Northern District of Georgia
Press releases recorded for this federal judicial district.
Former Employee Charged with Embezzling over $700,000Read the Press Release
ATLANTA - Late Tuesday a federal grand jury returned a superseding indictment of DeMarco Doxie adding 26 counts of wire fraud relating to theft from his former employer. He was first indicted last month on 21 counts of mail fraud.
“While entrusted with an important position in his company, this defendant took advantage of and violated his employer’s trust, using his position to embezzle money on a routine basis over a long period of time,” said United States Attorney Sally Quillian Yates. “People who brazenly steal from their employers in this manner should expect to be held accountable.”
According to United States Attorney Yates, the charges and other information presented in court: Doxie, 43, of Peachtree City, Ga., served as the Corporate Environmental Health & Safety Manager for Ennis Paint (currently known as Ennis-Flint). Ennis, headquartered in Dallas, Texas, manufactures and sells a variety of road marking and pavement surface treatments. Doxie worked at a facility Ennis maintains in Atlanta.
During more than four years of his employment, from June 2007 through August 2011, Doxie used Outlook Environmental & Safety Solutions, LLC - a sham business that he created and owned - as his main vehicle to systematically embezzle large sums of money from Ennis. Beginning in June 2007, Doxie created and submitted fictitious invoices for environmental work that Outlook had supposedly performed for Ennis. Doxie knew the work had not been performed and that there were no Outlook employees. Ennis was never informed that Doxie was the actual owner of Outlook, and would never have paid the invoices had it known.
The superseding indictment further charges that Doxie also defrauded Ennis by using an American Express Corporate Card issued by Ennis that was supposed to be used for Ennis’ expenses. Doxie used the American Express company credit card to make payments to Outlook even though Outlook had not performed any work for Ennis. Ennis paid the monthly bill on Doxie’s Corporate American Express card. Ennis would not have approved the payments had it known that Doxie was the true owner of Outlook.
In total, Doxie received more than $700,000 from Ennis as a result of his fraud schemes.
The indictment charges 21 counts of mail fraud and 26 counts of wire fraud. Each count carries a maximum sentence of 20 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.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Glenn D. Baker 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.
Former Woodruff Arts Center Employee Pleads Guilty to EmbezzlementRead the Press Release
ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.
“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates. “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”
"Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors. The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices. Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark.
Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and a fine of up to $250,000. 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 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Woodruff Arts Center Employee Pleads Guilty to EmbezzlementRead the Press Release
ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.
“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates. “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”
“Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors. The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices. Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark.
Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and a fine of up to $250,000. 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 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Seventeen-Time Felon Sentenced for Possessing Assault Weapon AmmunitionRead the Press Release
ATLANTA - Keith Wade was sentenced in federal court today to serve over 16 years in federal prison after a jury found him guilty on September 27, 2012, of possession of ammunition by a convicted felon.
“This seventeen-time felon has been victimizing the citizens of Georgia for over 20 years, committing crime after crime, many of which involved firearms,” said United States Attorney Sally Quillian Yates. “Assault weapons and high capacity magazines in the hands of convicted felons like the defendant threatens the safety of law enforcement and the citizens of Georgia.”
“The criminal history of the defendant (Wade) shows a complete and utter disregard for the lives of others as well as for their personal pursuits,” said ATF Special Agent in Charge Christopher Shaefer. “As an agency and unified law enforcement community, we will not tolerate armed violent felons continually terrorizing and reducing the quality of life in the neighborhoods where we live, work, and play.”
According to United States Attorney Yates the charges and other information presented in court or contained in public documents: Wade was on parole when his parole officer received a call from a person who wished to remain anonymous. The caller stated that the defendant was threatening him and his girlfriend. The girlfriend had dated Wade at one time. The caller told the defendant’s parole officer that Wade had made threatening phone calls, sent threatening text messages, and had driven past the caller’s house several times. The caller forwarded one of the text messages, which included a picture of the defendant holding an assault rifle.
On December 29, 2010, the defendant’s parole officer, along with Special Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, conducted a search of the defendant’s residence in College Park, Ga. During the search, officers found two fully loaded assault rifle magazines containing 60 rounds of 7.62 mm ammunition and a box containing 24 rounds of 9 mm ammunition. Because he was a convicted felon, Wade was prohibited from possessing ammunition.
Prior to Wade’s arrest in December 2010, he had been convicted of at least 17 felonies, including drug-related convictions, theft, and several violent felonies. The defendant’s violent felony convictions include felony obstruction of law enforcement, battery, and attempted armed robbery.
Wade, 43, of College Park, Ga. was convicted of violating Title 18, United States Code, Sections 922(g) and 924(e), and sentenced before Senior United States District Court Judge Willis B. Hunt, Jr. to serve 16 years, 3 months in prison to be followed by five years of supervised release. Because this conviction was rendered after the defendant sustained three prior violent felonies, the law required a mandatory minimum confinement period of 15 years in prison and a fine of up to $250,000.This case was investigated by Special Agents of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Georgia Board of Pardons and Paroles.
Assistant United States Attorney Leslie J. Abrams prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Two Atlanta Men Plead Guilty to Federal Hate CrimeRead the Press Release
First Convictions in Georgia for Violations of the
Sexual Orientation Section of the Federal Hate Crimes LawATLANTA – Christopher Cain and Dorian Moragne both of Atlanta, Ga., pleaded guilty today in federal court before Senior United States District Judge J. Owen Forrester to beating a man because of his sexual orientation.
“Violence against another person because of his or her sexual orientation has no place in our civilized society,” said United States Attorney Sally Quillian Yates. “The citizens of this district should know that we are committed to aggressively prosecuting hate crimes.”
“Hate-fueled violence will not be condoned,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will use all the tools in our law enforcement arsenal to investigate and prosecute hate crimes.”
“The FBI remains committed to ensuring the civil rights of all individuals, to include those singled out and attacked because of their perceived differences,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “These acts of violence should be reported and aggressively investigated to ensure that we send a clear message that these actions will not be tolerated.”
According to United States Attorney Yates, the charges and other information presented in court: On February 4, 2012, Cain, 19, Moragne, 21, and a juvenile, all associated with the Jack City street gang, targeted a 20-year-old gay man as he left a grocery store located in Atlanta’s Pittsburgh neighborhood. Cain punched the victim in the head and pushed him to the ground. Cain, Moragne and the juvenile surrounded the victim and repeatedly punched and kicked him while the group yelled anti-gay epithets, including “No f****** in Jack City.” Moragne then picked up a tire and struck the victim with it. The group also stole the victim’s cell phone. A fourth person, also with the defendants, recorded the assault using a cell phone. The video footage was posted to the Internet.
Cain and Moragne admitted to violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, which expanded federal jurisdiction to include certain assaults motivated by the victim’s sexual orientation. The federal hate crimes law criminalizes certain acts of violence motivated by a victim’s actual or perceived race, color, national origin, religion, sexual orientation, disability, gender or gender identity. This case is the first in Georgia to charge a violation of the sexual orientation section of the federal hate crimes law.
Last year, Cain, Moragne and the juvenile, who was considered an adult under Georgia law, were prosecuted in Fulton County Superior Court for offenses that did not include a hate crime. In State court, Cain and Moragne were sentenced to a term of imprisonment of ten years suspended upon the service of five years. As part of their plea agreement, Federal prosecutors recommended that their Federal and State sentences run concurrently.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Detectives with the Atlanta Police Department.The case is being prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Nicole Lee Ndumele of the Justice Department’s Civil Rights Division.
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.Mexican National Indicted for Illegal Re EntryRead the Press Release
Defendant Deported Three Times Previously
ATLANTA - Rogelio Lopez-Velasquez has been indicted by a federal grand jury for the offense of illegal re-entry after deportation and being found in the United States without admission or parole.
“Our officers work diligently with prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia to hold accountable aliens who show such flagrant disregard for our nation’s immigration laws,” said Felicia S. Skinner, field office director of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) field office in Atlanta. “Aliens who consider illegally re-entering the United States after removal should know we are serious about prosecuting them for this felony offense. Their very illegal presence in the United States provides all of the evidence we need.” Skinner oversees ERO operations in Georgia and the Carolinas.
According to United States Attorney Yates, the charge and other information presented in court: ICE agents encountered Lopez-Velasquez, 29, of Oaxaca, Mexico, on January 15, 2013, in Gwinnett County, Ga. After a background check, agents determined that Lopez-Velasquez, who initially gave a false name of “Rogelio Santiago-Lopez,” had been deported from the United States on three prior occasions between September 2007, and November 2011. His most recent deportation resulted from a June 14, 2011, conviction for illegal entry in the District of Arizona, Tucson Division.
The indictment alleges one count of illegal re-entry after deportation. The charge carries a maximum sentence of two years in prison, a fine of up to $250,000, and a period of supervised release of up to one year. 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 Deportation Officers of the Department of Homeland Security, Immigration and Customs Enforcement’s - Enforcement and Removal Operations.
Special Assistant United States Attorney Njeri B. Maldonado 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 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.
Fugitive Caught After Nearly Two Decades on the RunRead the Press Release
Defendant Refused to Surrender for Service of Sentence
ATLANTA - Bandele Adekunle Adeneye has been indicted by a federal grand jury on charges of escape and bail jumping for failing to report to prison seventeen years ago.
“Those who flee to avoid serving their sentence should understand that they will be found and brought to justice,” said United States Attorney Sally Quillian Yates.“This arrest should send a message to all federal fugitives that the United States Marshals Service never stops looking for you regardless of how long you have been on the run,” said Beverly Harvard, United States Marshal for the Northern District of Georgia.
According to United States Attorney Yates, the charges and other information presented in court: The United States Postal Service arrested Adeneye in 1994 for theft and possession of stolen mail in the Northern District of Georgia. Adeneye pleaded guilty to the unlawful possession of stolen mailbox keys, was sentenced to serve two years in federal prison, and ordered to pay more than $89,000 in restitution to the victims of his crimes.
In September 1995, Adeneye disregarded the court’s direction to either turn himself in to the U.S. Marshals in Atlanta, Ga., or to report to the Federal Correctional Institution in Tallahassee, Fla. Instead he fled, avoiding custody for nearly two decades.
Adeneye, a 45-year-old foreign-born national, avoided capture for 17 years after he fled Georgia by assuming a new identity and relocating to a different part of the United States. He remained a fugitive until several Deputy U.S. Marshals conducted an intensive investigation, reviewing and re-analyzing every known aspect of Adeneye’s life. Their careful work led them to someone who they believed to be Adeneye living in Reynoldsburg, Ohio, under a fictitious name. Once the Deputy U.S. Marshals positively identified this person was Adeneye, they requested assistance from the Southern Ohio Fugitive Apprehension Strike Team (SOFAST) who arrested Adeneye within 48 hours.
The indictment charges Adeneye with escape and bail jumping. The charges carry a maximum sentence of 10 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.
This case is being investigated by the United States Marshals Service.
Assistant United States Attorney William R. Toliver and Special Assistant United States Attorney Uchenna Ekuma-Nkama 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 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 Deputy Sheriff Pleads Guilty to Obstructing A Civil Rights InvestigationRead the Press Release
ROME, Ga. – Joshua L. Greeson pleaded guilty today to obstructing a pending public corruption and civil rights investigation by tampering with a witness while employed as a deputy with the Murray County Sheriff’s Department.
“The criminal justice system is based on the premise that police officers must be honest and truthful above all,” said United States Attorney Sally Quillian Yates. “Mr. Greeson wasn’t and such conduct cannot stand. This investigation is continuing and we will follow the evidence wherever it leads.”"Such conduct as described in this case cannot be tolerated and the FBI will continue to identify, investigate, and bring forward for prosecution those officers who betray the public's trust," said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office
“Those who are entrusted with upholding and enforcing the law must have honesty and integrity,” said GBI Director Vernon M. Keenan. “The GBI will continue to work with our federal law enforcement counterparts to insure those in a position of trust are held accountable.”
According to United States Attorney Yates, the charges and other information presented in court, in August 2012, Greeson, was employed with the Murray County Sheriff’s Office as a Deputy Sheriff. On August 14, 2012, he conducted a traffic stop of a white Dodge vehicle. During the traffic stop, Greeson found methamphetamine in a metal can hidden under the tire well of the car. After locating the drugs, Greeson arrested the driver and the owner of the vehicle – who at the time was the front seat passenger.
On August 15, 2012, Greeson met with a state court judge to obtain a search warrant for the urine of the owner of the white Dodge vehicle. During the meeting, Greeson stated to the judge, in sum and substance, that he had not received any prior information about the white Dodge vehicle prior to stopping it.
Shortly thereafter, the Georgia Bureau of Investigation (“GBI”) received information that the drugs had been planted on the vehicle by another individual in an attempt to falsely inculpate the owner of the white Dodge. As a result of that information, the local district attorney’s office dismissed the charges against the owner of the white Dodge.
GBI agents interviewed Greeson on August 23, 2012, in connection with an investigation of public corruption and civil rights violations. During the interview, Greeson again falsely stated to the GBI agents that he had not received any information about the white Dodge car before he pulled it over.
Greeson met with the GBI for a second interview on August 27, 2012. During this meeting, Greeson admitted to the GBI that he had lied – admitted that prior to stopping the white Dodge he had, in fact, been provided with information that the vehicle was supposed to be carrying drugs.
On August 29, 2012, Greeson was terminated from the Murray County Sheriff’s Office.
Greeson, 26, of Murray County, Georgia, could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. 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 June 28, 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.
English Language School Officials Indicted for Immigration FraudRead the Press Release
Accused of Using School to Issue Fraudulent Student Visas
ATLANTA – The head of College Prep Academy in Duluth, Ga. and other school officials have been indicted on charges of conspiring to bring illegal aliens into the country and issuing them fraudulent immigration documents.
“These defendants are charged with using a student visa program as a front to cashing in on bringing immigrants here to work in local bars,” said United States Attorney Sally Quillian Yates. “From manufacturing false documents, to charging thousands of dollars in tuition payments to maintain the immigrants on their rolls, the defendants are charged with subverting the purpose of the student VISA program for profit.”
“Granting access to American schools to foreign students enriches both the student and the United States,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations, Atlanta. “Protecting the integrity of that system from fraud and abuse is an important part of our overall enforcement of immigration law.”
“The FBI remains a key law enforcement partner with respect to the ongoing and continued efforts to enforce immigration laws,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. Those individuals who systematically abuse our generous system that provides for higher education within the U.S. should rightly be a focus of those law enforcement efforts.”
According to United States Attorney Yates, the charges and other information presented in court; Dong Seok Yi, 52, of Duluth, Ga., is the President and CEO of the English language school named College Prep Academy. He also owns the Korean Times Atlanta, a newspaper company. In 2009, Yi filed an application with the U.S. Department of Homeland Security, Student and Exchange Visitor Program, and obtained approval for College Prep Academy to enroll foreign-born students and issue I-20 forms, which enables students to stay in the United States. Foreign-born students who are issued I-20s from universities and other institutions of higher education can get F-1 student visas permitting them to remain in the United States during the time of their schooling.
Once Yi obtained Student and Exchange Visitor Program certification for College Prep Academy, he and his co-defendants allegedly began facilitating the issuance of F-1 student visas to foreign-born individuals who were not entitled to, or eligible for, the visas. Yi allegedly conspired with Korean bar owners to enroll females into the school with the understanding that the females would not attend classes as required but would instead work as prostitutes in the bars. College Prep Academy issued them fraudulent I-20s that included false financial information.
Co-defendant Sook An Kil, a/k/a Stacy Kil, 41, of Duluth, Ga., who is the Academic Coordinator and Designated School Official for College Prep Academy, signed the I-20s under penalty of perjury. She also certified in the Student and Exchange Visitor Information System, a computerized system maintained by the Department of Homeland Security, that College Prep Academy’s “students” were active and attending class even though most never attended. Student and Exchange Visitor Information System records show that the school claimed enrollment of up to 100 students when less than half that number were attending class. Many simply began living and working in the country after obtaining a student visa from College Prep Academy.
Yi and co-defendant Chang Seon Song, 51, of Suwanee, Ga., the Academic Director for CPA, referred individuals to another co-defendant, Sang Houn Kim a/k/a Chris Park, 53, of Diamond Bar, Calif., to obtain false documents to support their F-1 visa applications. Kim allegedly manufactured and provided fraudulent passports, I-94 forms, school transcripts, bank statements, family registries, and other false documents to illegal immigrants to use in support of applications for F-1 visas. Kim charged the aliens thousands of dollars for the fraudulent documents. Yi and College Prep Academy profited by charging thousands in quarterly tuition payments for maintaining the immigrant on the student rolls.
A federal grand jury indicted the defendants on March 5, 2013, and returned a superseding indictment against them on April 2, 2013. Federal agents also executed a federal search warrant at the school this morning and seized bank accounts associated with the school.
The indictment charges one count of conspiracy and eight counts of making false statements in immigration documents. The conspiracy count carries a maximum sentence of five years in prison, and each false statement count carries a maximum sentence of ten years in prison. Each count 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.
This case is being investigated by Special Agents of the United States Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation.
Given the enforcement action against College Prep Academy’s owner, designated school official and academic director, investigators have been working with the U.S. Department of State – Consular Affairs Section to provide legitimate and prospective students with information regarding their options for maintaining their F-1 status. Students will be given the option of enrollment and transfer to another accredited educational program or returning to their home countries voluntarily.
Assistant United States Attorneys Stephen H. McClain, Susan Coppedge, and Thomas J. Krepp are prosecuting the case.
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.
