“This defendant collected and distributed highly graphic images portraying the sexual exploitation and abuse of young children all while being entrusted to protect, counsel, and serve children,” said United States Attorney Sally Quillian Yates.
“We expect adults working in positions of trust to serve as role models for our children and safeguard their welfare,” said Brock D. Nicholson, special agent in charge for HSI Atlanta. “HSI is particularly vigorous in pursuing these kinds of cases because our experience has shown that, in many instances, those who collect and distribute child pornography are also hands-on offenders.”
According to United States Attorney Yates, the criminal complaint, and information presented in court: Hickey was identified as an individual with a sexual interest in children and who collects and distributes child pornography. In June 2013, Hickey, using his online screen name “funguyatl77,” engaged in an online communication, monitored by federal agents, in which he stated that he was watching “perving vids” and offered to share child pornography. On June 3, 2013, Hickey transmitted a video showing two prepubescent males being sodomized by an adult male. Hickey further displayed photographs of children he took surreptitiously in public places and was heard gratifying himself sexually during the online conversation. A subsequent investigation by Homeland Security Investigations agents led them to Hickey and to Hickey’s home, where he maintained his computer and engaged in the collection and distribution of these pornographic images. Thousands of images of child exploitation have been located on Hickey’s electronic devices.
Hickey, 39, of Norcross, Ga., was indicted by a federal grand jury on July 1, 2013. Hickey has been detained. Distribution of child pornography carries a mandatory minimum sentence of five years and a statutory maximum of twenty years. Possession of child pornography carries a statutory maximum sentence of ten years. A conviction on either offense carries a term of supervised release from five years to life and a requirement that the defendant register as a sex offender. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
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.
Woman Pleads Guilty to Forging Her Nursing LicenseRead the Press Release
Defendant Worked as a Nurse for the U.S. Postal Service
ATLANTA - Fertina Brown, a former mail carrier, pleaded guilty to one count of making a false document by forging a license to work as a nurse with the United States Postal Service.
“Brown put people’s health and safety at risk – simply to earn a better wage,” said United States Attorney Sally Quillian Yates. “By presenting a forged nursing license, she defrauded the Postal Service and will now be held accountable for her greed.”“Fertina Brown reflects just a small percentage of employees who failed to uphold the trust and integrity placed in them. The U.S. Postal Service, Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law,” said Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General.
According to United States Attorney Yates, the charges and other information presented in court: In 2007, Brown was working for the United States Postal Service (USPS) as a mail carrier, when she applied for and ultimately obtained a nursing position in the Postal Service’s North Metro Distribution Center. In January 2011, the USPS requested a copy of Brown’s most recent nursing license because the previously-provided copy had an expiration date of January 31, 2011. On February 2, 2011, Brown presented the USPS with a State of Georgia nursing license that turned out to be forged. Based on an investigation, the USPS determined that Brown’s nursing register number belonged to an individual residing in Texas who was on active duty with the U.S. military. As a result of the investigation, Brown resigned from the Postal Service in June 2011. In total, Brown earned over $100,000 in additional income (versus what she would have made as a mail carrier).
On May 7, 2013, Brown, 44, of Henry County, Ga., was charged in a Criminal Information with one count of making a false document. Today she pleaded guilty to the information and could receive a maximum sentence of 5 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.Sentencing is scheduled for September 13, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.
This case is being investigated by Agents of the United States Postal Service, Office of Inspector General.
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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Cobb County Drug Traffickers Sentenced to Federal PrisonRead the Press Release
Firearms, Drugs, Police Gear, Stun Guns, and Counterfeit Currency Recovered
ATLANTA – Ten members of a drug ring operating out of Cobb County were sentenced to prison on various federal narcotics, firearms, and immigration-related charges.
“Multiple agencies working effectively together dismantled a drug trafficking organization and removed their poisonous drugs, dangerous weapons, and counterfeit money from our streets,” said United States Attorney Sally Quillian Yates. “Now, these defendants have traded their contraband for a combined 141 years, 4 months in federal prison.”
“Drug-related assaults, often times in the form of kidnappings, are one of the many acts of violence committed by drug traffickers seeking to carry out their ruthless mission,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. The DEA and its law enforcement counterparts are committed to protecting our citizens from drug violence and the scourge of drug abuse. These individuals will now have to pay the consequences of their actions by spending well-deserved time in prison.”
“The GBI is committed to working with our federal law enforcement counterparts to identify and bring to justice those involved in drug trafficking,” said Vernon Keenan, GBI Director.
“ATF’s involvement in securing these sentences is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity. Criminals must understand that there are serious repercussions for illegal trafficking of narcotics and illegal possession of firearms and that law enforcement will contribute all necessary time and effort to ensure criminals are brought to justice,” said ATF Special Agent in Charge Christopher Shaefer.
“The prison time received by these defendants should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “These sentences are the result of hard work and a true team effort.”
“This case illustrates not just the significance of partnerships with state and federal law enforcement agencies, but it also illustrates how criminals still continue to use counterfeiting as a means to fund their criminal activity. The Secret Service and our law enforcement partners will continue to use aggressive and innovative approaches to investigate and arrest these types of criminals,” 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: While investigating a drug trafficking organization operating in metro-Atlanta, agents learned on February 2, 2012, that Nemias Cintora-Gonzalez had devised a plan to assault a fellow drug dealer because of an outstanding $2,700 drug debt. On that date, Nemias Cintora-Gonzalez was overheard speaking to another drug associate about his plans to have four others with him the next morning when he inflicted physical injury on the fellow drug dealer for the purpose of motivating him to repay the debt.
A few hours later, while conducting surveillance of Neimas Cintora-Gonzalez’s apartment located in Smyrna, agents observed Edgar Cintora-Gonzalez transferring two large bags from the trunk of a white Honda Accord, registered to an alias of Nemias Cintora-Gonzalez, into the trunk of a white Suzuki Verona, registered to the wife of Israel Edgardo Revera-Pacheco. At approximately 10:45 p.m. that same evening, agents executed a federal search warrant at the apartment, encountering and arresting Jorge Armando-Reyes, Nemias Cintora-Gonzalez, Edgar Cintora-Gonzalez, Victor Hugo Morales-Avila, Israel Edgardo Revera-Pacheco, and Brenda Perez.
During the search of the apartment and the Suzuki Verona, agents seized:
•thirteen handguns (including several semi-automatic firearms)
•four assault rifles
•numerous magazines and ammunition for the weapons
•methamphetamine
•cocaine
•two stun guns
•two large crowbars
•one large bolt cutter
•police gear
•a black ski mask, black turtle neck shirt, and black gloves
•over $11,000 in counterfeit U.S. Currency
•drug packaging materials
•zip ties
•two bulletproof vests
During a search of cellular telephones recovered in the apartment, agents found photographs of Armando-Reyes and Morales-Avila posing with assault weapons and police gear.
On February 23, 2012, federal agents arrested Jose Vazquez Estrada at his residence in Marietta. Estrada was a significant drug customer of Nemias Cintora-Gonzalez. During a consent search of Estrada’s apartment, agents located over 909 grams of methamphetamine on dinner plates in the kitchen.
Agents arrested Pedro Gutierrez Valdiviez on April 18, 2012, who was Estrada’s drug partner, after he attempted to sell six ounces of methamphetamine to an undercover agent in a Marietta Wal-Mart parking lot.
Maria Yobal Perez was arrested on May 16, 2012, at her Marietta residence. Yobal Perez was overheard conducting methamphetamine transactions on behalf of her husband, Alvaro Carraza Echeverria, who was serving a 30 year sentence in a Georgia state correctional facility for trafficking in methamphetamine. Echeverria was overheard brokering methamphetamine deals from the correctional facility using an illegally smuggled cellular telephone.After being indicted, eight defendants pleaded guilty, and Nemias Cintora-Gonzalez and Jorge Armando-Reyes were convicted after a jury trial. All defendants have now been sentenced by United States District Judge Orinda Evans, as described more fully below:
•Nemias Cintora-Gonzalez, 30, of Smyrna, Ga., was sentenced to 29 years, 4 months in prison to be followed by 5 years of supervised release. Cintora-Gonzalez was convicted on February 22, 2013, following a federal jury trial, of conspiracy to possess with the intent to distribute and possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and possession of counterfeit federal reserve notes with the intent to defraud.
•Jorge Armando-Reyes, 31, of Smyrna, Ga., was sentenced to 17 years, 6 months in prison to be followed by 5 years of supervised release. Armando-Reyes was convicted on February 22, 2013, following a federal jury trial, of conspiracy to possess with the intent to distribute and possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and possession of counterfeit federal reserve notes with the intent to defraud.
•Alvaro Carraza Echeverria, 50, of Marietta, Ga., was sentenced to 21 years in prison to be followed by 5 years of supervised release. Echeverria pleaded guilty on October 23, 2012, to conspiracy to possess with the intent to distribute methamphetamine.
•Jose Vazquez Estrada, 35, of Marietta, Ga., was sentenced to 15 years, 7 months in prison to be followed by 5 years of supervised release. Estrada pleaded guilty on May 25, 2012, to conspiracy to possess with the intent to distribute methamphetamine and cocaine and illegal re-entry by a removed alien.
•Pedro Gutierrez Valdiviez, 48, of Marietta, Ga., was sentenced to 18 years, 9 months in prison to be followed by 5 years of supervised release. Valdiviez pleaded guilty on July 2, 2012, to conspiracy to possess with the intent to distribute methamphetamine.
•Edgar Cintora-Gonzalez, 26, of Smyrna, Ga., was sentenced to 11 years, 8 months in prison to be followed by 3 years of supervised release. Edgar Cintora-Gonzalez pleaded guilty on May 29, 2012, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by an alien unlawfully and illegally in the United States.
•Israel Edgardo Revera-Pacheco, 29, of Smyrna, Ga., was sentenced to 10 years in prison to be followed by 3 years of supervised release. Revera-Pacheco pleaded guilty on May 4, 2012, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by an alien unlawfully and illegally in the United States.
•Victor Hugo Morales-Avila, 35, of Smyrna, Ga., was sentenced to 9 years, 4 months in prison to be followed by 3 years of supervised release. Morales-Avila pleaded guilty on February 19, 2013, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and illegal re-entry by a removed alien.•Maria Yobal Perez, 51, of Marietta, Ga., was sentenced to 8 years, 1 month in prison to be followed by 5 years of supervised release. Yobal Perez pleaded guilty on August 30, 2012, to conspiracy to possess with the intent to distribute methamphetamine.
•Brenda Perez, 31, of Marietta, Ga., was sentenced to 1 year probation. Perez pleaded guilty on May 4, 2012, to misprision of a felony (concealing and failing to report her co-defendants’ illegal drug activities.)
These cases were investigated by Special Agents and Task Force Officers of the Drug Enforcement Administration, Georgia Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Secret Service, and Internal Revenue Service.
Assistant United States Attorneys Michael Herskowitz and J. Elizabeth McBath prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Hotel Financier Pleads Guilty to Conspiring to Bribe A Bank Loan OfficerRead the Press Release
ATLANTA - Guy Mitchell has pleaded guilty to a charge of conspiring to commit bank fraud and to pay bribes to an officer of a financial institution.
“Mitchell used millions of improperly obtained loan proceeds to fund a lavish lifestyle,” said United States Attorney Sally Quillian Yates. “His actions corrupted the lending process and jeopardized the safety and soundness of Integrity Bank, which failed and was taken over by the FDIC. Today, Mitchell’s plea of guilty brings this bank fraud investigation and prosecution to a just conclusion.”
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing Mr. Mitchell’s guilty plea,” said Jason Moran, Special Agent in Charge, FDIC Atlanta Region. “When major borrowers conspire with bank insiders to engage in fraudulent activities that contribute to institution failures, all parties must be brought to justice. The FDIC OIG is committed to ensuring the safety and soundness of banks throughout the country and protecting the Deposit Insurance Fund against such criminal behavior.”
According to United States Attorney Yates, the charges and other information presented in court: Mitchell borrowed more than $40 million from the now-failed Integrity Bank in 2005 and 2006, allegedly to finance his interests in various hotels around the country. One of these loans was to acquire and renovate the Casa Madrona Hotel, a luxury property overlooking the water in Sausalito, California. During that time, Mitchell was bribing Douglas Ballard, a former loan officer at Integrity, with hundreds of thousands of dollars. Although Mitchell did use some of the money he received from Integrity for hotel purposes, he never performed any renovations on the Casa Madrona. Instead, he used loan draws to buy a private island in the Bahamas, to travel by private jet, and to pay for Miami Heat tickets, fancy jewelry, expensive cars, and a mansion in Coconut Grove. Mitchell, the bank’s largest borrower, eventually defaulted on his loans, contributing to Integrity Bank’s failure.
Douglas Ballard previously pleaded guilty to conspiracy and tax evasion. Additionally, Todd Foster, another Integrity employee, pleaded guilty to securities fraud.
Mitchell, 53, of Miami, Fl., could receive a maximum sentence of 5 years in prison and a fine of up to $250,000, or twice the greater of the gain or loss. 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 October 10, 2013, at 10:00 a.m. before United States District Judge Julie E. Carnes.
This case is being investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General.
Assistant United States Attorneys Douglas W. Gilfillan and Christopher C. Bly are prosecuting the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Midtown Neurology Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Midtown Neurology, P.C. to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
An investigation was initiated by a complaint filed with the United States alleging that on at least three occasions Midtown Neurology failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant (“V.M.”) is deaf and uses American Sign Language as her primary means of communication. On three separate visits to Midtown Neurology, V.M. alleged Midtown Neurology failed to provide a qualified sign language interpreter when necessary to ensure effective communication. During one of the visits to Midtown Neurology, V.M. alleged she underwent an elective medical procedure which was very painful. Because V.M. did not have effective communication before and during this visit, she was scared and did not understand what was happening. According to V.M., she cried, yelled, and tried to ask the doctor to stop the procedure. Because the doctor did not understand her request, the doctor continued the procedure despite V.M’s request. Midtown Neurology denied these allegations but agreed to cooperate with the United States Attorney’s Office to resolve the complaint.
