Northern District of Georgia
Press releases recorded for this federal judicial district.
Georgia Businessman Pleads Guilty to Bank Fraud and Making False Statements to the Department of Veterans AffairsRead the Press Release
ATLANTA – Spencer Askew, the founder and former CEO of E-Freight Solutions Worldwide, LLC, a Georgia-based logistics and supply chain company, pleaded guilty to defrauding Vinings Bank in connection with obtaining a $1 million line of credit. Askew also pleaded guilty to making false statements to the United States Department of Veterans Affairs (VA) in June 2020, falsely claiming that he had a relationship with 3M and could supply the VA with KN95-like masks during the COVID-19 pandemic.
“Askew can no longer avoid the consequences of engaging in a fraudulent scheme that resulted in the loss of millions of dollars and of aggravating his criminal conduct by making false statements to law enforcement,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “This prosecution underscores our commitment to work with agency partners to combat all forms of fraud and deception.”
“The defendant in this case was brought to justice for submitting falsified financial information about his companies to financial institutions in order to fraudulently obtain millions of dollars in loans and lines of credit,” said Special Agent in Charge Kyle A. Myles, of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “The FDIC OIG will continue to work diligently with our law enforcement partners to investigate and hold accountable those who commit such fraudulent offenses that threaten the safety and soundness of our Nation’s financial institutions.”
“This guilty plea holds the defendant accountable for his egregious attempt to exploit VA programs and services during a global pandemic,” said Special Agent in Charge David Spilker, Department of Veterans Affairs, Office of Inspector General’s Southeast Field Office. “The VA OIG is dedicated to working with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Askew started E-Freight Solutions Worldwide, LLC in March 2010. E-Freight Solutions was a logistics and supply company that provided a network for carriers and suppliers of goods to partner and arrange the transportation of goods. In May 2015, Askew founded another entity, Techknowlogi Holdings, LLC d/b/a Teknowlogi. Teknowlogi conducted little or no actual business. Between February and April 2018, Askew executed a scheme to defraud Vinings Bank to obtain financing on behalf of Teknowlogi.
Initially, Askew falsely claimed to Vinings Bank that he was seeking the financing to acquire another logistics company, SaaS Transportation. But ultimately he obtained the financing by submitting materially false information regarding the nature of Teknowlogi’s business and financial condition. Also, several years later, in June 2020, Askew repeatedly lied to a federal special agent about his ability to provide protective personal equipment – KN-95-like masks – to the VA during the COVID-19 pandemic.
In April 2023, a federal grand jury returned a sealed indictment against Askew, charging him with bank fraud and money laundering. In April 2024, Askew was arrested in Arizona after crossing the border from Mexico. Under the terms of his plea agreement, Askew agreed to pay more than $6 million in restitution.
On March 6, 2025, Spencer Askew, 46, of Newnan, Georgia, pleaded guilty to a criminal information charging him with one count of bank fraud and one count of making false statements to a federal agency. His sentencing is scheduled on May 15, 2025, at 10:00 am, before Chief U.S. District Judge Timothy C. Batten, Sr.
This case is being investigated by the Federal Deposit Insurance Corporation, Office of Inspector General, and U.S. Department of Veterans Affairs, Office of Inspector General.
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eight Alleged Members and Associates of the “GoodFellas” Gang Indicted on Federal Racketeering ChargesRead the Press Release
ATLANTA – Frank Hubbert, Montavis Jones, Darian Sheppard, De’Andre Jackson, Ephram Marshall, Tahj Rankine, Leonunte Carson, and Ahday Nelson-George, alleged members and associates of the street gang GoodFellas, have been indicted on federal charges including Attempted Murder in Aid of Racketeering and Aggravated Assault with a Deadly Weapon in Aid of Racketeering. A federal grand jury seated in the Northern District of Georgia returned the 12-count indictment on March 4, 2025, and it was unsealed earlier today, on March 13, 2025.
“This indictment reflects the collective determination of our Office and law enforcement partners to confront the deadly cycle of gang violence perpetrated by criminal organizations like GoodFellas whose violence and disregard for public safety threaten the security of our communities,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “The alleged gang members and associates charged in this case were allegedly involved in three shootings, including one that injured a child. While the offenses occurred several years ago, these charges are intended to demonstrate that our Office, and our federal, state, and local law enforcement partners, never cease to seek justice on behalf of victims and their family members impacted by crimes of violence.”
“These are not victimless crimes. Communities are hurting and will continue to be impacted as long as violent gangs engage in bloody street wars,” said FBI Atlanta Special Agent in Charge Paul Brown. “The FBI will continue to work with it’s local, state, and federal partners in this fight to identify, disrupt, and dismantle violent criminal organizations.”
“This case shows the importance of law enforcement collaboration successfully targeting violent gang members, said Special Agent in Charge Benjamin Gibbons. This indictment sends a direct message to criminals that ATF and our law enforcement partners will investigate and protect our citizens.”
According to Acting U.S. Attorney Moultrie, the indictment, and other information presented in court: The GoodFellas are an Atlanta-based gang that primarily recruits members in Atlanta neighborhoods and jails and prisons within the state of Georgia. The GoodFellas generate money for the gang through, among other criminal activities, drug trafficking, robbery, carjacking, fraud, and firearms trafficking. The gang protects its operation, turf, and reputation through violence and threats of violence, including murder, attempted murder, and obstruction of justice. Defendants Frank Hubbert, Montavis Jones, Darian Sheppard, De’Andre Jackson, Ephram Marshall, Tahj Rankine, Leonunte Carson, and Ahday Nelson-George, are alleged members and associates of the GoodFellas who committed multiple violent crimes in this district, including Attempted Murder in Aid of Racketeering and Aggravated Assault with a Deadly Weapon in Aid of Racketeering.
Specifically, the indictment alleges, among other allegations, that, on or about January 17, 2021, Hubbert and Nelson-George allegedly accosted three individuals who were filming a music video at an Atlanta apartment complex. Hubbert and Nelson-George allegedly demanded the keys to their vehicle at gunpoint which led to an exchange of gunfire.
On or about February 2, 2021, Sheppard, Jackson, Marshall, Rankine, and Carson allegedly fired dozens of rounds at an Atlanta gas station, wounding a patron. The five members were attempting to target members of another gang.
And further, on or about February 10, 2021, Sheppard, Jackson, and Marshall, aided and abetted by Hubbert and Jones, allegedly fired approximately 50 rounds at a woman, severely wounding her and two bystanders, including a child. Hubbert was incarcerated when he allegedly ordered, and aided and abetted, the charged offense.
The following defendants are charged in the case as follows:
- Frank Hubbert, also known as “Capo Frank,” 38, of Atlanta, Georgia, an alleged leader of GoodFellas, is charged with three counts of Attempted Murder in Aid of Racketeering, three counts of Aggravated Assault with a Deadly Weapon in Aid of Racketeering, one count of Attempted Carjacking, and three counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
- Montavis Jones, also known as “Nigel Woods,” “Jitt,” and “Git,” 37, of Union City, Georgia, an alleged leader of GoodFellas, is charged with three counts of Attempted Murder in Aid of Racketeering, and three counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
- Darian Sheppard, also known as “Lil D,” 27, of Atlanta, Georgia, is charged with four counts of Attempted Murder in Aid of Racketeering and four counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
- De’Andre Jackson, also known as “Glock,” “Gen,” and “Glizzy,” 22, of Atlanta, Georgia, is charged with four counts of Attempted Murder in Aid of Racketeering and four counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
- Ephram Marshall, also known as “Lil E,” 24, of Atlanta, Georgia, is charged with four counts of Attempted Murder in Aid of Racketeering and four counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
- Tahj Rankine, also known as “Biggz,” 26, of Atlanta, Georgia, is charged with one count of Attempted Murder in Aid of Racketeering and one count of Discharge of a Firearm in Furtherance of a Crime of Violence.
- Leonunte Carson, also known as “Lil Tae,” 22, of Atlanta, Georgia, is charged with Attempted Murder in Aid of Racketeering and one count of Discharge of a Firearm in Furtherance of a Crime of Violence.
- Ahday Nelson-George, also known as “Baby K,” 25, of Atlanta, Georgia, is charged with three counts of Aggravated Assault with a Deadly Weapon in Aid of Racketeering and one count of Attempted Carjacking.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The case is being investigated by the Federal Bureau of Investigation, with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Fulton County Sheriff’s Office, Georgia Department of Corrections, and Atlanta Police Department.
Assistant U.S. Attorney Lauren E. Renaud of the Northern District of Georgia and Trial Attorney Sarah J. Rasalam of the Department of Justice’s Violent Crime and Racketeering Section are prosecuting the case. Northern District of Georgia Assistant U.S. Attorney Erin Spritzer and former Assistant U.S. Attorney Lauren Macon also contributed to the prosecution.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
One of Atlanta Police Department’s Most Wanted Fugitives Sentenced for Multiple Counts of Felon in Possession of Firearms and AmmunitionRead the Press Release
ATLANTA - Jordan Pack has been sentenced for two counts of unlawful possession of a firearm and ammunition by a convicted felon and one count of unlawful possession of ammunition by a convicted felon.
“Pack continued to possess firearms and commit violent offenses after being previously convicted of a violent felony,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “This case is another example of the effective law enforcement partnerships in our district that enable the successful prosecutions of dangerous repeat offenders like Pack.”
“This sentence reflects ATF commitment to ensure that those with a history of crime are held accountable”, said Special Agent in Charge Benjamin Gibbons. Convicted felons possessing firearms presents a danger to the community and ATF along with our law enforcement partners will work hard to remove them from our community.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: In October 2008, Jordan Pack was convicted of Armed Robbery (involving a firearm) in the Superior Court of Douglasville, Georgia. He was sentenced to 20 years of imprisonment, with 10 years to serve in custody and the remainder to be served on probation. He was released from prison in April 2018.
On October 22, 2021, officers responding to a motor vehicle collision in Dacula, Georgia, arrested Pack for giving false identifying information to a police officer. A crossbody satchel that Pack was wearing at the time of his arrest contained live .38 caliber ammunition, and officers later learned that, after the accident, Pack had discarded a .38 caliber Taurus revolver under a nearby vehicle. Upon recovering the revolver, officers discovered that the firearm was loaded with the hammer cocked.
Later, on June 17, 2022, Atlanta Police Department (APD) officers responded to the scene of a shooting at a single-family home in Northwest Atlanta. A female resident of the home advised that, following a domestic dispute, Pack had threatened to shoot her. He then retrieved a firearm from his vehicle, fired multiple shots into the air, and fled the scene. Both the victim and her young child were present in the home at that time. Officers recovered five spent .45 caliber shell casings from the driveway of the home.
On August 10, 2022, officers with the APD fugitive unit located Pack at an apartment complex in Southwest Atlanta. Pack was working at the location as an armed security guard (under the alias “William Tate”) and in possession of a Tokarev 12-gauge semi-automatic shotgun. During a search of Pack incident to his arrest, officers recovered a .45 caliber Highpoint semi-automatic pistol which was loaded with 17 rounds of ammunition in a high-capacity magazine, a pair of brass knuckles, a pocketknife, a canister of bear mace, and a large machete. In addition, during a search of Pack’s vehicle, officers seized the Tocarev shotgun, two magazines, 14 rounds of 12-gauge shotgun shells, and several .45 caliber cartridge casings.
On March 6, 2024, Chief District Judge Timothy C. Batten, Sr. sentenced Jordan Pack, also known as “William Tate,” 35, of Atlanta, Ga., to 66 months of incarceration, followed by three years of supervised release. Pack pleaded guilty to the charges on November 12, 2024.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Atlanta Police Department.
Assistant United States Attorney Joshua May, and former Assistant U.S. Attorneys Jesika French and Norman Barnett, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Hapeville Police Officer Charged with Excessively Tasing DetaineeRead the Press Release
ATLANTA - Shevoy Brown, a former officer with the Hapeville (GA) Police Department, has been arraigned on charges of using unreasonable force by repeatedly tasing a handcuffed detainee who had been arrested for trespassing.
“Our local law enforcement partners employ dedicated officers who risk their lives and safety every day to help make our district safer. This indictment alleges conduct by a former officer that runs counter to the culture of professionalism and public service that epitomizes the work performed by police officers in and outside our district,” said Acting United States Attorney Richard S. Moultrie, Jr.
“People being held under arrest have the right to be treated humanely,” said FBI Atlanta Special Agent in Charge Paul Brown. “The FBI and our law enforcement partners will continue to protect the civil rights of the public and ensure those who abuse their power are held responsible.”
According to Acting U.S. Attorney Moultrie, the indictment, information provided in court, and other publicly available information: On June 3, 2024, Hapeville, Georgia Police Department officers arrested a man for trespassing and transported him to the department’s headquarters. The man was placed alone in a small holding cell and handcuffed to a stationary bench. Although the detainee was a threat to no one, former Hapeville Police Officer Shevoy Brown allegedly tased him at least six times without any legal justification. The repeated tasing injured the detainee and required medical attention. Following the tasing, Brown allegedly wrote a false use of force report to cover up his conduct. So in addition to the offense of excessive force, Brown is also charged with obstruction of justice.
Shevoy Brown, of Hampton, Georgia, was arraigned before Chief U.S. Magistrate Judge Russell G. Vineyard. He was indicted by a federal grand jury on February 12, 2025.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent, and it will be the government’s burden to prove his guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with assistance from the Georgia Bureau of Investigation.
Assistant United States Attorneys Brent Alan Gray and Bret R. Hobson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fraudster Receives Prison Sentence in Illegal Paycheck Protection Program SchemeRead the Press Release
ATLANTA – Jerry Baptiste, the last of 20 defendants charged in a wide-ranging criminal scheme to steal Paycheck Protection Program funds during the COVID-19 pandemic, has been sentenced for his role in the scheme.
“This defendant and his co-conspirators used an unprecedented global crisis to defraud the government and the American people,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Today’s tough, but fair, sentence sends the message that stealing from the government does not pay.”
“This sentencing wraps up an exhaustive investigation into a fraud scheme that stole emergency funds from businesses and individuals that desperately needed them during the Covid-19 pandemic,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “The FBI will make every effort to ensure federal funds are used as intended and punish anyone who would steal from our government.”
“The sentencings of the 20 defendants serves as a reminder to those who committed PPP fraud that investigations into their criminal acts have not ended,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue their diligent search for those who defrauded the American people during the COVID-19 pandemic.”
According to Acting U.S. Attorney Moultrie, the third superseding indictment, and other information presented in court: from April 2020 through May 2020, Jerry Baptiste conspired with Darrell Thomas, Denesseria Slaton, Amanda Christian, Charles Petty, Bern Benoit, and others to submit a fraudulent Paycheck Protection Program (“PPP”) loan application for Transportation Management Services Inc. (“Transportation Management”), a company that Benoit purported to own. The PPP loan application for Transportation Management falsely represented that it maintained 66 employees and an average monthly payroll of $332,167, and that it would use the PPP funds for payroll, lease payments or mortgage interest, and utilities.
To support its payroll figures, Transportation Management submitted with its PPP loan application false IRS Form 941s, which are the Employer’s Quarterly Federal Tax Return, for each quarter of 2019. Transportation Management also included with its PPP loan application a fraudulent bank statement. Through the Transportation Management PPP loan application, Baptiste and his co-conspirators fraudulently obtained $830,417. Baptiste also participated in preparing other fraudulent PPP loans.
Jerry Baptiste, 47, of Miami, Florida was sentenced by U.S. District Judge J. P. Boulee to six and a half years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of$830,417. On October 29, 2024, Baptiste pleaded guilty to money laundering pursuant to a negotiated plea agreement.
All the defendants in Baptiste’s case have now been convicted and sentenced, with punishments ranging from probation to 15 years’ imprisonment:
- Darrell Thomas. On June 16, 2021, Thomas pleaded guilty to charges of conspiracy to commit bank and wire fraud and money laundering. On May 9, 2022, Thomas was sentenced to 180 months’ imprisonment followed by five years of supervised release, and ordered to pay $13,206,752.10 in restitution.
- Andre Lee Gaines. On June 17, 2021, Gaines pleaded guilty to the charge of making a false statement. On October 5, 2021, Gaines was sentenced to five years’ probation and ordered to pay $806,710 in restitution.
- Kahlil Gibran Green. On September 1, 2020, Green pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On January 14, 2021, Green was sentenced to 41 months’ imprisonment followed by five years of supervised release, and ordered to pay $830,000 in restitution.
- Bern Benoit. On March 11, 2021, Benoit pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On September 8, 2021, Benoit was sentenced to 27 months’ imprisonment followed by five years of supervised release, and ordered to pay $1,105,217 in restitution.
- Carla Jackson. On February 15, 2024, Jackson was found guilty of money laundering by jury verdict. On May 16, 2024, Jackson was sentenced to 36 months’ imprisonment followed by two years of supervised release, and ordered to pay $335,238.22 in restitution.
- Ricky Dixon. On August 1, 2022, Dixon pleaded guilty to the charges of aggravated identity theft and conspiracy to commit money laundering. On January 25, 2023, Dixon was sentenced to 100 months’ imprisonment followed by three years of supervised release, and ordered to pay $4,320,928.31 in restitution.
- Meghan Thomas. On July 27, 2022, Thomas pleaded guilty to the charge of conspiracy to commit wire fraud. On May 23, 2023, Thomas was sentenced to 18 months’ imprisonment followed by three years of supervised release, and ordered to pay $2,381,760.35 in restitution.
- Jesika Blakely. On March 15, 2022, Blakely pleaded guilty to the charge of conspiracy to commit money laundering. On February 8, 2023, Blakely was sentenced to 36 months’ imprisonment followed by three years of supervised release, and ordered to pay $5,348,498.89 in restitution.
- Amanda Christian. On March 5, 2022, Christian pleaded guilty to the charge of conspiracy to commit wire fraud. On September 13, 2022, Christian was sentenced to 41 months’ imprisonment followed by three years of supervised release, and ordered to pay $835,542 in restitution.
- Dwan Ashong. On June 29, 2022, Ashong pleaded guilty to the charge of conspiracy to commit money laundering. On October 31, 2022, Ashong was sentenced to 51 months’ imprisonment followed by three years of supervised release, and ordered to pay $3,604,807 in restitution.
- John Gaines. On January 31, 2024, Gaines pleaded guilty to the charge of money laundering. On June 26, 2024, Gaines was sentenced to 63 months’ imprisonment followed by three years of supervised release, and ordered to pay $806,710 in restitution.
- Charles Petty. On November 2, 2021, Petty pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On February 25, 2022, Petty was sentenced to 46 months’ imprisonment followed by five years of supervised release, and ordered to pay $830,417 in restitution.
- Derek Parker. On April 14, 2022, Parker pleaded guilty to the charge of conspiracy to commit wire fraud. On August 31, 2022, Parker was sentenced to 18 months’ imprisonment followed by three years of supervised release, and ordered to pay $163,620.40 in restitution.
- David Belgrave II. On May 25, 2022, Belgrave pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On August 25, 2022, Belgrave was sentenced to nine months’ imprisonment followed by three years of supervised release, with 18 months on home detention, and ordered to pay $877,000 in restitution.
- Charles Hill IV. On September 29, 2021, Hill pleaded guilty to conspiracy to commit wire fraud. On January 12, 2022, Hill was sentenced to five years’ probation, with 27 months on home detention, and ordered to pay $1,004,805 in restitution.
- Ryan Whittley. On May 25, 2022, Whittley pleaded guilty to the charge of conspiracy to commit wire fraud. On August 29, 2022, Whittley was sentenced to 21 months’ imprisonment followed by three years of supervised release, and ordered to pay $797,275 in restitution.