Ebay Fraudster Sentenced for Fencing Stolen PropertyRead the Press Release
Hill Made Millions Reselling Stolen Merchandise Acquired From Identity Thieves
ATLANTA – Robert A. Hill was sentenced today to serve over seven years in federal prison for selling over $9 million in stolen property from his eBay store and shipping the goods across state lines to his customers.
“Robert Hill fueled his Internet-based fraud with the help of a group of identity thieves who gave him a steady supply of merchandise,” said United States Attorney Sally Quillian Yates. “His use of the Internet expanded his reach and magnified the crime, ending in millions of dollars of damage to both individual victims and retailers. Today’s prison sentence does justice for the widespread damage he caused.”
“The defendant’s criminal actions reflect how advancements in digital technology can also have a negative effect on our communities. The Secret Service, in conjunction with our law enforcement partners, will continue to actively investigate and arrest those that commit crimes that prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“This case demonstrates the ever-increasing need for law abiding citizens to remain vigilant about their personal identifying information and credit profiles,” said Cherokee County Sheriff Roger Garrison. “The ongoing increase of identity related crimes is concerning and troubling both to the economy and the criminal justice system. The Cherokee Sheriff’s Office is proud to see justice on behalf of the many victims in this case.”
According to United States Attorney Yates, the charges and other information presented in court: For over ten years through December 2011, Hill operated a scheme out of Roswell, Ga. that involved shipping stolen merchandise across state lines. Hill had an eBay store called atlantis_discount_ warehouse_llc, where he sold the merchandise online to buyers from across the United States. To get merchandise for sale, Hill worked with a group of identity thieves who used fraudulent credit cards opened in the names of numerous identity theft victims to buy expensive items, such as iPads, iPods, iPhones, computers, Wii game systems, cameras, golf clubs, and tools, from large retail stores. These co-conspirators used fake drivers’ licenses to apply for new credit cards and take over existing accounts at the stores. They targeted accounts at Best Buy, Sam’s Club, Home Depot, Lowe’s, Walmart, Target, and Dick’s Sporting Goods.
Hill then bought the items from his co-conspirators for about 60% of their retail value, knowing that the merchandise had been stolen and obtained by fraud. He sometimes gave the thieves lists of items that he needed for his eBay store. Hill stored the merchandise at a storage facility in Alpharetta, Ga. He sold it at just under retail value to buyers from around the United States. As part of the scheme, he shipped items to buyers in numerous states, including California, New York, Florida, New Hampshire, Indiana, Maryland, Colorado, North Carolina, Michigan, Illinois, Washington, Virginia, Utah, and Maine.
During the course of the scheme, Hill sold millions of dollars’ worth of stolen merchandise through his eBay store. Search warrants executed at his residence and storage facility uncovered over $44,000 in cash and a large quantity of high-value electronic equipment in boxes ready for sale.
Hill, 51, now of Swainsboro, Ga., was sentenced today by United States District Judge Richard W. Story to serve seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $740,446.58. In a parallel civil action, Judge Amy Totenberg also ordered the forfeiture of over $44,000 in cash, two bank accounts with over $47,000, a 1999 Lexus RS 300, and thousands of dollars’ worth of electronics equipment and jewelry. Hill was convicted of these charges on December 19, 2012, after pleading guilty.
This case was investigated by Special Agents of the United States Secret Service and Investigators with the Cherokee County Sheriff’s Office.
Assistant United States Attorneys Stephen H. McClain and Jeffrey Viscomi prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Officer of Closed Ellijay Bank SentencedRead the Press Release
GAINESVILLE, Ga. - Former bank vice president Adam Teague was sentenced today to serve over five years in federal prison for conspiring to defraud Appalachian Community 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. “Our state has led the nation in bank failures since 2008, with 85 banks failing - including this one. This bank was robbed from the inside, not by a bandit carrying a gun, but a bank officer carrying a pen.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Teague should serve as a stark reminder to others that such greed based criminal behavior as seen in this case comes with a cost. Understanding the potential impact on the banking institution itself, the FBI will continue to dedicate extensive investigative resources toward addressing bank fraud in its many and varied forms.”
Jon T. Rymer, Inspector General for the Federal Deposit Insurance Corporation (FDIC) said, “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the sentence of this former bank official for his role in a complex bank fraud perpetrated through the failed Appalachian Community Bank. It is especially important to investigate and prosecute cases where trusted insiders abuse their positions to cause harm to the institution and undermine the integrity of the financial services industry as a whole. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
“Teague contributed to the failure of TARP-applicant Appalachian Community Bank by fraudulently masking the bank’s true financial condition while enriching himself,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Driven by greed and risky behavior, Teague engaged in an ‘extend and pretend’ scheme using the proceeds of new bank loans to hide past-due loans. He also hid the bank’s growing inventory of foreclosed property by directing the bank to finance sales of the properties to buyers including two Teague-controlled shell companies, GPH (“God Please Help”) Investments and PHL (“Please Help Lord”) Investments. SIGTARP and our law enforcement partners will root-out fraud related to TARP, hold fraudsters accountable, and bring justice to American taxpayers.”
Steve Linick, Inspector General Federal Housing Finance Agency said, “Protecting the integrity of the Federal Home Loan Bank system is critical to our nation’s economic recovery and we along with our law enforcement partners will aggressively pursue anyone seeking to take advantage of that system.”
According to United States Attorney Yates, the charges and other information presented in court, Teague was Senior Vice President of Appalachian Community Bank, which was headquartered in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed as receiver. The investigation of Appalachian’s loan transactions uncovered extensive fraudulent activity in which Teague was involved:
Concealment of Past-Due Loans
In an attempt to prevent the FDIC from discovering certain past-due loans on Appalachian’s books, between June 2008 and August 2009, Teague and unindicted coconspirator T.N, arranged a number of sham real estate transactions and caused the bank to make approximately $7 million in fraudulent loans to unindicted coconspirator M.L. Teague and M.L. intended to make it appear as if M.L. had purchased certain properties from Appalachian’s foreclosure inventory and was making regular monthly payments on the new mortgages.
Panama City Beach Condominiums
In April 2009, Teague and unindicted coconspirator T.N., used shell corporations to purchase two condominiums in Panama City Beach, Fla. and caused Appalachian to finance them at a total cost of approximately $566,000. Approximately two months later, the two refinanced their mortgages and pocketed more than $875,000 which they then used to pay other personal debts, make monthly loan payments on the refinanced mortgages, pay condominium fees, and purchase new furniture for their condominiums.
GPH Investments, LLC. and PHL Investments LLC
In August 2009, Teague and unindicted coconspirator T.N. created two shell companies: GPH Investments, LLC. and PHL Investments, LLC. GPH is an acronym for “God Please Help,” and PHL is an acronym for “Please Help Lord.” Teague and T.N. then engaged in a sham real estate transaction designed to make it appear as if GPH had purchased 11 residential properties from Appalachian’s foreclosure inventory for a total of approximately $3.7 million.
Teague and T.N. then caused Appalachian to loan GPH 90 percent of the purchase price and caused GPH to represent at closing that it was paying the other 10 percent of the purchase price out of its own funds, even though the two of them knew that to be untrue. The 10 percent down payment, closing costs, and monthly interest payments on this loan were all paid out of the proceeds from a $500,000 line of credit that Teague and unindicted coconspirator T.N. fraudulently caused Appalachian to extend to PHL.
Soak Creek Preserve Partners Land Flips
Teague and three other individuals owned Soak Creek Preserve Partners, LLC (Soak Creek), a Georgia limited liability company formed for the sole purpose of engaging land flips, that is, buying real estate and immediately reselling it at a higher price. Specifically, Soak Creek was formed to purchase and resell two adjoining tracts of land in Tennessee. One tract consisted of approximately 5,043 acres and the other tract consisted of approximately 2,160 acres. Before Soak Creek purchased either tract, Teague and his partners made arrangements to resell both tracts to an investment group from Texas.
Teague then caused Appalachian to make three separate $100,000 loans to unindicted coconspirator B.H. under false pretenses between March 7, and September 4, 2007. Teague knew that B.H. was a silent partner in Soak Creek. He also knew that in obtaining these loans from the bank, B.H. was acting as a straw borrower for Soak Creek. And Teague also knew that Soak Creek intended to use the proceeds of these loans as down payments on the 5,043 acres and the 2,160 acres. But Teague did not disclose any of these facts to Appalachian Community Bank. In fact, he actively hid his involvement in at least one of these loan transactions by altering the bank’s records to make it appear that someone else had acted as the loan officer. By not disclosing to Appalachian’s loan committee that he had a personal financial interest in these transactions, Teague violated the bank’s conflict-of-interest policy.
To finance Soak Creek’s purchase of the 5,043 acres, on April 20, 2007, Teague caused Appalachian to wire transfer approximately $7.2 million of the bank’s money to the escrow account of the Tennessee law firm that handled the loan closing. He did not record this wire transfer in the bank’s books and records. At the time of this transfer, Soak Creek’s account at Appalachian had a zero balance. Therefore, this wire transfer caused Soak Creek’s account to be overdrawn by approximately $7.2 million. The amount of this overdraft exceeded Teague’s lending authority at the bank.
On April 24, 2007, Soak Creek flipped the 5,043 acres to the Texas investment group for approximately $9.3 million, thereby realizing a same-day profit of approximately $2 million.
To finance Soak Creek’s purchase of the 2,160 acres, on September 28, 2007, Teague caused Appalachian to wire transfer approximately $3 million of the bank’s money to the escrow account of the Tennessee law firm that handled the loan closing. He also did not record this wire transfer in Appalachian’s books and records. At the time of this wire transfer, there was only four dollars in Soak Creek’s account at the bank. The wire transfer caused Soak Creek’s account to be overdrawn by approximately $3 million. The amount of this overdraft exceeded Teague’s lending authority at the bank.
On September 28, 2007, Soak Creek flipped the 2,160 acres to the Texas investment group for approximately $3.7 million, thereby realizing a same-day profit of approximately $500,000.
Teague, 39, of Ellijay, was convicted on these charges on August 22, 2012, after he pleaded guilty. United States District Judge Richard W. Story sentenced him to five years, ten months in prison to be followed by five years of supervised release. Teague was also ordered to forfeit $5,840,517.98, which is equal to the amount of the illegal proceeds he obtained as a result of the conspiracy, as well as all of the real property that he purchased with the proceeds of the conspiracy.
This case was investigated by Special Agents of the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation, Office of Inspector General, the Department of Treasury, Special Inspector General - Troubled Asset Relief Program, and the Federal Housing Finance Agency, Office of Inspector General.
Assistant United States Attorneys Russell Phillips and Mike 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.
Identity Thief Indicted on Federal ChargesRead the Press Release
TSA Caught Defendant with Nearly 100 Fraudulent Credit Cards
ATLANTA - Elton Lee Flenaugh has been indicted on charges of conspiracy, possession of counterfeit access devices, and aggravated identity theft after TSA discovered fraudulent credit cards in his carry-on bag during pre-flight security screening.
“Identity theft and credit card fraud is a pervasive problem that comes to light in many different ways, usually after the damage is already done,” said United States Attorney Sally Quillian Yates. “Alert TSA agents should be commended for catching this thief red-handed and referring him to law enforcement.”
According to United States Attorney Yates, the charges, and other information presented in court, on February 9, 2013, Flenaugh and a female companion, who reside in the San Francisco Bay Area, were scheduled to fly from Atlanta to Phoenix, Az. on United Airways Flight 88 at 7:40 a.m. As they approached TSA’s main pre-flight security screening checkpoint, Flenaugh handed his backpack to his companion. He then left her and presented himself for screening without any carry-on items. He used TSA’s identity verification process because he claimed to be flying without any photo identification. Flenaugh provided TSA with an alias during this process, using the name “Joshua Ford.”
Flenaugh’s companion presented carry-on bags to TSA for screening, including Flenaugh’s backpack. While the backpack was being x-rayed, an alert TSA employee noticed a suspicious package. Upon further inspection a stash of nearly 100 fraudulent credit cards was discovered hidden inside an empty Lay’s potato chip bag. The credit cards were in various male and female names -- including 33 in the name of Flenaugh’s female companion. Additionally, 21 of the credit cards had not yet been embossed with names or account numbers.
A subsequent search of the backpack by the Atlanta Police Department (APD) revealed multiple fraudulent drivers licenses secreted in various places in the backpack. Licenses from various states including Arizona, New Jersey, and Ohio were found under the insole of a pair of men’s tennis shoes. Three had different names bearing Flenaugh’s photograph.
Flenaugh tried to flee but was arrested by APD, and charged with state credit card fraud offenses. On March 4, 2013, the U.S. Secret Service arrested him and charged him by complaint with one count of possession of 15 or more counterfeit or unauthorized access devices.
On March 7, 2013, U.S. Magistrate Judge Linda T. Walker ordered Flenaugh, 33, a/k/a Joshua Ford a/k/a Ali Emir Waheed, of Richmond, Calif., to remain in federal custody pending trial both as a flight risk and as a danger to the community. Walker based her ruling on his ready access to false identity documents and credit cards, his use of aliases, and his extensive criminal history.
“The Secret Service will continue to collaborate with our law enforcement partners to aggressively target and arrest individuals who commit financial crimes,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Flenaugh’s companion was arrested by APD at the airport and charged with state credit card fraud crimes. She remains in state custody.
The indictment charges Flenaugh with one count of conspiracy to possess 15 or more counterfeit or unauthorized access devices, one count of possession of 15 or more counterfeit or unauthorized access devices, and nine counts of aggravated identity theft. The conspiracy charge carries of maximum sentence of 5 years in federal prison, the possession charge carries a maximum sentence of 10 years in federal prison, and each of the aggravated identity theft charges carries a mandatory minimum sentence of two years in federal prison, at least one count of which is required to be imposed consecutive to any sentence imposed on the underlying charges. Each of the charges also authorizes a fine of up to $250,000 per count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the United States Secret Service.
Assistant United States Attorney David M. Chaiken 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Ellenwood Man Indicted for Possession of Child PornographyRead the Press Release
Used His Home Computer to Receive and Store Images
ATLANTA – David Rice was arraigned Thursday, March 28, 2013, for possession and receipt of child pornography, and has been released on bond with conditions including electronic monitoring, and a requirement that he not have unsupervised contact with children.“The possession and receipt of child pornography attempts to normalize the exploitation of children,” said United States Attorney Sally Quillian Yates. “It not only harms the minor victims portrayed in those images, it fuels a heinous market. We will protect children, so individuals in our District interested in acquiring and using these images need to understand that we will prosecute them.”
“The child pornography cases we investigate reveal the disturbing and sobering truth that some adults will go to great lengths to sexually exploit children,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “While we cannot give back the innocence that's been stolen from these children, we can make sure that those who commit these horrible crimes are brought to justice.”
According to United States Attorney Yates and the information presented in court: In April and May 2012, a federal agent with Homeland Security Investigations determined that Rice possessed approximately 950 files containing known or suspected child pornography at his home. Those files included images of minor girls being molested by adult males. In June 2012, law enforcement officers executed a search warrant at Rice’s home. Agents seized his home computer during that search, which contained numerous images of child pornography.The indictment charges Rice, 51, of Ellenwood, Ga., with receipt of child pornography, which carries a maximum term of imprisonment of 20 years and a fine of $250,000. He is also charged with possession of child pornography, which carries a maximum term of imprisonment of ten years and a fine of $250,000. Both charges carry no less than five years to a lifetime of supervised release. His arraignment was held before United States Magistrate Judge Gerrilyn G. Brill.
If convicted, Rice will be required to 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.
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.
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/.
This case is being investigated by 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.
Former Murray County Sheriff's Captain Obstructed InvestigationRead the Press Release
ROME, Ga. - Michael Henderson pleaded guilty today to obstructing a pending civil rights investigation by tampering with a witness while employed as a Murray County Sheriff’s Captain.
“Mr. Henderson violated both the law and the public’s trust when he lied to his fellow law enforcement officers and obstructed a civil rights investigation,” said United States Attorney Sally Quillian Yates. “Bottom line, the citizens of Murray County at minimum deserve police officers who obey the laws that they have sworn to enforce.”“The citizens of this State should have every expectation that those who serve do so with integrity and within the bounds of the law,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The conduct of this now former law enforcement officer, as presented in this case, was clearly not within those standards and the FBI will continue to work with its law enforcement partners in ensuring that the public’s trust is well deserved.”
“The State of Georgia will not tolerate criminal activity by those officials with the duty to enforce its laws,” said Vernon Keenan, GBI Director.According to United States Attorney Yates, the charges and other information presented in court, sometime in July 2012, then-Captain Henderson received information that a white Dodge vehicle was being used to carry drugs. He passed this information along to other deputies with the Murray County Sheriff’s Office.
Henderson and separately charged former Deputy Sheriff Joshua L. Greeson participated in a traffic stop of the white Dodge car on August 14, 2012. During the stop, Greeson found methamphetamine in a metal can hidden under the wheel well of the car. After finding the drugs, they arrested the driver and owner/ passenger of the vehicle. Shortly thereafter, the Georgia Bureau of Investigation (GBI) received information that the drugs had been planted on the vehicle by another individual, in an attempt to falsely implicate the car’s owner. As a result, the state drug charges against the owner of the white Dodge were dismissed.
On August 22, 2012, agents from the GBI interviewed Henderson in connection with a civil rights investigation. During the interview, Henderson falsely stated to the GBI agents that he had never told any other members of the Murray County Sheriff’s Office that he had received information that the white Dodge was allegedly carrying drugs. As stated above, Henderson had in fact received information that the white Dodge vehicle carried controlled substances.
On August 31, 2012, Henderson was fired from the Sheriff’s Office.Henderson, 41, of Murray County, Ga. could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. 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 May 31, 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.