“Every person should have the ability to fully participate in their own health care decisions as well as the decisions that impact their loved ones,” said United States Attorney Sally Quillian Yates. “Our office will continue to devote resources to eradicate barriers to health care for persons with disabilities.”
“The Department of Justice takes these civil rights violations seriously,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. The U.S. Attorneys are key partners in stopping discrimination against individuals with disabilities in the critical area of health care and we are very pleased to be working with them.”Under the settlement agreement, Midtown Neurology agreed to ensure that it provides effective communication to patients who are deaf and hard of hearing in the future. In the future, at the time a person who is deaf or hard of hearing makes an appointment, Midtown Neurology will consult with the person who is deaf to determine which aids and services are appropriate. Among other things, Midtown Neurology agreed to hire an outside group to conduct mandatory ADA training for all its employees and to provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. Midtown Neurology also agreed to pay $20,000 to the complainant and a civil penalty in the amount of $2,000 to the United States.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.Assistant United States Attorney Aileen Bell Hughes is representing the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Midtown Neurology Settlement Agreement
Couple Indicted for Stealing Hundreds of Identities to Claim over $600,000 in False Tax RefundsRead the Press Release
ATLANTA – Justin Cody, also known as “Decatur Slim,” was arraigned on federal charges of conspiracy to commit theft of public funds, theft of public funds, and aggravated identity theft.
“Fraud schemes in which criminals file fraudulent tax returns and obtain fraudulent refunds using the stolen identities of innocent persons have become all too common in recent years,” said United States Attorney Sally Quillian Yates. “These defendants are charged with engaging in criminal activity that not only harmed the U.S. Treasury, but that also undermined financial security of the individuals whose identities were stolen.”“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
“The indictment of Mr. Cody and Ms. Wilmore further illustrates the FBI’s efforts and commitment toward not only protecting public funds but protecting the public from those who would prey on them,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI will continue to work with its various law enforcement partners in combating identity theft and tax refund fraud.”
According to United States Attorney Yates, the charges and other information presented in court: From as early as February 2013 to May 2013, Justin Cody, also known as “Decatur Slim,” and Aeshia Wilmore participated in a scheme to defraud the Department of the Treasury by filing hundreds of fraudulent income tax returns using stolen identities. This is commonly called stolen identity refund fraud. Cody used the electronic filing identification numbers of at least two tax preparer businesses, as well as the stolen identification information of hundreds of victims, along with fake wage and withholding information, to prepare the fraudulent tax returns which claimed over $600,000 in tax refunds. After the refunds were processed, Cody had the refunds applied to blank prepaid debit cards that he and Wilmore used at various ATM machines throughout the Atlanta area.
Cody, 32, of Decatur, Ga., and Wilmore, 24, of Atlanta, Ga. were indicted by a federal grand jury on June 25, 2013. Cody has been detained. Wilmore’s arraignment date is pending. The conspiracy to commit theft of public funds carries a maximum sentence of five years in prison. Each substantive count of theft of public funds carries a maximum sentence of ten years in prison. Each of the aggravated identity theft charges carry a mandatory minimum 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.
The public is reminded that criminal charges are only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorney Karlyn J. Hunter is prosecuting the case.
For further information please contact the U.S. Attorney’s 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 Tax Return Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
Defendant Filed False Tax Returns Claiming Over $1.2 Million in Bogus Refunds
ATLANTA – Eugene Gibbons was sentenced today to serve over three years in federal prison for filing false tax returns that claimed over $1.2 million in fraudulent refunds.
“This defendant’s persistence in filing fraudulent tax returns despite knowing the consequences does not compare to the persistence of law enforcement in seeing through his lies and requiring him to face justice for his fraud,” said United States Attorney Sally Quillian Yates.
“At the IRS, protecting taxpayer money is a matter we take extremely serious,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “An integral part of the agency’s mission involves detecting and catching fraudulent refund claims. We identified and investigated the filing of false tax returns submitted by Eugene Gibbons, and as a result of his actions, he will serve time in jail.”
According to United States Attorney Yates, the charges and other information presented in court: Gibbons prepared fraudulent federal income tax returns at a tax preparation business named C&M Tax Service from 2002 through 2009. On the tax returns, Gibbons claimed fraudulent deductions, expenses, and credits, which resulted in his clients receiving fraudulent refunds. Gibbons then received monetary fees from those clients who he helped obtain fraudulent refunds. In total, Gibbons prepared tax returns claiming over $1.2 million in false and fraudulent refunds.
Gibbons admitted that he started filing fraudulent tax returns shortly after he was released from prison where he was serving a sentence for a previous conviction for filing false federal tax returns.
Gibbons, 65, of Atlanta, Ga., was sentenced today by United States District Judge Willis B. Hunt, Jr. to three years, six months in prison to be followed by two years of supervised release. He was also ordered to pay $1,286,486.50 in restitution to the United States Treasury. Gibbons pleaded guilty on July 31, 2012, to two counts of aiding and abetting in the preparation of false tax returns.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
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 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.
Atlanta Doctor Convicted for Health Care Fraud, Tax Evasion and Money LaunderingRead the Press Release
Physician Used Purported Charitable Entity He Controlled to Offer Illegal Inducements to Medicare Patients and Evade Income Taxes
ATLANTA - After a two-week trial, a federal jury has convicted Lawrence Eppelbaum, 54, of Roswell, Georgia on health care fraud, tax fraud and money laundering in relation to a scheme in which he illegally induced patients from all over the country to be treated at his medical clinic in Atlanta by providing free travel accommodations through a purported charitable entity that he controlled.
United States Attorney Sally Quillian Yates said, “In addition to the Hippocratic oath, Medicare doctors take a special oath that they will not interfere with a patient’s ability to choose a doctor based on medical needs alone. This defendant violated that oath in favor of personal greed. As a result, he has done harm to his future rights and liberties.”
“Eppelbaum thought his clever scheme was undetectable, but was outwitted by my investigators and other law enforcement officers,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services Atlanta Region. “Criminals defrauding government health programs can expect to be brought to justice regardless of how intricate their plots.”
“Abusing the federally funded Medicare system in such a manner is something that cannot and will not be tolerated,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta. “With today’s verdict, a jury has clearly indicated that they will not tolerate these abuses and have held the defendant, an Atlanta doctor, accountable for his greed fueled criminal acts. The FBI urges anyone with information regarding Health Care Fraud contact the FBI Atlanta Field Office at (404) 679-9000.”
“Today’s verdict clearly illustrates that individuals who engage in these types of illegal activities will be held accountable for their actions,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Dr. Eppelbaum clearly took advantage of his professional standing in the community as well as the individuals who respected and revered him. Eppelbaum manipulated the Medicare system and received undeserved tax benefits which resulted in substantial unreported personal income.”
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 owns 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 was charged with 27 counts of healthcare fraud, tax fraud and money laundering. The jury found him guilty of all 27 counts. The health care charges each carry a maximum sentence of 10 years or 5 years in prison and a fine of up to $250,000. The tax charges each carry a maximum sentence of 5 years or 3 years in prison and a fine of up to $250,000. The money laundering charges each carry a maximum sentence of 20 years in prison and a fine of up to $500,000. 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.
The sentencing will be scheduled at a later date before United States District Judge Amy Totenberg.
This case is being investigated by Special Agents of the U.S. Department of Health and Human Services, Office of Inspector; Federal Bureau of Investigation; and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Steven D. Grimberg and Stephen H. McClain 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.
Coweta County Man Sentenced for Illegally Obtaining Federal Contracts Reserved for Military VeteransRead the Press Release
NEWNAN, Ga. – Arthur W. Singleton has been sentenced to two years in prison for fraudulently obtaining several government construction contracts reserved for veterans with service-related disabilities.
“Driven by greed, Mr. Singleton took advantage of a service-disabled veteran of the Vietnam War to gain over a million of dollars in federal contracts,” said United States Attorney Sally Quillian Yates. “The defendant’s fraud deprived genuine disabled veteran-owned businesses of the chance to obtain these federal contracts.”
“The United States Department of Agriculture (USDA), Office of Inspector General (OIG), remains diligent in investigating matters such as these that defraud both the department and the taxpayer,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.
“Aggressive investigative efforts through effective partnerships among several law enforcement agencies were key in bringing this defendant to justice,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “This sentencing should serve as a deterrent to others who intend to take advantage of disabled military veterans and defraud the Federal Government.”
“These contracts are supposed to go to genuine service-disabled veteran-owned small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Federal contracts should never be awarded to persons who commit fraud to claim eligibility for contracts set-aside for our nation’s heroes. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“The Department of Veterans Affairs Office of Inspector General vigorously investigates individuals who fraudulently obtain non-competitive contracts specifically set aside for veterans with service-connected disabilities,” stated Special Agent in Charge Quentin G. Aucoin.
According to United States Attorney Yates, the charges and other information presented in court: Singleton owned a construction firm named “Singleton Enterprises” and had over 30 years of experience in the construction industry. In 2007, Singleton approached a Vietnam veteran (who was bedridden from surgeries related to his combat injuries) and advocated creating a business that would exploit the veteran’s disabled status to obtain federal government contracts that were reserved exclusively for companies owned and run by service-disabled veterans. When the veteran agreed to the scheme, Singleton formed two companies using the veteran’s name.
From September 2007 to September 2008, Singleton entered into contracts with the Department of Veterans Affairs, the Department of Agriculture, the United States Coast Guard, and the United States Army Corps of Engineers to perform construction work around the country. Singleton used the veteran’s status to bid on these contracts, knowing that he was ineligible for the contracts – given that the veteran performed no work for either company, did not have an ownership stake, and did not control the management or daily operations of either business. In total, Singleton received over $1.5 million dollars from the fraudulently-obtained contracts.
Singleton, 63, of Coweta County, Ga., was sentenced to two years in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $181,000. On April 15, 2013, Singleton pleaded guilty to one count of making false documents.
This case was investigated by Special Agents of the Small Business Administration, Office of Inspector General - Investigations; the United States Department of Defense, Defense Criminal Investigative Service; the United States Department of Agriculture, Office of Inspector General; the United States Department of Veterans Affairs, Office of Inspector General; and the United States Department of Homeland Security, Office of the Inspector General.
Assistant United States Attorneys Jeffrey W. Davis, Glenn Baker, and Shanya Dingle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Coweta County Man Pleads Guilty to Defrauding Local and International Victims in Internet SchemeRead the Press Release
NEWNAN, Ga. – Randolph Wayne Hill has pleaded guilty to charges of wire fraud and money laundering arising out of various fraud schemes he operated over the Internet involving the supply of chemicals used in farming and other industries.
“This defendant used the Internet to steal hundreds of thousands of dollars from small businesses both here in Georgia and abroad,” said United States Attorney Sally Quillian Yates. “As today’s conviction demonstrates, it is a priority of this office to detect and aggressively prosecute fraudsters who use the Internet to target victims in our district and elsewhere.”
According to United States Attorney Yates, the charges and other information presented in court: In March and April 2008, Hill falsely advertised on the Internet through his company, Hill Resources, LLC, that he was able to deliver multiple tons of various chemicals to customers throughout the world. On or about March 15, 2008, Hill misrepresented that he was ready to ship over 120 tons of a fertilizer chemical from the United States to a collective of farmers in Suriname, even though he had no such supplier of the chemical in the United States. In reliance on Hill’s promise, the individual acting on behalf of the farmers paid Hill over $60,000.
On or about April 15, 2008, Hill misrepresented that he would supply a company operating in Cartersville, Ga., with over 160 tons of a chemical used in fireproofing fabrics, even though he had no such supplier of the chemical. In reliance on Hill’s promise, the company in Cartersville paid Hill almost $200,000.
Hill never delivered any product to either business, nor returned the money. Hill repaid another customer with $25,000 of the money from the company in Cartersville. Hill kept the rest of the money for his personal use.
Hill, 71, of Newnan, Ga., could receive a maximum sentence of 20 years in prison and a fine of up to $250,000 on each count. However, 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 September 4, 2013, at 10:00 a.m. before United States District Judge Timothy C. Batten.
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Coweta County Sheriff’s Department.Assistant United States Attorney Laurel Boatright 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.
Second Former Carter's Executive Pleads Guilty to Multi-Million Dollar Insider Trading ConspiracyRead the Press Release
Defendant Tipped Former Co-Worker Between 2009 And 2010
ATLANTA – Richard T. Posey pleaded guilty today to conspiracy to commit securities fraud in connection with a multi-million dollar insider trading conspiracy involving Carter’s stock.
“Corporate insiders who disclose company secrets are the enablers who make illegal insider trading possible,” said United States Attorney Sally Quillian Yates. “Insider trading undermines faith in the nation’s stock markets. Public company executives and employees should be on notice that when it comes to material, non-public information, they are required to play by the same rules as everyone else.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea holds this defendant accountable for his criminal actions and makes it clear that corporate executives are not exempt from the rule of law. The FBI asks that anyone with information regarding such criminal activity to contact their nearest FBI field office.”
According to United States Attorney Yates, the charges and other information presented in court: Posey, 52, of Duluth, Ga., was employed as a Vice President of Operations for various Carter’s brands and divisions, and later as Vice President of Operations for the company’s wholesale sales business from in or about July 2002 until his termination in January 2013.
Carter’s is a publicly-traded company registered with the U.S. Securities and Exchange Commission (“SEC”), and its stock is listed on the New York Stock Exchange under the ticker symbol “CRI.” Carter’s is obligated to report its financial results in annual and quarterly filings with the SEC, so that members of the public can make informed investment decisions.
From approximately April 2009 through July 2010, while employed by Carter’s, Posey disclosed inside information about Carter’s upcoming earnings releases and other developments to Eric M. Martin, the company’s former head of investor relations, for the purpose of making illegal insider trades and tipping others. Martin, who was convicted on December 18, 2012, of tipping a former Wall Street analyst identified as “Cooperator Number 1” during Martin’s employment with Carter’s between 2005 and 2009, repeatedly bought and sold Carter’s stock based on the inside information provided by Posey between 2009 and 2010, and Martin also continued to tip Cooperator Number 1 and others.