- El Hadj Sall. On August 24, 2022, Sall pleaded guilty to the charge of conspiracy to commit wire fraud. On November 29, 2022, Sall was sentenced to 27 months’ imprisonment followed by three years of supervised release, and ordered to pay $973,585 in restitution.
- Rick McDuffie. On April 27, 2022, McDuffie pleaded guilty to the charge of conspiracy to commit wire fraud. On August 23, 2022, McDuffie was sentenced to 24 months’ imprisonment followed by one year of supervised release, and ordered to pay $5,125 in restitution.
- Teldrin Foster. On February 15, 2024, Foster was found guilty of conspiracy to commit wire fraud, conspiracy to commit bank and wire fraud, wire fraud, bank fraud, making a false statement to a federally insured bank, and money laundering by jury verdict. On June 25, 2024, Foster was sentenced to 121 months’ imprisonment followed by three years of supervised release, and ordered to pay $9,606,627.35 in restitution.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation.
Assistant U.S. Attorneys Samir Kaushal and Nathan Kitchens, and former Assistant U.S. Attorneys Tal Chaiken and Norman Barnett, of the Northern District of Georgia, and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section, prosecuted the case.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (“NCDF”) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CBP Officer Convicted of Smuggling Cocaine from the U.S. Virgin Islands to AtlantaRead the Press Release
ATLANTA – Following a five-day jury trial, Ivan Van Beverhoudt, 45, of St. Thomas, U.S. Virgin Islands, has been convicted of importing and possessing with intent to distribute more than 16 kilograms of cocaine.
“Van Beverhoudt used his trusted position as a U.S. Customs and Border Protection officer to circumvent the law and smuggle dangerous drugs into our community,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Thanks to the diligent efforts of our law enforcement partners, Van Beverhoudt is now being held accountable and faces time in federal prison.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: On January 10, 2020, Van Beverhoudt, a former U.S. Customs and Border Protection officer, boarded a commercial flight from St. Thomas, U.S. Virgin Islands to Atlanta with 16 bricks of cocaine in two carry-on bags. To avoid TSA screening in St. Thomas, Van Beverhoudt traveled in his official capacity with his loaded CBP-issued firearm. Upon arriving at the Atlanta Hartsfield-Jackson International Airport, en route to his final destination of Baltimore, Maryland, a trained narcotics K-9 officer in the jetway alerted to Van Beverhoudt’s luggage, resulting in the discovery of the cocaine.
At the conclusion of his jury trial, Van Beverhoudt was convicted of conspiracy to import cocaine into the United States, importation of cocaine into the United States, conspiracy to possess with intent to distribute cocaine, and possession with intent to distribute cocaine. 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with valuable assistance provided by the U.S. Customs and Border Protection and Department of Homeland Security, Office of the Inspector General.
Assistant U.S. Attorneys Bethany L. Rupert and Bret R. Hobson are prosecuting the case. Assistant U.S. Attorney Laurel B. Milam also contributed to the prosecution of 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.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Mexican Drug Cartel Leader Extradited to Georgia to Face Federal ChargesRead the Press Release
ATLANTA - Omar Cuenca-Marino, 41, of Guerrero, Mexico, has been arraigned before Chief United States Magistrate Judge Russell G. Vineyard on federal charges of conspiracy to possess with the intent to distribute, and unlawful import of, methamphetamine, cocaine, and heroin into the United States, and conspiracy to commit money laundering. Cuenca-Marino, who was the alleged leader of the Los Rojos Mexican Drug Cartel, was indicted by a federal grand jury on December 21, 2016.
“Robust law enforcement partnerships, tenacious investigators, and a resilient determination to eliminate cartels that import deadly drugs into our communities culminated in the charges and recent extradition of this alleged drug cartel leader,” said Acting United States Attorney Richard S. Moultrie, Jr. “This prosecution sends a strong message to the cartels and their leadership, no matter where they reside: you will face justice.”
“The arrest and extradition of Omar Cuenca-Marino, the alleged Los Rojos cartel leader, marks a significant success for the ongoing U.S. efforts to dismantle drug trafficking cartels and secure our borders,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “As part of our commitment to combating the opioid crisis and transnational crime, we are leveraging every available resource to disrupt cross border criminal operations. This case sends a clear message that we, alongside our law enforcement partners, will not tolerate those who seek to profit from the distribution of dangerous narcotics.”
“The success of this investigation demonstrates DEA will use all of its resources to destroy drug distribution networks that are endangering our communities,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division.
“Drug cartels have caused the death of many people in the United States and Mexico through violence and the distribution of illegal drugs,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “Once identified by the Organized Crime Drug Enforcement Task Forces, IRS Criminal Investigation special agents investigate these cartels finances and their involvement with narcotics to help bring them down.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: An investigation by law enforcement authorities identified a drug cartel based in Mexico that, between approximately 2013 and 2016, was responsible for importing large, distribution quantities of heroin, methamphetamine, and cocaine from Mexico into the United States. The investigation identified Cuenca-Marino as the alleged Mexico-based leader of the cartel who oversaw the preparation of thousands of kilograms of cocaine, methamphetamine, and heroin in Mexico and arranged to have the drugs smuggled into the United States, using buses and tractor-trailers. In addition, Cuenca-Marino allegedly directed the collection of millions of dollars of drug proceeds for transport from the United States back to Mexico.
For instance:
- On October 11, 2013, a law enforcement operation in Vinings and Hiram, Georgia led to the seizure of approximately 75 kilograms of methamphetamine, 23 kilograms of heroin, and 47 kilograms of cocaine. Cuenca-Marino allegedly directed the smuggling of these drugs into the United States for distribution in the Atlanta-metro area.
- On November 20, 2015, law enforcement seized 76 packages of cocaine from a vehicle in a parking lot in Duluth, Georgia. The investigation revealed that Cuenca-Marino had relayed the phone number of the Atlanta-based trafficker who was about to take possession of the drugs.
- On February 9, 2016, law enforcement stopped a vehicle traveling on Interstate 44 in Phelps County, Missouri and found $425,900 in drug proceeds. The driver, who was enroute to Mexico, allegedly contacted Cuenca-Marino the following day to report that the vehicle had been in an “accident.”
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.
The investigation and prosecution of this case is led by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, and Internal Revenue Service Criminal Investigation, with valuable assistance from the U.S. Marshals Service, the Cobb County Police Department, Cobb County Sheriff’s Office, Marietta Police Department, Powder Springs Police Department, Henry County Police Department, Clayton County Sheriff’s Office, Georgia Bureau of Investigation, DeKalb County Police Department, Alabama Drug Task Force, Newnan Police Department, Conyers Police Department, Gwinnett County Judicial Task Force, United States Customs and Border Protection, and the Georgia State Patrol.
Assistant U.S. Attorney Michael Herskowitz is prosecuting the case. Former Assistant U.S. Attorneys Nicholas Hartigan and Michael J. Brown, as well as the U.S. Department of Justice, Criminal Division’s Office of International Affairs and Office of Enforcement Operations, provided valuable assistance in the investigation. Also, the Department of Justice's Office of International Affairs coordinated with law enforcement partners in Mexico to secure the arrest and extradition Cuenca-Marino.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to eliminate the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (Atlanta Strike Force) is to eliminate transnational organized crime syndicates and major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Atlanta Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets, Regional Priority Organization Targets, and their associates. The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS, as well as numerous state and local agencies; and the prosecution is being led by the Office of the United States Attorney for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cartel Cocaine Quality Tester Extradited from MexicoRead the Press Release
ATLANTA - Irma Elvira Cruz, also known as “Huzipol” and “Madre,” 60, of Mexico, has been arraigned before Russell G. Vineyard, Chief United States Magistrate Judge, on federal charges of Conspiracy to Unlawfully Import Cocaine into the United States and Possession of Cocaine with Intent to Distribute. Cruz was indicted by a federal grand jury on February 14, 2017.
“Cruz allegedly played a critical role in the trafficking of hundreds of kilograms of cocaine into the United States,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Cruz’s extradition from Mexico is an important step in holding her accountable for her alleged role in bringing dangerous drugs into the United States and into our local communities. We thank our federal, state, and local law enforcement partners for their work in this investigation and our international partners for their cooperation in helping us bring Cruz to justice.”
“Drug traffickers exploit vulnerable members of our community to generate profits,” said Jae W. Chung, Acting Special Agent in Charge of the Atlanta Division. “Cases like this clearly demonstrate the resolve of the DEA to hold drug traffickers accountable.”
“The extradition and arraignment of Irma Elvira Cruz, an alleged key figure in an international cocaine trafficking organization, demonstrates the unwavering commitment of HSI and our partners to dismantling transnational criminal networks,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “By targeting those who facilitate the flow of dangerous narcotics into our communities, we are sending a strong message that we will pursue justice across borders and hold traffickers accountable.”
According to Acting U.S. Attorney Moultrie, Jr., the charges, and other information presented in court: In 2013, United States law enforcement identified a Mexico-based drug trafficking organization that, between approximately 2013 and 2016, imported large quantities of cocaine from Colombia, through Mexico and into the United States for distribution, and transported drug proceeds from the United States to Mexico. The investigation identified Irma Elvira Cruz as an associate of the drug trafficking organization, allegedly responsible for the quality control testing of multi-kilogram quantities of cocaine, sent from Colombia to Costa Rica and Mexico, and intended to be delivered into the United States.
Cruz allegedly conspired with others in Mexico, Colombia, Guatemala, and elsewhere to coordinate the transportation of multi-kilogram quantities of cocaine from Colombia through the coast of Central America for distribution in Mexico and the United States, including Atlanta, Georgia. Specifically, Cruz was allegedly responsible for testing the quality of a large shipment of cocaine ultimately destined for Atlanta.
The investigation revealed that on or about September 3, 2015, Cruz traveled to the organization’s stash house in Heredia, Belen, Asuncion, Costa Rica, to test the purity of the cocaine to be delivered into the United States. The following day, law enforcement authorities stopped vehicles driven by Cruz’s associates leaving the stash house and seized approximately 100 kilograms of cocaine. Law enforcement authorities then searched the stash house and seized approximately 221 kilograms of cocaine.
Members of the public are reminded that the indictment only contains charges. Cruz is presumed innocent of the charges and it will be the government’s burden to prove her guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, United States Coast Guard, United States Navy, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Border Patrol, DeKalb County Police Department, and Georgia State Patrol.
Assistant U.S. Attorneys Thomas M. Forsyth, III and Elizabeth M. Hathaway are prosecuting the case. Former Assistant U.S. Attorney Lisa Tarvin contributed to the prosecution as well. Also, the Department of Justice’s Office of International Affairs coordinated with law enforcement partners in Mexico to secure the arrest and extradition of Cruz.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies and eliminates the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Businessmen Receive Prison Sentences in COVID-19 Mask and Glove Sale Fraud SchemeRead the Press Release
ATLANTA - Brian H. Sperber and Edmond S. Norkus have received prison sentences for conspiring to commit wire fraud in a scheme in which the men tricked expectant purchasers of personal protective equipment out of more than $14 million.
“Sperber and Norkus cashed in on the unprecedented scarcity and skyrocketing price of personal protective equipment to get rich quick at a time when the COVID-19 pandemic was exploding,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Now they justifiably confront prison terms for their cynical, illegal cash grab.”
“These sentences underline the FBI’s commitment to holding those who exploit federal relief programs for personal gain accountable,” said FBI Atlanta Acting Special Agent in Charge Sean Burke.
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Shortly before the COVID-19 pandemic began, Brian H. Sperber became an authorized distributor for a Georgia-based personal protective equipment (“PPE”) manufacturer. Edmond S. Norkus operated warehouse space in Florida and was Sperber’s longstanding business associate. As the pandemic worsened, demand for, and market value of, PPE steeply increased. Even though Sperber was only authorized to sell to customers in a specific geographic sales territory and manufacturers had only extremely limited supplies available, Sperber and Norkus promised to sell large quantities of PPE to a wide range of would-be buyers.
But to make it appear that they could deliver on their promise, Sperber and Norkus diverted and showcased products already earmarked for other customers. They also provided customers with a variety of altered and counterfeit documents, designed to deceive customers into believing the products they had ordered were on the way. Ultimately, there were no products to supply and Sperber and Norkus pocketed the money while providing the victims with nothing.
United States District Judge Michael J. Brown sentenced Brian H. Sperber, 48, of Plantation, Fla., to two years, two months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $14,231,605.36. Sperber was convicted on May 28, 2024, after he pleaded guilty.
Judge Brown sentenced Edmond S. Norkus, 61, of Deerfield Beach, Fla., to three years in prison, followed by three years of supervised release. Norkus was ordered to pay restitution in the amount of $13,821,605.36. Norkus was convicted on May 28, 2024, after he pleaded guilty.
Sperber used proceeds from the scheme to purchase a multi-million dollar waterfront mansion in Boca Raton, Florida. In a related civil forfeiture action, the United States and Sperber agreed to sell the property, netting approximately $4 million, and resolve the forfeiture in the criminal prosecution. As part of Sperber’s sentence, the district court forfeited Sperber’s interest in the funds. The United States, in Sperber’s plea agreement, agreed to recommend that the funds seized from the sale of the property be restored to the victims named in the restitution order.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Alana R. Black and C. Brock Brockington prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta VA Doctor Sentenced for Sexually Assaulting a Female Veteran PatientRead the Press Release
ATLANTA - Rajesh Motibhai Patel has been sentenced to two years in federal prison for violating his patient’s constitutional right to bodily integrity while acting under color of law and for the offense of abusive sexual contact.
“Patel used his position of trust as a VA physician to sexually assault his female veteran patient who had honorably served our country,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “His crimes were an egregious breach of that trust and an abuse of his power. This sentence prevents Patel from causing future harm to veterans who seek care from the VA.”
“This sentence holds Dr. Patel accountable for the vile acts he committed while serving as a VA physician,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “VA employees are entrusted with keeping our nation’s veterans safe while receiving care. Acts of violence against veterans in VA facilities are reprehensible and erodes that trust. The VA OIG commends the dedicated prosecutors at the U.S. Attorney’s Office for their efforts in this case.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Rajesh Motibhai Patel, a physician at the Veterans Affairs Medical Center, was convicted of sexually assaulting a female veteran patient during what should have been a routine medical exam in January 2020. During the exam, Patel unlawfully touched the victim’s body, including her breast and vaginal area, in ways that violated her consent and for no legitimate medical purpose.
Rajesh Motibhai Patel, 69, of Lilburn, Ga., was sentenced to two years in prison to be followed by 15 years of supervised release. Patel is prohibited from practicing medicine while on supervised release. Patel was found guilty by a jury on November 5, 2024, of violating his patient’s constitutional right to bodily integrity while acting under color of law and of the offense of abusive sexual contact.
This case is being investigated by the Department of Veterans Affairs, Office of Inspector General.
Assistant United States Attorneys Erin N. Spritzer and Jennifer Keen prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Robber Sentenced to Additional Prison Term After Firing Machine Gun at Law Enforcement OfficerRead the Press Release
ATLANTA - Montrez Ballard has been sentenced to ten years in prison after firing a machine gun at a Georgia State Patrol officer.
“Ballard’s brazen actions endangered the life of a law enforcement officer,” said Acting U.S. Attorney Richard Moultrie, Jr. “This lengthy prison sentence reflects Ballard’s dangerous, and potentially lethal, attack on a Georgia State Patrol trooper whose very mission is to help keep our community safe.”
“The swift and coordinated response of law enforcement ensured that a dangerous individual was taken off the streets before he could inflict further harm. ATF will not stand by while criminals use illegally modified weapons to terrorize our communities. We will continue to be relentless in our pursuit of those who believe they can act without consequence,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge Alicia D. Jones.
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: On July 21, 2023, Ballard, driving a Nissan Maxima, abruptly cut off a Georgia State Patrol (GSP) trooper in Atlanta. Ballard fled from the trooper after the officer activated his emergency equipment to stop Ballard. In his attempt to evade the trooper, Ballard drove more than 20 miles per hour above the speed limit in a residential neighborhood, ran stop signs, and nearly struck another motorist.
Minutes into the chase, Ballard’s vehicle crashed into a stop sign. Ballard then exited his vehicle and fled on foot. When the trooper chased him, Ballard confronted the officer and fired at least three shots at the trooper. The trooper returned fire but Ballard escaped.
Other law enforcement agencies, including the Atlanta Police Department and Fulton County Sheriff’s Office, responded to help locate Ballard. Officers eventually arrested Ballard – who was on probation for a state robbery offense at the time – and recovered his firearm. Ballard’s gun, a Glock 19 9mm handgun, was examined and determined to be equipped with a device that converted the weapon into a machine gun, allowing the gun to fire continuously without multiple trigger pulls.
Montrez Ballard, 21, of Hampton, Ga., was sentenced by U.S. District Judge J.P. Boulee to ten years in prison, followed by three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Georgia Bureau of Investigation, with valuable assistance from the Atlanta Police Department and Fulton County Sheriff’s Office.
Assistant United States Attorney Dwayne A. Brown, Jr. prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Norcross Business Owner Pleads Guilty to Defrauding U.S. Postal ServiceRead the Press Release
ATLANTA, Ga. -- Gregory Rehberg pleaded guilty today to wire fraud for stealing hundreds of thousands of dollars from the U.S. Postal Service based on false invoices.
“Rehberg concealed the use of subcontractors, made false statements, and provided false documents to overcharge the U.S. Postal Service for maintenance work he never performed,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office is committed to prosecuting those who defraud the United States and its agencies for their personal gain at the expense of taxpayers. We will continue to investigate and identify those who exploit government contracts and hold those bad actors accountable.”
“We are pleased to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our repairs and maintenance program,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “Special Agents of the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: GLR Group LLC., operated by Gregory Rehberg, was contracted by EMCOR Facilities Services, Inc. to work on repairs and construction work at U.S. Postal Service locations in Georgia, Florida, Alabama, North Carolina, and South Carolina. Rehberg submitted false invoices to EMCOR for supposed services he had performed, when in fact, he subcontracted the work for lower rates than reported on the invoices he submitted.
Rehberg routinely marked up the price on his invoices, at times as much as forty percent. In total, Rehberg submitted nearly 900 invoices on behalf of GLR to EMCOR between 2019 and 2024, receiving approximately $2.9 million in payments, and overbilling by more than $730,000.
Sentencing for Gregory Rehberg, 55, of Atlanta, Georgia, is scheduled for May 15, 2025 at 10:30 a.m. before Chief United States District Judge Timothy C. Batten, Sr.
This case is being investigated by the United States Postal Service Office of Inspector General.
Assistant United States Attorney Natasha Cooper is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Head of Commercial Real Estate Investment Firm Pleads Guilty in $62.8M Investment Fraud SchemeRead the Press Release
A New York man pleaded guilty yesterday in the Northern District of Georgia for his role in a scheme to defraud investors in connection with two commercial real estate investments.
According to court documents, Elchonon “Elie” Schwartz, 46, of New York City, engaged in a scheme to defraud investors who sought to invest in commercial real estate through the crowdfunding commercial real estate investing website CrowdStreet Marketplace (CrowdStreet). Beginning May 2022, Schwartz solicited investments through CrowdStreet for a large commercial real estate complex in Atlanta and ultimately raised approximately $54 million from about 654 investors. Beginning in November 2022, Schwartz solicited investments again through CrowdStreet in connection with a mixed-use building in Miami Beach, Florida, and ultimately raised approximately $8.8 million from about 167 investors. In total, Schwartz raised approximately $62.8 million from investors through CrowdStreet.