Airline Passenger Imported Drugs from GuatemalaRead the Press Release
ATLANTA - Kenneth Lewis Martin, 25, of Guatemala, was sentenced today to serve over four years in federal prison for importing and possession with intent to distribute heroin.
“Our commitment to the safety of our citizens includes safeguarding our airports and holding accountable those who attempt to breach that security,” said United States Attorney Sally Quillian Yates. “Thanks to vigilant Customs and Border Protection agents, this defendant was unable to slip through security with the drugs he concealed in his suitcase.”
According to United States Attorney Yates, the charges and other information presented in court: On May 28, 2012, Martin arrived in Atlanta on Delta Air Lines flight 456, which originated in Guatemala City, Guatemala. Martin then claimed one piece of checked luggage from the baggage carousel. When Customs and Border Protection agents inspected Martin’s luggage, they found 2.5 kilograms of heroin hidden within artwork. Martin’s ultimate destination was Providence, Rhode Island.
“With today’s sentencing, Homeland Security Investigations (HIS) sends the clear message that no matter the level of sophistication, HSI will vigilantly investigate drug smuggling activities and bring all those involved to justice.” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI will continue working with our Department of Homeland Security, federal, and local partners to identify, arrest, and prosecute those involved in the illegal trafficking of narcotics.”
United States District Judge Willis B. Hunt, Jr. sentenced Martin to four years, two months in prison followed by three years of supervised release. Martin was convicted of these charges on November 28, 2012 after he pleaded guilty.
This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, National Security Investigations Division.
Assistant United States Attorneys C. Brock Brockington and Tasheika Hinson 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.
Disbarred Lawyer Sentenced for Corrupt Real Estate TransactionsRead the Press Release
Defendant Stole Money From Escrow Account
ATLANTA – Neal Landers, 46, of Duluth, Georgia, was sentenced today to two years, three months in prison, for using funds taken from real estate transactions he oversaw for his personal use.
“Landers violated the law and the trust of his clients when he used his firm’s escrow account as his own personal piggy bank,” said United States Attorney Sally Quillian Yates.
“The FBI worked diligently in building a solid criminal investigation in this matter and hopes that those victimized by Mr. Landers’ egregious breach of trust can take some solace in today’s sentencing,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court, beginning in 2007, Landers exploited his position as a real estate closing attorney by misappropriating the funds from real estate closings. Specifically, Landers received money transfers into his escrow account from several real estate closings but did not distribute them as required. He deliberately delayed paying out the funds for weeks and sometimes months rather than promptly disbursing the funds for the recently closed properties. Instead, Landers would use those funds to pay out the parties from previously completed transactions. He also transferred funds, in amounts that far exceeded any closing fees and/or costs, from his escrow account to his business checking account. He then used that money to pay various personal expenses.
United States District Judge Thomas W. Thrash, Jr. sentenced Landers to two years, three months in prison, to be followed by three years of supervised release. He was also ordered to pay more than $850,000 in restitution.
The Georgia Bar disbarred Landers in 2008.
This case was investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Two Narcotic Treatment Programs Face Financial PenaltiesRead the Press Release
Programs Allegedly Violated Inventory Provisions of the Controlled Substances Act
ATLANTA – New Horizons Treatment Center and Epiphany Center, Rome Inc. located in Rome, Ga., have agreed to civil settlements and will pay penalties to resolve allegations they violated inventory requirements of the Controlled Substances Act. Epiphany Center, Rome Inc. has also agreed to voluntarily surrender its DEA license.
“Narcotic treatment programs that distribute prescription drugs must maintain proper records of the drugs they distribute. By failing to keep an accurate count of their controlled substances inventories, these narcotic treatment programs created the potential that prescription drugs would be diverted to illegitimate uses,” said United States Attorney Sally Quillian Yates. “We are committed to detecting and stopping the diversion of controlled substances by enforcing the recordkeeping requirements of the Controlled Substances Act,” she said.
The government alleges that Epiphany Center, Rome Inc. failed to maintain a current, complete and accurate record of all controlled substances received, sold, delivered, or otherwise disposed of. Accountability audits conducted by the DEA revealed overages of methadone in 2011 and shortages of methadone in 2012. Significantly, the 2012 audit found a shortage of approximately 460,000 milligrams of methadone. The government also alleges that Epiphany Center failed to conduct its first biennial inventory of methadone, failed to conduct a biennial inventory in compliance with all applicable laws and regulations, failed to maintain a dispensing log, and failed to comply with all applicable laws and regulations regarding written orders for methadone.
The government alleges that New Horizons Treatment Center failed to maintain a current, complete and accurate record of all controlled substances received, sold, delivered, or otherwise disposed of. A 2011 accountability audit of New Horizons conducted by the DEA revealed overages of methadone liquid and buprenorphine and a shortage of methadone diskettes.
“The civil penalties set forth in this case are appropriate for the civil violations that these businesses engaged in,” said Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA is in the business of keeping the public safe by making sure that such establishments are playing by the rules which will make the diversion of controlled analgesics less likely.”
Both claims settled in these civil settlements are allegations only, and there has been no determination of liability. Epiphany Center has agreed to voluntarily surrender its DEA license and to pay $12,500 to resolve these allegations. New Horizons has agreed to pay $5,000 and to additional oversight from the DEA.
The Controlled Substances Act was enacted to ensure that controlled substances are properly regulated and to help prevent drug diversion. Thus, narcotic treatment programs that receive and dispense controlled substances are required to maintain complete and accurate inventories and records of all controlled substances that they purchase, receive, dispense, or destroy. In order to enforce the recordkeeping requirements of the Controlled Substances Act, the Act imposes civil penalties for refusing or negligently failing to maintain the records required by the Act.
These cases, which are unrelated, were investigated by Diversion Investigators from the Drug Enforcement Agency.
The civil settlements were reached by Assistant United States Attorneys Lena Amanti and Darcy Coty.
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.
Jury Convicts Defendant on Tax ChargesRead the Press Release
Sroufe Presented a Tax Return to the IRS Falsely Claiming a $1.7 Million Refund
ATLANTA - A federal jury in Atlanta convicted Donus R. Sroufe, 55, of Suwanee, Ga. of interfering with the administration of revenue laws and making a false claim for a $1.7 million tax refund.
“Millions of Americans file their tax returns honestly every year, while Mr. Sroufe tried to defraud the Government out of $1.7 million dollars,” said United States Attorney Sally Quillian Yates. “Fortunately, the IRS intercepted the return and, as a result, no taxpayer funds were paid out. Given the present climate with the federal budget, it is critically important to prevent fraudsters from stealing tax funds instead of paying them.”“The prosecution of individuals who intentionally try to impede the IRS by submitting frivolous and fraudulent documents is a vital element in maintaining public confidence in our tax system,” stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. “Hopefully the verdict today will send a message to other individuals like Sroufe, that this conduct will not be tolerated.”
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. He claimed a tax refund of $1.7 million. On that tax return, Sroufe falsely claimed that he received $2.5 million from a United States Treasury bond, and that he had paid over $2.6 million in federal taxes. In fact, the $2.5 million bond was a fake and he had not paid any income taxes for 2008.
In April 2009, the IRS notified Sroufe that his 2008 tax return was “frivolous” and warned him that he could face a penalty for filing a false return. Also, 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.Sroufe ignored those warnings and in August, 2009, he mailed an identical copy of the 2008 tax return to the United States Department of the Treasury. The return included a copy of the fake $2.5 million bond, and demanded a $1.7 million tax refund.
Today, the jury found Sroufe guilty of interfering with the administration of the revenue laws and for making a false claim for a tax refund. The most serious of the charges (filing a false claim) carries 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 May 30, 2013, at 10:00 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.
Assistant United States Attorneys Shanya J. Dingle, Jeffrey W. Davis, and Steven D. Grimberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Robbery Crew Member Who Impersonated Law Enforcement SentencedRead the Press Release
ROBBERY CREW MEMBER WHO IMPERSONATED LAW ENFORCEMENT SENTENCED
Defendant Dressed as Police Officer to Commit Home Invasion
ATLANTA - Torrez Seymore, 25, of Baltimore, Md., was sentenced today by United States District Judge Timothy C. Batten, Sr., for possessing with the intent to distribute marijuana obtained by robbery and discharging a firearm in connection with that robbery.
“The violence associated with drug crimes is especially disturbing to our community,” said United States Attorney Sally Quillian Yates. “We work hard to maintain public confidence that people are safe. Homes being raided by criminals dressed in law enforcement gear, carrying guns and yelling police is extremely unsettling. This case effectively dismantled this robbery crew,” she said.
According to United States Attorney Yates, the charges and other information presented in court: On January 14, 2010, Seymore and four others dressed as police officers and carrying guns assaulted a suburban house on Hyland Drive in DeKalb County, Ga. He and his fellow robbers used a vehicle tracking device on the victim’s cars to find the location of the house. The crew thought that the residents were marijuana suppliers.
The robbers wore fake police badges and vests with the word “Police” printed on them. They also carried handcuffs and firearms. As they pulled into the victim’s driveway, he came out of the house. The robbers yelled, “DeKalb County Police get down, cuff him!” Their goal was to force the victim take them to a “stash” house where they believed additional drugs were stored. While the robbers were in the middle of trying to kidnap the victim, a friend of the victim arrived and the robbers traded gunfire with him on the lawn. The robbers then beat and kidnaped the victim. The victim took the crew to his girlfriend’s home, under the pretense that it was the “stash” house that the robbers sought to find. The victim’s girlfriend fled the home through the back door and called police, who came and rescued the victim.
“Gun violence perpetrated by anyone tears at the very fabric of our communities; but when this violence is committed by impersonating law enforcement; an alarming message of intolerance needs to be sent to those who dare to engage in such offenses,” said Bureau of Alcohol, Tobacco, and Firearms (ATF) Assistant Special Agent in Charge Aladino Ortiz. “As the violent crime bureau, ATF will see to it that individuals who illegally arm themselves are removed from our streets so that our communities can remain a safe place to live and prosper.”
Seymore was sentenced to 13 years, 10 months in prison to be followed by 5 years of supervised release. Seymore was convicted of these charges on March 7, 2013, upon his plea of guilty.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Kim Dammers and Timothy Storino prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Federal Agents Thwart Attempted Bank Account TakeoverRead the Press Release
ATLANTA – Brandon Lamar Young, 25, of Lawrenceville, Ga. was sentenced today by United States District Judge Thomas W. Thrash, Jr. for conspiracy to defraud Bank of America as part of a plot to take over a Georgia resident’s bank account.
“Prosecuting bank fraud and identity theft continues to be one of the major priorities of the Department of Justice,” said United States Attorney Sally Quillian Yates. “These defendants are being held accountable for their fraudulent conduct because of an honest citizen who refused to go along with the fraud scheme and the hard work of law enforcement agents who moved quickly and successfully stopped the crime before a Georgia resident was further victimized.”
“Identity theft is a serious issue and can, as in this case, involve stealing and misusing confidential personal information,” said Steve Linick, Inspector General, Federal Housing Finance Agency. “My office is committed to investigating and prosecuting such cases and we are proud to have worked with our law enforcement partners on this case.”
According to United States Attorney Yates and the information presented in court: On several occasions between June 2011 and May 2012, Brandon Young bought confidential financial information relating to 12 financial accounts from Alex Dantzler for a total of $1,800. Dantzler worked for the Federal National Mortgage Association, commonly known as “Fannie Mae,” in Dallas, TX, and had access to electronic loan files and other confidential financial information pertaining to Fannie Mae’s customers. One of the account profiles Dantzler sold to Young was of a Georgia resident, and included the Georgia resident’s Social Security number, date of birth, Georgia driver’s license number, and Bank of America account number.
Young took the Georgia resident’s financial information and asked an acquaintance, Oluwashina Daniel Akinfenwa, of Marietta, Ga., to help him find a Bank of America employee who would be willing to help him take over the individual’s account. Akinfenwa recruited Bank of America employee Letitia Perry, of Atlanta, Ga., who had access to the bank’s computer system. Akinfenwa asked Perry to help take over the individual’s account. Young and Akinfenwa agreed to give Perry one-third of whatever money they could get out of the individual’s account.
Perry then used Bank of America’s computer system to access confidential information pertaining to the Georgia resident’s account on at least three separate occasions. On August 10, 2012, she deliberately deleted the account holder’s true telephone number from the computer system and replaced it with Young’s telephone number. Perry then gave the telephone password and other confidential information pertaining to the individual’s account to Young and Akinfenwa.
Young contacted another friend on August 14, 2012, and asked him if he knew a white male who might be willing to impersonate the individual so they could illegally withdraw funds from the account. Young’s friend said that he would find someone who would do it. Instead, Young’s friend contacted the FBI. The FBI quickly arranged for one of its white male undercover employees to pose as a person who would be willing to impersonate the individual.
On August 14, 2012, the FBI undercover employee telephoned Young and introduced himself. Young told the FBI undercover employee that he had identified an account that he wanted to take over. He also stated that a female bank employee had deleted the real account holder’s telephone number from official bank records and had replaced it with his telephone number. Young further stated that he was in possession of the real account holder's account profile.
Young instructed the FBI undercover employee to have his photograph taken and to send it to him as soon as possible. He wanted the photo so he could obtain a fake driver’s license in the real account holder’s name. Young gave the FBI undercover employee specific instructions on what the photograph should look like. The FBI undercover employee had his photograph taken according to Young’s directions and sent it to him.
One week later, on August 21, 2012, Young sent the FBI undercover employee a text message containing the individual’s account profile. He also sent the FBI undercover employee a text message containing a photograph of a fake Georgia driver's license bearing the individual’s name, address, and the picture.
Young, Akinfenwa, and Perry were arrested before they could remove any money from the Georgia resident’s account. Young’s arrest also prevented him from victimizing the persons associated with the other 11 stolen accounts.
Akinefenwa, Perry, and Dantzler pleaded guilty to this offense. On February 5, 2013, Perry was sentenced to five months in federal prison, to be followed by five months of home confinement, and one year of supervised release. On February 5, 2013, Akinfenwa was sentenced to 15 months in federal prison to be followed by one year of supervised release.
Young was sentenced to serve 2 years, 9 months in federal prison to be followed by 3 years of supervised release. Young was convicted on December 13, 2012, upon his plea of guilty.
Dantzler is scheduled to be sentenced on May 8, 2013, at 10:00 a.m. before United States District Judge Thomas W. Thrash, Jr. He 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.
The Young, Akinfenwa, and Perry cases were investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Russell Phillips.
The Dantzler case is being investigated by special agents of the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General, and is also being prosecuted by Assistant United States Attorney Russell Phillips.
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.
Three Former Delta Air Lines Employees Conspired to Import Illegal Drugs into Hartsfield-Jackson AirportRead the Press Release
Over $614,000 Worth of Methamphetamine and Heroin Seized From
Delta Air Lines Flight from Mexico CityATLANTA - Luis Marroquin, 36, of Atlanta, Ga., Carlos R. Springer, 42, of Hampton, Ga., and Kelvin Rondon, 28, of Miami, Fla., were sentenced today by United States District Judge Orinda Evans for conspiracy to possess with the intent to distribute methamphetamine and heroin.
“We serve the citizens of our district by promoting healthy and safe communities and we will prosecute anyone who uses our airports to import deadly drugs,” said United States Attorney Sally Quillian Yates. “People have a reasonable expectation when boarding an airplane that airline personnel will be professionals who value their safety,” she said, “and will not expose them to illegal activity.”
According to United States Attorney Yates, the charges and other information presented in court: On January 13, 2012, Delta Air Lines flight 364 arrived at the Atlanta Hartsfield-Jackson International Airport from Mexico City. A Delta agent discovered an unclaimed piece of luggage at a baggage carousel with a tag for flight 364. Customs and Border Protection agents inspected the luggage, and determined that it contained multiple packages of suspected illegal narcotics. Later that same day, Springer was interviewed by Homeland Security Investigations agents. Springer was the performance leader for the shift of ramp employees who off-loaded the baggage on flight 364.
During a search of Springer’s cellular telephone, agents found coded, incriminating text messages between Springer and Marroquin around the time of the arrival of the flight. Rondon was observed on the video of the arrival and unloading of flight 364, although he was off-duty and had no authorization to work the flight.
Agents also learned that Marroquin recruited Rondon. Rondon was to make sure that the bag was on the flight, and was to be paid $500 per package. The day before flight 364 arrived Rondon was shown a photo of the drug-laden bag on Marroquin’s telephone. Rondon stated when he arrived on the tarmac he helped unload the cargo and attempted to find the bag but was unsuccessful.
“The security of critical infrastructure like Hartsfield-Jackson Airport is a key national security concern,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “HSI special agents and our partners like U.S. Customs and Border Protection and the Delta security team are committed to identifying those who seek to exploit the system and ensuring they are held accountable for their actions.”
Following the return of the indictment on May 1, 2012, Marroquin fled the Atlanta area but was apprehended several days later in a residence in Coral Springs, Fla.
Marroquin was sentenced to 15 years, 8 months in prison to be followed by 5 years of supervised release.
Springer was sentenced to 11 years, 3 months in prison to be followed by 5 years of supervised release.
Rondon was sentenced to 5 years, 3 months in prison to be followed by 5 years of supervised release.
Marroquin, Springer, and Rondon were convicted of the above charges upon their pleas of guilty last year.
This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Task Force Officers, with assistance from Delta Air Lines Corporate Security,
Assistant United States Attorney Michael Herskowitz prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public 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.