For example, Posey tipped Martin in advance of Carter’s October 27, 2009, announcement that it was conducting an internal investigation into accounting problems and would be delaying its earnings release for the third quarter of 2009. Almost immediately after Posey tipped Martin, on Friday, October 23, 2009, Martin sold his entire position in Carter’s stock, over 35,000 shares valued at approximately $1 million. Later that morning, Martin passed the tip during a telephone call to an individual identified in the Criminal Information as “Portfolio Manager Number 1,” an employee of a prominent New York hedge fund identified in the Criminal Information as “Hedge Fund Number 1.” While still on the telephone with Martin, Portfolio Manager Number 1 ordered the sale of Hedge Fund Number 1’s entire position in Carter’s stock, 300,000 shares valued at nearly $9 million. The very next trading day, Monday, October 26th, Martin tipped Cooperator Number 1 during a telephone call. Immediately after the call ended, Cooperator Number 1 sold his entire position in Carter’s stock -- 15,000 shares valued at over $400,000 -- and bought November 30th put options, thereby betting on Carter’s stock price to decline significantly. The next morning, Tuesday, October 27th, Carter’s shocked the market with the news of its internal investigation and earnings delay, and its stock price fell over 20% in one day. The internal investigation ultimately resulted in a multi-year financial restatement by Carter’s, criminal indictments of two of its former top executives for securities fraud and related offenses, and three SEC enforcement actions.
Posey disclosed this and other inside information to Martin in exchange for reciprocal stock tips about other public companies to which Martin had access, for future networking opportunities, and for friendship. Posey did so over the phone, at dinners, during drinks, and on the golf course.
Posey also traded in Carter’s stock for his own benefit on the basis of inside information about Carter’s earnings releases during his employment with the company. Between mid-2005 and late 2009, Posey traded thousands of shares of Carter’s stock during company-wide trading blackout periods that preceded approximately 14 quarterly or annual earnings releases, even though company policies prohibited company insiders from trading in Carter’s stock at those times. Posey did so without obtaining approval for the trades from Carter’s Chief Financial Officer, which company policies required Posey and a select group of key personnel to do, given their regular access to and receipt of material, non-public information. Posey’s blackout trading resulted in illegal profits and losses avoided in the amount of approximately $50,000.
Posey was convicted of tipping his former co-worker about Carter’s quarterly and annual financial results and other material, non-public information in advance of the public announcement of the information, beginning shortly after the company terminated Eric M. Martin at the end of March 2009, and continuing through July 2010. He pleaded guilty to a Criminal Information charging one count of Conspiracy to Commit Securities Fraud. He has agreed that he is responsible for illegal insider trading gains and losses avoided resulting from the conspiracy, his own trading, and relevant conduct between $2.5 million and $7 million, and has agreed to pay at least $800,000 in restitution to Carter’s, which represents the approximate amount of legal fees Carter’s has incurred to date in connection with the government’s insider trading investigation. Posey could receive 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.
In a separate case, a federal grand jury indicted Eric M. Martin on November 7, 2012, on one count of conspiracy, seven counts of securities fraud, and three counts of wire fraud in connection with an insider trading conspiracy from early 2005 to March 2009 and his own blackout trading while working for Carter’s. Martin pleaded guilty to one count of conspiracy on December 18, 2012. A sentencing date has not yet been set for either case. Both cases are assigned to United States District Judge Richard W. Story.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being investigated by the FBI. The Atlanta Regional Office of the SEC has conducted a separate investigation of possible civil violations of the U.S. securities laws, and on August 22, 2012, the SEC filed a civil enforcement action against Martin for insider trading. That case is pending.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Grady Hospital Employee Indicted for EmbezzlementRead the Press Release
Defendant Stole Over $450,000 From Georgia’s Largest Hospital
ATLANTA - Donald Thomas, the former Assistant Controller for the Grady Memorial Hospital Corporation, was indicted on June 18, 2013, by a federal grand jury for embezzling over $450,000 in public funds.
“Thomas is charged with stealing from a hospital that serves the healthcare needs of thousands of people in the Atlanta community and beyond,” said United States Attorney Sally Quillian Yates. “Because Grady relies on federal funding to provide medical care to those who cannot afford it, money embezzled from Grady cheats both Grady patients and taxpayers.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI launched its criminal investigation into this matter after receiving information that Thomas, a person in a position of trust at Grady Memorial Hospital, was abusing that position and, in fact, embezzling hospital funds. The federal indictment of Thomas should serve as a message that the FBI will aggressively dedicate its various investigative resources in such matters that can adversely impact our healthcare system and those that provide it.”
According to United States Attorney Yates, the charges and other information presented in court: Thomas was employed as Assistant Controller for the Grady Memorial Hospital Corporation (“Grady”) from December 1994 through June 2011. Grady is one of the largest public health systems in the United States and oversees Grady Memorial Hospital, the largest hospital in Georgia. Grady relies significantly on federal funding, including Medicare reimbursement and grants.
The indictment alleges that, beginning in January 2008, Thomas used his access to Grady’s payroll system to fabricate additional compensation, such as vacation pay and severance pay, to be issued to terminated Grady employees. Thomas then altered payroll records so that the additional payments were deposited directly into accounts under his control. In addition, according to the indictment, on two occasions, Thomas created paper checks for falsified compensation made payable to terminated Grady employees. Thomas allegedly forged the employees’ signatures to endorse the checks before depositing them into one of the bank accounts under his control.
According to the indictment, the scheme came to light when a former Grady employee expressed concern that her 2011 W-2 tax form indicated a larger amount of compensation from Grady than she had actually earned or received. Further investigation revealed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas. The indictment states that at least twenty former Grady employees received inaccurate tax forms as a result of Thomas’s alleged crimes.
The indictment alleges that over the course of the scheme, Thomas obtained over $450,000 from Grady. Thomas unsuccessfully attempted to cover up his embezzlement by reversing some of the changes that he had made in Grady’s payroll system.
Thomas, 53, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Alan J. Baverman on charges of embezzlement, wire fraud and bank fraud, and was released on bond. The charges carry a maximum statutory penalty 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.
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 Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorneys Shanya J. Dingle and G. Scott Hulsey are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Medical Business Owner Indicted for Medicaid FraudRead the Press Release
Business Provided Speech-Language Therapy Services for Children
ATLANTA – Jennifer C. Alsdorf has been indicted on charges of health care fraud and wire fraud for filing over $500,000 in fraudulent claims with the Georgia Medicaid program.
“This defendant is charged with robbing Medicaid of over half a million dollars intended for children in need. Her alleged fraud includes billing for medical services never performed, for patients never seen, and in the names of medical professionals who were not working for the defendant,” United States Attorney Sally Quillian Yates. “Medicaid fraud affects individuals, families, and communities in higher costs, and as this case shows, we have a strong federal-state alliance intent on combatting this serious crime.”
“The FBI continues to work hard in ensuring that federal Medicaid funds are used in the manner intended by law and will continue to work with its various law enforcement partners in identifying, investigating, and presenting for prosecution those individuals who abuse the system,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Anyone with information regarding health care fraud should contact their nearest FBI field office immediately.”
“It appears that Ms. Alsdorf viewed Medicaid as a slush fund to enrich herself,” said Attorney General Sam Olens. “This case sends a strong message that the federal and state governments will work together to aggressively prosecute Medicaid fraud in Georgia.”
According to United States Attorney Yates, the charges and other information presented in court: Jennifer C. Alsdorf, 43, of Tampa, Fla., is the owner, President, and CEO of Hand in Hand Speech & Language Services, Inc. The medical business is located in Tampa, Fla. (and prior to 2005 in Vidalia, Ga.) and offers speech-language therapy services for children covered by Medicaid. Acting on behalf of Hand in Hand, Alsdorf contracted with speech-language pathologists to perform services under independent contractor agreements. Alsdorf would bill Medicaid for the services provided by the pathologists, and then send a portion of the amount she received from Medicaid to them.
In the contracts, Alsdorf agreed to pay a set fee to the pathologists for each initial evaluation and each subsequent therapy visit rendered by the pathologists to Medicaid recipients. The fees that Alsdorf paid to the pathologists for those two services were less than, but based on, the amounts that Medicaid reimbursed for the services. Alsdorf made a profit by keeping the difference between what Medicaid paid and what she remitted to the pathologists.
After rendering services to patients, the pathologists would send Alsdorf treatment notes showing which patients they had seen, how long they had provided therapy, and which services they had provided. Alsdorf was supposed to use these notes to prepare the claims to submit to Medicaid. Unbeknownst to the speech-language pathologists, however, in addition to billing Medicaid for initial evaluations and therapy visits, Alsdorf also billed Medicaid for “sensory integration” therapy, a service the pathologists had not provided. Many of the pathologists did not even know what sensory integration therapy was and had never heard of such a service. Alsdorf did not send any of the money she received from Medicaid for this service to the pathologists. She instead kept all of the money she received for sensory integration therapy.
Alsdorf also submitted claims to Medicaid for patient visits that never occurred. She submitted claims under pathologists’ names for services during times when they were not working with Hand in Hand. She also submitted claims representing that the pathologists had treated certain patients when, in fact, the pathologists had never seen or treated the patients at any time. Alsdorf is alleged to have submitted over $500,000 in fraudulent claims to Medicaid.
A federal grand jury indicted the defendant on May 21, 2013, who was arraigned today on the charges before United States Magistrate Judge Justin S. Anand.
The indictment charges 74 counts of health care fraud and 10 counts of wire fraud. Each health care fraud count carries a maximum sentence of 10 years in prison, and each wire fraud count carries a maximum sentence of 20 years in prison. 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.
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 and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.
Assistant United States Attorney Stephen H. McClain and Georgia Assistant Attorney General Henry A. Hibbert 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 Atlanta Police Officer Sentenced to Prison for Accepting BribesRead the Press Release
ATLANTA – Elton Augustin, a former Atlanta Police Department officer, was sentenced to two years in prison today for conspiring to accept bribes and lying to FBI agents.
“Police officers are sworn to uphold the law and protect the community they serve, but this defendant protected an illegal business in exchange for cash and then lied to federal investigators,” said United States Attorney Sally Quillian Yates. “His actions betrayed the community and the honest law enforcement officers who serve honorably every day.”
“While today’s sentencing ends one police officer’s career, it is important to note that the vast majority of dedicated law enforcement officers that serve our community understand their oaths to the badge and honor their commitment to their positions of trust,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI urges anyone with information regarding activities involving police corruption to contact their nearest FBI field office.”
According to United States Attorney Yates, the charges and other information presented in court: From June 2007 through August 2007, while employed as a police officer with the Atlanta Police Department (APD), Elton Augustin worked at an illegal nightclub in Atlanta, Ga. Augustin, along with two other APD officers, received over $10,000 in cash to provide security and prevent police officers from investigating illegal activity at the nightclub, which included gambling, prostitution, drug sales, and permit violations.
Augustin and the other officers were posted outside of the nightclub’s parking lot to intercept on-duty police officers responding to emergency calls. The officers’ presence at the nightclub prevented on-duty officers from discovering the illegal activity and allowed the club to operate undetected for several months.
On September 15, 2007, APD officers shutdown the illegal nightclub and arrested the club’s owners. In 2010, federal agents learned about the officers’ employment at the illegal nightclub. When confronted, Augustin lied to federal agents investigating his employment at the illegal nightclub.The other two APD police officers, Lucius T. Solomon and Eric Jones, were also convicted of bribery charges. Solomon pleaded guilty to bribery and drug trafficking charges on September 2, 2010, and was sentenced to 12 years in prison on December 17, 2010. Jones pleaded guilty to conspiring with Augustin to accept bribes on April 5, 2013, and is awaiting sentencing.
Augustin, 32, of Stockbridge, Ga., was sentenced today by United States District Judge Timothy C. Batten, Sr. to serve two years in prison, to be followed by two years of supervised release, and to perform 100 hours of community service. Augustin was convicted of lying to federal agents after a jury trial on December 7, 2012. On February 14, 2013, Augustin pleaded guilty to conspiring to accept bribes.
This case was investigated by the Federal Bureau of Investigation and the Atlanta Police Department.Assistant United States Attorney Jeffrey A. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Douglasville Man Sentenced for Sex TraffickingRead the Press Release
Defendant Prostituted 17-Year-Old Girls in Metro Atlanta and Montgomery, Ala.
ATLANTA - Demario Hillmon was sentenced today to 10 years in federal prison on charges of sex trafficking of a minor and transporting a minor across state lines for prostitution.
“This case is another example of a successful investigation and prosecution of a man who took advantage of vulnerable young girls by making false promises to lure them into prostitution,” said United States Attorney Sally Quillian Yates.
“Today’s sentencing is the result of the great partnership HSI has with law enforcement in Georgia in our unyielding resolve to bring sex traffickers to justice,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “Trafficking children for sex is one the most deplorable crimes our HSI special agents investigate. My agency is committed to protecting those who cannot protect themselves.”
“Working with our local and federal law enforcement counterparts to investigate child sex trafficking and bring those responsible for exploiting children to justice is a priority for the GBI,” said Vernon Keenan, GBI Director.
“I would like to commend U.S. Attorney Sally Yates, her staff, and all the law enforcement partners for the investigations, apprehension and conviction of this most dangerous person in our society,” said DeKalb County Police Chief Cedric L. Alexander.
“The successful outcome of this case would not have been possible without the cooperation of all local, state and federal agencies involved in the investigation and prosecution of this case. This is another shining example of how well law enforcement in Georgia work together to protect our citizens,” said Billy Grogan, Chief of Police for the City of Dunwoody.
According to United States Attorney Yates, the charges and other information presented in court: Hillmon met young girls on “Tagged.com,” a social networking website, and on “Backpage.com,” an adult escort website. Hillmon enticed the victims to engage in prostitution by false promises of money and gifts. He then advertised the girls on internet websites and arranged for men to engage in commercial sex acts with them in and around metro Atlanta, and in Montgomery, Ala. Hillmon kept most of the money for himself.