As part of the investment solicitation process, Schwartz executed agreements that stated, in part, that the funds raised from CrowdStreet investors would be held in segregated bank accounts controlled by Schwartz. In the documentation provided to CrowdStreet investors, Schwartz represented that he would only use the investors’ money to fund the investment in each property and that he had a fiduciary duty to safeguard the funds and to prohibit commingling or use of the money that did not benefit each investment.
Contrary to these representations, however, Schwartz misappropriated and converted the CrowdStreet investor funds for his own use. Schwartz directed substantially all the CrowdStreet investor money into his personal bank, personal brokerage account, and accounts for unrelated commercial real estate investments he controlled. For example, Schwartz used the CrowdStreet investor funds to purchase luxury watches, to invest in stocks and options in his brokerage account, and to pay for payroll expenses for his unrelated commercial real estate businesses. Ultimately, in mid-July 2023, the two corporate entities that Schwartz had formed to receive funds from CrowdStreet investors both filed for Chapter 11 bankruptcy.
Schwartz pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on May 19 and faces a maximum penalty of 20 years in prison. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Richard S. Moultrie Jr. for the Northern District of Georgia, and Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office made the announcement.
The FBI Atlanta Field Office investigated the case. The U.S. Securities and Exchange Commission’s Division of Enforcement provided valuable assistance in the investigation.
Trial Attorney Matthew F. Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia are prosecuting the case. Former Assistant U.S. Attorneys David O’Neal and Christopher Huber for the Northern District of Georgia provided substantial assistance with the investigation and prosecution.
Thirty-Eight Defendants Sentenced in Massive Prison-Based Drug Trafficking RingRead the Press Release
ATLANTA, Ga. – Thirty-eight members of a drug trafficking organization, including several State of Georgia prison inmates, have been sentenced for their roles in coordinating and distributing deadly heroin, methamphetamine, and fentanyl throughout the metro-Atlanta area, as well as laundering drug proceeds to Mexico.
“The successful dismantling of this large organization is a result of a tenacious multi-year effort from federal, state, and local authorities to root out narcotics trafficking originating from state prisons,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office will continue to work closely with our law enforcement partners to leverage all resources to identify, apprehend, and prosecute entire networks of offenders responsible for distributing deadly drugs into our communities.”
“These sentences mirror the destructive impact on the community caused by this violent drug trafficking organization,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Wherever you operate, if you distribute dangerous drugs, DEA will find you and hold you accountable.”
“Thanks to the hard work and collaboration of our local, state, and federal law enforcement partners, thirty-eight members of this extensive drug distribution network will spend significant time behind bars where they will no longer be able to plague our community with poison,” said Sean Burke, Special Agent in Charge of FBI Atlanta.
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: During the investigation, federal special agents learned that a network of prison inmates was using contraband cell phones to broker drug transactions throughout the metro-Atlanta area, including importing drug shipments from Mexico and other states. These prison brokers relied on conspirators on the outside to store, package and distribute multiple types of illegal drugs. Other members of the organization were responsible for laundering the proceeds from the drug sales to Mexico using local money remitters. The organization also repeatedly threatened violence to uncooperative members. In one case, agents learned of a plot to abduct and murder a narcotics dealer. In response, law enforcement quickly mobilized to disrupt the plan.
After the first phase of the investigation concluded, a Grand Jury sitting in the Northern District of Georgia returned an indictment against 19 of the conspirators for drug trafficking and money laundering offenses. During the second phase of the investigation, agents identified additional conspirators including two of the high-level prison brokers, Jesus Sanchez-Morales and Juan Ramirez, who were later indicted by the Grand Jury for drug trafficking offenses. After Ramirez was brought into federal custody, he used another contraband cell phone to broker drug deals, including the attempted distribution of fentanyl. The Grand Jury later charged him with this new conduct.
Through this multi-year investigation, agents seized over 250 kilograms of methamphetamine, 25 gallons of liquid methamphetamine, more than 12,000 fentanyl pills, kilogram-quantities of fentanyl powder, heroin, and marijuana, and over $450,000 in drug proceeds.
The defendants were convicted and sentenced by U.S. District Judge Leigh Martin May:
- Juan Ramirez was sentenced earlier today to 27 years in prison to be followed by five years of supervised release . Ramirez was convicted of ten drug trafficking counts including Conspiracy and Possession with the Intent to Distribute Methamphetamine, Heroin, and Fentanyl, after a jury found him guilty of these charges on July 25, 2024.
- Jesus Sanchez-Morales was sentenced to 27 years in prison to be followed by five years of supervised release. Sanchez-Morales was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on June 22, 2020, after he pleaded guilty.
- Martin Maldonado was sentenced to 19 years, seven months in prison to be followed by five years of supervised release. Maldonado was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on April 26, 2021, after he pleaded guilty.
- Benjamin Villareal Perez was sentenced to 19 years, seven months in prison to be followed by five years of supervised release. Perez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on September 17, 2019, after he pleaded guilty.
- Jaime Chavez was sentenced to 17 years in prison to be followed by five years of supervised release. Chavez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on April 30, 2021, after he pleaded guilty.
- Aszavious Anderson was sentenced to 15 years in prison to be followed by five years of supervised release. Anderson was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on May 28, 2020, after he pleaded guilty.
- Kristofer Ty Armistead was sentenced to 15 years in prison to be followed by five years of supervised release. Armistead was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on June 7, 2021, after he pleaded guilty.
- Mario Castillo was sentenced to 15 years in prison to be followed by five years of supervised release. Castillo was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on September 25, 2019, after he pleaded guilty.
- Aricus Cantrell Holloway was sentenced to 15 years in prison to be followed by five years of supervised release. Holloway was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on April 24, 2023, after he pleaded guilty.
- Cristian Hernandez-Lovo was sentenced to 15 years in prison to be followed by five years of supervised release. Hernandez-Lovo was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on September 24, 2019, after he pleaded guilty.
- Jesus Antonio Molina-Ortiz was sentenced to 15 years in prison to be followed by five years of supervised release. Molina-Ortiz was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on August 10, 2020, after he pleaded guilty.
- Jamar Tyrone Zanders was sentenced to 15 years in prison to be followed by five years of supervised release. Zanders was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on September 24, 2020, after he pleaded guilty.
- Brandon Richard Duncan was sentenced to 14 years in prison to be followed by five years of supervised release. Duncan was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on July 9, 2021, after he pleaded guilty.
- Joseph Dominic Edwards was sentenced to 14 years in prison to be followed by five years of supervised release. Edwards was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on August 4, 2023, after he pleaded guilty.
- Rafael Alvarez was sentenced to 13 years in prison to be followed by five years of supervised release. Alvarez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on August 13, 2019, after he pleaded guilty.
- Jason Garcia-Lara was sentenced to 13 years in prison to be followed by five years of supervised release. Garcia-Lara was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on June 23, 2020, after he pleaded guilty.
- Jordan Duane Bowers was sentenced to 12 years, six months in prison to be followed by five years of supervised release. Bowers was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Fentanyl, and Heroin on May 10, 2022, after he pleaded guilty.
- Emmanuel De Santos Nieto was sentenced to 12 years in prison to be followed by five years of supervised release. De Santos Nieto was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on September 9, 2019, after he pleaded guilty.
- Salvador Valencia-Zavala was sentenced to 11 years, three months in prison to be followed by five years of supervised release. Valencia-Zavala was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on January 27, 2020, after he pleaded guilty.
- Marvin Gaye Banks was sentenced to 11 years in prison to be followed by five years of supervised release. Banks was convicted of Possession with Intent to Distribute Methamphetamine on July 15, 2020, after he pleaded guilty.
- Samantha Fagundes was sentenced to 11 years in prison to be followed by five years of supervised release. Fagundes was convicted of Conspiracy and Possession with the Intent to Distribute Methamphetamine, Heroin, and Fentanyl, on January 15, 2020, after she pleaded guilty.
- Alejandro Vasquez-Lopez was sentenced to 10 years, nine months in prison to be followed by five years of supervised release. Vasquez-Lopez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on May 24, 2021, after he pleaded guilty.
- Shelly Denise Class was sentenced to 10 years in prison to be followed by five years of supervised release. Class was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on October 10, 2019, after she pleaded guilty.
- Edgar Ochoa Martinez was sentenced to 10 years in prison to be followed by five years of supervised release. Martinez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on July 22, 2019, after he pleaded guilty.
- Allison Nichole Daniel was sentenced to 10 years in prison to be followed by five years of supervised release. Daniel was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on May 27, 2020, after she pleaded guilty.
- Enrique Rodriguez-Govea was sentenced to 10 years in prison to be followed by five years of supervised release. Rodriguez-Govea was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on May 30, 2019, after he pleaded guilty.
- Taurus Basil Stephens was sentenced to 10 years in prison to be followed by five years of supervised release. Stephens was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on December 16, 2020, after he pleaded guilty.
- Raheem Jamal Morris was sentenced to nine years in prison to be followed by three years of supervised release. Morris was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on June 26, 2023, after he pleaded guilty.
- Lilia Martinez Rodriguez was sentenced to eight years in prison to be followed by three years of supervised release. Martinez Rodriguez was convicted of Conspiracy to Commit Money Laundering on September 21, 2020, after she pleaded guilty.
- Roberto Rojas was sentenced to eight years in prison to be followed by five years of supervised release. Rojas was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on January 13, 2023, after he pleaded guilty.
- Nicholas Charles Johnson was sentenced to seven years, eight months in prison to be followed by five years of supervised release. Johnson was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on July 10, 2023, after he pleaded guilty.
- Leonardo Rosas was sentenced to six years in prison to be followed by five years of supervised release. Rosas was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on October 3, 2019, after he pleaded guilty.
- Daniel Gonzalez was sentenced to five years, four months in prison to be followed by five years of supervised release. Gonzalez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on July 11, 2019, after he pleaded guilty.
- Juan Torres Chavez was sentenced to a time-served sentence of approximately four years, nine months in prison to be followed by three years of supervised release. Chavez was convicted of Possession with Intent to Distribute Methamphetamine on December 14, 2023, after he pleaded guilty.
- David Chavez-Ortiz was sentenced to four years in prison to be followed by five years of supervised release. Chavez-Ortiz was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on October 21, 2019, after he pleaded guilty.
- Antwonette Jarnez Thomas was sentenced to four years in prison to be followed by five years of supervised release. Thomas was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on January 7, 2021, after she pleaded guilty.
- Erin Cortez was sentenced to three years in prison to be followed by three years of supervised release. Cortez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on January 22, 2020, after she pleaded guilty.
- Joaquin Flores, Jr. was sentenced to three years in prison to be followed by three years of supervised release. Flores was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on January 19, 2024, after he pleaded guilty.
Eusebio Paniagua-Paz remains a fugitive. If you have any information about his whereabouts, please contact your local law enforcement agency.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation, with valuable assistance provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Bureau of Investigation, United States Marshals Service, Atlanta Police Department, Cobb County Sheriff’s Office, Coweta County Sheriff’s Office, DeKalb County Police Department, Forsyth County Sheriff’s Office, Georgia Department of Corrections, Georgia State Patrol, and the South Fulton Police Department.
Assistant United States Attorneys Alison B. Prout, Amy M. Palumbo, Elizabeth M. Hathaway, Sarah Klapman, and Nicholas Evert, together with former Assistant United States Attorneys Tyler Mann, Scott McAfee, and Erin H. Harris, prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Head of Commercial Real Estate Investment Firm Pleads Guilty in $62.8M Fraud Scheme Targeting Atlanta Financial Center InvestorsRead the Press Release
ATLANTA - Elchonon “Elie” Schwartz pleaded guilty today to wire fraud for executing a massive investment fraud scheme that caused more than 800 investors to send approximately $62.8 million to Schwartz, which he then diverted for his own use. Approximately $54 million dollars in investments were intended for the Atlanta Financial Center, a planned commercial real estate complex on Peachtree Road.
“Seeking to do nothing more than pad his own bank accounts and buy expensive luxury items, Elie Schwartz betrayed hundreds of investors who sought the opportunity to invest in these commercial real estate projects,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “This office is committed to protecting investors from individuals, like Schwartz, who defraud donors out of their hard-earned money and seek to prioritize their own greed at the expense of legitimate investors.”
“Although investment fraud schemes are not violent crimes, they are just as destructive as they can destroy the livelihoods of entire families. Schwartz admitted to this complex scheme out of pure greed and will now face the steep consequences,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Elie Schwartz ran a successful commercial real estate investment firm. Beginning in May 2022, he solicited investments through CrowdStreet Marketplace in connection with a large commercial real estate complex in Atlanta, Georgia (“Atlanta Financial Center”), and ultimately raised approximately $54 million from approximately 654 investors for this venture. Later, beginning in November 2022, Schwartz again solicited investments through CrowdStreet concerning a mixed-use building in Miami Beach, Florida (“Lincoln Place”), and ultimately raised approximately $8.8 million from approximately 167 investors for this development. In total, Schwartz raised approximately $62.8 million from investors through CrowdStreet for the investments in the Atlanta Financial Center and Lincoln Place. The CrowdStreet investor funds were deposited into a segregated bank account for each investment.
As part of the investment solicitation process, Schwartz executed agreements with CrowdStreet that stated, among other terms, that the funds raised from CrowdStreet investors would be held in segregated bank accounts controlled by Schwartz. In the documentation that was provided to CrowdStreet investors, Schwartz represented that he would only “use any proceeds from this Offering, net of any organizational and offering expenses, to fund” the investment in each property and that Schwartz had a fiduciary duty to safeguard the funds and prohibit commingling or use of the money that did not benefit each investment.
But contrary to the representations he made to CrowdStreet investors, and before either the Atlanta Financial Center or Lincoln Place transaction closed, Schwartz misappropriated and converted CrowdStreet investor funds for his own use. Beginning in June 2022, and continuing through June 2023, Schwartz transferred nearly all of the $62.8 million raised through CrowdStreet for the Atlanta Financial Center and Lincoln Place investments out of the segregated bank accounts. He then diverted these funds to his personal bank account, personal brokerage account, and accounts for other unrelated commercial real estate investments affiliated with, and controlled by, him.
Schwartz used the funds raised from the CrowdStreet investors to, among other things, pay for payroll expenses for his commercial real estate businesses, purchase luxury watches, and invest in stocks and options in his brokerage account. Ultimately, in mid-July 2023, the corporate entities that Schwartz formed to receive funds from CrowdStreet investors for their investments in the Atlanta Financial Center and Lincoln Place both filed for Chapter 11 bankruptcy.
Schwartz, 46, of New York, New York, pleaded guilty to one count of wire fraud and faces a maximum penalty of 20 years in prison. 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 19, 2025, at 2:00 p.m. before U.S. District Judge Steven D. Grimberg.
This case is being investigated by the Federal Bureau of Investigation. The Securities and Exchange Commission’s Division of Enforcement provided valuable assistance in the investigation.
Assistant U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan of the Criminal Division’s Fraud Section are prosecuting the case. Former Assistant U.S. Attorneys David O’Neal and Christopher Huber provided substantial assistance in the investigation and prosecution.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta Man Sentenced to 150 Months in Prison for Fraud SchemesRead the Press Release
ATLANTA - Thomas Addaquay has been sentenced following his conviction of 30 felonies related to two nationwide fraud schemes involving tax refund, business email compromise, and romance fraud scams.
“Addaquay’s fraud schemes impacted numerous victims across the country and resulted in millions in losses to the IRS and private citizens,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “The combined efforts of our federal and local law enforcement partners secured Addaquay’s successful prosecution and made it possible to obtain justice for the numerous innocent taxpayers whose lives were disrupted by this defendant’s criminal conduct and greed.”
“Addaquay’s criminal activities emotionally and financially harmed the lives of many innocent victims,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation is committed to bringing to justice those who victimize others through fraudulent financial schemes.”
“Scammers like Addaquay enrich themselves by preying on innocent people with no care for the lasting damage they cause,” said Frederick D. Houston, Special Agent in Charge, United States Secret Service Atlanta Field Office. “As part of our dual protective and investigative mission, we are tasked with safeguarding the United States’ financial and payment systems from criminal exploitation. The U.S. Secret Service is committed to investigating cases of fraud and we work hand-in-hand with our law enforcement partners to pursue justice for victims of financial crime across the country.”
Stolen Identity Tax Refund Scheme
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: a trial jury found Addaquay guilty of 29 counts of fraud-related offenses including conspiracy to commit wire fraud, wire fraud, aggravated identity theft, money laundering conspiracy, and money laundering. His conduct related to a stolen identity tax refund fraud scheme. From at least 2011 to at least 2016, Addaquay obtained stolen names, social security numbers, and dates of birth of taxpayers to prepare and file fraudulent federal income tax returns. The filing of these fraudulent tax returns resulted in the issuance of thousands of tax refund checks. The district court determined that his scheme led to a loss to the IRS of more than $4 million.
Business Email Compromise and Romance Scams
In addition, Addaquay participated in schemes to defraud multiple victims through business email compromise and romance scams. His schemes involved, among other conduct, the use of false identities and hacked or spoofed email accounts to gain the confidence of victims to divert funds into bank accounts. Addaquay pleaded guilty to structuring the proceeds. Victims across the country lost over $3 million as a result of his scams.
Thomas Addaquay, 50, of Atlanta, Ga., was sentenced to a combined term of imprisonment of 12 years and six months, followed by three years of supervised release. He was also ordered to pay more than $7 million in restitution.
These cases were investigated by Internal Revenue Service-Criminal Investigation and the United States Secret Service, with valuable assistance from the Cobb County, Georgia, Sheriff’s Office.
Assistant United States Attorneys Sekret T. Sneed and Angela Adams prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fourteen Members of a Prison-Based Drug Trafficking Ring SentencedRead the Press Release
ATLANTA – Fourteen individuals have been sentenced to federal prison for their involvement in a prison-based drug trafficking ring responsible for the distribution of methamphetamine and heroin in the metro Atlanta area.
“Several of the defendants even continued their criminal activity by orchestrating drug transactions from prison, posing a serious risk to public safety,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “These sentences reflect the dedication and collaborative efforts of our federal, state, and local law enforcement partners to disrupt the distribution of poisonous drugs into our communities.”
“These sentences reflect the destructive impact on the community caused by this drug trafficking organization,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Wherever you operate, if you distribute dangerous drugs, DEA will find you and hold you accountable.”
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: In January 2018, special agents with the Drug Enforcement Administration (DEA) discovered that Jesus Garcia-Gutierez and Miguel Elorza, while inmates at the Jenkins Correctional Center in Millen, Georgia, used a contraband cellphone to arrange drug transactions outside the prison facility. Garcia-Gutierez and Elorza worked with numerous individuals outside the prison to coordinate several methamphetamine and heroin deals in the metro Atlanta area.
The defendants’ drug trafficking activity included the following conduct:
- On May 24, 2018, Garcia-Gutierez arranged for David Crider, Jr. to receive two ounces of methamphetamine from another individual in Atlanta. Following the deal, Georgia State Patrol (GSP) troopers stopped Crider’s vehicle and seized the drugs.
- On June 3, 2018, Anthony Bernard Jordan consulted with Garcia-Gutierez and then arranged for Sheila Hardy, Larry Mosley, and Nathaniel Jackson to travel from Albany, Georgia to Atlanta, to pick up heroin and methamphetamine from another drug dealer. After the trio obtained the drugs, GSP troopers stopped their vehicle and seized 982 grams of methamphetamine and 475 grams of heroin.
- On August 16, 2018, Christopher Butler, who was Elorza’s former cellmate, coordinated with Joseph Brown to sell a kilogram of methamphetamine to a drug customer in Douglasville, Georgia. But Butler and Brown saw Douglas County Sheriff’s officers following them prior to the deal and discarded the drugs in a neighborhood yard, which were recovered by the officers.