New York Loan Broker Arraigned on Charges of Defrauding Customers of $1.2 MillionRead the Press Release
ATLANTA - A New York broker has been indicted for conspiring to defraud 350 financially strapped customers of more than $1.2 million. Kenneth J. Enrico, 46, of Bohemia, New York, was arraigned today on a federal indictment before United States Magistrate Janet F. King on one count of conspiracy, three counts of mail fraud, and thirteen counts of wire fraud. The federal grand jury indicted Enrico on February 19, 2013.
“The public is once again reminded that if a deal sounds too good to be true, it usually is,” said United States Attorney Sally Quillian Yates. “The charges against Enrico reflect our continuing commitment to protect our more financially vulnerable victims from the fraudsters who prey upon them.”
According to United States Attorney Yates, the charges and other information presented in court, between June 2011 and August 2012, Enrico offered property buyers private lender loans of 105% of the property’s selling price at a 4.99% interest rate, regardless of the buyer’s credit score, as long as the buyers had jobs that generated enough income to qualify for the loan amount and monthly payments. Enrico required the buyers to pay him an up-front fee of $2,500 per loan, which he claimed covered loan processing fees and the appraisal. Enrico publicized his offer through several brokers, two of whom were located in the metropolitan Atlanta area. The broker tacked on additional fees.
More than 350 individuals responded to Enrico’s pitch and sent in more than $1.2 million in up-front fees either to Enrico directly or through the brokers. Enrico approved all of the buyers for loans. However, none of the buyers ever received a loan from Enrico. He gave the buyers numerous excuses as to why their loans never closed. Not only did the buyers lose the fees paid to Enrico, they lost the earnest money they paid to the sellers of the properties they were trying to buy when their sales contracts expired. The buyers often relied on Enrico’s excuses and entered into sales contracts on second properties with additional earnest money payments, which they later lost when Enrico never funded their loans.
The charges each carry a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove his guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney David Leta is 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.
Appalachian Community Bank Vice President IndictedRead the Press Release
Second Bank Officer Charged With Fraud
GAINESVILLE, Ga. – A former bank employee was indicted by a federal grand jury on February 26, 2013, on charges arising out of a scheme to defraud his former employer Appalachian Community Bank (also known as Gilmer County Bank). William R. “Rusty” Beamon, Jr., 52, of DeKalb County, Ga. will be arraigned today at 2:15 p.m., before United States Magistrate Judge J. Clay Fuller in Gainesville, Ga.
“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 78 banks failing – including Appalachian Community Bank, the bank this defendant is accused of defrauding. Prosecuting bank fraud continues to be one of the major priorities of our office and the United States Department of Justice,” she said.
According to United States Attorney Yates, the indictment, and other information presented in court, Beamon was Vice President of Appalachian Community Bank, which had its headquarters in Ellijay, Ga. He was responsible for Appalachian’s foreclosure liquidation department.
In 2009, Beamon told a real estate agent that he personally owned a house in Cumming, Ga. and then hired that agent to market and lease the property on his behalf. The property, however, was owned by Appalachian Community Bank and was part of the bank’s foreclosure inventory. The real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits from the illegal lease.
Beamon also allowed Appalachian Community Bank to make loans to his wife, and to a shell company that he owned, to finance fraudulent real estate purchases of properties in the bank’s foreclosure inventory. Each property was sold at a price substantially below fair market value.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lack of responsible, ethical leadership at Appalachian Community Bank eventually led to that bank’s failure. The FBI understands the harm caused by such criminal behavior of bank employees or their executives and asks that anyone with information on such activity to contact their nearest FBI field office.”
Due to its poor financial condition, Appalachian Community Bank was forced to close on March 19, 2010, and the FDIC was appointed as receiver.
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing this indictment,” said Jon T. Rymer, Inspector General, FDIC. “We are particularly concerned when officers of a bank abuse their positions of trust and jeopardize the viability of their banks. We will continue to pursue such offenders in the interest of maintaining the safety and soundness of our nation’s banks and protecting the Deposit Insurance Fund.”
Beamon is not the first insider at Appalachian Community Bank to face federal criminal charges arising out of his employment at the bank. Adam Teague, 38, of Ellijay, Ga. was charged with conspiracy to commit bank fraud and pleaded guilty to that offense on August 23, 2012. Teague, who was Senior Vice President of Appalachian, is scheduled to be sentenced by United States District Judge Richard W. Story on April 5, 2013. Teague faces a maximum sentence of 30 years in prison and a fine of up to $1,000,000.
Both cases are being investigated by Special Agents of the FBI and the FDIC Office of Inspector General. The Teague case is also being investigated by Special Agents of the Department of Treasury, Special Inspector General Troubled Asset Relief Program, and the Federal Housing Finance Agency, Office of Inspector General.
The indictment charges 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.
Assistant United States Attorney Russell Phillips is prosecuting both cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
South Carolina Man Charged with Threatening to Kill the President of the United StatesRead the Press Release
Defendant Also Traveled to Georgia to Buy Firearms
While Under Indictment in South CarolinaATLANTA - Patrick Randell McIntosh, 28, of Charleston, South Carolina, was arraigned today before United States Judge Linda T. Walker, on charges of possessing three firearms and ammunition while under indictment for a felony, and for threatening the life of the President of the United States on Facebook.
“McIntosh is charged with making violent and disturbing threats online and via email to several people, including a threat to the life of the President of the United States,” said United States Attorney Sally Quillian Yates. “Many state, local and federal law enforcement agencies have worked together to bring this potentially dangerous man into custody to protect the citizens of the United States.”
According to United States Attorney Yates, the charges and other information presented in court, McIntosh posted on his Facebook page his intention to shoot patrons at a local Atlanta lounge and to kill the President of the United States. After posting the various threats, the defendant purchased three firearms from individuals who advertised weapons for sale.
McIntosh also threatened a woman in the Atlanta area. The woman reported to Gwinnett County authorities that McIntosh was stalking her. She gave police the location of a hotel where McIntosh was staying. Law enforcement officers subsequently arrested McIntosh at the location and recovered guns and ammunition in his possession.
“With the increased use of the various forms of social media comes increased online threats that vary in nature,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI, as well as law enforcement as a whole, takes such online based threats seriously and they can easily evolve into federal criminal charges for those individuals making them.”
“Threats against the President of the United States and others we are statutorily authorized to protect are the Secret Service’s number one investigative priority. Every threat, no matter if made by telephone, in person, in writing, or on social media is examined to the fullest extent possible. Working with our partners in law enforcement and the U.S. Attorney’s Office we will continually seek to bring those who make threats to justice,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“I’m proud of the Atlanta Police Department’s active participation in the investigation that led to the removal of this dangerous individual off of the streets,” said Atlanta Police Chief George N. Turner. “This arrest and indictment underscores the importance of solid relationships with our local, state and federal law enforcement partners. We’re all safer today as a result of this cooperation.”
McIntosh was indicted by a federal grand jury in Atlanta on January 15, 2013, and charged with illegally possessing three firearms and a large amount of ammunition while under indictment for a felony offense, and for threatening the President. He had been released on state bond after being indicted in the state of South Carolina for felony stalking.McIntosh faces a maximum possible sentence of five years in prison on the firearms charge, and ten years in prison on the threat charge. McIntosh could be also be fined up to $250,000.00 on each charge. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding on the Court but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by the Joint Terrorism Task Force (“JTTF”), which includes agents with the Federal Bureau of Investigation, the United States Secret Service, and the Federal Air Marshal Service. The threat was initially investigated by detectives of the Atlanta Police Department and subsequently referred to the JTTF.
Assistant United States Attorney Katherine M. Hoffer 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.
Major U.S. Treasury Check Theft Ring Sentenced to Federal PrisonRead the Press Release
Defendants Stole Millions in U.S. Treasury Checks from Postal Facility
ATLANTA – Three defendants, including two former postal workers, were sentenced today in federal court for stealing more than $3.5 million in U.S. Treasury checks from an Atlanta mail distribution facility. Over 1,800 victims had their tax refund, Social Security, and Veterans checks stolen during the scheme. The defendants were convicted of conspiracy, theft of government money, and possession of stolen Treasury checks.
United States Attorney Sally Quillian Yates said, “With today’s sentencings, a major U.S. Treasury check theft ring that plagued this State for many years has been successfully dismantled. The defendants stole millions in tax refund, Social Security, and Veterans checks from good people who had expected to receive their checks in the mail only to discover they had been diverted to criminals and identity thieves. The task force will continue to target those who are responsible for making Georgia a hotbed for this kind of criminal activity.”
Special Agent in Charge Guy P. Fallen, Office of the Inspector General, Social Security Administration stated, “Social Security payments are a lifeline for many Americans who are unable to work due to a temporary or permanent disability. Our office is gratified by the U.S. Attorney’s shared commitment to investigate and prosecute those who defraud Social Security trust funds. One of our highest priorities is ensuring that those who steal SSA payments are swiftly detected and prosecuted. Social Security fraud affects all Americans. The individuals sentenced today are a testament to our serious commitment to pursuing those who would victimize Social Security beneficiaries.”
“Check fraud is one of the largest challenges facing financial institutions today. This case illustrates the importance of task force partnerships with state, local and federal law enforcement agencies. The Secret Service will continue to work with our law enforcement partners in combating threats to our nation’s financial payment systems and to protect innocent victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Special Agent in Charge Quentin G. Aucoin, Department of Veterans Affairs, Office of Inspector General stated, “Thefts of VA benefits checks intended for veterans who honorably served this country will not be tolerated. VA OIG vigorously investigates allegations of criminal activities impacting VA programs.”
According to United States Attorney Yates, the charges and other information presented in court: Gerald Eason worked as a supervisor at the Atlanta Processing and Distribution Center, a centralized mail distribution center, on Crown Road in Atlanta, Georgia. That facility processes mail for delivery to dozens of zip codes in Georgia. Deborah Fambro-Echols worked as a mail handler at the facility. While on the job, Eason and Fambro-Echols stole thousands of U.S. Treasury checks and provided them to a network of brokers and check cashers who would then negotiate the checks and split the criminal proceeds with them. These individuals forged endorsements and used fake identification to pose as the intended recipients of the checks when cashing them. Federal authorities believe that Eason and Fambro-Echols are responsible for a significant portion of the U.S. Treasury checks reported stolen in Georgia over the last four years.
In April 2011, law enforcement authorities searched Fambro-Echols’ residence in Hapeville. They found 661 Treasury checks totaling over $590,000. Almost all of the checks discovered during the search were dated from April 8 to 19, 2011, and thus stolen over less than a two-week period.
On March 7 and 11, 2012, Eason stole over 1,300 Treasury checks worth more than $2.8 million. Federal agents video recorded him stealing the checks at the mail facility and then observed him drive the checks to a residence, where he thought they would be distributed to co-conspirators who would cash them. He was arrested while attempting to collect his portion of the proceeds from the second delivery.
Eason and Fambro-Echols stole millions in U.S. Treasury checks during their employment with the U.S. Postal Service. Wendy Frasier and Daralyn M. Weaver acted as brokers for Fambro-Echols. They recruited others to cash the stolen checks at banks and business establishments. Jabril O. McKee and Ohmar D. Braden worked as check cashers in the scheme, negotiating stolen checks with the help of fake identification documents and sharing the proceeds with their co-conspirators. In March 2011, McKee and Braden were arrested at a BestBank in Decatur, Georgia attempting to negotiate a stolen Social Security check while impersonating the intended recipient of the check.
United States District Judge Charles A. Pannell, Jr. sentenced Eason, Fambro-Echols, and Weaver today, and previously sentenced McKee and Braden:
- Gerald Eason, 47, of Stockbridge, Georgia, was sentenced to 7 years, 3 months in prison, to be followed by 3 years of supervised release, and fined $15,000.
- Deborah Fambro-Echols, 50, of Hapeville, Georgia, was sentenced to 6 years, 6 months in prison, to be followed by 3 years of supervised release, and fined $12,500.
- Daralyn M. Weaver, 31, of Atlanta, Georgia, was sentenced to 3 years in prison, to be followed by 3 years of supervised release, and fined $5,000.
- Jabril O. McKee, 25, of Riverdale, Georgia, was sentenced on January 30, 2013, to two years, four months in prison, to be followed by three years of supervised release, and fined $3,000.
- Ohmar D. Braden, 37, of Covington, Georgia, was sentenced on December 18, 2012, to two years, four months in prison, to be followed by three years of supervised release, and fined $2,000.
The sentencing for Wendy Frasier, 35, of Atlanta, Georgia is scheduled for March 14, 2013 at 4 p.m. by United States District Judge Charles A. Pannell, Jr.
This case was investigated by the United States Secret Service; United States Postal Service, Office of Inspector General; Social Security Administration, Office of Inspector General; United States Postal Inspection Service; U.S. Department of Veterans Affairs, Office of Inspector General; U.S. Department of the Treasury, Office of Inspector General; Georgia Department of Revenue, Office of Special Investigations; and DeKalb Police Department; with valuable assistance provided by the Fulton County Sheriff’s Office.
This case was brought as part of the U.S. Attorney’s Stolen Treasury Check Task Force. The Task Force is an informal group of 14 federal, state, and local law enforcement agencies working together to address the problem of stolen U.S. Treasury checks in the Northern District of Georgia.
Assistant United States Attorneys Stephen H. McClain, Loranzo M. Fleming, Christopher C. Bly, and Jeffrey Viscomi 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 Man Sentenced for Multi-Million Dollar Fraud SchemesRead the Press Release
Defendant Refused To Appear In Court During Trial And Sentencing
ATLANTA – An Atlanta man was sentenced today by United States District Judge Julie E. Carnes to 30 years on charges of bank fraud, credit card fraud, and aggravated identity theft. Jean-Daniel Perkins, 37, of Atlanta, Georgia was convicted of defrauding American Express, SunTrust Bank, and hundreds of individual credit card holders.
United States Attorney Sally Quillian Yates said of today’s sentencing, “This defendant was a habitual fraudster and a world-class manipulator. He bought, sold, and traded in other people’s personal information to enrich himself, and he tried to manipulate the court system to his own advantage. Today’s sentence reflects the seriousness of his crimes.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains committed in conducting such investigations that help build solid criminal prosecutions against aggressive fraudsters such as Mr. Perkins. Today’s sentencing not only holds Mr. Perkins accountable for his actions but puts an end to his reckless victimization of others through his fraudulent financial schemes.”
Perkins was sentenced to 30 years, to be followed by 5 years of supervised release. He was also ordered to pay $510,509 in restitution. Perkins was convicted on June 27, 2011 after a five-day jury trial.
Judge Carnes orally pronounced the sentence on a “tentative” basis because Perkins refused to leave his jail cell to be escorted to the courtroom for the sentencing hearing. Perkins further refused to meet with his lawyer to discuss the potential sentence.
Perkins, who also was is in custody at the time of his trial, refused to attend court during the trial as well. Instead, he viewed a live video and audio feed of the proceedings while remaining in a cell at the courthouse. Because Perkins was not present at the sentencing, Judge Carnes gave him 30 days to file any objections to her oral sentence, after which it will become final.
According to United States Attorney Yates and the evidence and testimony at trial and sentencing: From November 2008 through February 2010, Perkins executed several different fraud schemes in Atlanta. An undercover FBI agent, posing as an employee of a company with financial data, made contact with Perkins, offering to make the sensitive financial data available to Perkins. The undercover agent ultimately met in person with Perkins, who gave the agent a dozen counterfeit credit cards, and the two discussed a wide variety of criminal schemes involving financial data and credit cards. The FBI agent recorded approximately 30 telephone calls with Perkins in which they discussed the schemes, and how the maximum amounts of money could be withdrawn from victim financial institutions and their customers.
The evidence at trial showed that, in one of his fraud schemes, Perkins purchased information needed to make credit cards, such as account numbers, from a source in Ukraine. He then encoded credit cards with the data and used the cards. The dozen credit cards Perkins gave to the FBI agent were in fact encoded with information obtained from the source in Ukraine.
The evidence at trial also showed that from February 2009 through February 2010, Perkins engaged in another fraud scheme in which he gained internal SunTrust account information and impersonated the account holders, resulting in the transfer of money from victim accounts to accounts under his control. In one instance involving an account held by a local construction company, Perkins impersonated the company’s president, signed up for online banking services from SunTrust, and authorized transfers of over $3,500,000 from the company’s account to approximately 100 accounts under his control. Fortunately, SunTrust was able to recover the transferred money before Perkins spent it.
In yet another fraud scheme, Perkins set up numerous fictitious merchant accounts with American Express. The evidence at trial showed that Perkins set up the merchant accounts at American Express to allow him to accept American Express credit cards as payment for nonexistent goods and services. Perkins, using stolen American Express credit card account numbers, then ran American Express credit card transactions through the merchant accounts, resulting in American Express paying millions of dollars to the fictitious merchants. The American Express credit cards used by Perkins belonged to hundreds of individual credit card holders.
On the day of Perkins’ arrest, law enforcement officials recovered dozens of counterfeit credit cards from Perkins, as well as digital media connecting Perkins to the fraud schemes. On the same day, law enforcement seized from Perkins’ apartment hundreds of counterfeit credit cards; items used to make counterfeit credit cards; including a device used for encoding cards with stolen credit card information; machines used to make counterfeit identification cards; items purchased with counterfeit credit cards; and additional digital evidence linking Perkins to several of the fraud schemes. In total, Perkins had approximately 100,000 credit card numbers on his digital devices.
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Duluth Police Department.