Law enforcement officers discovered Hillmon’s sex trafficking after the family of one of the 17-year-old girls reported her as a runaway. Hapeville Police Department officers, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation, located the girl. In the process, the investigators uncovered Hillmon’s sex trafficking operation, and also identified and recovered another 17-year-old victim.Hillmon, 30, of Douglasville, Ga., was sentenced by United States District Judge Julie E. Carnes to 10 years in prison to be followed by 10 years of supervised release. Hillmon was convicted of these charges on April 8, 2013, upon his plea of guilty.
This case was investigated by Special Agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Georgia Bureau of Investigation, and Detectives of the Hapeville Police Department, Dunwoody Police Department, and DeKalb County Police Department.
Assistant United States Attorney Katherine M. Hoffer prosecuted the case.
This case was 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Norcross Man Arrested for Distribution and Possession of Child PornographyRead the Press Release
Defendant Allegedly Sent and Received Graphic Images Over the Internet
ATLANTA – Kevin Hickey, who was formerly employed as the Director of Parish Outreach for Life Teen International in Atlanta, Ga., has been arrested on a federal complaint charging him with distributing and possessing child pornography.
“This defendant collected child pornography at the same time he was entrusted to protect, counsel, and serve children, which reinforces how essential it is that we uncover and prosecute individuals who pose such a great threat to our community,” said United States Attorney Sally Quillian Yates.
“The terms ‘child predator’ and ‘person in a position of trust’ should never refer to the same individual,” said Brock. D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “While anyone downloading and distributing child pornography is a target for HSI special agents, those who might have access to children will receive our immediate attention. HSI is doing everything in its power to prevent the victimization of innocent children in our society.”
According to United States Attorney Yates, the criminal complaint, and information presented in court: Law enforcement identified Hickey as an individual with a sexual interest in children who also collects and distributes child pornography. In June 2013, using his online screen name “funguyatl77,” Hickey engaged in an online communication monitored by federal agents. In that communication he stated that he was watching “perving vids” and offered to share child pornography. On June 3, 2013, Hickey transmitted a video showing two prepubescent males being sodomized by an adult male. Hickey further displayed photographs of children he took surreptitiously in public places and was heard gratifying himself sexually during the online conversation.
A subsequent investigation by Homeland Security Investigations agents led them to Hickey and his home where he maintained his computer and engaged in the collection and distribution of these pornographic images. Thousands of images of child exploitation were discovered on Hickey’s electronic devices.
Hickey, 39, of Norcross, Ga., was arrested on June 6, 2013, and made his first appearance in federal court on June 7, 2013. On Friday, June 14, 2013, United States Magistrate Judge Russell G. Vineyard held a detention hearing and Hickey was detained without bond.
The public is reminded that a criminal complaint contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
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.
Defendant Pleads Guilty to Framing Woman for Drug PossessionRead the Press Release
ROME, Ga. – Clifford J. Joyce has pleaded guilty to planting methamphetamine on the car of a Murray County woman for the purpose of getting her arrested.
“The defendant attempted to manipulate the criminal justice system to serve his own purpose by framing someone for drug possession,” said United States Attorney Sally Quillian Yates. “While the narcotics charges were ultimately dismissed, this outrageous conduct cannot stand.”“The investigation and prosecution of persons involved in public corruption are a priority of the Georgia Bureau of Investigation. Many of the cases such as this require partnership of local, state and federal authorities,” said GBI Director Vernon M. Keenan.
According to United States Attorney Yates, the charges and other information presented in court: In July 2012, a Murray County woman met with then-Chief Magistrate Judge Bryant Cochran regarding a legal matter. Thereafter, the woman alleged that during the meeting, Cochran made inappropriate sexual advances towards her.
In an effort to discredit the woman, Joyce and others participated in a scheme to frame the woman for drug possession. On or about August 12, 2012, Joyce hid a metal tin under the tire well of the woman’s car. The metal tin contained five small packets of methamphetamine.
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 woman’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 woman and the driver of the car on narcotics charges. On August 24, 2012, the charges against the woman were dismissed.
Joyce, 27, of Dalton, Ga., could receive a maximum sentence of 20 years in prison and a fine of up to $1,000,000. However, 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 August 23, 2013, at 1:30 p.m., before United States District Judge Harold L. Murphy.
This case is being 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 Herskowitz 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.
Suwanee Man Sentenced for Violating Tax LawsRead the Press Release
Sroufe Falsely Claimed $1.7 Million Tax Refund
ATLANTA – Donus R. Sroufe has been sentenced to over four years in prison for interfering with the administration of the revenue laws and for making a false claim for a $1.7 million tax refund.
“The defendant lied on his tax return and tried to defraud the U.S. Treasury out of $1.7 million,” said United States Attorney Sally Quillian Yates. “Fortunately, the IRS caught his fraudulent return before any taxpayer funds were paid out.”“This was a case of greed, deceit, manipulation and theft directed at the United States Department of Treasury and the American taxpayer,” stated Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “The prison time received by Mr. Sroufe should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path.”
According to United States Attorney Yates, the charges and other information presented in court: In March 2009, Sroufe filed a United States Individual Income Tax Return (Form 1040) for 2008, claiming a tax refund of $1.7 million. On the tax return, Sroufe falsely claimed: (1) to have received $2.5 million from a United States Treasury bond, and (2) that he had paid over $2.6 million in federal taxes. In fact, the $2.5 million bond was a fake and Mr. Sroufe had not paid any income taxes for 2008.
In April 2009, the Internal Revenue Service (IRS) notified Sroufe that his 2008 tax return was “frivolous” and warned him that he could face a penalty for filing a false return. Moreover, in June 2009, two IRS Special Agents met with Sroufe in person and notified him that the $2.5 million bond appeared to be a fictitious financial instrument.
Despite those warnings, in August 2009, Sroufe mailed an identical copy of the 2008 tax return to the United States Department of the Treasury, including a copy of the fake $2.5 million bond, and demanded a $1.7 million tax refund.On March 13, 2013, a jury found Sroufe guilty of interfering with the administration of the revenue laws and for making a false claim for a tax refund.
Today, Sroufe, 55, of Suwanee, Ga., was sentenced to four years, three months in prison to be followed by three years of supervised release, and ordered to pay a fine of $75,000.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Jeffrey W. Davis, Steven D. Grimberg, and Shanya J. Dingle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Members of Prescription Drug Distribution Ring Sentenced to PrisonRead the Press Release
Conspiracy Involved over 30,000 Oxycodone Pills
ATLANTA - Kristen Noelle Goduto and 12 other defendants have been sentenced on charges of conspiring to possess oxycodone with the intent to distribute it. The defendants had all previously pleaded guilty to the charges.
“These defendants exhibited total disregard for how their pill peddling could destroy lives,” said United States Attorney Sally Quillian Yates. “This prescription drug can be deadly when not taken under proper medical oversight. Such brazen forging of prescriptions should serve as a reminder that some in our society will go to any length for illicit gain. We will continue in our commitment to prosecute law-breakers and keep the citizens of this district safe.”
Harry S. Sommers, the Special Agent in Charge of the Atlanta Field Division of the DEA said of the case, “The sharp increase in the distribution of pain pills for non-medical reasons continues to be a major concern. As such, DEA and its local law enforcement counterparts will continue to target those who traffic these addictive pain medications. These individuals are deserving of the sentences that they received today because of the spirited level of law enforcement cooperation.”
According to United States Attorney Yates, the charges and other information presented in court: Kristen Noelle Goduto led these 12 defendants in a conspiracy to possess oxycodone with the intent to distribute it. Goduto manufactured prescriptions for oxycodone and recruited others to pass the forged prescriptions throughout the Northern District of Georgia. The majority of the other defendants sentenced today assisted her by passing the prescriptions. The prescriptions would appear legitimate and would often pass through pharmacies because Goduto would either replace the doctor’s office number with her cellular telephone number, so she could falsely verify that the prescription was legitimate; or she kept the doctor’s true number, but either had the prescriptions passed on nights or weekends (when the doctor’s office was closed). For one doctor, she recruited an individual who worked at the doctor’s office who would falsely verify prescriptions. By passing these forged prescriptions, this conspiracy obtained, or attempted to obtain, over 30,000 pills of oxycodone.
The sentences handed down by United States District Court Judge Julie E. Carnes are:
Kristen Noelle Goduto, 29, of Marietta, Georgia, was sentenced to 14 years in prison to be followed by 5 years of supervised release. Kristen Goduto was convicted of these charges on September 13, 2011, upon her plea of guilty.
Kory Joseph Goduto, 32, of Marietta, Georgia, was sentenced to 11 years, 8 months years in prison to be followed by 3 years of supervised release. Kory Goduto was convicted of these charges on December 6, 2011, upon his plea of guilty.
Pasquale Peter Goduto, 62, of Marietta, Georgia, was sentenced to 3 years of probation. Pasquale Goduto was convicted of these charges on February 29, 2012, upon his plea of guilty.
Mark James O’Brien, 36, of Marietta, Georgia, was sentenced to 5 years, 3 months in prison to be followed by 3 years of supervised release. O’Brien was convicted of these charges on December 6, 2011, upon his plea of guilty.
Lori Rene Anderson, 34, of Acworth, Georgia, was sentenced to 3 years of probation, including one year of home confinement. Anderson was convicted of these charges on June 27, 2012, upon her plea of guilty.
Georgia Ann Hulsey, 33, of Marietta, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Hulsey was convicted of these charges on October 3, 2011, upon her plea of guilty;
Phillip David Hobbs, 40, of Canton, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Hobbs was convicted of these charges on July 20, 2011, upon his plea of guilty.
David Lee Tanner, 34, of Acworth, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Tanner was convicted of these charges on October 3, 2011, upon his plea of guilty.
Ryan Patrick Trento, 27, of Marietta, Georgia, was sentenced to three years in prison to be followed by 3 years of supervised release. Trento was convicted of these charges on March 12, 2013, upon his plea of guilty.
Justin Howard, 30, of Braselton, Georgia, was sentenced to 3 years of probation. Howard was convicted of these charges on December 6, 2011, upon his plea of guilty.
Ajian Martine Greene, 29, of Sandy Springs, Georgia, was sentenced to 5 years in prison to be followed by 5 years of supervised release. Greene was convicted of these charges on January 3, 2013, upon his plea of guilty.
Terry Randy Wallace, 24, of Newnan, Georgia, was sentenced to 3 years of probation. Wallace was convicted of these charges on May 11, 2011, upon his plea of guilty.
Carl Clifton Lewis, 25, of Conyers, Georgia, was sentenced to time served in prison to be followed by 2 months in a halfway house and 3 years of supervised release. Greene was convicted of these charges on August 23, 2011, upon his plea of guilty.
This case was investigated by Special Agents of the Drug Enforcement Administration with assistance from the Cartersville Police Department, the Cherokee Muli-Agency Narcotics Squad, the Cobb County Sheriff’s Office, the Smyrna Police Department, the Fannin County Sheriff’s Office, the Rome Police Department, the Bartow County Sheriff’s Office, and the Douglasville Sheriff’s Office.
Assistant United States Attorney Elizabeth M. Hathaway and C. Brock Brockington prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Airtran Employee Arrested for Attempting to Possess CocaineRead the Press Release
Allowed Contraband to Bypass Security Checkpoints
ATLANTA - Rasondo Maurice Norris has been charged in a federal criminal complaint on charges of attempting to possess cocaine with the intent to distribute.
“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 allowed what he believed to be drugs and weapons onboard commercial flights. Public safety is a responsibility we take seriously, and our office will continue to prosecute those who are endangering our citizens.”
“HSI special agents and our partners from the ATF, DEA and the Federal Air Marshal Service have identified and eliminated a significant security threat at Hartsfield-Jackson,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “While this defendant may have abused his access to secure areas at the airport for simple greed, HSI and our law enforcement partners will remain vigilant in ensuring that any potential security holes are identified and patched as quickly as possible.”
According to United States Attorney Yates, the charges and other information presented in court: Norris, 29, of Stone Mountain, Ga., worked as a baggage handler for AirTran Airlines. In May 2013, Special Agents of HSI learned that, for a fee, Norris would help people involved in criminal activity bring contraband onto airplanes by using his security clearance to bypass 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 Mack 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.
The criminal complaint charges two counts of attempting to possess cocaine with the intent to distribute. The charges carry a maximum sentence of life imprisonment for count one and 40 years in prison for count two and a fine of up to $10,000,000 for count one and $5,000,000 for count two. 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.
Norris is scheduled for a bond hearing on June 12, 2013 at 1:30 p.m. before U.S. Magistrate Judge Vineyard.
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 is prosecuting the case.
Members of the public are reminded that the complaint contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Four Men Indicted in 75-Liter Methamphetamine SeizureRead the Press Release
Hid Liquid Meth Inside of Vehicle Gas Tank
ATLANTA - Gabriel Jimenez Antunez, Pablo Saucedo Aparicio, Martin Ascencio, and Javier Munoz Ruiz have been indicted on federal drug and money laundering charges for their roles in the delivery of liquid methamphetamine to a residence in Austell, Ga.
“A seizure of this size reminds us that Atlanta continues to serve as a focal point for the distribution of methamphetamine,” said United States Attorney Sally Quillian Yates. “Law enforcement agents in our community are doing a remarkable job tracking down and seizing drugs before they can be distributed into our communities.”
“Methamphetamine continues to ravage many communities in our nation,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. “Because of the positive results yielded in this case, other methamphetamine traffickers in the Atlanta metropolitan and surrounding areas are being put on notice that DEA and its law enforcement partners will not tolerate their continued efforts to manufacture and distribute this insidious drug.”
“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We are proud to have contributed our financial expertise in order to dismantle the drug-trafficking operation that has been targeting the metro Atlanta citizens.”
According to United States Attorney Yates, the charges and other information presented in court: In May 2013, DEA and IRS agents learned that Jimenez, a local distributor for a Mexican drug trafficking cartel, was coordinating the delivery of a shipment of liquid methamphetamine to the metro-Atlanta area and laundering the proceeds of that drug trafficking activity. In the early morning hours of May 12, 2013, agents tracked the delivery of liquid meth, made by Munoz using a Ford F-350 vehicle, to a residence in Austell, Ga.