- On August 30, 2018, Quantavius Foster, who was a counselor at the Jenkins Correction Center, met with Corea-Uriostegui in Augusta, Georgia to obtain over 100 grams of methamphetamine to smuggle into the prison for Garcia-Gutierez. The plan was foiled when Richmond County Sheriff’s officers stopped Foster’s vehicle and seized the drugs.
- On October 16, 2018, Garcia-Gutierez instructed Darrell White, an Alabama heroin distributor, to travel to Doraville, Georgia to pick up drugs from another individual. After the deal, GSP troopers stopped White’s vehicle and discovered more than 100 grams of heroin hidden in White’s clothes.
- On November 1, 2018, Garcia-Gutierez and Corea-Uriostegui arranged for Tiffany Julian and Jonathan Tyler Bryant to pick up 76 grams of methamphetamine and 48 prescription pills from a drug supplier in Atlanta. After this deal, Bryant led GSP] troopers on a high-speed chase on Interstate 75 South through midtown Atlanta. During the pursuit, Bryant and Julian tossed the drugs from the car window, which were later recovered by law enforcement.
In total, the organization was responsible for the distribution of 14 kilograms of methamphetamine and 860 grams of heroin in the Northern District of Georgia.
All of the defendants pleaded guilty to conspiracy to possess with intent to distribute controlled substances and were sentenced by U.S. District Judge Amy Totenberg as follows:
- Jesus Garcia Gutierez, 43, of Atlanta, Georgia, was sentenced to 15 years, six months in prison, consecutive to a state sentence, followed by five years of supervised release.
- Miguel Elorza, 32, of Atlanta, Georgia, was sentenced to 14 years in prison, served consecutive to a state sentence, followed by five years of supervised release.
- Anthony Bernard Jordan, 33, of Albany, Georgia, was sentenced to 10 years in prison followed by five years of supervised release.
- Nathaniel Jackson, 65, of Albany, Georgia, was sentenced to seven years, six months in prison followed by four years of supervised release.
- Tiffany Julian, 37, of Atlanta, Georgia, was sentenced to six years, six months in prison followed by three years of supervised release.
- Darrell White, 41, of Anniston, Alabama, was sentenced to six years, five months in prison followed by three years of supervised release.
- Christopher Butler, 37, of Atlanta, Georgia, was sentenced to six years, two months in prison followed by five years of supervised release.
- David Crider, Jr., 52, of Atlanta, Georgia, was sentenced to five years in prison followed by four years of supervised release.
- Jonathan Tyler Bryant, 30, of Atlanta, Georgia, was sentenced to four years in prison followed by five years of supervised release.
- Berenice Corea-Uriostegui, 28, of Atlanta, Georgia, was sentenced to three years, four months in prison followed by five years of supervised release.
- Larry Mosley, 46, of Albany, Georgia, was sentenced to three years in prison followed by five years of supervised release.
- Sheila M. Hardy, 51, of Albany, Georgia, was sentenced to two years, one month in prison followed by five years of supervised release.
- Quantavius Foster, 33, of Swainsboro, Georgia, was sentenced to one year, three months in prison followed by one year of supervised release.
- Joseph Brown, 58, of Villa Rica, Georgia, was sentenced to one year, one day in prison, followed by three years of supervised release.
This case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation with valuable assistance provided by the Georgia State Patrol, Georgia Department of Corrections, Georgia Bureau of Investigation West Metro Regional Drug Enforcement Office, Douglas County Sheriff’s Office, Richmond County Sheriff’s Office, and the Doraville Police Department.
Assistant U.S. Attorney Bethany L. Rupert and former Assistant U.S. Attorney Nicholas Joy 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.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Prison Officer Falsely Claiming Military Heroism Sentenced for Smuggling Methamphetamine into Hays State Prison and Taking BribesRead the Press Release
Rome, Ga. -- Nicholas Grindle was sentenced today for conspiracy to possess methamphetamine with the intent to distribute and bribery. During his sentencing hearing, Grindle was challenged for asking the Court for mercy based on false claims that he had been injured in combat during his military service.
“Grindle violated his oath of office by smuggling drugs into a prison he swore to protect,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “He then compounded this crime by lying about his military service.”“It’s alarming to think that this prison guard was brazen enough to distribute dangerous drugs and other contraband,” said Jae W. Chung, Acting Special Agent in Charge of the Atlanta Division. “He must now face the consequences.”
“The GDC does not tolerate actions of individuals who choose to bring discredit to the values of our agency and put their fellow officers at risk,” said Tyrone Oliver, Commissioner of the Georgia Department of Corrections. “We appreciate the support of our federal partners in ensuring that justice will be served, and we are proud of those officers involved who were diligent in stopping further introduction of dangerous contraband into one of our facilities.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: While employed as a guard at Hays State Prison, Grindle smuggled methamphetamine and other contraband to inmates for over a month in late 2023 and early 2024. Grindle was caught by fellow officers after they searched his locker and located methamphetamine, cell phones, and other contraband he planned to distribute within the prison. A review of his financial records also showed that he was receiving bribery payments from inmates to bring drugs and other contraband into the prison.
Grindle had previously deployed to Afghanistan while in the United States Army. During his sentencing hearing Grindle falsely told the Court that, while in Afghanistan, he had been stabbed in the shoulder by a Taliban fighter and killed the fighter with his pistol. A review of Grindle’s military records as well as multiple letters submitted to the Court by former members of his unit demonstrated that his claims of heroism and sustaining an injury in combat were false.
Grindle, 32, of Summerville, Georgia, was sentenced by United States District Judge William M. Ray, II, to 87 months of confinement, followed by three years of supervised release. Grindle was convicted on these charges on November 21, 2024, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, the Georgia Department of Corrections Office of Professional Standards, and the Lookout Mountain, Georgia, Drug Task Force.
Assistant United States Attorney Calvin A. Leipold, III 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.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Cousins Sentenced for Pandemic-Related FraudRead the Press Release
ATLANTA - Johnny Narcisse, and his cousin Johnson Dieujuste, have been sentenced to prison for their scheme to defraud the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program of more than $2 million.
“These defendants brazenly stole funds from programs designed to help individuals and businesses suffering during the COVID-19 pandemic,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “We are grateful to our law enforcement partners for identifying and investigating these individuals which led to their successful prosecution.”
According to Acting U.S. Attorney Moultrie, Jr., the charges and other information presented in court: In July 2021, federal agents investigating a Florida resident for suspected tax crimes obtained and executed a search warrant for the home, computer and cellular phone of Johnny Narcisse in Georgia. The search of the computer and phone revealed a large volume of evidence showing that Narcisse and his cousin, Johnson Dieujuste, had been engaged in an extensive conspiracy with each other to recruit small business owners and then file fraudulent applications for COVID-19 relief loans, including both PPP and EIDL loans, on their behalf.
Narcisse and Dieujuste, after obtaining the names, business names, and employer identification numbers from the would-be borrowers, simply invented the rest of the information needed to apply for the fraudulent loans. If the loan was approved, the borrowers kicked back a percentage of the loan proceeds to Narcisse and/or Dieujuste. Dozens of loans were applied for as part of the scheme, with over $2 million dispersed.
Johnny Narcisse, 46, of Atlanta, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross to two years, four months in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,000,332. Narcisse was convicted on October 21, 2024, after he pleaded guilty to one count of conspiracy to commit wire fraud.
Johnson Dieujuste, 37, of Loganville, Georgia, was sentenced by Judge Ross on January 8, 2025, to two years, eight months in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,081,559. Dieujuste was convicted on September 24, 2024, after he pleaded guilty to one count of conspiracy to commit wire fraud.
In addition to their conspiracy to file fraudulent loan applications on behalf of others, the evidence showed that Narcisse and Diejuste each independently filed for fraudulent COVID-19 loans for themselves. Both men were held accountable for those loans as well during the sentencing process, and the losses that resulted from this additional conduct were included in each defendant’s restitution order.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration and Small Business Administration, Office of Inspector General.
Assistant U.S Attorney Alana R. Black, and Trial Attorneys Jennifer Bilinkas and David A. Peters of the Department of Justice Criminal Division’s Fraud Section, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Drug Trafficker Pleads Guilty to Possessing a Massive Amount of MethamphetamineRead the Press Release
ATLANTA - Gilberto Contreras has pleaded guilty to possessing with intent to distribute nearly 1,000 pounds of methamphetamine.
“Contreras distributed massive quantities of dangerous drugs that posed a significant threat to the health and safety of our communities,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office is grateful for the diligent work of our federal and local law enforcement partners who work tirelessly to remove these poisons from our streets and to hold accountable those who peddle them.”
“This case represents the continued commitment of the DEA to identify and hold accountable those who engage in the distribution of dangerous drugs, such as methamphetamine,” said Jae Chung, Acting Special Agent in Charge of the DEA Atlanta Division.
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: On July 2, 2024, DEA special agents received information about a local methamphetamine trafficker with multiple kilograms of methamphetamine for sale. The investigation led agents to a parking lot in Clayton County, Georgia, where the agents encountered Contreras. Law enforcement stopped Contreras’s vehicle a short time later and located a black trash bag containing approximately 44 pounds of methamphetamine. Agents then searched Contreras’s residence and backyard in Ellenwood, Georgia and located approximately 915 pounds of methamphetamine and $40,000 in cash.
Gilberto Contreras, 54, of Ellenwood, Georgia, is scheduled to be sentenced on May 13, 2025, at 2:00 p.m. before U.S. District Judge Thomas W. Thrash, Jr.
This case is being investigated by the Drug Enforcement Administration with valuable assistance provided by the Clayton County Police Department.
Assistant U.S. Attorney Dwayne A. Brown, Jr. is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office Responsible for over $72 Million in Collections and Forfeitures in Fiscal Year 2024Read the Press Release
ATLANTA – Acting U.S. Attorney Richard S. Moultrie, Jr. announced that the Northern District of Georgia was responsible for collections and forfeitures of more than $72 million in Fiscal Year 2024.
“Obtaining financial justice for victims of crime and United States taxpayers is a high priority for this District,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “These results for Fiscal Year 2024 reflect our commitment to leverage both criminal and civil enforcements to recuperate money for crime victims and the public through all available legal resources.”
During Fiscal Year 2024, our office collected more than $36 million through the district’s Financial Litigation Program, which is responsible for the collection of civil and criminal debts, fines, and monetary penalties due to victims of crime and the United States. Specifically, our office obtained over $14 million in restitution, fines and/or assessments imposed against defendants in criminal cases. Federal law requires that defendants who commit certain crimes pay restitution to the victims of those crimes. Criminal fines and assessments paid by defendants go to the Department of Justice’s Crime Victims Fund, which distributes the funds to federal and state victim compensation and victim assistance programs.
We also collected more than $21 million in affirmative civil enforcement cases. The United States initiates affirmative civil enforcement cases to recover government money lost to fraud or other misconduct, or to collect fines imposed on individuals and/or corporations for violations of federal health care, safety, or environmental laws and controlled substance regulations, among other laws.
In addition, the district deposited over $36 million into the Department of Justice’s Asset Forfeiture Fund and the Department of Treasury and Department of Homeland Security’s Forfeiture Fund through civil and criminal forfeiture actions handled by the office’s Money Laundering and Asset Recovery Section. Of the total amount forfeited, over $21 million was forfeited in civil forfeiture cases and more than $14 million was forfeited in criminal cases. The Department of Justice uses forfeited property to compensate crime victims as well as for a variety of other law enforcement purposes, and shares these proceeds with federal, state and local law enforcement partners. In Fiscal Year 2024, more than $1 million was returned to crime victims and over $3 million was shared with the district’s law enforcement partners.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Government Contractor Convicted of Defrauding FEMA and Georgia-Based Litigation Funding CompanyRead the Press Release
ATLANTA - Following an eight-day trial, Tiffany Brown was found guilty by a jury of defrauding the Federal Emergency Management Agency (“FEMA”) in connection with a nearly $156 million contract she was awarded to provide self-heating meals to the residents of Puerto Rico in the aftermath of Hurricane Maria, and for fraudulently obtaining $700,000 in litigation advances from the Litigation Funding Group of Georgia (“LFG”) by falsely claiming that she had settled with a logistics company who failed to deliver the meals to FEMA.
“Brown resorted to extraordinary lengths to defraud FEMA during a critical period when individuals were in desperate need of food resources during the devastating aftermath of Hurricane Maria,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office, along with our law enforcement partners, will remain vigilant in pursuing and prosecuting individuals who exploit the devastation caused by natural disasters as an opportunity to commit fraud.”
“We will continue to investigate and support the prosecution of fraudsters who target vulnerable populations for their own gains,” said DHS Inspector General Joseph V. Cuffari, Ph.D.
“Brown greedily deceived the federal government during a natural disaster to enrich herself,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “The FBI and our partners will aggressively pursue any person who seeks to defraud the government, especially during times of tragedy.”
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: On September 20, 2017, Hurricane Maria made landfall as a Category 4 hurricane in Puerto Rico. In its wake, FEMA issued a solicitation for 40 million self-heating meals per week to deliver to the island. Meals requiring a microwave or an external heating source, such as for boiling water, were unacceptable. FEMA issued the meal solicitation because it had exhausted its existing supply of self-heating meals from its own warehouses, primary vendors, and federal agency partners in responding to Hurricanes Harvey and Irma— both Category 4 hurricanes that impacted broad swaths of Texas, Louisiana, and the U.S. Virgin Islands.
On September 28, 2017, Brown submitted a proposal to FEMA falsely representing that her Georgia-based company, Tribute Contracting LLC, could provide the necessary self-heating meals. In doing so, Brown misrepresented that Tribute: (a) could deliver 10 million meals per day utilizing 210 trucks; (b) would provide 300,000 meals prepositioned; and (c) had partnered with C.H. Robinson, a major shipping and logistics broker, to meet FEMA’s delivery requirements.
But Tribute was incapable of delivering 10 million meals, never prepositioned any meals, and did not have the claimed partnership. A FEMA contacting officer spoke with Brown after receiving Tribute’s proposal. The contracting officer knew that U.S.-based manufacturers could not produce the number of meals that Brown claimed in her proposal. In response, Brown falsely represented that she was procuring the self-heating meals from Action Meals, a Canadian manufacturer. Brown sent FEMA a doctored image of an Action Meals package with a fraudulent expiration date.
Based on her conversation with the contracting officer, Brown submitted a revised proposal falsely representing that she had firm confirmation from her “core suppliers for 30 million self-heating meals in 30 days” and that she could begin delivering one million meals a day beginning on October 7, 2017.
On October 3, 2017, FEMA awarded Tribute and Brown a $155,982,000 contract requiring the delivery of 30 million self-heating meals between October 7 and October 23, 2017. FEMA had to confirm that Tribute’s proposed meal was “technically acceptable” before approving the delivery. FEMA approved Brown’s proposal in part because it understood that Brown would deliver self-heating meals manufactured by Action Meals. Unbeknownst to FEMA, Brown had not secured a supplier when she was awarded the FEMA contract. After being awarded the contract, Brown repeatedly mispresented to FEMA the status of her suppliers and timing of deliveries.
On October 19, 2017, FEMA terminated its contract with Brown and Tribute. Before doing so, however, FEMA paid Brown $255,000 based on her submission of fraudulent invoices and bills of ladings claiming that she had successfully delivered 50,000 self-heating meals. Brown in fact had delivered 50,000 non-compliant, dehydrated meals. After FEMA terminated the contract, Brown continued making false representations to FEMA. For example, Brown submitted fraudulent invoices in December 2017 and June 2019 claiming to have purchased tens of thousands of dollars of heaters.
In March 2019, Brown falsely represented to LFG that she had a tentative $5 million settlement with a logistics company, Total Quality Logistics (“TQL”). Brown claimed that TQL was willing to settle with her because it failed to timely deliver meals to FEMA, which she claimed was the reason FEMA terminated her contract. In truth, TQL obtained a default judgment against Brown for unpaid deliveries.
To secure the fraudulent litigation financing, Brown provided LFG with a mix of actual and fabricated documents. For instance, she provided the real FEMA contract, but a fraudulent tentative settlement agreement, and fabricated emails between TQL’s general counsel and “Jerry Rosenstein,” Tribute’s purported in-house counsel. Brown further perpetrated the fraud by using her attorney to create the illusion that she was a successful government contractor who was negotiating directly with TQL. Brown later falsely claimed she settled with TQL for $6.5 million, which she evidenced by an agreement that TQL’s CEO supposedly signed. The scheme unraveled when TQL did not pay the $6.5 million, and Brown’s attorney received an email from a “James Wilson,” who was supposedly an in-house attorney at TQL. “James Wilson” wrote that he was willing to release the settlement funds in exchange for $500,000. Investigators later determined that Brown was responsible for creating the fake “Jerry Rosenstein” and “James Wilson” personas.
Tiffany Brown, 45, of Atlanta, Georgia is scheduled to be sentenced on April 22, 2025, at 10:00 a.m. by U.S. District Judge Thomas W. Thrash, Jr. Brown was found guilty by a federal jury on January 17, 2025, of 11 counts of major disaster fraud, 17 counts of wire fraud, one count of theft of government money, and three counts of money laundering.
This case is being investigated by the U.S. Department of Homeland Security, Office of Inspector General, and the Federal Bureau of Investigation, with valuable assistance from the Federal Emergency Management Agency’s Office of Chief Counsel.
Assistant U.S. Attorneys Alex R. Sistla and Jessica C. Morris 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Defendants Sentenced in Options Trading SchemeRead the Press Release
ATLANTA – Milan Patel has been sentenced to prison in connection with a years-long market manipulation scheme in which he and his co-conspirators conceived, drafted, and disseminated false rumors about publicly traded companies and then profitably traded on these rumors by purchasing and selling mainly short-term call options.
“The defendants used their financial acumen to manipulate the securities markets by releasing false information about publicly traded companies,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office is committed to working with our law enforcement partners to investigate and prosecute all forms of securities fraud.”
“These sentencings should serve as a reminder to anyone attempting to tilt the balance of financial markets in their direction using insider trading, investigating this illegal behavior is a top priority of the FBI and you will be held accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: Between approximately October 2017 and January 2020, Milan Patel, Bart Ross, Mark Melnick, Anthony Salandra, and Charles Parrino conspired to trade securities—primarily short-term call options—in large, publicly traded companies based on materially false rumors about those companies that they generated and disseminated. These materially false rumors were intended to increase the price of the securities (both the underlying stock and options).
Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.
Ross, Salandra, and Parrino, were formerly registered brokers with the Financial Industry Regulatory Authority (FINRA) and were responsible for drafting some of the fraudulent rumors. The conspirators would often refine a proposed rumor by exchanging drafts among themselves using the Trillian instant messaging application.
Melnick was a day trader and T3 Live Senior Trading Strategist who often provided technical evaluations on whether a particular false rumor would be successful. These rumors were carefully crafted to: (a) appear plausible enough to other market participants to move the price of the underlying security; and (b) move the price of the security in a particular direction—namely move the stock or option price up—so that Patel and the other conspirators could profitably trade on the rumors.
Patel was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn result in the false rumor being distributed over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.
Before Patel disseminated the rumor, the co-conspirators would acquire a position in the publicly traded company that was the subject of the rumor. The co-conspirators purchased short-term call options often mere seconds before Patel disseminated the rumor. The conspirators often purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. The conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would then sell off their positions shortly after the rumor was disseminated and the price of the option or underlying stock had increased.
In total, the defendants executed more than 500 trades and made $2,651,320 in profits as a result of their fraudulent scheme.