Former Assistant United States Attorneys Robert McBurney and Nick Oldham, and Assistant United States Attorneys Lawrence Sommerfeld and Kurt Erskine prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Ten Current and Former Law Enforcement Officers Among 15 Arrested for Protecting Drug Dealers in Federal Drug Trafficking StingRead the Press Release
Defendants Charged With Providing Security for Undercover Cocaine Transactions
ATLANTA – Seven Metro Atlanta police officers, two former DeKalb County jail officers, a contract officer with Federal Protective Services, and five others have been charged with accepting thousands of dollars in cash payments to provide protection during drug deals in a federal undercover operation.
The defendants are making their initial appearances today before United States Magistrate Judge Alan J. Baverman. U.S. Attorney Sally Quillian Yates announced the case during a press conference today at the Richard Russell Federal Building, joined by FBI Special Agent in Charge Mark Giuliano and ATF Special Agent in Charge Scott Sweetow. Atlanta Police Department Chief George Turner, DeKalb Interim Police Chief Lisa Gassner, Forest Park Police Department Chief Dwayne Hobbs, MARTA Police Department Chief Wanda Dunham, DeKalb County Sheriff Thomas Brown, Stone Mountain Police Department Chief Chauncy Troutman, and Federal Protective Service District Commander Jim Longanecker also attended the press conference.
United States Attorney Yates said, “This is a troubling day for law enforcement in our City. The law enforcement officers charged today sold their badges by taking payoffs from drug dealers that they should have been arresting. They not only betrayed the citizens they were sworn to protect, they also betrayed the thousands of honest, hard-working law enforcement officers who risk their lives every day to keep us safe. We will continue to work with our local law enforcement partners to pursue this corruption wherever it lies.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “In recognizing the need for the criminal justice system and those who work within that system to firmly have the public’s trust, the FBI considers such public corruption investigations as being crucial. The FBI will continue to work with its various local, state, and other federal law enforcement agencies in ensuring that the public’s trust in its law enforcement officers is well deserved.”
“Corrupt public officials undermine the fabric of our nation’s security, our overall safety, the public trust, and confidence in those chosen to protect and serve,” said ATF Special Agent in Charge Scott Sweetow. “The corruption and abuse of power exemplified in this case can tarnish virtually every aspect of society.”
The law enforcement officers arrested today were: Atlanta Police Department (APD) Officer Kelvin Allen, 42, of Atlanta; DeKalb County Police Department (DCPD) Officers Dennis Duren, 32, of Atlanta and Dorian Williams, 25, of Stone Mountain, Georgia; Forest Park Police Department (FPPD) Sergeants Victor Middlebrook, 44, of Jonesboro, Georgia and Andrew Monroe, 57, of Riverdale, Georgia; MARTA Police Department (MARTA) Officer Marquez Holmes, 45, of Jonesboro, Georgia; Stone Mountain Police Department (SMPD) Officer Denoris Carter, 42, of Lithonia, Georgia, and contract Federal Protective Services Officer Sharon Peters, 43, of Lithonia, Georgia. Agents also arrested two former law enforcement officers: former DeKalb County Sheriff’s Office (DCSO) jail officers Monyette McLaurin, 37, of Atlanta, and Chase Valentine, 44, of Covington, Georgia.
Others arrested today were: Shannon Bass, 38, of Atlanta; Elizabeth Coss, 35, of Atlanta; Gregory Lee Harvey, 26, of Stone Mountain, Georgia; Alexander B. Hill, 22, of Ellenwood, Georgia; and Jerry B. Mannery, Jr., 38, of Tucker, Georgia.
According to United States Attorney Yates, the charges and the criminal complaints:
The undercover operation arose out of an ATF investigation of an Atlanta area street gang in August 2011. ATF agents learned from an individual associated with the gang that police officers were involved in protecting the gang’s criminal operations, including drug trafficking crimes. According to this cooperating individual, the officers—while wearing uniforms, driving police vehicles, or otherwise displaying badges—provided security to the gang members during drug deals.
In affidavits filed in support of the charges, an FBI agent described how drug traffickers sometimes recruit law enforcement officers to maintain a physical presence at drug deals. The traffickers hope that the officers’ presence at the drug deals will prevent rival drug groups from intervening and stealing their drugs or money, and also keeps legitimate law enforcement officers away from the scene. In return for the corrupt officers’ services, the drug dealers often pay the officers thousands of dollars, according to the affidavits.
Acting at the direction of FBI and ATF, the cooperator communicated to gang members and their associates that the cooperator sought police protection for upcoming drug deals. In response, three individuals—Bass, Coss, and Mannery—while not law enforcement officers themselves, provided the cooperator with the names of police officers who wanted to provide security for drug deals. Once these officers were identified, FBI and ATF agents arranged with the cooperator, as well as with Bass, Coss, and/or Mannery, for the officers to provide security for drug transactions that were described in advance to involve the sale of multiple kilograms of cocaine. The individuals charged today participated in undercover drug sales involving agents and/or cooperators, during which the agents and/or cooperators exchanged cash for kilograms of sham cocaine. The police officers, usually in uniform and displaying a weapon and occasionally in their police vehicles, patrolled the parking lots where the deals took place and monitored the transactions. These transactions were audio and video recorded.
The defendants arrested today include the seven police officers and one contract federal officer who protected the undercover drugs deals, as well as two former sheriff’s deputies who falsely portrayed themselves to be current deputies, and two individuals who falsely represented themselves as officers despite having no connection to a local police department. The defendants also include four individuals who are not law enforcement officers but who acted as intermediaries between the agents and/or cooperators and corrupt officers and also assisted with the scheme.
Specifically, the undercover investigation included the following transactions:
DeKalb County Police Department
Between October 2011 and November 2011, DeKalb County Police Officer Dennis Duren, working together with Bass, provided protection for what he and Bass believed were four separate transactions in the Atlanta area that involved multiple kilograms of cocaine. Duren and Bass accepted cash payments totaling $8,800 for these services. During the transactions, Duren was dressed in his DeKalb County Police uniform and carried a gun in a holster on his belt, as he patrolled on foot in the parking lots in which the undercover sales took place. After the first two transactions, Duren allegedly offered to drive his patrol vehicle to future transactions for an additional $800 fee, and afterward received an additional $800 in cash for using his patrol vehicle in the final transaction in November 2011. Duren and Bass are each charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine. Duren also is charged with possessing a firearm in furtherance of a drug trafficking crime.
Between January and February 2013, DeKalb County Police Officer Dorian Williams, working together with Mannery and Bass, provided protection for what he and Mannery believed were three separate transactions in the Atlanta area that involved multiple kilograms of cocaine. Williams and Mannery accepted cash payments totaling $18,000 for these services. During the transactions, Williams was dressed in his DeKalb County Police uniform and carried a gun in a holster on his belt, and he patrolled the parking lots in which the undercover sales took place in his DeKalb Police vehicle. During a meeting between the three transactions, Williams allegedly instructed Bass to remove any cocaine from the scene if Williams had to shoot someone during the upcoming sale. In another meeting, Williams suggested that future drug transactions should take place in the parking lot of a local high school during the afternoon, so that the exchange of backpacks containing drugs and money would not look suspicious. Williams and Mannery are each charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine.
Stone Mountain Police Department
Between April and September 2012, Stone Mountain Police Officer Denoris Carter, working together with Mannery, provided protection for what he and Mannery believed were five separate transactions in the Atlanta area that involved multiple kilograms of cocaine. For these services, Carter and Mannery accepted cash payments totaling $23,500. For all five transactions, Carter dressed in his Stone Mountain Police uniform. In four of the deals, he arrived in his police cruiser and either patrolled or parked in the parking lots in which the undercover sales took place and watched the transactions. During the final transaction in September 2012, Carter was on foot, displaying a firearm in a holster on his belt, and he walked through the parking lot in which the transaction took place and watched the participants. Finally, during one of the transactions, Carter agreed to escort the purchaser of the sham cocaine in his police vehicle for several miles, until the purchaser reached Highway 78. Carter is charged with conspiring to commit extortion by accepting bribe payments, attempted possession with intent to distribute more than five kilograms of cocaine, and possessing a firearm in furtherance of a drug trafficking crime.
Atlanta Police Department
Between June and August 2012, Atlanta Police officer Kelvin D. Allen, working together with Coss, provided protection for what he and Coss believed were three separate transactions in the Atlanta area that involved multiple kilograms of cocaine. Allen and Coss accepted cash payments totaling $10,500 for their services. For two transactions, Allen dressed in his Atlanta Police uniform and carried a gun in a holster on his belt. Allen patrolled on foot in parking lots in which the undercover sales took place and appeared to be monitoring the transactions. During a meeting after the three transactions, a cooperator gave Allen and Coss each a $1,000 bonus payment in return for protecting the three transactions. Allen and Coss are each charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine. Allen also is charged with possessing a firearm in furtherance of a drug trafficking crime.
MARTA Police DepartmentBetween August and November 2012, MARTA Police Department Officer Marquez Holmes, working together with Coss, provided protection for what he and Coss believed were four separate transactions in the Atlanta area that involved multiple kilograms of cocaine. For these services, Holmes and Coss accepted cash payments totaling $9,000. During the transactions, Holmes was dressed in his MARTA Police uniform and carried a gun in a holster on his belt. In two of the transactions, Holmes patrolled on foot in the parking lots in which the undercover sales took place and monitored the transactions. During the other two deals, Holmes drove to the site in his MARTA police cruiser and parked next to the vehicles in which the undercover drug sale took place. Holmes is charged with conspiring to commit extortion by accepting bribe payments, attempted possession with intent to distribute more than five kilograms of cocaine, and possessing a firearm in furtherance of a drug trafficking crime.
Forest Park Police Department
Between October to December 2012, Forest Park Police Sergeants Victor Middlebrook and Andrew Monroe, sometimes working alone and at other times together, provided protection for what they believed were six separate drug deals in the Atlanta area, all involving multiple kilograms of cocaine. For his services in the first four transactions, Middlebook accepted cash payments totaling $13,800. During these transactions, Middlebrook wore plain clothes, but displayed his badge and a firearm in a holster on his belt. He patrolled on foot in the parking lots nearby the vehicles in which the undercover sales took place and appeared to be monitoring the transactions. For the final two transactions, both Middlebrook and Monroe provided security and were given cash payments totaling $10,400. Middlebrook again monitored the transactions on foot in plain clothes while displaying his badge and gun, while Monroe watched from his vehicle in the parking lot and afterward escorted the purchaser of the sham cocaine for several miles. Middlebrook and Monroe are charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine; Middlebrook is also charged with possession of a firearm in furtherance of a drug trafficking crime.
DeKalb County Sheriff’s Office
In January 2013, former DeKalb County Sheriff Jail Officer Monyette McLaurin, working together with Harvey, provided protection for what they believed were two separate drug transactions in the Atlanta area that involved multiple kilograms of cocaine. Harvey already had provided security for two undercover drug transactions in December 2012, falsely representing that he was a DeKalb County detention officer and wearing a black shirt with the letters “SHERIFF” printed across the back during the transactions. Harvey then stated that he knew other police officers who wanted to protect drug deals, and in January 2013 he introduced McLaurin as one of these officers. During a meeting to discuss future drug transactions, McLaurin falsely represented that he was a deputy employed by the DeKalb Sheriff’s office, even though his position as a jail officer ended in 2011. McLaurin and Harvey further stated during this meeting that they may need to kill another person who knew that Harvey had protected drug deals, if this person reported the activity to others.
During the two transactions in January 2013, McLaurin was dressed in a DeKalb County Sheriff’s Office uniform with a badge, and he carried a gun in a holster on his belt. He accompanied the undercover seller of the cocaine to pick up the drugs from a warehouse, counted the kilograms the seller received, and stood outside the purchaser’s vehicle during the actual transaction. He further discussed with the seller whether they should agree upon a signal for the seller to indicate that the sale had gone awry, requiring McLaurin to shoot the drug buyer. For their services, McLaurin and Harvey were paid $12,000 in cash. McLaurin and Harvey are each charged with attempted possession with intent to distribute more than five kilograms of cocaine and with possessing a firearm in furtherance of a drug trafficking crime.
Later in January 2013, McLaurin and Harvey introduced a second former DeKalb County Sheriff’s Jail Officer, Chase Valentine, to help provide security for future drug deals. Like McLaurin, Valentine falsely represented himself to be a DeKalb County Sheriff’s Deputy, even though his position as a jail officer ended in 2010. Together with Harvey, Valentine provided security for one undercover drug transaction on January 17, 2013, during which he wore a DeKalb Sheriff’s Office uniform and a pistol in a holster on his belt. During the transaction, Valentine escorted the seller to pick up the sham cocaine, counted the number of kilograms delivered, and stood outside the purchaser’s car during the actual transaction. For these services, Valentine received $6,000 in cash. Valentine is charged with attempted possession with intent to distribute more than 500 grams of cocaine and possession of a firearm in furtherance of a drug trafficking crime.
Federal Protective Services
In November 2012, Sharon Peters, who was a contract officer for the Federal Protective Services, worked together with Mannery to provide protection for what they believed were two separate transactions in the Atlanta area that involved multiple kilograms of cocaine. For these services, Peters and Mannery accepted cash payments totaling $14,000. For both transactions, Peters parked her vehicle nearby the cars where the sham drugs and money were exchanged, and watched the transactions. Before both transactions, Peters told others that she had her pistol with her in the car. Peters is charged with attempted possession with intent to distribute more than five kilograms of cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
Imposter Clayton County Police Officer
Between December 2012 and January 2013, Alexander B. Hill falsely represented himself to be an officer with the Clayton County Police Department while providing security for what he believed were three separate drug transactions in the Atlanta area that involved multiple kilograms of cocaine. During an initial meeting, Hill wore a uniform that appeared to be from Clayton Police, but during the transactions he wore plain clothes and, for at least the first deal, a badge displayed on his belt. For these services, Hill received payments totaling $9,000 in cash. Hill charged with attempted possession with intent to distribute more than five kilograms of cocaine and with possession of a firearm in furtherance of a drug trafficking crime.
Each charge of attempted possession with intent to distribute at least five kilograms of cocaine carries a maximum penalty of life imprisonment, a mandatory minimum sentence of 10 years in prison and a fine up to $10,000,000. Each charge of attempted possession with intent to distribute at least 500 grams of cocaine carries a maximum penalty of 40 years in prison, a mandatory minimum sentence of five years in prison and fine of up to $5,000,000. Each charge of possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of life imprisonment, a mandatory minimum sentence of five years in prison and a fine of up to $250,000. Each charge of conspiring to commit extortion by accepting bribe payments carries a maximum sentence of 20 years in prison and 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.
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 the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Kim Dammers, Jill Steinberg and Brent Alan Gray are prosecuting these cases.
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
Attachments:
- Bass, Shannon Criminal Complaint
- Coss, Elizabeth Criminal Complaint
- Harvey, Gregory Lee Criminal Complaint
- Mannery, Jerry B Jr. Criminal Complaint
Local Businessman Charged with Wire Fraud for Using Investors' Funds as His Personal Piggy BankRead the Press Release
Defendant Allegedly Stole Approximately $800,000 from His Business Investors
ATLANTA – The co-founder of Geometrix has been charged in a federal criminal information with defrauding business investors of approximately $800,000. Kevin Patrick Loughery, 49, of Atlanta, Georgia, who co-founded Geometrix in 2007, was arraigned today before United States Magistrate Judge Alan J. Baverman on the federal charge of wire fraud, and was released on bond.
“Instead of keeping his business investors’ funds secure in an escrow account, the defendant is charged with using hundreds of thousands of dollars to support his lavish lifestyle,” stated United States Attorney Sally Quillian Yates. “The charges against Loughery reflect our ongoing commitment to crack down on investment fraud.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “When the defendant diverted investor funds to his personal account, he left behind his multiple investors-turned-victims now suffering substantial financial losses while he pursued a life of affluence. The FBI remains well-suited and committed to investigating such cases of wire fraud that often significantly impact many victims.”
According to United States Attorney Yates, the charges and other information presented in court: In 2008, Kevin Patrick Loughery began soliciting investments from his friends and business associates in Geometrix, a Georgia start-up company that he co-founded in 2007. Loughery assured investors both telephonically and via email that their investment would remain in escrow until the completion of Geometrix’s issuance of stock and accompanying documentation.
In an email to one such investor, Loughery assured the investor that the money would be kept in an escrow account, and Loughery instructed the investor to wire the money into such an account. However, the money never went to an escrow account because Loughery’s wiring instruction was not for an escrow account, but rather was for Loughery’s own account for a separate business, KLM Investments, of which Loughery was the sole proprietor. The investor wired over $300,000 into the account. Loughery then sent the investor an email stating that the investor would receive 400,000 shares of Geometrix for his investment. The investor never received those shares.
In total, Loughery solicited $780,000 in investments from various investors that were supposed to be kept in escrow but instead were spent by Loughery. Loughery subsequently declared bankruptcy.
This case was investigated by special agents of 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 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 Bureau of Prisons Doctor Sentenced for Sexual Abuse of Three InmatesRead the Press Release
Physician Was Charged in Atlanta and Washington, D.C.
With Sexually Abusing InmatesATLANTA - Dr. Lewis Jackson, 34, of Atlanta, was sentenced today in federal district court for sexually assaulting three inmates at the United States Penitentiary in Atlanta while employed as a physician with the U.S. Bureau of Prisons. Jackson was sentenced to 2 years, 1 month in prison by United States District Court Judge Amy Totenberg. He is awaiting sentencing in the District of Columbia where he pleaded guilty in January to sexually assaulting an inmate while working at the District of Columbia jail.