Agents determined that the liquid methamphetamine was stored inside the truck’s gas tank, and observed Jimenez, assisted by Saucedo, arrive at the location with thermoses, which were to be used to transfer and store the liquid methamphetamine before it was further distributed. Ascencio was in the process of removing the gas tank containing approximately 75 liters of diesel fuel and liquid methamphetamine when agents arrested the defendants and seized the drugs. With assistance from agents at ICE-Homeland Security Investigations, agents executed search warrants at this and related residences, recovering another 10 pounds of crystal methamphetamine and other evidence.
The indictment charges the defendants: Antunez, a.k.a. “Negrito,” 39, of Mexico; Aparicio, 38, of Mexico; Ascencio, 49, of Mableton, Georgia.; and Ruiz, 54, of Fort Worth, Texas, with conspiring to possess with the intent to distribute more than 500 grams of methamphetamine, a charge that carries a sentence ranging potentially from 10 years to life. 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 charging documents and evidence presented in court are only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by Special Agents of the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.Assistant United States Attorney Laurel Boatright 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.
Defendant Sentenced for Running A Work-From-Home ScamRead the Press Release
ATLANTA - Detrick Mattox, who operated numerous fraudulent work-from-home businesses has been sentenced to over two years in prison for conspiring to commit mail fraud.
“This scheme was designed for one simple purpose - to swindle people out of their hard-earned money through lies and deceit,” said United States Attorney Sally Quillian Yates. “Mattox preyed on folks just trying to earn a living. Now he’s going to prison.”
The U.S. Postal Inspection Service has no shortage of work-at-home schemes to investigate. This is just another example of the defendant’s greed preying on the public’s need to earn an honest living. Consumers should be suspicious of any offer that does not pay a regular salary because if it sounds too good to be true, it probably is,” said Keith Morris, Postal Inspector in Charge for the Atlanta Division.
According to United States Attorney Yates, the charges and other information presented in court: Mattox ran numerous businesses that purported to offer its members work-from-home opportunities, including: Atlanta’s Mailing Company; Atlantis Mailing Company; Brown Staffing Services; Central Mailing Company; Detrick Mattox Enterprises; Georgia Assembly Company; Global Assembly Company; Global Mailing Enterprises; Jobs R US; National Assembly Company; Nationwide Express Mailing; Pacific Mailing Company; Premiere Mailing Company, and Regional Assembly Company.
Mattox promoted his work-from-home businesses by claiming that members who applied for the program and then paid an initiation fee would be able to work from their homes and earn up to $5,000 per week. The members were supposed to assemble materials into booklets and mail the booklets to the addresses provided by Mattox. He also claimed that members could earn up to $20 for each booklet that they assembled and mailed. To join the program, prospective members had to pay Mattox an up-front initiation fee of approximately $50 to $500. He typically instructed prospective members to pay the initiation fee by mailing a money order to one of the named businesses.
Once the initiation fee was paid, the majority of the members never received any materials to assemble for their work-from-home businesses. The few members who did receive materials from Mattox, and assembled and then mailed those materials, were never paid for their services. After Mattox received a member’s initiation fee, virtually all attempts by the member to contact the work-from-home businesses were ignored. Finally, to avoid consumer complaints and negative public information, Mattox frequently changed the names, websites, and contact information of the work-from-home businesses.
According to an affidavit submitted in support of a search warrant obtained in the case, more than 200 people responded to advertisements by Mattox and became members. Thereafter, a Postal Inspector conducted an undercover investigation, responding to Internet advertisements posted by Mattox, but never received the promised materials after sending payment.
Mattox, 33, of Ellenwood, Ga., was sentenced to 2 years 9 months of in prison to be followed by 3 years of supervised release. He was convicted of the charges on March 18, 2013, upon his plea of guilty.
This case was investigated by Inspectors of the United States Postal Inspection Service.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Atlanta Public Schools Chief Information Officer Indicted for Accepting KickbacksRead the Press Release
Accused of Awarding Computer Contract to Bidder in Exchange for Bribes
ATLANTA – Jerome Oberlton and Mahendra Patel have been arraigned for allegedly receiving kickback payments in exchange for Oberlton using his influence as Chief Information Officer for Atlanta Public Schools to award a $780,000 computer project.
“As the Chief Information Officer for APS, Oberlton was entrusted with overseeing a program designed to centralize student data,” said United States Attorney Yates. “Rather than ensuring that venders were selected based upon what was best for the school system the defendants are charged with using Oberlton’s public position to line their private pockets.”
“Abusing one’s position of public trust for personal gain should not and will not be tolerated,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI, in designating public corruption matters as its number one criminal programs priority, asks that anyone with information regarding such activity to contact their nearest FBI field office.”
“What started as a friendship between Mr. Patel and Mr. Oberlton resulted in them lining their pockets with funds obtained illegally through kickbacks,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. We are committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to United States Attorney Yates, the indictment, and information presented in court: Jerome Oberlton was the Chief Information Officer (CIO) for Atlanta Public Schools (APS) between June 2004 and August 2007 and had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal for a data warehousing project for the school system. The project’s intent was to centralize information relating to APS operations, including student information, by storing it digitally in a secure, easily-accessible manner.
The indictment charges that from the start of the project in January 2007, Oberlton influenced the request for proposal process and ultimately caused the winning bidder to be selected in exchange for kickbacks paid to Oberlton and Patel, who was an acquaintance of Oberlton. In order to hide the bribes, Oberlton created Global Technology Partners and later Global Technology Services and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of Global Technology Partners and Global Technology Services from APS. In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work. The computer company ultimately paid approximately $60,000 in bribes to Oberlton and Patel for nearly six months and in return the IT company received almost $800,000 in APS project work.
Oberlton, 47, of Dallas, Texas, and Patel, 45, of Kennesaw, Ga., were indicted on May 28, 2013. The defendants are charged with conspiracy to defraud APS, which carries a maximum term of five years in prison and a fine of $250,000. They also are charged with conspiracy under color of official right, a money laundering conspiracy, mail fraud, and wire fraud, which each carry a maximum term of 20 years in prison and a fine of $250,000. Oberlton additionally is charged with bribery and money laundering, which each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine. 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.
The defendants made their initial appearances on June 4, 2013, before United States Magistrate Judge Russell Vineyard and were released on a $25,000 bond.
The public is reminded that criminal charges are only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
These cases are being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
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.
Sex Offender Sentenced for Distribution of Child PornographyRead the Press Release
Defendant Possessed and Distributed Child Pornography
ATLANTA – Milton Hugh Cashwell, a previously convicted sex offender who distributed graphic images of child pornography over the Internet was sentenced today to 20 years in prison.
“The distribution of images portraying the sexual abuse of children is horrific,” said United States Attorney Sally Quillian Yates. “The crime is made that much more egregious by the fact that the defendant had been previously convicted of molesting children. We will continue to identify and prosecute offenders who victimize innocent children.”
“While it is no surprise that a sex offender previously convicted of crimes involving children would be involved in the distribution of child pornography, the level of depravity on display in these cases is extremely troubling,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “Everyone has a stake in stopping the sexual exploitation of our children. Trading in this filth is not OK; this is not a victimless crime.”
According to United States Attorney Yates and the information contained in public documents: During an undercover child pornography investigation in July 2012, a Homeland Security Investigations (HSI) Special Agent made contact with Cashwell after Cashwell offered to trade child pornography images online. Cashwell is a previously convicted sex offender, having been convicted of exploiting several children in Sumter County, Ga. in the 1980s. Cashwell distributed five separate videos containing graphic images of child pornography to the agent by email, including a video that showed an adult male raping a female child approximately six years of age. Federal agents subsequently executed a search warrant at Cashwell’s home in Americus, Ga. During that search, agents found broken pieces of Cashwell’s cell phone in his backyard, a phone he attempted to destroy to avoid being caught with the pornographic images.Cashwell was sentenced to 20 years in prison, to be followed by a lifetime period of supervised release by United States District Court Judge Steve C. Jones. There is no parole in the federal system. Cashwell was convicted of the charge on March 29, 2013, upon his plea of guilty.
This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ .
Assistant United States Attorney Jill E. Steinberg 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.
Identity Theft and Tax Fraud Ring Members Admit GuiltRead the Press Release
ATLANTA - Shawn Brown, Christopher Edwards, Kelly Sue Lonas and Nyron Nelson pleaded guilty in federal district court for their roles in an identity theft and fraudulent tax return ring that sought millions of dollars in fraudulent refunds.
“Those who file false tax refund claims using stolen identities threaten the integrity of our federal income tax system and pose a real danger to the financial security of the individuals whose identities are stolen,” said U.S. Attorney Sally Quillian Yates. “Citizens of this district should know we are dedicated to prosecuting thieves like these and to deterring similar crimes.”“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Veronica Hyman-Pillot SAC, Atlanta Field Office. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused undue hardship to innocent victims. IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office remain committed to holding those who engage in similar conduct accountable.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2010 to March 2013, Brown led a criminal organization that engaged in a scheme to defraud the Department of the Treasury by filing fraudulent income tax returns and negotiating fraudulent tax refunds using stolen identities. This is commonly called stolen identity refund fraud. Brown had ties to criminal organizations in Chicago and Atlanta that engaged in this type of fraud. The defendants used the stolen identities along with fake wage and withholding information to prepare over one thousand fraudulent tax returns which claimed over $5 million dollars in refunds. The defendants also established shell corporations and bank accounts to facilitate the fraud.
On May 28, 2013, Kelly Sue Lonas and Nyron Nelson pleaded guilty to conspiring to commit wire fraud. On May 29, 2013, Shawn Brown pleaded guilty to conspiring to commit wire fraud and aggravated identity theft. On May 30, 2013, Christopher Edwards pleaded guilty to aggravated identity theft. As part of their plea agreements, the defendants have agreed to forfeit their interest in a luxury vehicle and jewelry purchased using illegal proceeds.
The defendants, Shawn Brown, of Atlanta, Ga.; Christopher Edwards, of Eutaw, Ala.; Kelly Sue Lonas and Nyron Nelson, both of Marietta, Ga.; were indicted in November 2012, along with other co-defendants on one count of conspiring to commit wire fraud and multiple counts of aggravated identity theft. The wire fraud count carries a maximum sentence of 20 years in prison and the aggravated identity theft charge carries a mandatory two-year consecutive sentence 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.
Sentencing hearings will be scheduled in September 2013 before United States District Judge Amy Totenberg.This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation and Task Force Officers with the Federal Bureau of Investigation and Alpharetta Police Department.
Assistant United States Attorney Jeffrey A. Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Lilburn Resident Charged with Illegal Possession of FirearmsRead the Press Release
Two Silencers Stolen from Licensed Firearm Dealer
ATLANTA - Kevin S. Lahey has been indicted by a federal grand jury on charges of possessing two firearm silencers which are not registered to him in the National Firearms Registration and Transfer Record, of possessing and receiving seven firearms while being an unlawful user of controlled substances, and for making false statements in connection with the purchase of three firearms.
“This potentially dangerous situation was discovered and defused before it could escalate,” said United States Attorney Sally Quillian Yates. “Through the diligence of our federal and local law enforcement agencies, we will continue to work hard to keep our District safe and secure.”
“ATF’s mission and priority is to deny criminals access to firearms and protect the rights of law abiding citizens. When offenders illegally possess firearms that can be used against our citizens, our children and our community, ATF takes this very seriously,” said ATF Special Agent in Charge Christopher Shaefer.
According to United States Attorney Yates, the charges and other information presented in court, on February 6, 2013, a man, later identified as Lahey, stole two silencers from a Lawrenceville firearms dealer. On February 9, 2012, Snellville Police arrested Lahey in connection with an alleged shoplifting incident at Wal-Mart where he allegedly attempted to steal two laser sights, a bi-pod stand for a rifle, and a holster. Lahey resisted arrest when officers attempted to arrest him. During that fight, officers report that he dropped a loaded handgun. Lahey was released on bond on February 10. As a result of this shoplifting arrest, the Snellville police were able to identify Lahey to the Bureau of Alcohol, Tobacco, Firearms, and Explosives as the individual who stole the silencers on February 6, 2013.
After identifying Lahey, an ATF task force officer obtained a warrant for his arrest and a search warrant for his residence. On February 25, 2013, officers and agents from both the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gwinnett County Police Department executed the search warrant. During that search, they found one of the stolen silencers attached to a .22 caliber pistol. Agents later returned and found the second silencer in the crawlspace below Lahey’s parents’ house. Neither silencer was registered to Lahey in the National Firearms Registration and Transfer Record as required by federal law. In addition, during the search, agents found multiple firearms in Lahey’s possession, marijuana, bongs, drug pipes and other drug paraphernalia, and a body armor fragmentation protective vest.
Lahey, 26, of Lilburn, Georgia was originally indicted by a federal grand jury on March 19, 2013, for possession of a silencer that was not registered to him. That indictment has now been superseded to include additional firearms charges. The superseding indictment has seven counts, including possession of a firearm silencer which is not registered to the defendant in the National Firearms Registration and Transfer Record, possession of seven firearms by an unlawful user of controlled substances, receipt of three firearms while being an unlawful user of controlled substances, and making false statements in connection with the purchase of three firearms, specifically denying that he was an unlawful user of controlled substances. The charges each carry 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.
Lahey is scheduled to be arraigned on the superseding indictment on May 30, 2013. He first appeared in court on March 1, 2013, after he was arrested on a federal complaint. At that time, Lahey was detained without bond and remanded to the custody of the U.S. Marshal pending trial. He remains in custody.
This case is being investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant United States Attorney Christopher J. Huber is prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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 Business Owner Pleads Guilty to Fraud and Identity TheftRead the Press Release
Over $15 Million in Fraudulent Tax Refunds Filed for “Stimulus Payments”
ATLANTA – Kevin J. Sonnier pleaded guilty today to filing false federal income tax returns using stolen identities that claimed millions of dollars in bogus refunds.
“The career of a tax cheat who victimized over 15,000 individuals is over,” said United States Attorney Sally Quillian Yates. “This defendant will also forfeit millions in ill-gotten tax refunds. This year we have devoted significant resources to address this growing problem and to taking these criminals off the streets.”