U.S. District Judge Leigh Martin May sentenced the defendants in the case as follows:
•Milan Patel, 49, of Cumming, Georgia, was sentenced on January 23, 2025, to 18 months in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Patel was convicted on August 20, 2024, after he pleaded guilty to conspiracy to commit securities fraud.
•Charles Parrino, 59, of West Palm Beach, Florida, was sentenced on January 17, 2025, to one year and one day in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Parrino was convicted on September 27, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.
•Mark Melnick, 44, of Marlboro, New Jersey, was sentenced on December 18, 2024, to three years’ probation with the first six months to be served on home confinement. He was also ordered to pay a $4,000 fine. Melnick was convicted on September 21, 2021, after he pleaded guilty to conspiracy to commit securities and wire fraud.
•Anthony Salandra, 60, of Delray Beach, Florida, was sentenced on December 5, 2024, to three years’ probation with the first six months to be served on home confinement. Salandra was convicted on April 11, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.
•Bart Ross, 60, of Atlanta, Georgia, was sentenced on September 7, 2022, to three years’ probation. Ross was convicted on December 18, 2020, after he pleaded guilty to conspiracy to commit securities and wire fraud.
This case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission.
Assistant U.S. Attorney Alex R. Sistla prosecuted the case.
The SEC is investigating potential civil violations of the U.S. securities laws relating to above-described scheme. In connection with its investigation, the SEC filed separate civil enforcement actions against Patel, Parrino, Melnick, Salandra, and Ross in the U.S. District Court for the Northern District of Georgia.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pain-Management Doctor and Medical Practice to Pay $3.5 Million to Resolve False Claims Act and Control Substances Act AllegationsRead the Press Release
ATLANTA – Dr. Kamal Kabakibou and his medical practice, Kamal Kabakibou, M.D., P.C., doing business as “The Center for Pain Management,” have settled claims under the False Claims Act (“FCA”) and the Controlled Substances Act (“CSA”) arising from their alleged billing for medically unnecessary testing and for pre-signing opioid prescriptions to be dispensed by a nurse practitioner while Dr. Kabakibou was out of the country. As part of the settlement, they will jointly pay $3.5 million to the United States and have agreed to submit regular monitoring reports to the Drug Enforcement Administration for the next five years. Dr. Kabakibou and his medical practice have also entered into a three-year integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), which includes an annual claims review by an independent review organization.
“Our office will continue to insist that dangerous opioids be properly dispensed and that federal healthcare dollars be wisely spent,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “On behalf of those healthcare providers who correctly bill for medical procedures, and for the patients who rely on the safety net of federal healthcare programs, our office will continue to work vigorously with our federal agencies and law enforcement partners to identify and hold accountable those providers who engage in misconduct.”
“Health care professionals are entrusted with accurately billing federal health care programs and prescribing controlled substances responsibly,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to collaborating with our law enforcement partners to hold accountable those who engage in fraud schemes that exploit federal health care programs and jeopardize patient safety.”
“Medical providers who submit false claims to the U.S. Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) for medically unnecessary services place illegal profits above patient safety,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s worker compensation programs.”
“This settlement should serve as a strong deterrent to healthcare practitioners who abandon their Hippocratic Oath while seeking to exploit and defraud TRICARE, the military healthcare system relied on by our servicemembers, retired military members, and their families,” said Special Agent in Charge Jason Sargenski, Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS, alongside our law enforcement partners, will continue to aggressively investigate allegations of healthcare fraud that affect the Department of Defense and put its personnel at risk.”
“Dr. Kamal Kabakibou had a responsibility to issue controlled substance prescriptions for a legitimate medical purpose, while acting in the usual course of his professional practice, in order to prevent the diversion of dangerous prescription drugs, especially opioids,” said Jae Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “The moment he decided to carelessly distribute drugs and ignore his corresponding responsibility, he became nothing more than a dangerous drug trafficker.”
“Medicare beneficiaries should never have to question whether treatment recommendations are based on their doctors’ best financial interests rather than their best medical advice,” said FBI Atlanta Acting Special Agent in Charge Sean Burke. “This case is further proof that the government will vigorously pursue those who attempt to cheat the taxpayer-funded system that pays for medical care for millions of Americans.”
Dr. Kabakibou operates pain-management clinics in Atlanta and Blue Ridge, Georgia. The clinics use an in-house laboratory to conduct urine drug tests. The government alleges that Dr. Kabakibou performed medically unnecessary and duplicative laboratory testing on patients and submitted claims for those tests to federal health insurance (including Medicare, TRICARE, and the Department of Labor). The government further alleges that when Dr. Kabakibou travelled abroad, which he did regularly, he pre-signed prescriptions and left them for his nurse practitioners to dispense. Many of these prescriptions were for Schedule II controlled substances, including opioids, which could not be dispensed by unsupervised nurse practitioners.
The CSA was enacted by Congress to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. The CSA prohibits DEA registrants from issuing prescriptions outside the usual course of professional practice. State law prohibited pre-signing prescriptions. DEA registrants who issue improper prescriptions are subject to civil monetary penalties for each violation.
The case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services, Office of the Inspector General, the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Drug Enforcement Administration and the U.S. Department of Labor, Office of the Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque. The civil case was also investigated by former Assistant U.S. Attorney David O’Neal.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Canadian Dark Web Vendor Sentenced for Importing Millions of Counterfeit Xanax Pills into the United StatesRead the Press Release
ATLANTA - Arden McCann has been sentenced to 30 years in federal prison for his role in operating an international narcotics distribution ring over the dark web where millions of counterfeit Xanax pills were imported and sold to customers in the United States.
“Counterfeit pill production and distribution continues to pose a grave threat to public safety, especially when trafficked anonymously using dark web marketplaces,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Due to the diligent investigative efforts of our state, federal, and foreign law enforcement partners, McCann’s illegal drug operation has been dismantled.”
“Arden McCann’s actions put profits before public health and safety,” said Jae Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives are held accountable.”
“This country is in the midst of a catastrophic overdose epidemic where the threat from synthetic opioids disguised as fake prescription medication is extremely high. The FBI will do whatever is necessary to hold criminals who sell counterfeit drugs accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This sentencing is a testament to the great law enforcement collaboration by agencies here in Georgia, as well as nationally and internationally.”
“McCann’s sentencing sends a clear message that drug trafficking and the devastation it brings to our communities will not be tolerated. We remain committed to holding those accountable who distribute this poison and threaten public safety,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “Our office will continue working alongside our law enforcement partners to disrupt these dangerous networks and protect the well-being of our citizens.”
“This drug trafficking investigation required significant coordination from multiple federal, state and local law enforcement agencies along with our international partners to identify and interrupt the distribution of these dangerous drugs,” said Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to pursue anyone who illegally utilize the mail system.”
“The issue of fentanyl and illicit opioids remains a top concern for the Royal Canadian Mounted Police (RCMP), and we remain committed to collaborating with our international law enforcement partners to actively pursue the criminal networks that are fueling this public health epidemic,” said Superintendent Marie Eve Lavallée, Assistant Criminal Operations Officer, Organized Crime Program, RCMP Federal Policing – Eastern Region
According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: In October 2015, McCann was arrested by the Laval (Quebec, Canada) Police after he was identified as selling drugs on the dark web using the moniker “DRXanax.” As part of that investigation, Canadian authorities seized approximately two million counterfeit Xanax pills, five pill presses, alprazolam powder, 3,000 MDMA pills, over $200,000 in cash, 15 firearms, ballistic vests, and drug ledgers. The drug ledgers revealed McCann and others purchased alprazolam from China, pressed the alprazolam into counterfeit Xanax pills, then sold the pills to customers throughout the United States.
Despite his arrest, McCann continued to operate on the dark web to sell narcotics, including fentanyl analogues. A subsequent investigation by U.S. law enforcement revealed that from at least November 2015 to February 2020, McCann operated numerous vendor pages on over ten marketplaces on the dark web. The investigation also revealed that McCann, who used various monikers, was one of the largest drug vendors on the dark web between 2015 and 2020, distributing drugs to 49 states and generating more than $10 million dollars of revenue.
McCann was arrested by Canadian authorities on February 26, 2020, on the charges from the Northern District of Georgia, and was extradited to the United States on June 9, 2022.
Arden McCann, 37, of Quebec, Canada, was sentenced by U.S. District Judge J.P. Boulee to 30 years in prison followed by 10 years of supervised release. He was also fined $1 million dollars. McCann was convicted of drug importation and money laundering conspiracies on September 23, 2023, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Food and Drug Administration, Homeland Security Investigations, the United States Postal Inspection Service and the Internal Revenue Service Criminal Investigation, with invaluable assistance provided by the Royal Canadian Mounted Police.
Assistant U.S. Attorney C. Brock Brockington and former Assistant U.S. Attorneys Tal Chaiken and Nick Hartigan prosecuted the case. Trial Attorneys from the Office of International Affairs also provided assistance in this case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
C.R. Bard, Inc. and Affiliates Pay $17 Million to Resolve Allegations of Healthcare KickbacksRead the Press Release
ATLANTA – C.R. Bard, Inc. (“Bard”) and its affiliates, Liberator Medical Supply, Inc., Liberator Holdings and Rochester Medical Corporation (collectively the “Liberator Defendants”), have agreed to pay $17 million to resolve allegations that they violated the False Claims Act and various state false claims act statutes by providing free samples and discounts to encourage urology practice groups to use Bard’s prescription form for prescribing intermittent catheters for their patients.
“The use of inducements to influence a physician’s medical decisions undermines the important physician-patient relationship and interferes with the goal of doing what is best for the patient,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office will coordinate with our federal and state partners to hold accountable those companies who violate federal law for financial gain.”
“Patients should be able to trust the recommendations they receive from their physician are what’s best for their health, not what’s financially beneficial to another provider,” said Georgia Attorney General Chris Carr. “We’re committed to putting a stop to any type of fraud or abuse within our healthcare system while protecting taxpayer dollars no matter the amount.”
“Kickback schemes undermine the trust patients place in our health care system,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our office will continue to collaborate with our law enforcement partners to safeguard federal health care programs.”
“Illegal kickbacks in any form pervert our health care system, which is designed to ensure that health care providers make decisions based solely on what is best for the patient,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This settlement is part of the FBI and our partners’ on-going effort to eliminate the payment of illegal kickbacks to health care providers.”
“This settlement sends a strong message to healthcare practitioners who blatantly disregard patient-centered care for their own personal enrichment and potentially harm TRICARE, the military healthcare system relied on by our servicemembers, retired military members, and their families,” said Special Agent in Charge Jason Sargenski, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS, alongside our law enforcement partners, will continue to aggressively investigate allegations of healthcare fraud that affect the Department of Defense and put our personnel at risk.”
The Government alleges that, between 2016 and February 2020, the Liberator Defendants provided discounts, excessive free samples, and cost savings for in-office supplies to urology practice groups to persuade those practice groups to use Bard’s own “Link” prescription form to prescribe intermittent catheters to their patients. The provision of remuneration – anything of value – to induce a physician to prescribe certain devices over others is prohibited by the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b.
Bard began marketing intermittent catheters in 2013, after it acquired Rochester Medical, Inc., a developer and supplier of urological products. Intermittent catheters are single-use catheters provided to persons suffering from urinary retention to drain the bladder several times a day. They are typically prescribed by the patient’s physician. The patient then takes the prescription to a medical equipment supplier (“DME supplier”) to purchase the intermittent catheters.
The Government alleges that soon after the acquisition of Rochester, Bard sales representatives began leveraging discounts on and free samples of in-office urological products to convince urology practice groups to make Bard’s “Link” prescription form – which listed the various Bard intermittent catheters – the standard catheter prescription form for its group. The patients would then take the Link prescription to a DME supplier to purchase the catheters.
Two years later, Bard announced its acquisition of Liberator Medical and Liberator Holdings to create its own medical equipment subsidiary for the sale of intermittent catheters directly to Medicare and Medicaid beneficiaries. The Government alleges that after this acquisition, Bard used the Link prescription form to encourage urology practices to prescribe intermittent catheters through Liberator Medical rather than other DME suppliers.
The settlement resolves allegations filed by Dirk Etheridge, a former employee of 180 Medical, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States, ex rel. Dirk Etheridge, et al. v. Liberator Medical Holdings, Inc., et al., No 1:17-cv-05187-LMM (N.D. Ga.). Mr. Etheridge will receive a share of the settlement.
The U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.
The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David, former Assistant U.S. Attorney Akash Desai, and Georgia State Assistant Attorney General Sara Vann.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Investment Professional Sentenced for Multimillion-Dollar Investment Fraud SchemeRead the Press Release
ATLANTA - Craig Allen, executive officer of C.M. Allen Capital Management, Inc., has been sentenced to seven years in federal prison for operating an investment scheme involving a private fund called “the Cheetah Fund,” which defrauded dozens of investors of more than $9 million.
“Allen lied to investors when he sent them account documents that intentionally inflated the Cheetah Fund’s performance,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Allen abused the investors’ trust by failing to invest their money as promised and diverting these funds to maintain his lifestyle. For some victims, these stolen funds comprised their life savings.”
“While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is however, a very real victimization felt and lives are changed forever,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “The FBI is hopeful that Allen’s sentencing will send a strong message to anyone who would try to take advantage of unsuspecting investors for their own personal greed.”
According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Allen, the sole shareholder and executive officer of C.M. Allen Capital Management, Inc., defrauded dozens of investors across the country out of millions of dollars through his management of the Cheetah Fund. In his roles with C.M. Allen Capital Management, Allen was responsible for managing Cheetah and its investment portfolio. Prospective investors received tear sheets that reported Cheetah achieved annual investment returns as high as 73%. Once invested in Cheetah, investors received fraudulent monthly account statements showing false investment gains, and fake tax documents reporting the false gains. In reality, Allen reported gains even as the Fund continuously lost money.
In addition, Allen at times used investors’ money to write checks payable to himself to fund his lifestyle. Cheetah investors lost more than $9 million due to Allen’s investment fraud scheme.
Craig Allen, 53, of Atlanta, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr. to seven years, two months in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $9.2 million to the victims.
This case was investigated by the Federal Bureau of Investigation. The SEC provided valuable assistance. The SEC’s separate civil case is SEC v. Craig Allen, Case Number 1:24-cv-01771-SDG.
Assistant U.S. Attorney Natasha Cooper and former Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
First Assistant U.S. Attorney Richard S. Moultrie, Jr. Named Acting U.S. Attorney for the Northern District of GeorgiaRead the Press Release
ATLANTA – First Assistant U.S. Attorney Richard S. Moultrie, Jr. has succeeded U.S. Attorney Ryan K. Buchanan as the Acting U.S. Attorney for the Northern District of Georgia, effective January 20, 2024, at 12:00 a.m., pursuant to the Federal Vacancies Reform Act, 5 U.S.C § 3345.
“Richard S. Moultrie, Jr. is an accomplished trial lawyer and a career prosecutor who lives the mission of the Department of Justice,” said Mr. Ryan K. Buchanan. “Additionally, he is a capable and experienced leader who has the trust and faith of the public servants of the United States Attorney’s Office, our law enforcement partners, and our community stakeholders. He is a worthy steward of the leadership of this office, and he will work tirelessly to keep the people of the district safe, to uphold the rule of law, and to protect civil rights. As a resident of the Northern District of Georgia, I look forward to his service as Acting United States Attorney.”
“It has been an incredible privilege to work side-by-side with U.S. Attorney Buchanan as the District’s First Assistant U.S. Attorney,” said Mr. Moultrie. “Along with the dedicated and talented attorney, administrative, and legal support staff of our office, I will steadfastly continue our District’s mission to prosecute federal crimes, seek justice on behalf of victims and their families, represent the interests of the United States and its agencies in civil litigation, and maintain our robust relationships with law enforcement partners and community stakeholders.”
Mr. Moultrie has extensive experience in handling complex, high-profile matters in federal court. He formerly served as Chief of the Office’s Violent Crime & National Security Section. A member of the American College of Trial Lawyers, he is also the previous recipient of the U.S. Attorney General’s Distinguished Service Award and the Executive Office of U.S. Attorneys Director’s Award for Superior Performance.
Mr. Moultrie received his Juris Doctor from the University of Texas at the Austin School of Law and a Bachelor of Arts from Morehouse College.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon Sentenced for Committing Pandemic Relief Fraud While on Supervised ReleaseRead the Press Release
ATLANTA - Boeroepae Jordan has been sentenced to a new term in prison for defrauding the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program of more than $323,000, less than a year after being released from federal prison for firearms and drug crimes.
“Jordan quickly returned to his criminal activity after his release from prison, this time committing fraud to obtain money intended to help individuals and businesses who were suffering from the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our continuing resolve to identify and prosecute individuals who wrongfully exploited the pandemic relief programs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On September 9, 2019, Jordan completed a 72-month federal prison sentence for possession of a firearm by a prohibited person and possession of a firearm during a drug trafficking crime and began a six-year term of supervised release. On April 5, 2020, Jordan applied to the U.S. Small Business Administration (“SBA”) for an EIDL advance of $5,000, claiming he owned a business named A/E Multi-Diamond Entertainment Incorporated which had five employees. In reality, the business existed in name only and had no employees. Jordan requested the funds be deposited into a business bank account that he arranged for a family member to open, claiming that the family member owned the business. The SBA then deposited the $5,000 into the bank account.
The following month, Jordan applied for an SBA-guaranteed PPP loan of $291,250 for the same fake business. Jordan claimed he had 18 employees and needed the loan to continue providing payroll during the pandemic. Jordan supported the application by providing fake IRS documents and altered bank statements. Jordan received the loan into his bank account on May 20, 2020, and immediately began withdrawing cash and spending large amounts of the money at restaurants, retail stores, nail salons, and furniture stores. By July 31, 2020, less than $5,000 of the loan funds was left in the account. Jordan caused an overall loss to the SBA of $323,433.31.
Boeroepae Jordan, 51, of Atlanta, Georgia, was sentenced to three years, five months in prison to be followed by three years of supervised release. He was also ordered to pay restitution to the U.S. Small Business Administration in the amount of $323,433.31. Jordan was convicted on October 10, 2024, after he pleaded guilty to two counts of wire fraud.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Garrett L. Bradford and Erin N. Spritzer prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Settlement Agreement Reached to Resolve Discrimination Against Disabled Veteran with Service AnimalRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia has entered into a settlement agreement with OptumServe Health Services, Inc. (“OptumServe”), a subsidiary of UnitedHealth Group, to resolve allegations that OptumServe discriminated against a disabled veteran in violation of the Americans with Disabilities Act (“ADA”).
“Service animals are not pets and are often prescribed to assist veterans diagnosed with particular service-related disabilities,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to ensuring veterans have access to medical care that is free of discrimination or other barriers that impede them from equal access to healthcare services.”
OptumServe provides medical services to veterans with disabilities across the country. The agency refused to see the veteran in this matter at the time of a scheduled appointment because he was accompanied by a service animal. The veteran’s service animal is required for a service-related disability. As a result, the veteran left the office without receiving any medical care.
Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, and privileges of any place of public accommodation. OptumServe is a private entity that operates healthcare facilities that are places of “public accommodation” within the meaning of Title III of the ADA.
Under the terms of the agreement, OptumServe will make changes to its policies and procedures and provide additional training to its staff to ensure compliance with the requirements of the ADA and that proper care is provided to its patients. Additionally, OptumServe will pay the veteran $85,000 in compensatory damages.
This case was handled by Assistant U.S. Attorney Marissa Fallica and Senior Civil Investigator Tamara Jones.