United States Attorney Sally Quillian Yates said, “The federal inmates who relied on Dr. Jackson for their care believed he would treat them humanely. He exploited this trust when he sexually abused three inmates at the United States Penitentiary in Atlanta and another inmate at the District of Columbia jail. His conduct cost him his license to practice medicine and ensured he will spend the next several years as an inmate himself.”This case was investigated by Special Agents of the Department of Justice Office of the Inspector General (OIG). Inspector General Michael E. Horowitz stated: “Dr. Jackson’s actions victimized inmates and undermined the good work of the correctional staff at USP Atlanta. The OIG will not tolerate conduct by Justice Department employees that risks the safety of inmates and correctional officers.”
According to United States Attorney Yates, the charges and other information presented in court, from January, 2011 through July, 2012, Jackson was a physician at the United States Penitentiary (USP) in Atlanta where he provided medical care to inmates in USP's medical ward. The USP houses medium security male inmates and has a satellite camp for minimum security male inmates.
In October 2011, Jackson molested three inmates who were seeking medical treatment at the USP. When confronted by special agents with the Department of Justice’s, Office of Inspector General, Jackson originally denied engaging in the sex acts. After agents played an undercover recording made by one of the inmates, however, Jackson admitted he sexually assaulted the inmates.
Jackson recently pleaded guilty in the Superior Court of the District Columbia to three counts of sexually abusing another inmate in the District of Columbia Jail in 2008. According to that indictment, Jackson performed a series of sex acts on the inmate after he sought medical treatment from Jackson. Jackson was on bond in that case at the time of his arrest in Atlanta.
This case is being investigated by Special Agents of the Department of Justice, Office of Inspector General.
Assistant United States Attorney Kurt R. Erskine is 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.
Two More Defendants Sentenced to Prison for Identity TheftRead the Press Release
Defendants Relied on Local Restaurant & Retail Establishment Employees
to Steal Credit Card Account Information from Unsuspecting CustomersATLANTA – Two leading defendants in a large-scale credit card theft ring involving the use of “skimming” devices at restaurants and retail stores were sentenced to federal prison today by United States District Court Judge Richard W. Story. Norman Uriah Simmonds, 33, of Lilburn, Georgia, was sentenced to serve 8 years, 6months, followed by 3 years of supervised release, and he was ordered to pay restitution in the amount of $107,324. Steven Michael Jackson, 28, of Atlanta, Georgia, was sentenced to serve 5 years, 1month, followed by 3 years of supervised release, and he was ordered to pay restitution in the amount of $33,254.
“These two defendants were part of an organized scheme involving at least 11 people, some of whom worked at local restaurants and stores, who tried to make a living by selling and using stolen credit cards,” said United States Attorney Sally Quillian Yates. “This case demonstrates that consumers need to be aware of the risks of using credit cards, and that they need to check their accounts regularly for unexplained purchases or activity.”
“This is a good example of solid investigative work and teamwork on everyone’s part. As Postal Inspectors, we are proud to have prevented so many people from becoming further victimized by these individuals, who could have caused considerable financial damage and personal inconvenience to consumers.” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
“These defendant’s criminal actions reflect how advancements in digital technology can also sometimes have a negative effect on our communities. The Secret Service, with its law enforcement partners, will continue to actively investigate those that commit cybercrimes to prey on unsuspecting victims,” 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: From approximately June 2009 to November 2010, the defendants obtained and possessed electronic devices referred to as “skimmers,” which are capable of copying and storing debit and credit card account information. The defendants, some of whom were employed by restaurant and retail establishments, used the skimmers to copy and store debit and credit card account numbers from unsuspecting customers. The restaurants and retail establishments included Shogun Japanese Steakhouse in Columbus, Georgia; a Krystal Restaurant in Columbus, Georgia; a McDonald’s Restaurant in Atlanta, Georgia; and Polished Nail Salon in Lawrenceville, Georgia. All of the impacted restaurants and retail establishments cooperated in the investigation.
After retrieving the debit and credit card account numbers from the skimmers and processing the data, the defendants transferred the stolen account numbers to the magnetic stripes of blank white plastic cards or gift cards using device-making equipment referred to as “encoders,” which altered the cards’ magnetic stripes to include the stolen debit and credit card account numbers. The defendants subsequently used the altered cards to purchase things of value, including United States postal stamps from Automated Postal Centers throughout Georgia.
In addition to defendants Simmonds and Jackson, the indictment also charged nine other individuals, all of whom have pled guilty:
- Sean Carlos Deloatch, 27, of Columbus, Georgia;
- Bryan Charles Jones, 33, of Atlanta, Georgia;
- Vanessa Echeverry, 20, of Lawrenceville, Georgia;
- Antonio Escobal, 35, of Columbus, Georgia;
- Lakeysha Renee Hill, 27, of Columbus, Georgia;
- Jerome Christopher Ledgister, 27, of Stockbridge, Georgia;
- Dwayne Matthew Neely, 29, of Columbus, Georgia;
- Tamicka Lashaun Trice, 28, of Atanta, Georgia; and
- Carmen Marie Walker, 25, of Atlanta, Georgia.
Defendants Deloatch, Echeverry and Trice are scheduled to be sentenced before United States District Court Judge Richard W. Story on Wednesday, February 13, 2013, at 2 p.m. The remaining defendants have previously been sentenced.
This case was investigated by Postal Inspectors of the United States Postal Inspection Service and Special Agents of the United States Secret Service.
Assistant United States Attorney Steven D. Grimberg is 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.
Identity Thieves Sentenced for Taking over Bank AccountsRead the Press Release
Defendants Stole Over $1.4 Million from Victims’ Accounts
ATLANTA – A total of five defendants were sentenced today and last Thursday for using fake driver’s licenses to withdraw almost $1.5 million from victims’ bank accounts. The defendants were convicted of conspiracy, bank fraud, and aggravated identity theft after pleading guilty.
United States Attorney Sally Quillian Yates said, “The defendants tormented dozens of innocent victims who went to the bank only to discover that their accounts had been drained and identities stolen. The sentences imposed in this case appropriately reflect the severe damage done by identity thieves.”
“This case illustrates the negative impact that bank fraud and aggravated identity theft have on the citizens of the United States. The Secret Service will continue to aggressively pursue, with our federal, state, and local law enforcement partners, anyone that violates the trust that the public has in our economic system,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The defendants will now have plenty of time to contemplate the harm done by their aggressive criminal enterprise. The FBI will continue to work with its various law enforcement partners in protecting financial institutions and their account holders from the criminal activities of identity thieves.”
According to United States Attorney Yates, the charges and other information presented in court: From February 2010 through August 2011, Gafar O. Kosoko Balogun ran an identity theft scheme in Atlanta that targeted various banks, including Bank of America, Wells Fargo, SunTrust, and BB&T. Balogun first obtained individuals’ financial account information, typically over the Internet from public web sites. He went to credit reporting sites and guessed the answers to individuals’ security questions to gain access to their credit reports, and went to other sites to collect business information and tax identification numbers. Balogun would then call the bank and impersonate the true account holder to find out the account balance of the victim.
Balogun provided the account information to Donish Adkins, Orlon Hall, Christian Okafor, and Wayne Cunningham, who in turn recruited “runners” to go into the banks and withdraw money from the victims’ accounts. Balogun supplied fake driver’s licenses to the runners, which they used to impersonate the account holders while in the banks. In addition to recruiting co-conspirators, Cunningham also entered banks and made withdrawals from victims’ accounts. After paying the runners about $500 per transaction, the defendants shared the remainder of the criminal proceeds. The investigation has linked over $2.7 million in actual and attempted withdrawals from over 60 accounts to the scheme. The defendants succeeded in getting over $1.4 million from these accounts.
United States District Judge Thomas W. Thrash, Jr. sentenced Balogun, Adkins, Hall and Cunningham on Thursday, January 31, and sentenced Okafor today:
- Gafar O. Kosoko Balogun, 30, of Atlanta, Georgia, was sentenced to 6 years, 6 months in prison, to be followed by 3 years of supervised release, and ordered to pay $1,485,660.68 in restitution.
- Donish Adkins, 35, of Johns Creek, Georgia, was sentenced to 5 years, 3 months in prison, to be followed by 3 years of supervised release, and ordered to pay $527,293.31 in restitution.
- Orlon Hall, 32, of Alpharetta, Georgia, was sentenced to 5 years, 10 months in prison, to be followed by 3 years of supervised release, and ordered to pay $698,943.31 in restitution.
- Wayne Cunningham, 53, of College Park, Georgia, was sentenced to 7 years, 3 months in prison, to be followed by 3 years of supervised release, and ordered to pay $46,860 in restitution.
- Christian Okafor, 36, of Duluth, Georgia, was sentenced to 3 years, 10 months in prison, to be followed by 3 years of supervised release, and ordered to pay $97,030.99 in restitution.
This case was investigated by Special Agents of the United States Secret Service and Federal Bureau of Investigation.
Assistant United States Attorney Stephen H. McClain and former Assistant United States Attorney Nick Oldham prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Atlanta Investment Advisor Pleads Guilty to Embezzeling More Than $2.5 Million from ClientsRead the Press Release
ATLANTA – The owner and operator of Lighthouse Financial Partners, LLC, an investment advisory service in Atlanta, Georgia, pleaded guilty today in federal court before U.S. District Judge Steven C. Jones to a charge of defrauding more than 50 of his clients. Benjamin Daniel DeHaan, 37, of Decatur, Georgia stole more than $2.5 million from his clients, and then used the money to purchase a home and partial ownership in a restaurant and bar in Memphis, Tennessee.
United States Attorney Sally Quillian Yates said, “This defendant may have started out as a legitimate investment advisor, but he got greedy and began stealing from his clients. In less than three years, he diverted more than $2.5 million from his clients’ accounts and used the money to fund a lavish lifestyle. He is now facing a lengthy prison sentence and will never work in the securities industry again.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The defendant in this case, while now acknowledging his criminal behavior, has caused much financial and emotional harm to the victims who were once his clients. The FBI remains committed to identifying, investigating, and presenting for prosecution such cases of criminal fraudulent activity that harm so many individuals.”
According to United States Attorney Yates, the charges and other information presented in court, DeHaan owned and operated Lighthouse Financial Partners, LLC, an investment advisory service in Atlanta, Georgia. DeHaan recruited investors by posting a series of videos on Lighthouse’s website and on YouTube. DeHaan told investors that he had developed a proprietary software program that allowed him to determine when to buy and when to sell a particular stock. Approximately 114 people entrusted DeHaan with money to invest on their behalf. At its peak, Lighthouse had approximately $6.7 million in assets under management.
From January 2010 through May 2012, DeHaan misappropriated and converted to his own use more than $2.5 million of his clients’ money. DeHaan used the fraud proceeds to purchase a new house for himself in Memphis, Tennessee and to purchase partial ownership of a restaurant and bar in Memphis. DeHaan also used his clients’ money to fund an investment account in his own name and to pay Lighthouse’s overhead and operating expenses. DeHaan attempted to cover-up his theft by emailing fraudulent account statements to investors. This lulled the victims into a false sense of security and delayed their complaints to law enforcement.
DeHaan pleaded guilty to a Criminal Information charging him with one count of wire fraud. He could receive a maximum sentence of 20 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 April 9, 2013, at 11 a.m., before United States District Judge Steve C. Jones.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Russell Phillips is prosecuting the case.
For further information please contact the U.S. Attorney’s Public 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.
Feds Target Stolen Identity Tax Refund FraudRead the Press Release
Nine people have been charged or arrested in the last three weeks
ATLANTA – The Internal Revenue Service began accepting tax returns for the 2012 tax year only two days ago, but the U.S. Attorney’s Office, the Criminal Investigation Division of the IRS, and other law enforcement partners are already in full swing investigating and prosecuting stolen identity tax refund fraud.
United States Attorney Sally Quillian Yates said, “Identity theft is a crime that can take many forms, all of which take a financial and emotional toll on its victims. But stealing someone’s identity – their name, date of birth, or social security number – for the purpose of filing a fraudulent tax return, causes even greater harm because it can significantly delay the victim from receiving his or her legitimate tax refund, and it costs the Treasury millions of dollars in lost revenue every year. The investigation and prosecution of tax-related identity theft during this tax filing season is a priority in this district.”
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” said Veronica Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “Identifying, investigating and vigorously prosecuting those individuals involved in tax-related identity theft schemes remains a top priority for IRS Criminal Investigation. The recent indictments and arrests are just a sample of what is to come as we join forces with our law enforcement partners and the United States Attorney’s office to put an end to identity theft.”
In the last three weeks alone, federal prosecutors in Atlanta have charged or arrested 9 people with stolen identity tax refund fraud, and executed two search warrants:
- Today, Kevin Joseph Sonnier, 44, of Ellenwood, Georgia, and Bernardo Davis, 26, of Morrow, Georgia, were arrested on a criminal complaint charging them with wire fraud, aggravated identity theft, and conspiracy to defraud the government. According to the criminal complaint, Sonnier and Davis filed over 15,000 false tax returns from 2011 to 2012 that claimed over $15 million in bogus refunds. Sonnier and Davis used the names and social security numbers of thousands of unsuspecting victims to claim fraudulent refunds from the government. They obtained some of these names and social security numbers through the use of a website and advertisements that touted the availability of an “Obama stimulus payment” and provided a toll-free number. However, no stimulus payment actually existed and Sonnier and Davis instead used the victims' personal information to file thousands of false tax returns that claimed millions of dollars in bogus refunds.
In conjunction with the arrest of Sonnier and Davis, today federal agents searched two locations, including 2295 Lake Harbin Road, Morrow, Georgia, where it is believed a business named "Sonnier Tax Service" has operated, and Kevin Sonnier's primary residence in Ellenwood, Georgia. Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp are prosecuting the case.
- On January 29, 2013, Jarred Ryan Corker, 26, of Marietta, Georgia, was arrested on a charge of theft of government property arising from his possession of debit cards containing fraudulently obtained tax refunds. According to the criminal complaint, Atlanta Police Department officers found a stack of 21 Visa debit cards issued by TurboTax and approximately $7,100 in cash in Corker’s possession during a traffic stop. The criminal complaint charges that the TurboTax debit cards were loaded with tax refunds issued by the IRS based on fraudulently filed 2011 federal tax returns. In total, 97 fraudulently filed tax returns were identified as part of the scheme with an intended tax loss to the IRS of over $290,000. Assistant United States Attorney Nathan Kitchens is prosecuting the case.
- On January 28, 2013, Frederick Roberts, 51, of Atlanta, Georgia, was arrested on a federal indictment for filing false tax returns with the IRS. Roberts was charged with three counts of mail fraud, three counts of aggravated identity theft, and three counts of filing a false claim against the United States. According to the indictment, Roberts filed false tax returns with the IRS seeking refunds in the names of other people whose identities were stolen, and then falsely listed as the taxpayer’s address his own address or an address from which he could retrieve mail so that he would be able to receive the requested refund check. Assistant United States Attorney Christopher Bly is prosecuting the case.
- In November 2012, a federal grand jury indicted eight individuals for conspiring to commit wire fraud and aggravated identity theft stemming from their use of stolen personal identification information to file hundreds of false federal income tax returns using online tax filing websites, and directed tax refunds to fictitious business bank accounts established to further the scheme. The indictment remained sealed until January 18, 2013, to allow law enforcement the opportunity to locate the defendants. The defendants are charged with conspiring to commit wire fraud and aggravated identity theft. Those indicted include Marcus Behling, 29, of Powder Springs, Georgia; Charlie Brewer, 24, of Mableton, Georgia; Nyron Nelson, 37, of Marietta, Georgia; Maurice Pollock, 31, of Austell, Georgia; Shawn Lavon Brown, 36, of Atlanta, Georgia; Christopher Edwards, 41, of Tucker, Georgia; Tasha Ellis, 32, of Atlanta, Georgia; and Kelly Sue Lonas, 38, of Marietta, Georgia. On January 18, 2013, all the defendants except Brown, Ellis, Lonas and Edwards were arrested. Brown, Ellis and Lonas were arrested in 2012. Christopher Edwards remains at large. Assistant United States Attorney Jeffrey Brown is prosecuting the case.
- On January 15, 2013, Amechi Igabari, 25, of Marietta, Georgia was indicted on charges of theft of government funds and aggravated identity theft. According to the indictment, which was unsealed this week, Igabari possessed or used the identities of at least 15 victims whose social security numbers were used to file false tax returns that claimed bogus refunds. To date, law enforcement has been unable to locate Igabari and arrest him. Anyone with information about his whereabouts is asked to call (404) 338-7533. Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
Members of the public are reminded that criminal complaints and indictments contain 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 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).
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.
- Today, Kevin Joseph Sonnier, 44, of Ellenwood, Georgia, and Bernardo Davis, 26, of Morrow, Georgia, were arrested on a criminal complaint charging them with wire fraud, aggravated identity theft, and conspiracy to defraud the government. According to the criminal complaint, Sonnier and Davis filed over 15,000 false tax returns from 2011 to 2012 that claimed over $15 million in bogus refunds. Sonnier and Davis used the names and social security numbers of thousands of unsuspecting victims to claim fraudulent refunds from the government. They obtained some of these names and social security numbers through the use of a website and advertisements that touted the availability of an “Obama stimulus payment” and provided a toll-free number. However, no stimulus payment actually existed and Sonnier and Davis instead used the victims' personal information to file thousands of false tax returns that claimed millions of dollars in bogus refunds.
Ex-TSA Officers Sentenced for Conspiring to Smuggle Drugs Through Hartsfield-JacksonRead the Press Release
ATLANTA – Two now former TSA officers who conspired and attempted to smuggle drugs through Hartsfield-Jackson International Airport security have been sentenced by United States District Judge Charles Pannell. Today, Richard C. Cook II, 28, of Henry County, Georgia was sentenced to 11 years in prison; and on January 4, 2013, Timothy G. Gregory, 26, of DeKalb County, Georgia, was sentenced to 6 years in prison.
