Northern District of Georgia

Defendants Relied on Local Restaurant & Retail Establishment Employees to Steal Credit Card Account Information from Unsuspecting Customers

ATLANTA – 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.

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.

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.

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.

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.

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 – 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.

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.

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.

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.

McGuire Fought Police Officers When Being Arrested
And Later Tried To Escape From the Hospital

ROME, 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.

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.

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 )

Defendants Claimed Not To Be U.S. Citizens and To Be Exempt from Paying Taxes, Then Falsely Sought Refunds of Over $420,000

ATLANTA – 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 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.