Complaints regarding discrimination or civil rights violations can be submitted directly to the United States Attorney’s Office for the Northern District of Georgia at [email protected] or (404) 581-4626.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Settlement Agreement:
optum_serve_settlement_signed.pdfHiram Man Indicted for Possessing Enough Fentanyl to Kill up to 500,000 IndividualsRead the Press Release
ROME, Ga. - Darrlin Vernard Warner, also known as “Juice,” has been arraigned on federal charges of conspiracy to possess with intent to distribute fentanyl and methamphetamine, possession with intent to distribute fentanyl and methamphetamine, and possession of firearms in furtherance of drug trafficking.
“Warner was allegedly trafficking a substantial amount of fentanyl and methamphetamine, posing an immense threat to the safety of residents of Paulding and Douglas Counties,” said U.S. Attorney Ryan K. Buchanan. “Fentanyl and methamphetamine continue to ravage communities throughout northern Georgia. Our Office is especially proud of the impact that our federal, state, and local law enforcement made in this investigation.”
“Fentanyl poisonings and other dangerous drugs are taking a terrible toll on Georgia,” said FBI Atlanta Acting Special Agent in Charge Sean Burke. “Disrupting the manufacturers and distributers of this poison remains a high priority for the FBI and our law enforcement partners.”
“This indictment highlights the significant threat that fentanyl and methamphetamine pose to our communities,” said GBI Director Chris Hosey. “The seizure of enough fentanyl to potentially kill 500,000 people underscores the deadly scale of this crisis. The collaborative efforts of local, state, and federal law enforcement continue to be crucial in protecting our citizens and dismantling drug trafficking networks.”
“We are proud to stand united with our state, local, and federal law enforcement agencies in operations like this,” remarked Paulding County Sheriff Ashley Henson. “This interagency collaboration has enabled us to effectively eliminate a substantial amount of deadly fentanyl, heroin, cocaine, and methamphetamine from the streets of Paulding County. As the new Sheriff, I will relentlessly work to ensure that these dangerous substances are kept away from our children and residents.”
According to U.S. Attorney Buchanan, the indictment, information provided in court, and other publicly available information: In October and November 2024, law enforcement found during the course of their investigation evidence that Darrlin Warner allegedly conspired to distribute fentanyl and methamphetamine in the region of Paulding and Douglas Counties. On November 13, 2024, federal, state, and local agencies executed a federal search warrant on Warner’s home and vehicle, recovering approximately one kilogram (2.2. pounds) of fentanyl, approximately one pound of methamphetamine, five firearms, and approximately $177,000 in cash, as well as other suspected controlled substances.
Two milligrams of illicit fentanyl can be a lethal dose, and the approximate one kilogram of fentanyl recovered from Warner is enough to potentially kill as many as 500,000 people.
Darrlin Vernard Warner, aka “Juice,” 39, of Hiram, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson on January 14, 2025. He was indicted by a federal grand jury on December 10, 2024.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation - Cartersville Office, the Georgia Bureau of Investigation - Northwest Georgia Drug Task Force, the Paulding County Sheriff’s Office, and the Douglas County Sheriff’s Office, with valuable assistance provided by Paulding County Fire/Rescue and Metro Ambulance.
Assistant U.S. Attorneys Calvin A. Leipold, III and Thomas M. Forsyth, III are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strategic Initiative focused on combatting the fentanyl crisis in northwest Georgia. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Anyone with information about drug sales/trafficking in their area can report it to the GBI at1-800-597-TIPS (8477) or DEA’s Atlanta Division Office at (404) 893-7000. Online tips can be submitted at https://www.dea.gov/submit-tip.
The Office of the U.S. Attorney for the Northern District of Georgia encourages parents and children to learn about the dangers of fentanyl and other drugs at the following websites: www.justthinktwice.gov, www.GetSmartAboutDrugs.com, www.operationprevention.com/, www.CampusDrugPrevention.gov, and www.dea.gov/onepill.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Operators of Cryptocurrency Mixers Charged with Money LaunderingRead the Press Release
A federal grand jury in the Northern District of Georgia returned an indictment on Jan. 7 charging three Russian nationals for their involvement in operating the cryptocurrency mixing services Blender.io and Sinbad.io. Roman Vitalyevich Ostapenko and Alexander Evgenievich Oleynik were arrested on Dec. 1, 2024, roughly a year after Sinbad.io’s online infrastructure was seized as part of a coordinated law enforcement action among the Netherlands’ Financial Intelligence and Investigative Service, Finland’s National Bureau of Investigation, and the FBI. The third defendant, Anton Vyachlavovich Tarasov, remains at large.
“According to the indictment, the defendants operated cryptocurrency ‘mixers’ that served as safe havens for laundering criminally derived funds, including the proceeds of ransomware and wire fraud,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department's Criminal Division. “By allegedly operating these mixers, the defendants made it easier for state-sponsored hacking groups and other cybercriminals to profit from offenses that jeopardized both public safety and national security. The indictment and arrests announced today, which follow the earlier takedown of the defendants’ criminal infrastructure, yet again demonstrate the value of our international partnerships in countering the global threat from cybercrime.”
“Blender.io and Sinbad.io were allegedly used by criminals across the world to launder funds stolen from victims of ransomware, virtual currency thefts, and other crimes,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This indictment demonstrates our continued commitment to dismantling infrastructure used by cybercriminals to steal from Americans and hide their ill-gotten gains.”
“Last year, with the assistance of our international partners, we successfully dismantled Sinbad.io,” said Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office. “However, we did not rest with this initial success. We maintained our focus on identifying the individuals responsible for its development and ensuring their accountability. These indictments serve as a testament to the power of international cooperation.”
According to court documents and publicly available information, Blender.io and Sinbad.io were cryptocurrency mixers that allowed their users, for a fee, to send cryptocurrency to designated recipients in a manner designed to hide the source of the cryptocurrency. Blender.io and Sinbad.io were available for use by the public via the internet and used by criminals looking to distance themselves from the fact that their funds came from cryptocurrency thefts, ransomware attacks, and other crimes.
Blender.io operated from approximately 2018 to 2022. The service was advertised on a popular internet forum as having a “No Logs Policy” and deleting any traces of user transactions. Additionally, in the advertisement, Blender was described as not requiring users to sign up, register, or “provide any kind of detail except the receiving address!” The advertisement asserted that, “[a]s there are no personal details asked for, there’s no way your identity is compromised, or can be linked back to, because as far as blender.io goes they don’t know who you are.” After Blender.io shut down, Sinbad.io began operating a few months later. Like Blender.io, Sinbad.io provided users with Bitcoin concealment services. And, on November 27, 2023, Sinbad.io was taken down through law enforcement action.
Both Blender.io and Sinbad.io have been sanctioned by the Department of Treasury’s Office of Foreign Assets Control (OFAC). On May 6, 2022, OFAC sanctioned Blender.io, citing its use by the Democratic People’s Republic of Korea (DPRK) to launder stolen virtual currency. OFAC’s public sanctions announcement also explained that Blender.io laundered funds for multiple ransomware groups. On Nov. 29, 2023, OFAC sanctioned Sinbad.io, publicly citing its use by a DPRK state-sponsored hacking group and cybercriminals to obfuscate transactions linked to other criminal offenses.
Ostapenko, 55, is charged with one count of conspiracy to commit money laundering and two counts of operating an unlicensed money transmitting business. Oleynik, 44, and Tarasov, 32, are both charged with one count of conspiracy to commit money laundering and one count of operating an unlicensed money transmitting business. If convicted, the defendants each face a maximum penalty of 20 years in prison for the money laundering conspiracy count and five years in prison for each unlicensed money transmitting business count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Netherlands’ Public Prosecution Service and Fiscal Information and Investigative Service made significant contributions to the case, including to the disruption of the Sinbad mixer, and provided other valuable assistance. Significant support was also provided by the Australian Federal Police and Attorney-General’s Department, and Finland’s National Bureau of Investigation.
The FBI is investigating the case.
Trial Attorney Ethan Cantor of the Criminal Division’s Computer Crime and Intellectual Property Section, who is a member of the National Cryptocurrency Enforcement Team, and Assistant U.S. Attorney Samir Kaushal for the Northern District of Georgia are prosecuting the case. The Justice Department’s Office of International Affairs and Assistant U.S. Attorney Maxwell Coll for the Central District of California provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Operators of Cryptocurrency Mixers Charged with Money LaunderingRead the Press Release
ATLANTA –Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov have been indicted by a federal grand jury for their involvement in operating the cryptocurrency mixing services Blender.io and Sinbad.io.
“Blender.io and Sinbad.io were allegedly used by criminals across the world to launder funds stolen from victims of ransomware, virtual currency thefts, and other crimes,” said U.S. Attorney Ryan K. Buchanan. “This indictment demonstrates our continued commitment to dismantling infrastructure used by cybercriminals to steal from Americans and hide their ill-gotten gains.”
“According to the indictment, the defendants operated cryptocurrency ‘mixers’ that served as safe havens for laundering criminally derived funds, including the proceeds of ransomware and wire fraud,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department's Criminal Division. “By allegedly operating these mixers, the defendants made it easier for state-sponsored hacking groups and other cybercriminals to profit from offenses that jeopardized both public safety and national security. The indictment and arrests announced today, which follow the earlier takedown of the defendants’ criminal infrastructure, yet again demonstrate the value of our international partnerships in countering the global threat from cybercrime.”
“Last year, with the assistance of our international partners, we successfully dismantled Sinbad.io. However, we did not rest with this initial success. We maintained our focus on identifying the individuals responsible for its development and ensuring their accountability,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “These indictments serve as a testament to the power of international cooperation.”
According to U.S. Attorney Buchanan, the indictment, and publicly available information: Blender.io and Sinbad.io were cryptocurrency mixers that allowed their users, for a fee, to send cryptocurrency to designated recipients in a manner designed to hide the source of the cryptocurrency. Blender.io and Sinbad.io were available for use by the public via the internet and used by criminals looking to distance themselves from the fact that their funds came from cryptocurrency thefts, ransomware attacks, and other crimes.
Blender.io operated from approximately 2018 to 2022. The service was advertised on a popular internet forum as having a “No Logs Policy” and deleting any traces of user transactions. Additionally, in the advertisement, Blender was described as not requiring users to sign up, register, or “provide any kind of detail except the receiving address!” The advertisement asserted that, “[a]s there are no personal details asked for, there’s no way your identity is compromised, or can be linked back to, because as far as blender.io goes they don’t know who you are.” After Blender.io shut down, Sinbad.io began operating a few months later. Like Blender.io, Sinbad.io provided users with Bitcoin concealment services. And, on November 27, 2023, Sinbad.io was taken down through law enforcement action.
Both Blender.io and Sinbad.io have been sanctioned by the Department of Treasury’s Office of Foreign Assets Control (OFAC). On May 6, 2022, OFAC sanctioned Blender.io, citing its use by the Democratic People’s Republic of Korea (DPRK) to launder stolen virtual currency. OFAC’s public sanctions announcement also explained that Blender.io laundered funds for multiple ransomware groups. On November 29, 2023, OFAC sanctioned Sinbad.io, publicly citing its use by a DPRK state-sponsored hacking group and cybercriminals to obfuscate transactions linked to other criminal offenses.
Roman Vitalyevich Ostapenko, 55, of Russia, is charged with one count of conspiracy to commit money laundering and two counts of operating an unlicensed money transmitting business.
Alexander Evgenievich Oleynik, 44, of Russia, and Anton Vyachlavovich Tarasov, 32, of Russia, are both charged with one count of conspiracy to commit money laundering and one count of operating an unlicensed money transmitting business.
Ostapenko and Oleynik were arrested on December 1, 2024, roughly a year after Sinbad.io’s online infrastructure was seized as part of a coordinated law enforcement action, while Tarasov remains at large.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The Netherlands’ Public Prosecution Service and Fiscal Information and Investigative Service made significant contributions to the case, including to the disruption of the Sinbad.io mixer, and provided other valuable assistance. Significant support was also provided by the Australian Federal Police and Attorney-General’s Department, and Finland’s National Bureau of Investigation.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Samir Kaushal, Trial Attorney Ethan Cantor of the Justice Department’s Computer Crime and Intellectual Property Section, and member of the National Cryptocurrency Enforcement Team are prosecuting the case. Significant assistance was also provided by the Justice Department’s Office of International Affairs and by Assistant U.S. Attorney Maxwell Coll of the Central District of California.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hampton Woman Pleads Guilty to $161 Million Mortgage Fraud SchemeRead the Press Release
ATLANTA - Kimberly Johnson has pleaded guilty for her role in a mortgage fraud scheme spanning more than three years and resulting in the approval of approximately 450 mortgage loans based on fabricated documents and false information. Many of the loans are insured by the Federal Housing Administration (FHA), resulting in claims being paid for mortgages that have defaulted.
“The defendant and her co-conspirators brazenly manipulated the real estate lending process out of sheer greed,” said U.S. Attorney Ryan Buchanan. “Criminals like Johnson, who engage in mortgage fraud, threaten the soundness of the real estate market in our communities. Our office is committed to prosecuting these bad actors who abuse the system for their personal gain and to safeguard the mortgage lending system for those who rely on this financial support.”
“Kimberly Johnson engaged in a massive mortgage fraud scheme, fabricating material documents on over 450 loans to falsely qualify individuals for loans they would not have otherwise qualified for,” said Special Agent-in-Charge Jerome Winkle with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “When individuals commit fraud against federally funded programs, it creates significant risks to the programs and limits the financial resources available to assist hard working individuals realize the American dream of homeownership. HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
“Ms. Johnson’s guilty plea is the result of our commitment to hold anyone who exploits the mortgage lending system for personal gain fully accountable,” said Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region. “This case highlights the importance of collaboration between our law enforcement partners to protect the integrity of the housing market and prevent fraud that undermines public trust.”
“The defendant in this case pleaded guilty for her role in altering and fabricating supporting documents in fraudulent mortgage loan applications, as part of a scheme that resulted in the approval of approximately 450 mortgage loans,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), Atlanta Region. “The FDIC OIG remains committed to working with our law enforcement colleagues to investigate those who commit fraudulent acts and threaten to undermine the safety and soundness of our nation’s financial system.”
“The FBI will vigorously investigate criminal offenses that impact the integrity of the residential mortgage market. In this case, Johnson had the duty to conduct business honestly but instead chose to engage in mortgage fraud, securing mortgages for individuals who otherwise would not have qualified for one,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “We are proud to have worked with our law enforcement partners and the U.S. Attorney’s Office in the effort to prosecute anyone who engages in this type of misconduct.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Kimberly Johnson participated in a conspiracy in which homebuyers and mortgage brokers submitted fraudulent loan applications to induce mortgage lenders to fund mortgages. Johnson’s role in the scheme was to alter or fabricate the supporting documents for the loans, including bank statements, pay stubs and Forms W-2. Over the course of more than three years, Johnson helped approximately 450 homebuyers to commit mortgage fraud by obtaining loans for which they were unqualified. The fraudulent loan applications were submitted to numerous mortgage lenders, and some of the mortgage brokers who worked on obtaining the loans were part of the conspiracy. These fraudulent loans totaled approximately $161 million. Many of those loans have already defaulted.
Kimberly Johnson, 55, of Hampton, Georgia, pleaded guilty to one count of conspiracy to defraud the United States in a mortgage fraud scheme and, as part of her plea, has agreed to pay restitution to the victims of the conspiracy, including the U.S. Department of Housing and Urban Development, which insures many of the residential mortgages in the United States. Johnson is scheduled to be sentenced on April 11, 2025, before U.S. District Judge Sarah E. Geraghty.
This case is being investigated by the U.S. Department of Housing and Urban Development Office of Inspector General, the Federal Housing Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney Alison Prout 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Motel Shooter Sentenced to PrisonRead the Press Release
ATLANTA - Marcus Thomas, a previously convicted felon, has been sentenced to federal prison for possession of a firearm and ammunition.
“Thomas was released from state prison only a few days before he illegally obtained a firearm and indiscriminately shot through a motel window, endangering the lives of others within the community,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the efforts of our law enforcement partners, violent repeat offenders like Thomas who risk the lives of others, will be brought to justice to face the consequences of their actions.”
“Thomas is a dangerous felon who resumed his criminal activity shortly after being released from prison,” said FBI Atlanta Acting Special Agent in Charge Sean Burke. “The FBI and our law enforcement partners will continue to do everything possible to ensure criminals are brought to justice.”
“The reckless and dangerous actions of Marcus Thomas put innocent lives at risk, and this case exemplifies the Atlanta Police Department’s unwavering commitment to working with our federal partners to remove violent offenders from our streets,” said Atlanta Police Chief Darin Schierbaum.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On July 1, 2022, Atlanta Police Department (APD) officers responded to a report of shots fired at a Travel Inn located on Forest Hills Drive in Atlanta, Georgia. Two witnesses at the location informed APD officers that they saw an individual—later identified as Marcus Thomas—with a firearm outside his motel room. The witnesses said that they saw Thomas enter his room and then heard gunshots coming from his vicinity.
As APD officers approached the room, they observed damage to the window consistent with gunshots. Thomas was ordered out of the room and was detained. APD officers then searched the room and found a firearm magazine and multiple rounds of ammunition on the floor of the bathroom, as well as shell casings from spent ammunition on the floor near one of the beds in the room. A few days later, APD officers recovered the firearm used in the shooting, which was hidden inside a fitted sheet tucked into the mattress of one of the beds in the room.
FBI special agents investigated the shooting and discovered that Thomas recently served a sentence for aggravated assault and was released from prison four days prior to the shooting. Thomas was also previously convicted of multiple other felonies, including terroristic threats, possession of cocaine, and theft by receiving stolen property.
Marcus Thomas, 39, of Atlanta, Georgia, was sentenced by U.S. District Judge Sarah E. Geraghty to three years, one month in prison followed by three years of supervised release. Thomas was convicted of possession of a firearm and ammunition by a convicted felon, after he pleaded guilty on August 28, 2024.
This case was investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorneys Bethany L. Rupert and Thomas M. Forsyth, III prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
The United States Reaches Proposed Consent Decree to Resolve Claims that Conditions Inside the Fulton County Jail Violate the Constitution and Other Federal LawsRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice’s Civil Rights Division announced that the United States has entered into a court-enforceable agreement to resolve the findings that conditions of confinement at the Fulton County Jail violate the 8th and 14th Amendments to the U.S. Constitution, Americans with Disabilities Act, and Individuals with Disabilities Education Act. The United States filed a complaint and a proposed consent decree with Fulton County and the Fulton County Sheriff in federal court.
“Our report from an investigation of Fulton County and the Fulton County Jail concluded that the Constitutional rights of incarcerated persons are being violated,” said U.S. Attorney Ryan K. Buchanan. “The proposed consent decree serves as a cooperative measure to address the grievous pattern of inhumane – and frequently violent – treatment of people in custody, along with the filthy and unsanitary living conditions they endure while awaiting formal charges or trials at the Fulton County Jail. This office is deeply invested in the well-being of all our residents, and we are hopeful that the systemic deficiencies revealed by our report will be remedied through the implementation of the requirements outlined in the decree, along with regular oversight of the progress of Fulton County and the Fulton County Jail, as overseen by an independent monitor.”
“This proposed consent decree is a critical step toward correcting the dangerous and dehumanizing conditions that have persisted in the Fulton County Jail for far too long,” said Attorney General Merrick B. Garland. “When the Department announced findings from our investigation of the Fulton County Jail in November, we called on the County and Sheriff’s Office to remedy the troubling pattern of unsanitary living conditions, brutal physical attacks, and other dangerous issues at the Jail. We are encouraged that local officials have agreed to a plan that will begin to address the inhumane, unconstitutional conditions that were reflected in Lashawn Thompson’s horrific death.”