“Today’s announcement exemplifies IRS Criminal Investigation’s intense focus and the rigorous pursuit of identity theft and refund fraud,” said Veronica Hyman-Pillot, Special Agent in Charge. “These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”
“The U.S. Postal Inspection Service is charged with protecting the U.S. mail from illegal use. Postal Inspectors will remain steadfast in this mission and will continue to partner with other law enforcement agencies and the U.S. Attorney’s Office to bring resolution and justice to individuals who continue to take advantage of the system.” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
According to United States Attorney Yates, the charges and other information presented in court; from approximately July 2010 to January 2013, Sonnier, 44, of Ellenwood, Ga., operated “Sonnier Tax Service,” a tax preparation business in Clayton County, Ga. Sonnier, working with others, led thousands of victims to believe that they could apply for “stimulus payments” from the federal government by providing their names and Social Security numbers. Sonnier used toll-free telephone numbers and web sites to advertise the “stimulus payments” and collect victims’ personal information. He also recruited “runners” who promoted the scheme by word of mouth and collected victims’ personal information for Sonnier’s use.
In actuality, no stimulus payment existed and Sonnier used the victims’ personal information to file fraudulent tax returns on their behalf that claimed over $15 million in bogus refunds. On the returns, Sonnier claimed false income amounts, student credits, and earned income credits to receive the bogus tax refunds. The victims did not know that Sonnier had filed tax returns in their names. Sonnier used the profits generated from this scheme for his own personal benefit, including the purchase and improvement of real estate throughout the state of Georgia.
As part of the plea agreement, Sonnier has 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.
Sonnier pleaded guilty to one count of wire fraud, one count of conspiracy to defraud the United States, and one count of aggravated identity theft. The wire fraud count carries a maximum sentence of 20 years in prison, the conspiracy count carries a maximum sentence of five years in prison, and the aggravated identity theft charge carries a mandatory two-year consecutive sentence 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.
Sentencing is scheduled for September 26, 2013, at 10 a.m. before United States District Judge Charles A. Pannell, Jr.
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 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.
Members of International Sex Trafficking Ring IndictedRead the Press Release
Victims Brought to Atlanta and Southeast from Mexico and Guatemala
ATLANTA - Arturo Rojas-Coyotl, Odilon Martinez-Rojas, and Severiano Martinez-Rojas, all of Tenancingo in the state of Tlaxcala, Mexico have been indicted on charges of sex trafficking and alien harboring. A fourth man, Daniel Garcia-Tepal, also of Tlaxcala, Mexico, is charged with encouraging and inducing aliens to enter and reside in the United States unlawfully.
“Sex trafficking is a malicious crime whether the victims are American citizens or foreign nationals,” said United States Attorney Sally Quillian Yates. “The defendants are charged with preying on young women from Mexico and Guatemala, smuggling them into the United States under false pretenses, and forcing them into prostitution. U.S. laws protect all trafficking victims, and we will prosecute those who engage in this practice.”
“The enslavement of women forced into prostitution is a heinous crime that occurs all too frequently in our communities,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Across the country, law enforcement agencies from the federal to the local level are teaming up to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. This case could not have happened without the excellent relationships we have with the FBI and the U.S. Attorney for the Northern District of Georgia.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s indictments and subsequent arrests are a continuation of the federal law enforcement effort to stem the international trafficking of individuals to fuel the commercial sex industry here in the U.S. and in particular in Atlanta. The FBI asks that anyone with information regarding this type of activity to contact their nearest FBI field office immediately.”
According to United States Attorney Yates, the charges and other information presented in court: Rojas-Coyotl and his uncles Odilon Martinez-Rojas and Severiano Martinez-Rojas used force, fraud and coercion to compel three women to engage in prostitution in Atlanta and Norcross, Ga. at various times between 2006 and 2008. Daniel Garcia-Tepal and Arturo Rojas-Coyotl are also charged with encouraging and inducing a fourth woman to unlawfully enter and remain in the United States between 2010 and 2013.
Special Agents of the FBI and ICE Homeland Security Investigations arrested Arturuo Rojas-Coyotl, Odilon Martinez-Rojas, and Daniel Garcia-Tepal in a highly coordinated law enforcement sweep today. Severiano Martinez-Rojas remains a fugitive and is believed to be in Mexico. The FBI will coordinate with its legal attaché in Mexico City to affect his arrest and subsequent extradition back to the United States. Four search warrants were also executed today in Atlanta and Norcross, Ga. in conjunction with the arrests.
Rojas-Coyotl, 26, Martinez-Rojas, 41, Martinez-Rojas, 48, and Garcia-Tepal, 28, are scheduled for arraignment today. Each sex trafficking charge carries a maximum sentence of life in prison while each alien harboring charge has a maximum sentence of 10 years in prison, with all counts carrying a fine of up to $250,000 each. 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.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Interagency cooperation in international sex trafficking operations is imperative and vital to the success of the prosecution.
Assistant United States Attorney Susan Coppedge and Trial Attorney Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone with information related to sex trafficking should call the Atlanta FBI hotline at 404-679-9000 or the National Human Trafficking Resource Center at 1-888-3737-888.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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.
State Representative Tyrone Brooks, Sr. Indicted on Fraud and Tax ChargesRead the Press Release
Defendant Charged With Misappropriating Almost $1 Million in Charitable Donations
ATLANTA - A federal grand jury has indicted Tyrone Brooks, Sr. on charges that he misappropriated almost $1 million in charitable funds from Universal Humanities, a charity he founded in 1990, and the Georgia Association of Black Elected Officials (GABEO).
“This is a disappointing day. Representative Brooks has done much good in his life, both as a state legislator and civil rights leader," said United States Attorney Sally Quillian Yates. "But the indictment charges that over many years, Representative Brooks misappropriated nearly one million dollars in charitable donations intended to provide literacy training in underserved communities, and from GABEO – the organization for which he has served as president since 1993. Sadly, by diverting these funds to his own use, Representative Brooks deprived those most in need of critical assistance.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the FBI continues to make public corruption matters its number one priority within its criminal branch, we do so with a clear commitment to the rule of law. Today’s federal grand jury indictment reflects the commitment of the FBI and its law enforcement partners to follow the facts of these investigations wherever they lead us.”
“Mr. Brooks exploited two charitable organizations for his own personal financial gain which came at the expense of the intended beneficiaries of the charitable donations. IRS Criminal Investigation is committed to investigating individuals who use charitable organizations for their personal gain,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Mr. Brooks defrauded not only the donors but also the American taxpayer by evading his tax obligations. Tax compliance should and must be equally shared among all Americans.”
Brooks, 67, of Atlanta, Ga., was charged by a federal grand jury in a 30-count indictment that includes charges of mail, wire and tax fraud. The indictment charges that, from the mid-1990s through 2012, Brooks solicited contributions from individuals and corporate donors to combat illiteracy and fund other charitable causes, but then used the money to pay personal expenses for himself and his family. The indictment was returned today, and Brooks will appear for arraignment on a date set by the Court.
According to the Indictment:
Universal Humanities SchemeThe indictment charges two fraud schemes, the first involving a tax-exempt charity, Universal Humanities, Inc., that Brooks established in the early 1990s. From at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $780,000. Donors included the Coca-Cola Company ($400,000), Georgia Pacific Company ($140,000), Northside Hospital ($240,000), and others who gave smaller amounts. Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy and how the donated funds would be used, claiming that Universal Humanities had established literacy programs and was conducting workshops and tutoring and mentoring students. He also falsely claimed that Universal Humanities utilized a staff and operated under the direction of a board of directors.
The indictment alleges that in reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students. Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses.
Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses. At times, Brooks paid personal expenses directly from the Universal Humanities account.
More specifically, the indictment alleges that:
- Contrary to Brooks’ representations to donors, Universal Humanities never had a functioning board of directors. The individuals listed on the solicitations and incorporation documents were unaware that Brooks had identified them as Universal Humanities board members, and most had never even heard of the organization;
- Brooks represented in a 1999 solicitation that Universal Humanities had been “so successful” in Georgia that it was expanding its programs to other states in the Southeast, and expected to have a projected budget of $500,000. In truth, Universal Humanities did not have an operational literacy program inside or outside of Georgia, nor did it have a projected budget of $500,000;
- Brooks represented in a 2010 solicitation that Universal Humanities’ literacy program, which Brooks called “Visions of Literacy,” consisted of a host of “outlets” created to increase literacy and included activities such as seminars, workshops, tutoring, mentoring, and rallies. Brooks further claimed that Universal Humanities and its “staff ha[d] over 40 years’ experience in assisting U.S. communities through a variety of efforts,” and that 10,000 people would be the direct beneficiaries of the literacy program. In truth, Universal Humanities and Brooks did not operate a functional literacy program, host the literacy activities described in the solicitation, or have a staff;
- Brooks represented in a 2011 solicitation that the Visions of Literacy program conducted monthly workshops, seminars, and advocacy outreach activities, and that the solicited funds would be used to hire retired teachers and administrators as “educational consultants” to gain “targeted results.” Instead, Brooks spent the funds donated in response to this solicitation on payments for a personal credit card charges, personal loan payments, utility bills, and a $500 check to a family member as a Christmas gift;
- Unbeknownst to GABEO, Brooks represented in a 2011 solicitation that GABEO was a “sister organization” to Universal Humanities and that GABEO was committed to the “growth and advancement of Universal Humanities.” Brooks falsely claimed that GABEO members spoke in public forums to implement and promote Universal Humanities’ programs; that GABEO members taught at Universal Humanities meetings and classes “alongside” Universal Humanities community organizers; and that GABEO members served on the Universal Humanities’ board of directors, steering committee, fundraising committee, and program management committees, though the purported committees were nonexistent; and
- Brooks submitted a form to the IRS under oath claiming that Universal Humanities incurred expenses of $62,652 for printing, postage, and publications in 2007; $67,601 for “commemorative events” in 2008; and $53,184 for charitable contributions, fundraising, and conferences in 2009. Just one year before, Brooks had submitted the same form under oath claiming that for the same years, Universal Humanities incurred expenses of only $8,900 for each of those years and had generated income of over $50,000.
As a result of Brooks’ misappropriation of donated funds, the intended beneficiaries of the funds did not receive the needed literacy training or assistance.
GABEO Scheme
A second related scheme charged in the indictment alleges that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family. GABEO is an organization of state, county, and municipal elected officials that promotes voter registration, crime prevention, literacy and economic empowerment initiatives.
The indictment alleges that Brooks solicited contributions to GABEO from corporations, organizations and individuals. When Brooks was elected as GABEO’s President in 1993, the organization already maintained an official bank account at a local bank. This account was administered by GABEO’s Treasurer, and disbursements required two signatures by GABEO Board members. In December 1997, Brooks secretly opened a second GABEO bank account at a different bank. Brooks set himself up as the sole signatory on this account, and had the account statements sent to his address rather than the address of the GABEO Treasurer. Brooks then deposited the donations he solicited on behalf of GABEO into this undisclosed account, and used much of these funds to pay personal expenses for himself and his relatives.
Between 2002 and 2012, businesses, civic, religious groups and individuals contributed approximately $300,000 to GABEO through Brooks, which he then deposited into the undisclosed GABEO account. The indictment alleges that Brooks misappropriated donations he solicited on behalf of GABEO from corporations, local teacher unions, small business owners, and individual donors – all of whom relied on Brooks’ assurances that the contributions were intended to further GABEO’s community activities. The GABEO Board was unaware of this activity and did not approve these transactions. In fact, the indictment alleges that after Brooks began diverting donations, members of GABEO’s Board of Directors noted the organization’s apparent loss of most of its corporate donations.
The indictment charges that Brooks misappropriated the GABEO funds in much the same manner as the Universal Humanities funds. The indictment alleges that generally, Brooks deposited funds he solicited on behalf of GABEO into the undisclosed GABEO account, then transferred the funds to his personal account, from which he paid his personal expenses. While Brooks utilized some of the GABEO donations to pay expenses related to GABEO’s annual meetings, he utilized much of the GABEO funds for personal expenses.
More specifically, the indictment charges that:- During the time that Brooks acted as GABEO’s President, a variety of charitable groups, companies and individuals made donations to GABEO through Brooks. These donors relied on Brooks’ representations that GABEO would use the contributions to defray the costs of the organization’s annual meetings and convention, and to support GABEO’s programs;
- Brooks made specific false representations to donors about how the solicited funds would be used, claiming that the funds would be used to cover the expenses of annual GABEO meetings, support GABEO crime prevention and child hunger initiatives, voter registration, felon rehabilitation initiatives, and literacy programs. Donors included Coca Cola ($96,500), Georgia Power ($37,000), the International Brotherhood of Teamsters ($36,000), and others;
- Additionally, a professional organization of teachers contributed to GABEO through Brooks, relying on his assurances that the funds would go to support GABEO’s annual meetings and convention. An Atlanta law firm gave to GABEO through Brooks based on his representation that the funds would help fund a children’s school and GABEO’s annual convention. A bank contributed to GABEO through Brooks based upon his representations that the funds would be used by GABEO to construct a commemorative marker at Moore’s Ford Bridge. Instead, Brooks deposited these funds into the undisclosed GABEO account that he controlled and then transferred the money to pay to his personal account, ultimately using most of the contributions to pay personal expenses; and
- In November 2011, and May 2012, without the knowledge and consent of GABEO’s Board of Directors, Brooks obtained bank loans on behalf of GABEO. Brooks told the bank that GABEO intended to use the proceeds of both loans for “Citizenship Education Get Out the Vote” initiatives. Relying on Brooks’ representations, the bank approved both loans and issued the proceeds to Brooks. Brooks subsequently used much of the funds to pay personal expenses rather than for GABEO’s education and voter registration programs as he claimed in the loan applications.
By misappropriating GABEO donations for his personal use, Brooks benefitted himself at the expense of both GABEO and the communities most in need of the literacy, crime prevention and voter registration programs for which the funds were intended.
False Tax Returns Charges
Finally, the indictment charges that Brooks substantially underreported his income to the IRS for the years 2007 through 2011. Despite Brooks’ charged misappropriation of hundreds of thousands in donations to Universal Humanities and GABEO, his tax returns for the years between 2008 through 2011 falsely reported income of only approximately $35,000 annually.