United States Attorney Sally Quillian Yates said, “The defendants abused their positions as TSA officers to smuggle drugs through the world’s busiest airport. The citizens of this district deserve better than Mr. Cook and Mr. Gregory – they deserve officers who obey the laws that they are entrusted to enforce. These significant prison sentences should serve as stinging reminders that corruption will not be tolerated.”
James E. Ward, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (OIG), Atlanta Field Office stated, “Let today’s sentencing demonstrate to the public that federal and local law enforcement agencies stand committed to eradicate corruption, particularly among the few who choose to tarnish their badge and oath of office. DHS OIG and its law enforcement partners will continue to hold such shameless individuals accountable.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “As officers of TSA, these two defendants abandoned their positions of trust and today they will answer for their actions. The FBI remains committed in working with its various law enforcement partners in bringing forward for prosecutions all matters concerning public corruption.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in January 2012, on multiple occasions, Cook and Gregory misused their positions as officers with the Transportation Security Administration (TSA) to smuggle what they believed to be illegal drugs through Atlanta’s airport security.
The investigation began after authorities received information from various sources that Cook was willing to use his position to smuggle contraband into secure facilities. Based on that information, federal law enforcement officers initiated an investigation into Cook’s activities. Specifically, on January 11, 2012, Cook met with two undercover officers, both of whom were posing as drug cartel members. During the meeting, the undercover officers provided Cook with 3 kilograms of fake drugs, that Cook believed to be heroin, and $3,500 in cash, which was partial payment to Cook to smuggle the drugs through airport security. Thereafter, Cook, who was wearing his TSA uniform, went to the airport, transported the drugs through the TSA security checkpoint, and delivered the drugs to an undercover officer inside the terminal. Cook was then paid another $4,000 in cash, which was the remaining payment for smuggling the drugs through security.
Similarly, on January 26, 2012, Cook met with an undercover officer before reporting for his TSA shift at the airport. During this meeting, the undercover officer provided Cook with 3 kilograms of fake drugs that Cook believed to be heroin, and $4,000 in cash, which was partial payment to Cook to smuggle the drugs through airport security. Thereafter, Cook, who was wearing his TSA uniform, went to the airport, transported the drugs through the TSA security checkpoint, and delivered the drugs to another undercover officer in the terminal. The undercover officer then paid Cook $3,500, which was the remaining portion of Cook’s fee for smuggling the drugs through security. In both sting operations, Cook believed that he was smuggling heroin through airport security.In February 2012, Cook resigned from the TSA. However, Cook recruited TSA Officer Gregory to assist with the drug smuggling operation. Cook introduced Gregory to the undercover officers who were posing as drug traffickers, and received a referral fee of $1,000.
On February 24, 2012, an undercover officer provided Gregory with 5 kilograms of fake cocaine and $5,000 in cash. Thereafter, Gregory, who was wearing his TSA uniform, went to the airport, transported the cocaine through the TSA security checkpoint, and delivered the drugs to another undercover officer in the terminal.On May 4, 2012, undercover officers provided Gregory with 10 kilograms of fake cocaine, which Gregory had agreed to transport from Atlanta to Commerce, Georgia.
Today, Cook was sentenced to 11 years in prison, to be followed by 5 years of supervised release, and fined $16,000. On January 4, 2013, Gregory was sentenced to 6 years in prison, to be followed by 5 years of supervised release, and fined $5,000.This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security - Office of the Inspector General, and the United States Marshals Service.
Assistant United States Attorney Jeffrey W. Davis prosecuted this case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney's Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Four Defendants Arrested for Operating “Pill Mill”Read the Press Release
Owners, Office Manager, and Doctor Charged with Illegally Selling and Distributing Large Quantities of Narcotics
ATLANTA – Four individuals have been indicted for illegally selling and distributing prescriptions for opiate-based narcotics and other controlled substances to addicts and drug dealers under the guise of a pain clinic in the Lilburn, Georgia area. Larry Webman, 64, and Randy Webman, 59, two brothers and the pain clinic owners; Dara Webman, 29, an office manager and the daughter of Randy Webman, all believed to be from Hollywood, Florida; and Dr. George Williams, 45, of Duluth, Georgia, were indicted and arrested on federal drug and distribution charges, and with unlawfully distributing drugs near a school. The clinic is adjacent to Berkmar High School in Lilburn, Georgia. Larry Webman and Randy Webman are also separately charged with maintaining a place for distributing drugs. A federal grand jury indicted the defendants on January 22, 2013.
United States Attorney Sally Quillian Yates said, “Unscrupulous doctors illegally exploiting their license to prescribe controlled substances represent an increasing source of deadly illicit drugs in our communities. The storefronts from which these criminal enterprises operate threaten the safety of our children and the security of our neighborhoods. This office, and our law enforcement partners, remains committed to combatting prescription drug abuse and its related criminal activity in our district.”
Harry S. Sommers, the Special Agent in Charge of the DEA’s Atlanta Field Division stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care, as occurred in this investigation, is not about the good of the community or an individual’s specific health needs; it is about greed. Make no mistake; those involved in “pill mill” activity are in fact drug dealers.”
“The IRS not only enforces the nation’s tax laws, but we also work in conjunction with our law enforcement partners to disrupt and dismantle drug distribution operations occurring in our neighborhoods,” stated Special Agent in Charge, Veronica Hyman-Pillot. “IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
“Our top priority in 2012 was to assist and work in partnership with the U.S. Attorney’s Office, Drug Enforcement Agency, and Internal Revenue Service in closing down this illegal enterprise that operated just yards from a high school housing over 3,000 students each school day. We don’t want them or any other type of illegal operation in our town whose sole mission was to pour poison into our community. I am proud of the energy and commitment by all of our partners who were steadfast and dedicated in removing this cancer from our streets and increasing our quality of life in our city,” said Bruce Hedley, Lilburn Police Chief.
According to United States Attorney Yates, the charges, and other information that will be presented in court: Since no later than February 2012, Larry Webman and Randy Webman have been operating an illegal enterprise, variously known as Premier Medical Management, Inc.; Premier Pain Management, Inc.; Premier Pain Management; and Premier Pain Management and Physical Therapy, located at 3993 Lawrenceville Highway, Suite 110, Lilburn, Georgia. Dr. George Williams was the clinic’s prescribing physician, routinely prescribing controlled substances outside the course of professional medical practice and without legitimate medical purposes. Dara Webman worked at the clinic as an office manager handing out these prescriptions to customers in exchange for cash payments ostensibly collected for office visits.
The indictment charges that Larry Webman and Randy Webman managed and controlled the clinic. Though neither has any medical training, they often directed Dr. Williams’ decisions with respect to prescribing controlled substances. The clinic saw as many as 60 customers a day, each paying between $250 and $350 a visit, and almost always leaving with a prescription for controlled substances, which often included oxycodone, a highly addictive painkiller. Dr. Williams typically saw a customer only at the initial visit, at which time he conducted a brief examination. On return visits, a customer rarely saw Dr. Williams but was able to obtain additional prescriptions for controlled substances, pre-signed by Dr. Williams, directly from the office manager, Dara Webman. Almost all customers paid cash, and Larry Webman and Randy Webman personally oversaw the collection of the clinic’s receipts.
The clinic’s customers regularly traveled long distances to obtain prescriptions for controlled substances. Most hailed from outside the state, including Kentucky, Tennessee, Ohio, North Carolina, South Carolina, and Florida. The clinic did not adhere to an appointment schedule, causing customers to park at the clinic’s entrance areas early in the morning before the clinic opened.
The indictment alleges that the clinic constituted a drug distribution operation that generated huge cash receipts. The indictment seeks forfeiture of all property used in and derived from the criminal enterprise. It also seeks forfeiture of Dr. Williams’ license to practice medicine.
Each defendant faces a maximum statutory penalty of 40 years in prison and a fine of up to $2,000,000. 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 was investigated by Special Agents of the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from the Lilburn Police Department.Special Assistant United States Attorney Ajay Gupta is 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 Man Sentenced for Smuggling Cocaine from Caribbean Through Hartsfield-Jackson International AirportRead the Press Release
ATLANTA – Lincoln E. Son, 38, of Atlanta, was sentenced today by United States District Judge Orinda D. Evans, to serve 16 years, 8 months in federal prison on charges of conspiring to import cocaine into the United States aboard international commercial flights.
As a member of a Caribbean-based drug-trafficking organization, Son recruited Delta employees at Hartsfield-Jackson International Airport to pick suitcases filled with cocaine from checked baggage ramps, bypass U.S. Customs inspection, and smuggle the luggage off airport property.
United States Attorney Sally Quillian Yates said, “Putting a stop to the use of commercial airlines for smuggling is important, not only because narcotics themselves are a threat to the health and safety of our citizens, but also because airline smuggling of any kind poses a threat to the security of aviation in our country. Today’s sentence should serve as a reminder that those who are caught in international smuggling activity of any kind will pay a heavy price.”
“The integrity of our nation’s airport security systems is of paramount importance to Homeland Security Investigations,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “The special agents HSI has assigned to Hartsfield-Jackson have a keen eye for spotting criminal conspiracies like this one that seek to exploit what they believe are weaknesses in the system. They will not succeed on our watch.”
“Investigations and results like these are the results of extraordinary teamwork,” noted Atlanta’s High Intensity Drug Trafficking Area (HIDTA) Director, Jack Killorin.
Son was sentenced to 16 years, 8 months in prison to be followed by 5 years of supervised release. Son was convicted of these charges on October 26, 2012, upon his plea of guilty.According to United States Attorney Yates, the charges and other information presented in court: Lincoln Son, a native of the U.S. Virgin Islands, was part of a Caribbean-based drug-trafficking organization. In February 2010, the U.S. Customs Enforcement’s Homeland Security Investigations - Atlanta, received information indicating that a Caribbean-based drug trafficking organization was smuggling large amounts of cocaine into Atlanta, using suitcases laden with cocaine placed on board Delta Air Lines flights from St. Lucia, St. Maarten, and Trinidad and Tobago. Once the flights arrived at the Hartsfield-Jackson Atlanta International Airport, Delta ramp workers intercepted the cocaine-laden suitcases, circumvented U.S. Customs inspection, and smuggled them off airport property.
HSI identified Son, who had recruited the Delta personnel to intercept the cocaine laden suitcases, smuggle them off airport property, and deliver them to Son. In February 2012, Son was indicted on charges of conspiring to import cocaine, conspiracy to possess cocaine with intent to distribute, and for attempted possession of cocaine with intent to distribute. Son entered his plea of guilty to all three charges on October 26, 2012.
This case was investigated by Special Agents of the U.S. Customs Enforcement’s Homeland Security Investigations, together with Delta Air Lines Security personnel.
Special Assistant United States Attorney Jane Swift Borucki, who is a Gwinnett County Assistant District Attorney assigned to Atlanta’s High Intensity Drug Trafficking Area Task Force and the U.S. Attorney’s Office, prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Two Men Indicted for Child Exploitation OffensesRead the Press Release
Child Pornography Video Investigation Snares Two Cobb County Men
ATLANTA – A Cobb County school bus driver and a college music instructor were arraigned today before United States Magistrate Judge Janet F. King on two separate indictments for child pornography charges stemming from their ordering and receiving videos containing child pornography from a foreign company. Stanley Keith Johnson, 57, of Mableton, Georgia, is charged with one count of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography. In a separate case, Jerry Michael Lanier, 51, of Smyrna, Georgia, is charged with one count of receiving child pornography and one count of possessing child pornography. The indictments were returned by a federal grand jury on January 8, 2013.
“Child pornography preys on the most innocent and vulnerable members of society,” said United States Attorney Sally Quillian Yates. “These men are charged with participating in the victimization of children when they received child pornography through the mail. These cases reflect our commitment to end this horrendous cycle of victimization.”
“Postal Inspectors have been on the forefront aggressively investigating cases involving the sexual exploitation of children through the U.S. mail. We will continue our fight against sexual predators who insist on dissolving the innocence of children.” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
“The victimization of children by purveyors of child pornography is a growing problem in Georgia and assisting state, local, and federal agencies in identifying and prosecuting those involved in the child porn trade is a priority for the GBI and its Child Exploitation and Computer Crimes Unit. The GBI is proud to have assisted the United States Postal Inspection Service in this investigation,” said Vernon Keenan, GBI Director.
According to United States Attorney Yates, the charges and other information presented in court:
- From November 2010 to April 2011, Stanley Keith Johnson placed orders with a foreign company for approximately 180 DVDs containing videos of nude boys between the ages of 8 and 14. Johnson received those videos through the United States Postal Service. A search warrant executed in December 2012 revealed that he not only possessed child pornography on his computer, but that he had also produced images of child pornography as far back as May 2004. Johnson was working as a bus driver for Cobb County Public Schools during all the times listed in the indictment.
- Between January 2010 and January 2011, Jerry Michael Lanier also placed orders with the same foreign company. He ordered and received through the mail approximately 19 DVDs containing child pornography. A search warrant executed at his residence December 2011 revealed that he had numerous videos of child pornography on his computer. Lanier was working as a music instructor at the University of West Georgia when the search warrant was executed.
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.
These cases are being investigated by the United States Postal Inspection Service with assistance from the Georgia Bureau of Investigation, Cobb County Police Department, and Smyrna Police Department.
Assistant United States Attorney Paul R. Jones is prosecuting the cases.
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.
Marietta Man Pleads Guilty to Filing False Claims for Federal Income Tax Refunds While in State PrisonRead the Press Release
ATLANTA - Arnold Tobias Gervais, 34, of Marietta, Georgia, pleaded guilty today in federal court to charges arising out of a scheme to defraud the IRS out of more than $3.4 million in federal income tax refunds while he was in state custody.
United States Attorney Sally Quillian Yates said, “Those who cheat the IRS take money away from everyone who pays his or her fair share of taxes. The United States Attorney’s Office and the IRS are on the lookout for tax cheats and will aggressively pursue those individuals who try to beat the system.”
“One of the many ways that IRS Criminal Investigation protects taxpayer money involves identifying, investigating and prosecuting those who file fraudulent refund claims,” stated Special Agent in Charge, Veronica Hyman-Pillot. “Mr. Gervais defrauded the government and the taxpaying public and will be justly punished for his actions.”
According to United States Attorney Yates, the charges and other information presented in court, Gervais was convicted in May 2008 and sentenced to five years in prison by the Superior Court of Cobb County, Georgia for theft by taking for submitting a fraudulent tax return in an attempt to obtain a tax refund of more than $600,000 from the State of Georgia. Gervais was incarcerated on that charge from July 13, 2007 through February 26, 2010.
On March 16, 2009, while in state custody, Gervais caused his then wife to file with the IRS a phony income tax return, Form 1040, for tax year 2008, which contained a claim for payment of an income tax refund in the amount of $811,073, which Gervais knew to be false, fictitious, and fraudulent.
In addition, Gervais filed, or caused to be filed, six more false claims for federal income tax refunds - five in his own name for tax years 2004, 2005, 2006, 2007, and 2009, and one in the name of an acquaintance for tax year 2009.
All seven of the returns claimed false wages and federal tax withholding. And all seven of the returns falsely claimed that the taxpayer had earned a significant amount of wages from a fictitious company called “Safety Shoes & More, Inc.,” which was allegedly located in Rome, Georgia. The returns also falsely claimed that the corporation had withheld from those wages a significant amount of federal income tax.
The total intended tax loss to the IRS was $3,488,135, and of that amount, $2,832,268 was actually paid by to Gervais by the IRS.
The United States Attorney’s Office in this district filed two civil forfeiture actions, which resulted in the seizure of $2,232,012 from accounts controlled by Gervais; thereby, reducing the out-of-pocket loss to the IRS.
Gervais pleaded guilty to a Criminal Information charging him with one count of filing false claims for income tax refunds. He 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.
Sentencing is scheduled for March 28, 2013 at 10 a.m., before United States District Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorneys Russell Phillips and Michael J. Brown 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.
Four Conspirators Arrested for Operating "Pill Mills"Read the Press Release
Owner and Doctors at AMARC Clinics Charged with Illegally Distributing Large Quantities of Oxycodone Pills and Other Controlled Substances
ATLANTA – A pain clinic owner, an office manager who was the wife of the owner, and two doctors have been indicted for the illegal sale and distribution of pain killers to addicts and drug dealers at three AMARC pain clinics in metropolitan Atlanta. Godfrey Ilonzo, 63, of Alpharetta, Georgia; Bona Ilonzo, 51, of Alpharetta, Georgia; Dr. Nevorn Askari, 57, of Monroe, Georgia; and Dr. William Richardson, 59, of Atlanta, Georgia, were indicted and arrested on federal drug and money laundering charges for their respective roles in operating so-called “pill mill” pain clinics. Godfrey Ilonzo was also indicted individually on charges relating to federal bankruptcy fraud. The defendants were arraigned today at 2 p.m., before United States Magistrate Judge Janet F. King. The federal grand jury indicted the defendants on January 8, 2013.
United States Attorney Sally Quillian Yates said, “The abuse of pain medication has become epidemic and now accounts for more deaths than all traditional illegal drugs combined. The defendants in this case are charged with preying on drug addicts, feeding their addictions in order to make a profit. Prosecuting those who perpetrate prescription drug abuse is one of the critical missions of this office, and we will continue to investigate and prosecute other pill mills in this district.”
Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division said, “DEA and its law enforcement counterparts will continue to target and crack down on unscrupulous pain clinics. Today’s arrests have dismantled this criminal enterprise, which was responsible for the illegal distribution of dangerous doses of oxycodone and other controlled substances. The success of this investigation is a direct result of the hard work and dedication put forth by our federal, state, and local law enforcement counterparts.”