“Our findings regarding the Fulton County Jail identified serious and life-threatening violations of the Constitution and other laws,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Detention in the Fulton County Jail amounted to a death sentence for dozens of people who have been murdered or who died as a result of inhumane conditions inside the facility. The proposed consent decree includes strong remedial provisions, an independent monitor and other remedies that make it a model for addressing these kinds of violations in jails and prisons across the nation. If fully implemented, this consent decree and its comprehensive remedies should reduce violence and unnecessary force; increase the quality of medical and mental health care; reduce the use of unnecessary isolation, particularly for people with mental illness and 17-year-old children; and afford children with disabilities the education to which they are entitled. We thank the County and Sheriff for working with the Justice Department on these long overdue reforms.”
The proposed consent decree, which must still be approved by the court, would resolve the United States’ claims that the Jail engages in a pattern or practice of violating the rights of people incarcerated at the facility. Under the proposed consent decree, the Jail will, among other things:
- Develop plans and policies to keep incarcerated people safe from violence;
- Improve supervision and staffing;
- Maintain doors and locks in working order;
- Require staff to abide by constitutional standards when using force;
- Take steps to protect incarcerated people at risk of suicide and to afford incarcerated people adequate medical and mental health care;
- Develop and implement a comprehensive housekeeping plan and pest management system to keep the Jail clean, sanitary, and free of pests;
- Stop use of isolation or restrictive housing of vulnerable people who are at substantial risk of self-harm or other negative mental health outcomes, absent specific and significant protections; and
- Facilitate the provision of adequate special education services to children with disabilities in the Jail.
The proposed consent decree provides for an independent monitor to assess the Jail’s implementation of the decree’s requirements. The monitor will issue public reports on the Jail’s progress every six months and members of the public can share information with the monitor regarding implementation of the decree and Jail conditions.
The United States initiated its investigation of the Fulton County Jail in July 2023. The United States’ investigation proceeded under the Civil Rights of Institutionalized Persons Act (CRIPA), Americans with Disabilities Act, and Violent Crime Control and Law Enforcement Act of 1994, which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law. These statutes authorize the Attorney General to file a lawsuit in federal court to seek court-ordered remedies to eliminate a pattern or practice of unlawful conduct. The United States provided Fulton County and the Fulton County Sheriff with written notice of its findings, along with the supporting facts for its findings, and the minimum remedial measures necessary to address the violations found. The proposed consent decree seeks to address and resolve those violations.
The case is being handled by Aileen Bell Hughes, Deputy Chief of the Public Integrity & Civil Rights Section, Assistant U.S. Attorneys Rebeca Ojeda and Rahul Garabadu of the Northern District of Georgia, and former Assistant U.S. Attorney Tiffany Johnson.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Reaches Proposed Consent Decree with Fulton County, Georgia, and Fulton County Sheriff’s Office to Resolve Claims that Conditions Inside the Fulton County Jail Violate the Constitution and Other Federal LawsRead the Press Release
Note: View Assistant Attorney General Kristen Clarke's remarks here.
The Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the Northern District of Georgia announced today that the Department has entered into a court-enforceable agreement to resolve the Department’s findings that conditions of confinement at the Fulton County Jail (the Jail) in Georgia violate the 8th and 14th Amendments to the U.S. Constitution, Americans with Disabilities Act, and Individuals with Disabilities Education Act. Today, the Department filed a complaint and a proposed consent decree with Fulton County and the Fulton County Sheriff in federal court.
The proposed consent decree, which must still be approved by the court, would resolve the Department’s claims that that the Jail engages in a pattern or practice of violating the rights of people incarcerated there. Under the proposed consent decree, the Jail will, among other things:
- Develop plans and policies to keep incarcerated people safe from violence;
- Improve supervision and staffing;
- Keep doors and locks in working order;
- Require any use of force by staff comply with constitutional standards;
- Take steps to protect incarcerated people at risk of suicide and to afford incarcerated people adequate medical and mental health care;
- Develop and implement a comprehensive housekeeping plan and pest management system to keep the Jail clean, sanitary, and free of pests;
- Stop housing vulnerable people in isolation when they are at substantial risk of self-harm or other negative mental health outcomes absent specific and significant protections; and
- Facilitate the provision of adequate special education services to children with disabilities in the Jail.
The proposed consent decree provides for an independent monitor to assess the Jail’s implementation of the decree’s requirements. The monitor will issue public reports on the Jail’s progress every six months and members of the public can share information with the monitor regarding implementation of the decree and Jail conditions.
“This proposed consent decree is a critical step toward correcting the dangerous and dehumanizing conditions that have persisted in the Fulton County Jail for far too long,” said Attorney General Merrick B. Garland. “When the Department announced findings from our investigation of the Fulton County Jail in November, we called on the County and Sheriff’s Office to remedy the troubling pattern of unsanitary living conditions, brutal physical attacks, and other dangerous issues at the Jail. We are encouraged that local officials have agreed to a plan that will begin to address the inhumane, unconstitutional conditions that were reflected in Lashawn Thompson’s horrific death.”
“Our findings regarding the Fulton County Jail identified serious and life-threatening violations of the Constitution and other laws,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Detention in the Fulton County Jail amounted to a death sentence for dozens of people who have been murdered or who died as a result of inhumane conditions inside the facility. The proposed consent decree includes strong remedial provisions, an independent monitor and other remedies that make it a model for addressing these kinds of violations in jails and prisons across the nation. If fully implemented, this consent decree and its comprehensive remedies should reduce violence and unnecessary force; increase the quality of medical and mental health care; reduce the use of unnecessary isolation, particularly for people with mental illness and 17-year-old children; and afford children with disabilities the education to which they are entitled. We thank the County and Sheriff for working with the Justice Department on these long overdue reforms.”
“Our report from an investigation of Fulton County and the Fulton County Jail concluded that the Constitutional rights of incarcerated persons are being violated,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The proposed consent decree serves as a cooperative measure to address the grievous pattern of inhumane — and frequently violent — treatment of people in custody, along with the filthy and unsanitary living conditions they endure while awaiting formal charges or trials at the Fulton County Jail. This office is deeply invested in the well-being of all our residents, and we are hopeful that the systemic deficiencies revealed by our report will be remedied through the implementation of the requirements outlined in the decree, along with regular oversight of the progress of Fulton County and the Fulton County Jail, as overseen by an independent monitor.”
The Justice Department initiated its investigation of the Fulton County Jail in July 2023. The Department’s investigation proceeded under the Civil Rights of Institutionalized Persons Act (CRIPA), Americans with Disabilities Act, and Violent Crime Control and Law Enforcement Act of 1994, which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law. These statutes authorize the Attorney General to file a lawsuit in federal court to seek court-ordered remedies to eliminate a pattern or practice of unlawful conduct. The Department provided Fulton County and the Fulton County Sheriff with written notice of its findings, along with the supporting facts for its findings, and the minimum remedial measures necessary to address the violations found. The proposed consent decree seeks to address and resolve those violations.
The Civil Rights Division continues to prioritize unconstitutional conditions and violations of federal law in correctional and juvenile justice facilities. It opened new investigations into prisons and jails in Tennessee, California, South Carolina, and juvenile justice facilities across Kentucky. The division also issued findings in its investigations of Mississippi prisons, Texas juvenile justice system’s facilities, the Georgia Department of Corrections, and San Luis Obispo County, California, Jail. The division entered into agreements, including consent decrees, regarding the Cumberland County, New Jersey, Jail, the Edna Mahan Correctional Facility for Women in New Jersey, the Broad River Road Complex in South Carolina, the Manson Youth Institution in Connecticut, and the Massachusetts Department of Correction. The division is also litigating matters related to the constitutionality of conditions in Alabama’s prisons for men and the incarceration of people beyond their release dates in Louisiana prisons.
For more information about the Civil Rights Division and its Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations by completing the complaint form available at civilrights.justice.gov/. To provide information related to the Department’s investigation of the Fulton County Jail, please call 1-888-473-4092 or email the investigation team at [email protected].
U.S. Attorney Ryan K. Buchanan Announces Upcoming ResignationRead the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan has announced his resignation, effective January 19, 2025, as the chief law enforcement officer for the Northern District of Georgia. After he was nominated by President Joseph R. Biden, Jr. and confirmed by the U.S. Senate, U.S. Attorney Buchanan was sworn in as the District’s 26th Presidentially-appointed and Senate-confirmed United States Attorney on May 2, 2022.
During his tenure, U.S. Attorney Buchanan led an office of approximately 250 prosecutors, civil litigators, and administrative and support personnel in its mission to enforce federal civil and criminal laws, advocate for crime victims, and represent the United States’ interests in federal court. In his role, he oversaw prosecutions involving violent crimes, firearm offenses, drug trafficking organizations, child exploitation, cybercrimes, health care fraud, public corruption, organized crime rings and gang activities, hate crimes, and civil rights violations, while also achieving significant judgments and penalties in multiple civil matters.
Beyond the Northern District, U.S. Attorney Buchanan contributed to the Department of Justice’s national legal policy as a member of Attorney General Merrick Garland’s Advisory Committee (the “AGAC”), a select group of United States Attorneys who advise the Attorney General on policy matters. He served as Vice-Chair of the AGAC’s Terrorism and National Security Subcommittee, leader of the Malign Foreign Influence Working Group, and a member of the Office of Management and Budget Subcommittee. In addition to Department of Justice leadership, U.S. Attorney Buchanan was a member of the interagency Domestic Terrorism Executive Committee.
In a message to the members of his office, U.S. Attorney Buchanan said:
“Earlier today, I tendered my resignation as United States Attorney for the Northern District of Georgia to President Biden and Attorney General Garland. It is nearly impossible for me to reduce to writing my admiration and gratitude for you. You embody the high ideals of the Department of Justice, and you live out our mission daily. The Northern District, the State of Georgia, and the United States are safer because of your efforts. During my tenure as United States Attorney, the work of this office has reached six continents. At the same time, the office has remained a steadfast and engaged leader in communities from southwest Atlanta to the Appalachian foothills. That global legal work and local community impact are hallmarks of this office. Daily, we have worked collaboratively and forged lasting partnerships with law enforcement agencies and community stakeholders, leading to innovative, thoughtful, and effective approaches to advancing safety, upholding the rule of law, and protecting civil rights for nearly eight million people in the Northern District. The talent, excellence, and integrity of this office are unparalleled. It has been the privilege of my life to serve with you as colleagues, and I am forever grateful and honored to call you my friends.”
Under Mr. Buchanan’s leadership, the Northern District of Georgia achieved noteworthy successes outlined below in criminal and civil cases. U.S. Attorney Buchanan created a new dedicated section, the Public Integrity & Civil Rights Section, to formalize and expand the office’s civil and criminal civil rights work. And as described further below, Mr. Buchanan initiated and spearheaded many innovative collaborations with law enforcement and community stakeholders.
Notable Violent Crime and National Security Achievements
- A five-member minor sex trafficking group was prosecuted and sentenced, following a report that a minor victim had gone missing in Miami, Florida. The victim’s parents realized she failed to board a flight to Honduras. The minor was transported by two defendants to Georgia and forced to commit commercial sex acts and participate in “sex parties” hosted by other members of the group. The court imposed sentences ranging from seven to 30 years in prison.
- A jury convicted Jalal Hajavi for conspiring to violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, smuggling goods from the U.S., unlawfully exporting and reexporting goods from the U.S. to Iran without a license, and unlawfully engaging in transactions and dealings based on his participation in a scheme to unlawfully export heavy equipment from the U.S. to Iran by routing the shipments through the United Arab Emirates. He was convicted by a jury, and subsequently sentenced to two years in prison.
- Kenny Wells made headlines when he recklessly discharged a firearm at Hartsfield–Jackson Atlanta International Airport on the busy weekend before Thanksgiving in 2021. His unlawful actions created enormous panic throughout the airport and forced a lockdown of the facility and surrounding area for hours after he discharged a firearm detected inside a bag he had carried into an airport security screening area. Wells was sentenced to 10 years in prison for possessing a firearm after having been previously convicted of multiple felony offenses.
- A jury convicted Mezemr Abebe Belayneh for fraudulently obtaining U.S. citizenship by concealing his involvement in the “Red Terror,” a campaign of oppression and mass killings committed in Ethiopia that began in 1976. The Red Terror was a campaign of brutal violence in which Ethiopia’s ruling military council and its supporters detained, interrogated, tortured, and executed thousands of perceived opponents, many of whom were teenagers, based on their political opinions. Belayneh was convicted of fraudulently obtaining U.S. citizenship by lying about his role in the Red Terror persecutions and was sentenced to three years in prison.
Fraud Convictions
- Operation Five Fingers, a Priority Transnational Organized Crime case, resulted in the convictions of 40 defendants. Thirty-one of the defendants were convicted of conspiring to launder the proceeds of romance fraud schemes, bank account takeover schemes, and business email compromise schemes, which caused more than $30 million in losses to hundreds of individuals, banks, and other companies. Nine of the defendants committed bank fraud and aggravated identity theft offenses when they posed as bank customers and fraudulently withdrew funds directly from victims’ bank accounts. Two of the defendants were bank employees who facilitated laundering of fraud proceeds.
Accomplishments in Civil Cases
- A federal jury found that Charles Adams M.D. and his medical practice violated the False Claims Act (FCA). The jury concluded that the defendants violated the FCA by submitting false claims to Medicare for reimbursements of chelation therapy, which involves the use of drugs to remove heavy metals from the body. The jury found that Medicare reimbursed the defendants more than $1.1 million for these unnecessary treatments. In a post-trial ruling, the federal district judge added penalties to the jury’s verdict, bringing defendants’ total liability to more than $27 million.
- UBS AG and several of its U.S.-based affiliates (together, “UBS”) agreed to pay $1.435 billion in penalties to settle a civil action alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities in 2006 and 2007.
Narcotics Convictions
- Gilberto Lopez-Giraldo, Raul Lopez-Giraldo, Guillermo Escobar, and Alexander Duque-Casanova were convicted for engaging in a more than $1.4 million drug money laundering conspiracy involving major cities from across the United States, including Atlanta, Chicago, and New York to Cali, Colombia. The defendants received sentences of incarceration ranging from three to six years.
Money Laundering & Asset Recovery
- The District’s Money Laundering & Asset Recovery Section secured more than $90 million in collections for victims of crimes and to satisfy debts owed to the United States; shared in the collection of an additional $1 billion related to financial wrongdoing; and forfeited over $55 million in property seized from criminal defendants and in civil forfeiture matters.
Public Integrity and Civil Rights Work
- Former Clayton County Sheriff Victor Hill was convicted of intentionally violating the civil rights of six pre-trial detainees by ordering them strapped into restraint chairs at the Clayton County Jail for hours without legal justification. Hill was sentenced to one year, six months in prison, which he later appealed. The Court of Appeals affirmed his convictions with an opinion that opened with U.S. President Theodore Roosevelt’s declaration: “No man is above the law and no man is below it.”
- A multi-year investigation of corruption throughout the upper echelon of the City of Atlanta’s government led to the prosecutions of 11 high-ranking city officials and contractors resulting in two convictions at trial and nine by guilty pleas. The charged conduct included bribery, theft, tax fraud, wire fraud, and money laundering offenses, but also machine gun possession, obstruction of justice, and the delivery of envelopes of cash to one of the defendants in a men’s room at a local restaurant. This investigation ultimately included convictions of the City’s Chief Financial Officer, Chief Procurement Officer, Watershed Commissioner, Director of Human Services, and Director of Contract Compliance, as well as the former Mayor’s Deputy Chief of Staff and multiple primary contractors.
- A settlement agreement was reached with Smarter Kids Child Care (“Smarter Kids”) in Smyrna, Georgia, to resolve allegations that Smarter Kids violated the Americans with Disabilities Act (“ADA”) by denying a child an opportunity to participate in its daycare program on the basis of his autism. Under the agreement, Smarter Kids agreed to adopt a non-discrimination policy to ensure ADA compliance and to provide mandatory training for all employees who consider requests for reasonable accommodations or make enrollment decisions. Additionally, Smarter Kids will pay $7,000 in compensation to the complainant and $1,000 to the United States as a civil penalty.
- A Civil Rights investigation into Fulton County, Georgia and the Fulton County Sheriff’s Office uncovered multiple violations of the constitutional and statutory rights of persons incarcerated at the Fulton County Jail on a routine basis and failures to adequately protect incarcerated persons from substantial risk of serious harm.
- A multi-year investigation of the Georgia Department of Corrections concluded that the incarcerated persons’ constitutional rights are being violated by failing to protect them from widespread physical violence and harm, including exposing incarcerated persons to unreasonable risk of harm from sexual abuse.
Law Enforcement and Community Outreach
U.S. Attorney Buchanan’s tenure reflects a steadfast and robust commitment to building relationships and partnerships with law enforcement agencies and community stakeholders within the District.
Mr. Buchanan partnered with the Georgia Department of Public Health Northwest Health District to host a community gathering designed to increase awareness of and connect residents to local resources available to help prevent opioid use, overdoses, and deaths. This collaboration resulted from a data-driven District initiative to address concerns related to Bartow County’s opioid deaths and the county’s age-adjusted opioid death rate. Local public health officials who participated in the initiative also noted the alarming nationwide increases in illicit fentanyl exposures in children younger than six years old as cause for critical concern.
Mr. Buchanan served as a member of the Georgians for Refuge, Action, Compassion and Education (“GRACE”) Commission which was created to combat human trafficking in the State of Georgia.
He partnered with the Department of Justice to host the inaugural Historically Black Colleges and Universities Regional Forum at Clark Atlanta University in Atlanta, Georgia.
He led the training effort with the Georgia Alliance for School Resource Officers and Educators, the Georgia Public Safety Training Center, and the Georgia Gang Investigators Association to provide an intensive law enforcement training, “G.R.E.A.T.” (Gang Resistance Education and Training), for more than 40 police officers from school systems in the District. These officers, specifically chosen by their respective agencies, serve at over 70 local schools that enroll more than 26,000 students.
Mr. Buchanan continued to partner with the Fulton County District Attorney’s Office as part of an annual Project Safe Neighborhoods Credible Messenger Youth Summer Violence Program, which provides intensive and positive youth and young adult mentorship, with a goal to reduce recidivism, promote public safety, and improve family and community engagement.
He hosted a safety briefing for houses of worship, gathering faith leaders and those involved with security at houses of worship, to provide training, education, and discussion in the areas of safety, security, security planning, hate crimes, and the growth and management of threats.
Mr. Buchanan led the creation of the Northern Georgia Fentanyl Prosecution Working Group, an innovative data-driven effort aimed at the counties in the Northern District that have been hit hardest by the opioid epidemic. The effort included a coordinated multi-agency, parcel interdiction operation that resulted in the seizure of illegal drugs and firearms being shipped through the district.
He oversaw a safety briefing for school administrators and safety officials to provide education and resources for planning, assessment, and mitigation of safety threats.
And he also organized a housing summit that focused on health and safety in HUD-assisted housing with Housing and Urban Development leadership.
“I thank President Biden for nominating me, Senators Raphael Warnock and Jon Ossoff for their recommendation and support, and Attorney General Garland for his leadership during my tenure,” said U.S. Attorney Buchanan. “It has been an honor and a privilege to serve the American people and the Northern District of Georgia.”
Pursuant to the Vacancies Reform Act, First Assistant U.S. Attorney Richard S. Moultrie, Jr. will succeed Mr. Buchanan as the Acting U.S. Attorney for the Northern District of Georgia until a successor is nominated by the President and confirmed by the United States Senate.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon Who Shot at FBI Task Force Officer During a Car Theft Sentenced to PrisonRead the Press Release
ATLANTA - Keith Pharms, a previously convicted felon, also known as “B-Boy,” has been sentenced to federal prison for assaulting a federal task force officer with a firearm during a car theft.