Overview of the Charges
The indictment charges 30 counts of mail, wire and tax fraud. The mail and wire fraud charges carry a maximum sentence of 20 years in prison and a fine of up to $250,000. The tax charges carry a maximum sentence of three years and a fine of up to $100,000. It is important to note that the sentences imposed may not approach the statutory maximum sentences, as the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine, Richard S. Moultrie, Jr. and Kamal Ghali are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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.
Brooks Indictment
Couple Indicted for Sex Trafficking of A JuvenileRead the Press Release
Defendants Allegedly Ran Their Operation from a Buckhead Home
ATLANTA - Steven E. Thompson and Tierra Michelle Waters have been indicted by a federal grand jury on charges of sex trafficking of a juvenile and conspiring to do the same.
“These defendants preyed on a young girl in need requiring her to have sex with men if she wanted to keep a roof over her head,” said United States Attorney Sally Quillian Yates. “Trafficking children is appalling and unacceptable. With the help of our partners in the community, we will press on with efforts to reach those who are being exploited, and prosecute those who choose to engage in this inhumane practice.”“Forced prostitution, especially in the case of children, is a crime that leaves scars long after any physical wounds have healed,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Thanks to the hard work of HSI special agents, investigators from the Georgia Bureau of Investigation and prosecutors from the U.S. Attorney’s Office, these defendants will be held accountable for their actions before the law.”
According to United States Attorney Yates, the charges and other information presented in court: Thompson, 42, and Waters, 30, both of Atlanta, Ga., offered the young girl a place to stay at Thompson’s condominium in the Buckhead area of Atlanta. After the young girl moved in, she was told that she had to earn money for rent, and that she would be required to engage in prostitution. Thompson and Waters placed advertisements describing the juvenile on Backpage.com, soliciting men to have sex with the young girl either at the condominium or at a place the customer chose. Some advertisements falsely listed the juvenile as “Sasha” age 19, when in fact she was 17. Other advertisements showed both Waters and the juvenile, under the name “Naomi”, age 20, requesting a “donation” of $150 an hour. Thompson and Waters also provided marijuana to the juvenile before she had to perform commercial sex acts.
The indictment charges two counts, one substantive count of sex trafficking of a juvenile by force, fraud or coercion and one count of conspiracy to engage in sex trafficking. The victim is identified in the indictment by her initials. Each charge carries a maximum sentence of life 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. Thompson is scheduled for a bond hearing on May 21, 2013 at 11:00 a.m. before United States Magistrate Judge Linda T. Walker. Waters is scheduled for arraignment on May 31, 2013 at 10:00 a.m. before United States Magistrate Judge Alan J. Baverman.This case is being investigated by Special Agents of the Department of Homeland Security and the Georgia Bureau of Investigation.
Assistant United States Attorneys Susan Coppedge and Leslie Abrams are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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.
C.R. Bard, Inc. to Pay U.S. $48.26 Million to Resolve False Claims Act ClaimsRead the Press Release
ATLANTA - C.R. Bard, Inc. has agreed to pay the United States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act. Bard is a New Jersey based corporation that develops, manufacturers, and markets medical products used for a variety of conditions, including prostate cancer.
The settlement requires that Bard pay $48.26 million and it resolves claims relating to Bard’s sale of brachytherapy seeds, a form of radiation therapy, to hospitals. The United States alleged that from 1998 to 2006, Bard provided illegal renumeration to customers and physiciansto induce them to purchase Bard’s seedsin violation of the Anti-kickback Statute, 42 U.S.C. § 1320a-7b(b). The illegal renumeration allegedly took the form of certain grants, guaranteed minimum rebatesconference fees, marketing assistance and/or free medical equipment that Bard paid to customers and/or physicians who used the seeds to perform treatment for prostate cancer. Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims.
Sally Quillian Yates, United States Attorney for the Northern District of Georgia, said, “Illegal kickbacks in any form pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient.”
“We will continue to work with our various law enforcement partners in the pursuit of those who abuse publicly funded health care programs such as Medicare and Medicaid, through criminal prosecutions or civil settlements under the False Claims Act,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Such abuses as we’ve seen in this case will not be tolerated.”
“Kickbacks, basically no more than bribes, erode trust in the health care system,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. “Companies paying illegal kickbacks to fatten their bottom lines should be prepared for aggressive investigation and prosecution.”
The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Julie Darity, a former Bard Manager for Brachytherapy Contracts Administration under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Darity v. C.R. Bard, Inc., et al., Civ. Action No. 1:06-cv-0208-SCJ (N.D. Ga.). Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The former manager will receive $10,134,600 as her share of the civil settlement.
In addition, pursuant to a Non-Prosecution Agreement with the United States, Bard has agreed to pay an additional $2.2 million and to take numerous remedial steps, many of which the company identified and began to implement prior to the criminal investigation, to enhance its corporate compliance program to prevent similar illegal actions in the future. For example, Bard has agreed to refine its Code of Conduct and other written policies and procedures that promote Bard’s commitment to full compliance with all Federal health care program requirements and to develop an effective program to monitor medical education grants provided by Bard to ensure compliance with those requirements.The resolutions announced today are part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
These settlements were the result of a coordinated effort by the United States Attorney?s Office for the Northern District of Georgia; the Department of Justice, Civil Division, Commercial Litigation Branch; the Federal Bureau of Investigation, and the Department of Health and Human Services, Office of Inspector General, in investigating the allegations in this case.The case was prosecuted by Assistant United States Attorneys Neeli Ben-David and Christopher C. Bly.
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 Pilot Sentenced in Tax Fraud SchemeRead the Press Release
Used Hijacked Company Names to File For Fuel Tax Refunds
ATLANTA - Former pilot Charlie Shivers, III, has been sentenced to serve over seven years in federal prison for his role in a tax fraud scheme.
“Tax fraudsters rob not only the government, but honest taxpayers who are paying their fair share,” said United States Attorney Sally Quillian Yates. The defendant in this case went beyond cheating on his own taxes, to file over a hundred false returns that were totally fictitious, claiming over $35 million in fraudulent fuel tax refunds. This office is committed to putting tax fraudsters where they belong – behind bars.”“Today’s sentencing of Mr. Shivers should serve as a stark reminder to others that such greed-based criminal behavior as seen in this case comes with a cost,” stated Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers.”
“The United States Secret Service and our law enforcement partners work tirelessly to maintain the taxpayer’s trust in our economic system. We will continue to combine our investigative capabilities to pursue and arrest offenders who violate this trust,” 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: In 2009, 2010, 2011 and 2012, Shivers filed and caused to be filed over 100 fraudulent corporate tax returns, claiming $35 million in refunds for fuel taxes falsely claimed to have been paid on fuel purchased for off-road company vehicles. The IRS actually paid Shivers and his co-conspirators over $5.6 million from those falsely claimed tax refunds prior to his arrest in May 2012. The false claims were made in the names of hijacked corporations and shell companies, none of which used off-road vehicles or paid the fuel tax claimed for refund.
Shivers, 40, of Atlanta, Ga., pleaded guilty to two counts of filing false claims against the United States on August 9, 2012. He was sentenced today by United States District Court Judge Thomas W. Thrash to 7 years in prison to be followed by 3 years of supervised release. He was also ordered to pay $5,630,681.66 in restitution to the United States Treasury.
This case was jointly investigated by Special Agents of the United States Secret Service and Internal Revenue Service Criminal Investigation.Assistant United States Attorneys Gale McKenzie and Alana R. Black 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.
The United States Attorney’s Office and Department of Justice Reach A Settlement Agreement Today with the DeKalb County School District to Resolve Complaints of Religious HarassmentRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia and the Justice Department in Washington, D.C. have reached a settlement agreement with DeKalb County (GA) School District to resolve the Department’s investigation into allegations of religious and national origin harassment of a Sikh middle school student (“Student”).
Counsel for the Sikh Coalition filed the complaint with the Department on behalf of the Student, alleging that he had been repeatedly targeted with verbal and physical harassment because of his Sikh faith. The alleged harassment included claims that a peer had tried to cut the Student’s hair in violation of his religion; that the Student was called "Aladdin" because he wore a turban; that the Student had been told by a peer to “go back to his country”; and that the harassment culminated in a physical altercation with another student.
The complaint alleged that the school district failed to respond appropriately to numerous incidents, that disciplinary measures had been ineffective in ending the harassment, and that the Student feared continued harassment. The school district denied the allegations but agreed to work cooperatively with the Department to resolve the complaint and protect the Student. The Department has authority to investigate and resolve complaints of religious and national origin harassment through its enforcement of Title IV of the Civil Rights Act of 1964.
The settlement agreement, which will be in effect until the end of the 2014‑2015 school year, requires the school district to work with a consultant to develop and implement anti‑harassment training that addresses religious and national origin bias at both the Student’s middle and high school. The agreement also requires the district to immediately implement a safety plan for the Student that will ensure that the Student is safe when he is at school and should incidents of harassment occur, that the district responds quickly and effectively to address the incident. In order to prepare for the Student’s transition to high school, the agreement also requires the school district to meet with the student, his family, and administrators from his middle and high school to identify key school personnel who can support the Student should any incidents of harassment occur at his new school.
“Every student should be able to attend school without fear of being harassed and bullied because of his skin color or religious beliefs,” said United States Attorney Sally Quillian Yates. “I am encouraged by DeKalb County’s willingness to take immediate steps to ensure that students attending DeKalb County schools are free of this type of harassment and bullying.”
In Washington D.C., Jocelyn Samuel, Principal Deputy Assistant Attorney General for the Civil Rights Division said, “Students of all faiths must be protected from harassment and other forms of discrimination. We commend the district for stepping forward and putting student safety first. We are encouraged by the district’s resolve to support and provide anti-harassment training on issues facing students from the Sikh, Muslim, Arab American and South Asian communities.”
The enforcement of Title IV is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Assistant United States Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Griffin Store Front Owner Convicted of Food Stamp FraudRead the Press Release
Dix Defrauded the USDA of Over $400,000
ATLANTA - Herbert Dix pleaded guilty today in federal district court to defrauding the U.S. Department of Agriculture and possessing forged Women, Infant and Children (WIC) vouchers.
“Many people rely on government assistance to feed their families and children,” said United States Attorney Sally Quillian Yates. “This conviction demonstrates our commitment to prosecute those who defraud the USDA of funds meant for the neediest families.”Karen Citizen-Wilcox, Special Agent-in-Charge of the USDA-OIG said, “The USDA-OIG takes fraud in its nutritional programs very seriously and will work with the Department of Justice and other federal and state law enforcement entities to vigorously investigate and prosecute individuals who defraud USDA programs. In these economic times, the need for nutritional assistance has increased. Taxpayers expect their tax dollars to be used effectively and only within the confines of the rules and regulations of nutritional assistance programs. Trafficking in benefits by purchasing those benefits for cash is illegal. The OIG is committed to maintaining integrity in the USDA programs and continuing its investigations into these illegal activities.”
“We applaud the difficult work of our law enforcement partners,” said Brenda Fitzgerald, M.D., commissioner of the Georgia Department of Public Health. “Along with DPH’s team of inspectors, law enforcement and the courts have worked tirelessly to identify, investigate, prosecute and eliminate elements of fraud from the state’s WIC program, saving Georgia taxpayers tens of millions of dollars.”
According to United States Attorney Yates, the charges and other information presented in court: Dix owned and operated a store front grocery in Griffin named Spank’s Quick Stop. The store was authorized by the State of Georgia to redeem Women, Infant and Children (WIC) vouchers for specified food items, such as infant formula, milk, and cheese. The Georgia Department of Public Health issues WIC vouchers to low income - at risk families which they can use to purchase specified food items from authorized grocers. Contrary to federal law and state regulations, Dix and his employees paid cash for the WIC vouchers instead of accepting them as payment for the food items listed on the vouchers.
On 18 separate occasions, an undercover law enforcement officer entered Spank’s Quick Stop where Dix and his employees redeemed blank WIC vouchers for cash. Dix then filled in an amount on the vouchers significantly greater than what he paid for the vouchers and deposited the vouchers into his bank account. In December 2010, federal, state and local law enforcement officers executed a search warrant at Spank’s and seized over 100 forged blank WIC vouchers. An analysis of Dix’s bank records revealed that between 2010 and 2011 Dix defrauded the USDA of in excess of $400,000.
Dix, 49, of Riverdale, Ga., was indicted in July 2012, on 18 counts of WIC fraud and 83 counts of possession of forged securities. He pleaded guilty to the entire indictment. On Counts One through Eighteen on each count, he could receive a maximum sentence of five years in prison and a fine of up to $25,000. On Counts Nineteen through One Hundred-One, on each count he could receive a maximum sentence of ten 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.
Sentencing is scheduled for July 17, 2013 at 10:00 a.m., before United States District Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the United States Department of Agriculture, Office of Inspector General, Georgia Department of Public Health, Office of Inspector General, and the Griffin Police Department.
Assistant United States Attorney David Leta 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.
Federal Inmate Sentenced for Assaulting Prison WardenRead the Press Release
ATLANTA – Jeree E. Grey was sentenced today to serve more than seven additional years in federal prison following his conviction by a jury for assaulting the warden of the United States Penitentiary in Atlanta.
“Even an isolated act of violence against an employee inside a federal prison places the safety of all prison staff and inmates at risk,” said United States Attorney Sally Quillian Yates. “In this case, the warden was carrying out his duty to maintain safety, security, and good order at the penitentiary when, without provocation, Inmate Grey attacked him.”“The federal inmate in this matter will be held accountable for his violent actions,” said Mark F. Giuliano, Special Agent in Charge of the FBI’s Atlanta Field Office. “The FBI remains ready to provide its investigative resources and other assets as needed in assisting the U.S. Bureau of Prisons and their staff in maintaining law and order within U.S. Penitentiary-Atlanta.”