“IRS Criminal Investigation is proud to contribute our financial expertise in an effort to halt the illegal sale and distribution of prescription drugs,” stated Special Agent in Charge, Veronica Hyman-Pillot. “We are committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case necessitated the expertise of several federal law enforcement agencies due to the various criminal charges alleged. The FBI will continue to work with its local, state, and federal law enforcement partners in bringing such investigations forward for prosecution.”
According to United States Attorney Yates, the charges and other information presented in court: In 2009, agents of the Tactical Diversion Squad of the Drug Enforcement Administration (DEA), learned that physicians at an AMARC clinic, located at 1755 Lakewood Avenue, Atlanta, Georgia, prescribed pain pills outside the bounds of legitimate medical practice. Subsequently, DEA, working with IRS, FBI, and officers from other state and local agencies, learned that Godfrey Ilonzo has financed and operated multiple pain clinics in the Atlanta area under the “AMARC” name, including the Lakewood Avenue clinic and two other clinics located at 1135 Senoia Road, Tyrone, Georgia, and 207 Edgewood Avenue, Atlanta, Georgia. Bona Ilonzo (Godfrey Ilonzo’s wife) served as the office manager at the main AMARC pain clinic at Lakewood Avenue. At various times, Askari and Richardson served as the primary doctors for the AMARC pain clinics.
The indictment charges that, in their respective capacities, the defendants worked together to facilitate the prescribing of oxycodone pills and other controlled substances to addicts and distributors. The clinics generated mass profits by charging patients cash for appointments during which Askari and Richardson issued prescriptions for controlled substances for medically inappropriate and potentially lethal dosages and combinations. Askari and Richardson allegedly did so, however, without conducting adequate medical examinations. The indictment also alleges that, after an initial in-person appointment, Askari repeatedly “pre-signed” additional prescriptions for the same amounts and types of controlled substances for patients without ever seeing the patients again in-person. Askari did so, however, while falsely indicating in the patient’s file that she had conducted an in-person examination of the patient.
The indictment alleges that the AMARC pain clinics constituted a drug distribution operation with very high volumes of patients, many of whom visited the clinics in groups from other counties in Georgia and surrounding states. Many of those visiting had apparent signs of being addicts or drug dealers. The defendants allegedly made millions of dollars during the operation of the AMARC pain clinics which they used to recruit additional physicians and patients to the AMARC pain clinics, and to open additional clinics under the “AMARC” name. The indictment also seeks to forfeit the professional medical licenses that Askari and Richardson used to further the illegal prescribing at the AMARC pain clinics.
The charges each carry a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment 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 was investigated by Special Agents of the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation.Assistant United States Attorneys G. Scott Hulsey and Laurel R. Boatright 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.
Dalton Meth Dealer Sentenced to PrisonRead the Press Release
McGuire Fought Police Officers When Being Arrested
And Later Tried To Escape From the HospitalROME, Ga. – A Dalton man who sold a pound of methamphetamine to a police cooperator, Jeffrey McGuire, 40, of Dalton, Georgia, was sentenced today to 11 years, 6 months by United States District Judge Harold L. Murphy for selling a pound of methamphetamine to a man cooperating with the police investigation.
“Methamphetamine has had a devastating impact on communities in North Georgia,” said United States Attorney Sally Quillian Yates. “This defendant was caught trying to sell a pound of very pure methamphetamine. Today’s prison sentence will prevent this meth dealer from further contributing to the deterioration of our community.”
McGuire was sentenced to 11 years, 6 months to be followed by 4 years of supervised release. McGuire was convicted on October 18, 2012, upon his plea of guilty.
According to United States Attorney Yates, the charges and other information presented in court, in January 2012, McGuire agreed to sell one pound of methamphetamine to a man for $17,000. Unbeknownst to McGuire, his customer was cooperating with the police investigation and was working at the direction of the police. The police recorded phone calls between McGuire and the cooperator as they made arrangements for the drug deal. During one of those calls, the cooperator told McGuire that he would keep the money for the drugs in the trunk of his car. McGuire responded, “There better not be a Mexican in the trunk or I’ll have to shoot him.”
Eventually, McGuire and the cooperator agreed to meet at a Kangaroo gas station in Dalton. The police observed McGuire arrive in a BMW SUV. The cooperator arrived a few minutes later and parked next to McGuire’s SUV. McGuire got into the passenger seat of the cooperator’s car and showed him the drugs. The cooperator then gave a prearranged signal to the police that McGuire had the methamphetamine. The police moved in to arrest McGuire and pulled him out of the cooperator’s car. However, McGuire vigorously resisted arrest. It took the police several minutes to subdue and restrain him. The police recovered a pound of methamphetamine that was 90% pure. They also found a loaded .25 caliber pistol in the SUV.
Due to injuries that McGuire received while resisting arrest, he was taken to the hospital. A Whitfield County deputy sheriff was present to guard him. Despite the deputy sheriff’s presence, McGuire tried to escape. He ran down the hospital hallway and twice struck a nurse. Even after the deputy sheriff used a Taser on McGuire, he continued to struggle and tried to grab the deputy sheriff’s firearm. The deputy sheriff was ultimately able to use sufficient force to subdue McGuire.
This case was investigated by special agents of the Federal Bureau of Investigation, the FBI Conasauga Safe Streets Task Force, and Whitfield County Sheriff’s Office.
Assistant United States Attorneys Nekia S. Hackworth and Paul R. Jones prosecuted the case.
For further information please contact the U.S. Attorney's Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Mableton Man Indicted for Extorting Minors to Produce Child PornographyRead the Press Release
Hutchinson Allegedly Enticed Teenagers to Share Nude Photographs and Then Threatened to Post Them on the Internet
ATLANTA – A Cobb County man has been indicted for using social media to lure and then force teenagers into sending him nude pictures. Tremain Hutchinson, 27, of Mableton, Georgia was indicted by a federal grand jury on December 18, 2012, on charges that he induced and coerced minors into producing child pornography, enticed and coerced minors into engaging in sexual activity, received and possessed child pornography, and transferred obscene material to minors. Hutchinson was arraigned in federal court today before United States Magistrate Judge E. Clayton Scofield, III and was detained without bond.
“Hutchinson is charged with exploiting social media to victimize children,” said United States Attorney Sally Quillian Yates. “His conduct is particularly disturbing because he threatened and coerced these terrified children into engaging in sexual acts.”
“This defendant stands accused of committing unspeakable acts against his juvenile victims through the use of threats and extortion,” said Brock D. Nicholson, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Atlanta. “The abhorrent behavior displayed in this case was brought to an end by a diligent investigation by HSI and the DeKalb Police Department. Along with our partners in and out of law enforcement, we are doing everything we can to stop the victimization of innocent children by predators.”
According to United States Attorney Yates, the charges and other information presented in court, in February 2012, a parent reported to authorities that she had discovered, on a communications device, images of her children engaging in sexual activity. Investigators learned that one of the children had met an individual, “Mario,” on a social media website who had enticed her to send nude photographs of herself to him, and upon receiving the nude photographs had threatened to post the photographs on the internet if she did not engage in other sexual activity on webcam including sexual activity with her sibling. Over the course of their investigation, investigators determined that “Mario,” whose web profile described him as a sixteen-year-old boy, had enticed and threatened numerous other teenage girls to send nude photographs of themselves to him, whereupon he would threaten to post the photographs on Facebook and other social media sites, including their school websites, if the girls did not continue to send sexually graphic photographs and video recordings to him. “Mario” also threatened to harm the girls’ families. The investigation ultimately revealed that “Mario” was not a sixteen-year-old boy, but twenty-seven-year-old Tremain Hutchinson of Mableton, Georgia.Hutchinson is charged with ten counts of employing, using, persuading, inducing, enticing and coercing minors to engage in sexually explicit conduct for the purpose of producing child pornography and attempting to do so, five counts of coercing and enticing minors to engage in sexual activity, two counts of transferring obscene materials to minors, one count of receiving child pornography, and one count of possessing child pornography.
The counts related to causing minors to produce child pornography each carries a mandatory minimum confinement period of 15 years in prison and a maximum sentence of 30 years in prison. Each charge of coercing and enticing minors to engage in sexual activity carries a mandatory minimum sentence of 10 years confinement and a maximum sentence of life in prison. The charges of transferring obscene materials to a minor carry a maximum sentence of 10 years in prison. The charge of receiving child pornography carries a maximum sentence of 20 years confinement and 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. 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 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorneys Yonette Buchanan and Leslie J. Abrams 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 Murray County Sheriff's Deputy Indicted for Obstructing Civil Rights InvestigationRead the Press Release
ROME, Ga. – A former Murray County Sheriff’s Deputy has been indicted by a federal grand jury for obstructing a pending civil rights investigation while he was still employed as a Sheriff’s Deputy with Murray County. Joshua Lamar Greeson, 25, of Chatsworth, Georgia, will be arraigned today at 2 p.m., before United States Magistrate Judge Walter E. Johnson. The federal grand jury indicted Greeson on January 3, 2013.
United States Attorney Sally Quillian Yates said, “Greeson is charged with breaching the public trust by lying to agents and concealing information in order to obstruct a civil rights investigation. Now, he faces his own federal charges and potential time in federal prison. Our office is continuing to work with our law enforcement partners to investigate this important matter.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The conduct alleged in this indictment is a clear breach of the public trust by a law enforcement officer whom we rightfully hold to a higher standard. Understanding the importance of this trust, the FBI remains committed to bringing forward for prosecution any such similar allegations of criminal conduct.”
“The Georgia Bureau of Investigation aggressively investigates alleged criminal activity by law enforcement officers. The State of Georgia will not tolerate criminal activity by those officials with the duty to enforce its laws,” said Vernon Keenan, GBI Director.
According to United States Attorney Yates, the charges and other information presented in court, on August 14, 2012, then Murray County Sheriff's Department Deputy
Joshua Greeson performed a traffic stop on a vehicle in Murray County, Georgia. During the traffic stop, Greeson found methamphetamine in a metal can hidden under the driver's side rear wheel well of the vehicle. After locating the drugs, Greeson arrested both the front seat passenger who owned the vehicle and the driver. Shortly thereafter, GBI agents received information that the drugs had been planted under the vehicle by another individual (not Greeson) in order to falsely inculpate the vehicle owner.On August 23, 2012, when GBI agents interviewed Greeson, he allegedly lied to them regarding information he had previously received concerning a lookout on this vehicle. Agents later learned that Greeson had deleted information relevant to the investigation from his cell phone. Greeson was fired from the Sheriff’s Department on August 29, 2012.
The charges each carry a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorneys Michael Herskowitz, Jeffrey Davis, and Timothy Storino 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.
(Download Greenson Indictment )
Husband and Wife Sentenced for 10-Year Long Tax Defiance SchemeRead the Press Release
Defendants Claimed Not To Be U.S. Citizens and To Be Exempt from Paying Taxes,
Then Falsely Sought Refunds of Over $420,000ATLANTA – Stephen Paul Thomas, 46, and Patricia Denese Anderson, 51, of Lawrenceville, Georgia, who waged a 10-year tax defiance scheme against the IRS, were sentenced today by United States District Judge Charles A. Pannell. Thomas was sentenced to serve 5 years in federal prison and Anderson was sentenced to 4 years, 3 months in federal prison. On October 16, 2012, after a six-day trial, Thomas and Anderson were convicted by a jury of conspiring to defraud the United States and making false claims upon the Internal Revenue Service.
“For over a decade, Thomas and Anderson waged a campaign of obstruction against the IRS, culminating in filing false tax returns claiming hundreds of thousands of dollars in false refunds,” said United States Attorney Sally Quillian Yates. “They cheated not only the government, but their fellow taxpayers. The sentence in this case demonstrates that those who defy the tax laws by obstructing the IRS and filing false and frivolous tax returns will be prosecuted and punished for their conduct.”“The term voluntary compliance means that each of us are responsible for filing a tax return when required and for paying the correct amount of tax,” stated Acting Special Agent in Charge, IRS Criminal Investigation, Veronica Hyman-Pillot. “That responsibility should not be taken lightly. The defendants chose to take extreme measures in order not to file and pay taxes and they are now convicted felons with a prison term to serve.”
Thomas was sentenced to 5 years in prison, to be followed by 3 years of supervised release, and fined $10,000. Anderson was sentenced to 4 years, 3 months in prison, to be followed by 3 years of supervised release, and fined $10,000.
According to United States Attorney Yates, the charges and other information presented in court: Thomas and Anderson, who were married and jointly owned and operated an outdoor yard furnishing store and general contracting business in Duluth, Georgia, stopped filing federal income tax returns in the 1990s. They then hired American Rights Litigators (ARL), an organization that sold and promoted tax defiance schemes, to send obstructive and harassing materials to the IRS on their behalf. The IRS repeatedly sent notices to Thomas and Anderson notifying them that they had to pay their federal income taxes and that they had to comply with the tax laws.
After the IRS shut down ARL as a result of fraudulent anti-tax actions, Thomas and Anderson continued to send a variety of obstructive, frivolous and harassing documents to IRS and Department of Treasury officials instead of paying their taxes. These documents included statements that they were not United States citizens but instead were “American citizens”; that they were not subject to the federal income tax laws; and that paying income tax was voluntary. Thomas and Anderson also established business bank accounts using fictitious tax identification numbers for the purpose of hiding the money inside the accounts from the IRS. They also instructed a financial institution as well as a bartering exchange company that their business operated solely in Belize, knowing that their business was located and did business throughout the state of Georgia.
Finally, in 2009 after a decade of not filing tax returns, Thomas and Anderson submitted two false tax returns claiming over $420,000 in fraudulent refunds from the IRS. That same year, Thomas and Anderson also submitted fictitious financial instruments to the federal government, including a document purporting to be a $100 billion private registered bond, and instructed the government to use this bogus bond to pay any of their debts to the government.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Sally B. Molloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Golden Living Nursing Homes Settle Allegations of Substandard Wound CareRead the Press Release
Golden Living Failed to Provide Adequate Wound Care to Its Nursing Home Residents
ATLANTA - The United States Attorney’s Office today announced that the United States and the State of Georgia have reached a settlement with GGNSC Holdings, LLC, of Plano, Texas, the operator of skilled nursing facilities located in Atlanta, Georgia, to resolve allegations under the False Claims Act and the Georgia State False Medicaid Claims Act, that GGNSC provided inadequate and worthless wound care services to residents at two of its Atlanta area nursing homes. GGNSC operates nursing homes under the “Golden Living” name. GGNSC has agreed to pay $613,300 to resolve these allegations. The United States’ share of the settlement is $423,544.
Sally Quillian Yates, United States Attorney for the Northern District of Georgia, said, “Our office is committed to protecting our most vulnerable citizens and improving the lives of nursing home residents. By failing to provide adequate wound care services to its nursing home residents, Golden Living placed at risk the life and health of individuals who were entrusted to its care. This type of threat to the health and well-being of the elderly in our communities will not be tolerated.”
“Golden Living fraudulently billed Medicaid for nursing services which were substandard and, tragically, resulted in harm to patients,” said Attorney General Sam Olens. “The nursing home patients depended on Golden Living to provide them with quality wound care services to help them heal, but, instead, were mistreated. We will not stand for such egregious misconduct by a Medicaid provider.”
“Quality of care in nursing homes is a top priority for the Office of Inspector General,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “Health care providers need to know that if they provide worthless services to those most in need, they will pay the price.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI will continue to dedicate its investigative personnel and resources toward such cases of Medicaid and Medicare fraud as was seen here. These federally funded programs provide much needed services but are limited and healthcare providers that abuse these programs will be held accountable.”
“The Defense Criminal Investigative Service is committed to ensuring that TRICARE beneficiaries receive the high quality medical care that they deserve,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This settlement sends the message that providers of substandard care will be brought to justice through the collaborative efforts of law enforcement agencies and the Department of Justice.”
The government alleges that GGNSC submitted false claims to Medicare, Medicaid, and the Veterans Administration because it provided residents at Golden LivingCenter–Glenwood (GLCG) and Golden LivingCenter–Dunwoody (GLCD), f/k/a Golden LivingCenter–Northside, with inadequate and worthless monitoring, documentation, and prevention and treatment of wounds during the period from January 1, 2006 through May 31, 2011. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
GGNSC executed a Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General, which will require six GGNSC facilities in the Atlanta area (in addition to GLCG and GLCD, Golden LivingCenter–Briarwood, Golden LivingCenter–Decatur, Golden LivingCenter–Kennestone, and Golden LivingCenter–Medical Arts) to continue to implement certain policies and procedures to ensure compliance with applicable statutes and regulations governing patient care. In addition, an independent monitor was appointed to oversee operations at the six Atlanta-area GGNSC facilities for up to five years to verify that the policies and procedures are working effectively and that patients receive appropriate care.
The civil settlement resolves some of the claims in a lawsuit filed by Dr. Joseph L. Micca under the qui tam or whistleblower provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The case, pending in the Northern District of Georgia, is filed under United States & State of Georgia ex rel. Micca v. GGNSC Holdings, LLC, et al., No. 1:10-cv-1055-ODE (N.D. Ga. Apr. 9, 2010). Dr. Micca will receive a share of the settlement payment that resolves certain claims in the qui tam suit that he filed.
This case was investigated by Special Agents of the Federal Bureau of Investigation; the U.S. Department of Health & Human Services, Office of Inspector General; the Defense Criminal Investigative Service; and the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant United States Attorneys Amy Berne and Lena Amanti.
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.