According to United States Attorney Yates, the charge and other information presented during Grey’s trial, on the morning of March 26, 2012, Grey, 33, of Birmingham, Alabama, was walking in a line with other inmates headed to their morning work call in the United States Penitentiary in Atlanta. Without warning, Grey stepped from the line and struck the warden multiple times, injuring the warden’s face and neck. At the time of the assault, Grey was serving a ten-year prison sentence for possession with intent to distribute more than five kilograms of cocaine.
Grey was sentenced before United States District Court Judge Thomas W. Thrash, Jr. to serve an additional seven years, three months in prison to be followed by three years of supervised release.
This case was investigated by Special Agents of the Federal Bureau of Investigation.Assistant United States Attorney Brent Alan Gray 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.
Cobb County Man Who Sold Bomb to an Undercover Officer SentencedRead the Press Release
Defendant Manufactured an Improvised Explosive Device
ATLANTA - Mark Young was sentenced today to serve over five years in federal prison on charges of possessing a destructive device by United States District Judge Steven C. Jones.
"The recent tragedy in Boston underscores the havoc a homemade bomb can wreak,” said United States Attorney Sally Quillian Yates. “We are committed to aggressively prosecuting those who put the safety and security of our citizens at risk by constructing explosives devices.”
“ATF agents, working closely with our local law enforcement partners, arrested a violent individual who posed a significant danger to our community,” said ATF Special Agent in Charge Christopher Shaefer. “Through this cooperative effort, we were able to stop any potential harm to the citizens of Atlanta, Georgia.”
According to United States Attorney Yates, the charges and other information presented in court: On or about January 13, 2012, an undercover officer (UC) met with Young and received a sample of what Young referred to as homemade explosives. In the days leading up to this, the UC had received information that Young had manufactured his own “C-4,” which is a type of plastic explosive The UC called Young, who spoke in “code” over the phone and said he had made something he was willing to give the UC a free sample of. Young then met the UC in a mall parking lot and provided the UC with an unknown substance on a paper plate. Young described the substance as being capable of making an explosion that would be similar to a few “M-80’s going off.” Young added that the amount he gave to the UC could blow up a car if the UC used it as a “shape charge on the gas tank.”
In February 2012, Young told the UC that he had made a new batch of C4. Young sold the UC the new material through a middleman, and ATF chemists determined that it was an explosive. Next, on April 2, 2012, Young told the UC that he had made a new bomb. Young met the UC wearing a ballistic vest and had a .44 caliber Smith & Wesson revolver sitting on his lap. Young sold the UC the bomb for $750. He was then arrested, and the bomb was rendered safe. ATF determined that the bomb was in fact an IED (Improvised Explosive Device).
Young, 46, of Cobb County, Ga., was sentenced to five years, three months in prison to be followed by three years of supervised release. Young was convicted of these charges on February 27, 2013, after he pleaded guilty.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearm and Explosives and members of the Atlanta Police Department.
Assistant United States Attorney Stephanie Gabay-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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Algerian National Extradited from Thailand to Face Federal Cybercrime Charges in Atlanta for “SpyEye” VirusRead the Press Release
ATLANTA –Hamza Bendelladj, an Algerian national also known as “Bx1,” will be arraigned on Federal cybercrime charges for his role in developing, marketing, distributing, and operating the malicious computer virus “SpyEye.”
“No violence or coercion was used to accomplish this scheme, just a computer and an Internet connection,” said United States Attorney Sally Quillian Yates. “Bendelladj’s alleged criminal reach extended across international borders, directly into victims’ homes. In a cyber-netherworld, he allegedly commercialized the wholesale theft of financial and personal information through this virus which he sold to other cybercriminals. Cybercriminals take note; we will find you. This arrest and extradition demonstrates our determination to bring you to justice.”“Hamza Bendelladj has been extradited to the United States to face charges of controlling and selling a nefarious computer virus designed to pry into computers and extract personal financial information,” said Acting Assistant Attorney General Mythili Raman. “The indictment charges Bendelladj and his co-conspirators with operating servers designed to control the personal computers of unsuspecting individuals and aggressively marketing their virus to other international cybercriminals intent on stealing sensitive information. The extradition of Bendelladj to face charges in the United States demonstrates our steadfast determination to bring cybercriminals to justice, no matter where they operate.”
“The FBI has expanded its international partnerships to allow for such extraditions of criminals who know no borders,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The federal indictment and extradition of Bendelladj should send a very clear message to those international cybercriminals who feel safe behind their computers in foreign lands that they are, in fact, within reach.”
Bendelladj, 24, was indicted by a Federal grand jury in Atlanta, GA. on December 20, 2011. The 23-count indictment charges him with one count of conspiring 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. Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Egypt. The indictment was unsealed on May 1, 2013. Bendelladj was extradited from Thailand to the United States on May 2, 2013, and will be arraigned in United States District Court before United States Magistrate Judge Janet F. King.According to court documents, the SpyEye virus is malicious computer code or “malware,” which 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 computers through command and control (C&C) servers. Once a computer is infected and under the cybercriminals’ control, a victim’s personal and financial information can be surreptitiously collected using techniques such as “web injects,” which allow cybercriminals to alter the display of web pages in the victim’s browser in order to trick them into divulging personal information related to their financial accounts. The financial data is then transmitted to the cybercriminals’ C&C servers, where criminals use it to steal money from the victims’ financial accounts.
The indictment alleges that from 2009 to 2011, Bendelladj and others developed, marketed and sold various versions of the SpyEye virus and component parts on the Internet and allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information. Bendelladj allegedly advertised the SpyEye virus on Internet forums devoted to cybercrime and other criminal activities. In addition, Bendelladj allegedly operated C&C servers, including a server located in the Northern District of Georgia, which controlled computers infected with the SpyEye virus. One of the files on Bendelladj’s C&C server in the Northern District of Georgia allegedly contained information from approximately 253 unique financial institutions.
If convicted, Bendelladj faces a maximum sentence of up to 30 years in prison for conspiracy to commit wire and bank fraud; up to 20 years for each wire fraud count; up to five years for conspiracy to commit computer fraud; up to five or ten years for each count of computer fraud; and fines of up to $14 million dollars.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Special Assistant United States Attorney Nicholas Oldham and Assistant United States Attorney Scott Ferber of the Northern District of Georgia, and Trial Attorney Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. Valuable assistance was provided by the Criminal Division’s Office of International Affairs, which worked with its international counterparts to effect the extradition.
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.
Gainesville Man Charged with Making and Distributing Child PornographyRead the Press Release
Victims Were Two Girls in Defendant’s Care
GAINESVILLE, Ga. – Michael Cannon, II, was arraigned today on charges that he produced, distributed, and received child pornography. The indictment was returned by a federal grand jury on April 9, 2013.
“Photographing molestation and trading the images over the Internet with like-minded individuals in exchange for more child pornography is horrendous,” said United States Attorney Sally Quillian Yates. “Child pornography robs children of their innocence. It also places a permanent record of the victimization of these children on the internet. To make matters even worse, in this case the two girls were in the defendant’s care. Law enforcement officers have identified and rescued the children, and the defendant will now have to answer for participating in this cycle of victimization.”
“While HSI special agents are working around the clock and around the world to drain the cesspool that is child pornography, the identification and rescue of victims suffering at the hands of depraved child predators is of the highest priority,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “Every single law enforcement agency in this country is absolutely dedicated to hunting down these predators and holding them accountable for their despicable actions. I strongly encourage citizens everywhere to do their part to help protect our innocent children by reporting any signs of abuse they witness. It will take the collective efforts of law enforcement and members of our communities to successfully bring these monsters to justice.”
According to United States Attorney Yates, the charges and other information presented in court: In mid-December 2012, Cannon, 33, of Gainesville, Ga., allegedly posted several images of a 10-year-old girl on a foreign-based website where people could post and share photographs. At least one of the images was child pornography. Several individuals posted comments on Cannon’s photographs and asked about trading photos. According to the information presented in court, Cannon gave them his e-mail address and, when they wrote him, he sent them explicit photographs showing him in the act of molesting two young girls. In return, he received dozens of e-mails containing images and videos of other children being sexually abused. As part of their investigation, special agents determined the true identities of the two minor victims that Cannon is alleged to have .photographed and posted online.
The charge of producing child pornography carries a mandatory minimum period of confinement of 15 years and a maximum sentence of 30 years in prison. The charge of receiving child pornography carries a mandatory minimum confinement period of 5 years and a maximum term of 20 years in prison. The charge of possessing child pornography carries a maximum sentence of 10 years in prison. Each charge carries a fine of up to $250,000 and a period of supervised release from 5 years to life. 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 indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
These cases are 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.
This case is being investigated by Special Agents of the United States Department of Homeland Security, Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones 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.
Female Human Trafficker SentencedRead the Press Release
Defendant Ran an Interstate Prostitution Ring Involving a Juvenile
ATLANTA - Jessica Loren Posey was sentenced today to serve over seven years in federal prison for transporting a 16-year-old juvenile girl to Tennessee, Kentucky, and Ohio for the purpose of prostitution.
“Child sex trafficking is an horrific crime committed by both men and women,” said United States Attorney Sally Yates. “This defendant had no regard for the vulnerability of her victim and lured her into a quick-money lifestyle that led to the juvenile’s repeated sexual exploitation. Human traffickers should take note: You will be found and prosecuted for your role in sexual exploitation.”
“The FBI will continue to make those who engage in human trafficking a priority for investigation and prosecution,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Today’s sentencing of defendant Posey should provide some solace for those whom she victimized in that she has now been taken off the streets.”
According to United States Attorney Yates, the charges and other information presented in court: In or about April 2010, Posey met the juvenile girl at a party. While the victim was only 16 years old, Posey caused her to engage in prostitution. To facilitate the girl’s commercial sex acts, Posey used a laptop computer to create advertisements of the child that she placed on websites, including backpage.com; uploaded nude photographs of the juvenile on her cell phone and on a website that Posey created; arranged for customers to engage in sex acts with the victim; and rented the hotel rooms where she caused the girl to engage in prostitution. Posey also drove the juvenile, and other young women, to various locations outside Georgia to commit commercial sex acts, including Chattanooga and Knoxville, Tennessee, Ohio and Kentucky. Posey received one half of the proceeds earned by the juvenile victim and the other young women. Following Posey’s arrest, the victim returned to live with her family.
Posey, 25, of Atlanta was sentenced by United States District Judge Richard W. Story to seven years, three months in prison to be followed by five years of supervised release. She was also ordered to pay restitution in the amount of $1,200 to the minor victim, perform 100 hours of community service, and register as a sex offender. Posey was convicted of these charges on February 6, 2013, following her entry of a guilty plea.This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI) with assistance from the FBI’s Metro Atlanta Child Exploitation Task Force, including the Atlanta Police Department, Gwinnett County Police Department, City of Marietta Police Department, Fulton County Police Department, Clayton County Police Department, and the Sandy Springs Police Department.
If anyone has any information about human trafficking, they are encouraged to report the information to the FBI at 404-679-9000.Assistant United States Attorneys Susan Coppedge and Richard Moultrie 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.
Two Inmates Indicted for Killing Inside Federal PrisonRead the Press Release
ATLANTA - Federal inmates Donald R. Lafond, Jr., and Jason Robert Widdison, have been indicted for the 2011 murder of a fellow prisoner at the United States Penitentiary in Atlanta, Ga.
“Offenders who commit violent acts like this must be prosecuted to the fullest extent of the law,” said United States Attorney Sally Quillian Yates. “The Department of Justice and its Bureau of Prisons endeavors 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.”
According to United States Attorney Yates, the charges and other information presented in court, on March 1, 2011, Lafond, 52, and Widdison, 34, were exercising inside the prison’s special housing unit recreation area. The victim, a fellow inmate, 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. Corrections officers 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.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The basic civil liberties of the victim federal inmate in this case were absolutely ignored by fellow inmates Lafond and Widdison and that will not be ignored by federal authorities. The FBI will continue to provide investigative assistance and other assets as needed in assisting the U.S. Bureau of Prisons maintain order within U.S. Penitentiary- Atlanta.”
Lafond and Widdison appeared today in federal court in Atlanta before United States Magistrate Judge Janet F. King. The indictment charges that the defendants, aided and abetted by one another and with malice aforethought, killed the victim by punching and stomping him. The charge carries a maximum sentence of life in prison and a maximum fine of $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentence ranges for most offenders.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.Members of the public are reminded that the indictment contains only allegations. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
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.
Georgia Man Indicted for Tax Fraud and Identity TheftRead the Press Release
Defendant Filed Over 5,000 False Claims for “Stimulus Money”
ATLANTA – Mauricio Warner has been indicted by a federal grand jury for stealing the identities of thousands of individuals to file federal tax returns claiming over $6 million in bogus refunds.
“This defendant and identity thieves like him steal millions in taxpayer dollars every year,” said United States Attorney Sally Quillian Yates. “We have seen a decided trend in identity thieves turning to phony IRS refunds instead of more traditional credit card fraud schemes, and have allocated increased resources to reverse this trend. Our office will continue to protect the citizens of this district, bring fraudsters to justice, and return the stolen money to the U.S. Treasury.”
“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “They steal our identities, steal government money, and prey upon innocent citizens. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2011 to April 2012, Warner, 37, of Smyrna, Ga., allegedly filed over 5,000 false tax returns using the names and social security numbers of unsuspecting victims. Victims were told they could submit an application for a “stimulus payment” or “Free Government Money” by providing their names and social security numbers. It is alleged that in some instances, he used toll-free telephone numbers to collect victims’ personal identifying information. Warner then used the victims’ names and social security numbers to claim millions of dollars in fraudulent refunds. The victims did not know tax returns were being filed in their names.
Additionally, the United States has seized seven bank accounts controlled by Warner that contain $4,185,455.31 in funds believed to be derived from or involved in this scheme.
Warner was arraigned in front of United States Magistrate Judge Linda T. Walker yesterday on the charges. The indictment charges 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and 2 counts of money laundering. Each wire fraud count carries a maximum sentence of 20 years in prison, each false claim count carries a maximum sentence of 5 years in prison, and each money laundering count carries a maximum sentence of 10 years in prison. 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.
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.
This case is being investigated by Special Agents of 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 Stephen H. McClain and Thomas J. Krepp are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A 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.
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.