“Pharms is a repeat violent offender who callously threatened the safety of citizens and a law enforcement officer,” said U.S. Attorney Ryan K. Buchanan. “Our office is grateful for the exemplary collaborative efforts and sacrificial service of our federal and local law enforcement partners who work tirelessly to especially protect our communities from dangerous criminals.”
“Anyone who assaults a law enforcement officer is dangerous and an extreme threat to public safety. Stopping violent criminals, like Pharms, is one of the most important things we can do to protect our communities,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “Thankfully, no one—including our Task Force officer—was injured during Pharms’ act of terror. Atlanta is a safer community with him off the streets.”
“This case underscores the importance of collaborative efforts among local, state, and federal agencies to hold violent offenders accountable and protect our neighborhoods from gun violence,” said Atlanta Police Chief Darin Schierbaum. “Working with our partners is vital to ensure justice is served and Atlanta remains a safe place for everyone.”
“Gun violence remains a threat to the safety and security of our communities,” said ATF Assistant Special Agent in Charge Alicia D. Jones. “ATF will remain steadfast in working alongside our partners to disrupt and dismantle violent criminal activity, ensuring that offenders like Pharms are held accountable under the law.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On February 24, 2022, Pharms, eight days after his release from a state prison in Georgia, used his mother’s car, a Chevrolet SS, to steal a Dodge Charger from a garage in a midtown Atlanta complex. An 18-year-old co-defendant drove the Chevy, while another co-defendant, Jokava Harris, accompanied Pharms to the garage. Harris then used a key programmer to steal the Dodge Charger. The 18-year-old trailed the stolen Dodge Charger in the Chevy with Pharms in the passenger seat acting as an armed escort.
Based on recent activity of stolen cars, an FBI task force officer was surveilling the area when he observed the two vehicles traveling in tandem. The officer then began to follow the vehicles when Pharms fired multiple times out of the window of the Chevy. Despite being fired upon, the officer continued to trail the vehicles. As the officer entered a curve in the road, he realized that Pharms and his co-defendants were waiting to ambush him. More gunshots were fired, striking the officer’s vehicle with a bullet that narrowly missed his headrest.
The stolen Charger and Chevy were later located by Atlanta Police Department officers, however, all three defendants had abandoned the vehicles and fled on foot, eluding arrest. The three defendants were later arrested and Pharms’ co-defendants both pleaded guilty and were sentenced by the Court.
While detained by the U.S. Marshals Service awaiting trial, Pharms possessed contraband cellphones and on one occasion used a cellphone to re-post on social media the name of a witness and a partial copy of a report of the information the witness provided to law enforcement, along with the image of a rat. During his detention, a handcuff key was also found in Pharms’ cell, causing authorities to be concerned that he might try to escape.
Keith Pharms, aka “B-Boy,” 26, of Atlanta, Georgia was sentenced by U.S. District Judge J.P. Boulee to 15 years, two months, and 10 days in prison followed by three years of supervised release. A federal jury convicted Pharms on September 26, 2024, of assault on a federal officer, carrying and using a firearm during a crime of violence, felon in possession of a firearm, possession of a contraband cellphone, and possession of an escape tool.
This case was investigated by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Atlanta Police Department, with valuable assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Joseph Plummer and Jessica C. Morris prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Woman Sentenced to Prison for Pandemic-Related FraudRead the Press Release
ATLANTA - Calah Williams has been sentenced for stealing Economic Injury Disaster Loan (“EIDL”), Paycheck Protection Program (“PPP”), and unemployment insurance (“UI”) benefits made available through the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act during the COVID-19 pandemic.
“Williams stole from programs designed to help the public during a global crisis and now she will face the consequences,” said U.S. Attorney Ryan K. Buchanan. “This prosecution demonstrates our office’s continuing commitment to holding individuals accountable for defrauding the CARES Act program.”
“The investigative efforts of the Treasury Inspector General for Tax Administration and its partners, combined with the prosecutorial efforts of the U.S. Attorney’s Office, demonstrate their commitment to pursuing, capturing, and prosecuting those who try to defraud the American people,” stated Special Agent in Charge Scott Moffit.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Williams defrauded multiple government agencies – including the Small Business Administration and 10 state agencies responsible for UI benefits – by filing fraudulent EIDL, PPP, and UI benefits applications, sometimes using stolen personally identifying information. The various applications were littered with false information, including income numbers, the number of employees, employee names, and the applicant information. In total, Williams filed 42 EIDL applications, 16 PPP applications, and 177 fraudulent UI benefits applications, seeking at least approximately $4,879,641. Much of her fraud was immediately detected and stopped, but she was successful in obtaining approximately $1,026,241.
Calah Williams, 29, of Port St. Lucie, Florida, was sentenced by U.S. District Judge Leigh Martin May to three years in prison to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $1,026,241. Williams was convicted on these charges on July 31, 2024, after she pleaded guilty.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S. Attorney Samir Kaushal prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pediatric Dentist Sentenced to Prison for Possession of Child PornographyRead the Press Release
ATLANTA - Paul Kim, a pediatric dentist, has been sentenced to federal prison for possessing thousands of images and videos of minors, including some 12 years old and younger, engaging in sexually-explicit activity.
“Parents entrusted their children to Kim for pediatric care, while unbeknownst to them, he was amassing thousands of images depicting the sexual exploitation of minors,” said U.S. Attorney Ryan K. Buchanan. “Our Office is committed to prioritizing the prosecution of sexual predators who exploit and abuse children and to achieving a measure of justice for families impacted by these horrific sex crimes.”
“This case is particularly disturbing because it is an example that child predators come from all walks of life,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This sentencing demonstrates that no person is above the law. Regardless of employment, wealth, or social status, the FBI will continue to seek out all individuals who seek to abuse children and victimize them through the downloading and possession of child pornography.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: An FBI investigation of Paul Kim resulted from a broader investigation into a commercial sexual exploitation ring which advertised and sold child pornography on several online platforms. FBI Special agents identified Kim as one of the suspected purchasers of the material.
In December 2023, the agents executed a search warrant for Kim and his residence in Sandy Springs, Georgia, seizing approximately 30 electronic devices. The agents located about 1,948 images and 798 videos of child sexual assault material on these devices. Several videos in Kim’s possession depicted prepubescent girls forced to engage in sexual acts with adult males or objects.
Paul Bogeun Kim, 31, of Sandy Springs, was sentenced by U.S. District Judge Thomas W. Thrash, Jr. to three years, two months in prison followed by 10 years of supervised release. He was convicted of possession of child pornography, after he pleaded guilty to the charge on August 23, 2024.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Dwayne A. Brown Jr. prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Environmental Manager Sentenced to Prison for Stealing from EmployerRead the Press Release
GAINESVILLE, Ga. - Michael Mayfield has been sentenced to prison for defrauding his employer of over $1.2 million.
“Mayfield devised a false invoicing scheme to betray and defraud his employer of more than $1 million,” said U.S. Attorney Ryan K. Buchanan. “This sentencing sends a clear message to others that our office is committed to working with our law enforcement partners to hold criminals accountable for stealing from employers who trust them.”
“Mayfield betrayed the trust his company had in him then used the fraudulently gained money for personal use and to try and build his reputation in the community,” said FBI Atlanta’s Acting Special Agent in Charge Sean Burke. “Our agents work every day to hold criminals like Mayfield accountable for their actions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Michael Mayfield was an environmental manager at the Mars Wrigley factory in Flowery Branch, Georgia. In that role, he oversaw the Health, Safety, and Environmental and Recycling Programs.
The recycling waste produced at the factory was valuable and companies often made direct payments or sent Mars Wrigley rebate checks after disposal of the material. But unbeknownst to Mars Wrigley, Mayfield diverted the checks to his own company, WWJ Recycling. The fraudulently obtained checks totaled over $500,000. Mayfield used the funds to pay for hunting trips worth more than $100,000, a donation to his church for more than $80,000, and more than $200,000 in personal checks.
Mayfield also directed his co-conspirator to create false invoices from ASA Safety Supply, a supplier to Mars Wrigley. The co-conspirator sent the invoiced items to Mayfield for his personal use and then submitted false invoices from ASA Safety Supply to Mars Wrigley for payment. The purchased items included football supplies for the Flowery Branch High School football team, such as cleats and clothing, improvements to the stadium, tickets to a University of Georgia football game, and gift cards. These false invoices totaled over $199,000.
Mayfield also sent invoices from WWJ Recycling to ASA Safety Supply. His co-conspirator directed ASA Safety Supply to pay those invoices and then submit the false invoices to Mars Wrigley for payment for work that was not done. The WWJ Recycle invoices totaled over $750,000.
Mayfield engaged in this scheme from as early as December 2016 until sometime in 2022. Ultimately, Mars paid over $1.2 million because of Mayfield’s fraudulent scheme.
Michael Mayfield, 55, of Flowery Branch, Georgia, was sentenced by U.S. District Judge Richard W. Story to three years in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,269,457.56. Mayfield was convicted of these charges on August 19, 2024, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
American Health Imaging, Inc. and Scott Arant to Pay over $5 Million to Resolve Allegations of Healthcare KickbacksRead the Press Release
ATLANTA – American Health Imaging, Inc. (“AHI”) and its former founder and CEO, Scott Arant, will pay the United States and the State of Georgia $5,250,000 to resolve allegations that they violated the False Claims Act by: (1) providing physicians with meals, tickets to sporting events, and other gifts to induce those physicians to refer diagnostic scans to AHI’s independent diagnostic testing facilities; and (2) entering into above fair market value personal services agreements with referring physicians to induce those physicians to refer scans to AHI.
“The use of inducements to obtain referrals from medical professionals jeopardizes the integrity of our healthcare programs,” said U.S. Attorney Ryan K. Buchanan. “This settlement demonstrates our Office’s commitment to hold accountable providers who ignore Medicare and Medicaid’s strict prohibition against using kickbacks for personal greed.”
“Paying or accepting kickbacks for referrals undermines the integrity of the Medicare program,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, in collaboration with our law enforcement partners, remains committed to safeguarding federal health care programs.”
“We won’t allow for any provider to take advantage of a system meant to care for our most vulnerable Georgians,” said Georgia Attorney General Chris Carr. “We will continue to protect the interests of Georgia patients and taxpayers by putting a stop to Medicaid fraud and abuse in our state.”
The government alleges that, between 2011 and 2019, AHI relied on a variety of inducements – sporting events, fishing trips, happy hours, sponsorships of “open houses” at physician offices, and gifts of alcohol, gas cards, and free scans – to generate referrals for diagnostic scans. Many of AHI’s marketing events involved no discernible educational purpose. Examples include tickets to the SEC football championship game, tickets to concerts, monthly dinners with referral sources, and outings to nail salons. The government also alleges that AHI entered into personal services agreements with referring physicians that were above fair market value. Under these agreements, physicians were compensated to interpret the scans that they referred to AHI.
The settlement resolves allegations filed by Tanya Benjamin, a former AHI employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States and State of Georgia ex rel. Benjamin v. Arant et al., No 1:15-cv-3242-RWS (N.D. Ga.). Ms. Benjamin will receive a share of the settlement.
The U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.
The civil settlement was reached by Assistant U.S. Attorney Austin Hall and Georgia State Assistant Attorneys General Sara Vann and Mary Bryan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
AHI Settlement Agreement:
ahi_settlement_agreement.pdfVirginia Man Pleads Guilty to Drug TraffickingRead the Press Release
NEWNAN, Ga. – Oscar Waters has pleaded guilty to trafficking multi-kilogram quantities of fentanyl, cocaine, heroin, and other illegal narcotics through Georgia. His co-defendant, Keisha Jackson-Murchison pleaded guilty to the concealment of a felony.
“Fentanyl and heroin pose extraordinary dangers to public safety and have destroyed countless lives,” said U.S. Attorney Ryan K. Buchanan. “Individuals who seek to profit from distributing these deadly drugs in and through our communities will be brought to justice through the collaborative work of our federal, state, and local law enforcement partners.”
“Stopping traffickers who attempt to bring their poison into our communities is one of the most impactful missions we undertake,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “HSI will continue to work with our partners to identify, apprehend, and prosecute individuals involved with these deadly, illicit drugs.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On September 18, 2023, a police officer in Grantville, Georgia stopped a vehicle for speeding on Interstate 85. Keisha Jackson-Murchison, a convicted felon, was identified as the driver. Oscar Dominick Waters, a convicted drug dealer, was a passenger in the vehicle.
During an initial search of the vehicle, the officer found several bags of marijuana. As officers attempted to detain Waters for the marijuana, Jackson-Murchison retrieved a backpack and large duffel bag from the car and ran barefoot across three lanes of traffic before disappearing into a wooded area. Numerous vehicles swerved to avoid hitting Jackson-Murchison.
Coweta County, Georgia Sheriff’s officers and a K-9 unit located Jackson-Murchison in the woods and found the bags she removed from her car. In addition to the marijuana, officers discovered nearly three kilograms of fentanyl and fentanyl analogue, more than 2.5 kilograms of powder cocaine, more than a quarter-kilogram of crack cocaine, and approximately five ounces of heroin. Further investigation revealed that Waters hired Jackson-Murchison to drive him to Alabama, where Waters intended to distribute the drugs.
Sentencing for Oscar Dominick Waters, 39, of Roanoke, Virginia, is scheduled for February 25, 2025, at 10:30 a.m. before Chief U.S. District Judge Timothy C. Batten, Sr.
Sentencing for Keisha Jackson-Murchison, 36, of Springfield, Massachusetts, is also scheduled for February 25, 2025, at 10:00 a.m. before Judge Batten.
This case is being investigated by Homeland Security Investigations with assistance from the Grantville Police Department, Coweta County Sheriff’s Office, and U.S. Customs and Border Protection.
Assistant U.S. Attorneys Theodore S. Hertzberg and Noah R. Schechtman are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Office of the U.S. Attorney for the Northern District of Georgia recommends that parents and children learn about the dangers of drugs at the following websites: www.justthinktwice.gov; www.operationprevention.com; and www.dea.gov/onepill.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Members of Massive Methamphetamine Conversion and Trafficking Ring SentencedRead the Press Release
ROME, Ga. - Rosa Elena Rangel Pantoja, Dustin Burgess, and Berzain Leal Batrez have been sentenced to federal prison for their roles in operating a large methamphetamine conversion and distribution organization.
“Methamphetamine production and distribution continues to pose a grave threat to public safety, especially when trafficked using the large-scale and international operation utilized by the defendants in this case,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the vigilance and investigative work of our law enforcement partners, this operation has been dismantled and these drug traffickers have been prosecuted for their crimes.”
“Driven by greed, these drug traffickers’ activities posed a significant threat to our communities, and to the lives of several children who lived in close proximity to this highly volatile clandestine lab,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “The success of this investigation is proof that those destroying our communities with methamphetamine and other dangerous drugs will be held accountable.”
“While communities across our state continue to struggle with the ongoing drug crisis, there are criminal enterprises, like Rangel’s drug trafficking organization, whose sole purpose is to profit from addiction and suffering,” said, Mitchell Jackson, Supervisory Senior Resident Agent of FBI Atlanta’s Dalton office. “The FBI is committed to working with our federal, state, and local partners to shut down these dangerous organizations that pump poison into our neighborhoods.”
“These sentences reflect the consequences these defendants received for their destructive impact they caused on communities,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta that covers Georgia and Alabama. “HSI is committed to holding those accountable who distribute their poison into our communities.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least October 2021 until August 2022, Rosa Elena Rangel Pantoja (“Rangel”) led a drug trafficking organization (DTO) that manufactured crystal methamphetamine in Georgia. Members of the DTO transported liquid methamphetamine from Mexico to the Northern District of Georgia in the gas tanks of semi-trucks. The DTO members then pumped the liquid methamphetamine out of the semi-trucks and cooked it into crystal methamphetamine, using at least two clandestine laboratories to convert the methamphetamine.
In March 2022, law enforcement first began investigating the DTO when Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), and Georgia Bureau of Investigation (GBI) agents were notified that a Hispanic female, later identified as Rangel, was purchasing large amounts of acetone, which is a critical component in converting liquid methamphetamine into crystal methamphetamine. Based on the substantial amount of acetone that was being purchased, agents suspected Rangel was supplying the acetone to a methamphetamine laboratory.
In August 2022, agents found one of the methamphetamine conversion laboratories in Canon, Georgia, after observing a semi-truck delivering liquid methamphetamine to the lab. A search warrant was executed and agents seized over 250 gallons of liquid methamphetamine and nearly 10 kilograms of crystal methamphetamine. Rangel rented the property where members of the DTO cooked the methamphetamine on the lower level of a barndominium, while she and her four children lived in the upper level of the same building. Agents also seized two firearms from Rangel’s bedroom.
In November 2022, agents found a second methamphetamine conversion laboratory in Austell, Georgia, after tracking Batrez’s movements to the Mexico border and back to Georgia. Agents later observed members of the DTO delivering liquid methamphetamine to the laboratory, and upon executing a search warrant, over 160 gallons of liquid methamphetamine and 75 kilograms of crystal methamphetamine was seized at that location.
After the seizures, further investigation revealed that Rangel had been working with a “boss” based in Mexico to run the operation, with whom she had regular communication. Rangel then relayed communications to other DTO members, including threats from the boss. Rangel was also responsible for paying other DTO members, as well as giving instructions on supplying the methamphetamine labs with the acetone needed for the conversion process.
U.S. District Judge William M. Ray, II sentenced the defendants in the case as follows:
Rosa Rangel, 40, of Canon, Georgia, was sentenced to 15 years in prison followed by five years of supervised release. Rangel was convicted of conspiracy to distribute methamphetamine on November 6, 2023, after she pleaded guilty.
Dustin Burgess, 36, of Ellijay, Georgia, was sentenced to 13 years in prison followed by five years of supervised release. Burgess was convicted of conspiracy to distribute methamphetamine on October 5, 2023, after he pleaded guilty.
Berzain Leal Batrez, 44, of Chicago, Illinois, was sentenced to seven years, 11 months in prison followed by five years of supervised release. Batrez was convicted of conspiracy to distribute methamphetamine on October 5, 2023, after he pleaded guilty.
Judge Ray is also scheduled to sentence two other defendants in the case, Martha Karina Rangel-Pantoja, 42, of Ellijay, Georgia on January 13, 2025, and Uriel Plancarte Mendoza, 31 of Canon, Georgia on March 21, 2025.
This case is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, and Homeland Security Investigations, with valuable assistance provided by the Georgia Bureau of Investigation, Georgia State Patrol, Bartow County Sherriff’s Office, Calhoun Police Department, Cherokee County, North Carolina Sheriff’s Office, Pickens County Sheriff’s Office, Gilmer County Sheriff’s Office, Fannin County Sheriff’s Office, Murray County Sheriff’s Office, Dalton Police Department, Chatsworth Police Department, Gilmer County Homeland Security Agency, and Tennessee 10th Judicial District Drug Task Force.
Assistant U.S. Attorneys Cal Leipold and Bethany L. Rupert are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Six Drug Traffickers Sentenced to Federal PrisonRead the Press Release
ROME, Ga. – Adrian Robinson, Julio Martinez-Guzman, Jesse Brooks, James Carden, Reginal Dowdy, and Casanova Pritchett have been sentenced for their roles as members of a drug trafficking organization that distributed illegal narcotics in the Rome, Georgia, area, including heroin, methamphetamine, cocaine, and oxycodone.
“Drug trafficking is a societal scourge that poses serious risks to the public health and safety of our communities,” said U.S. Attorney Ryan K. Buchanan. “The dedication of our federal, state, and local enforcement partners resulted in the disruption of this drug trafficking organization and led to the successful prosecution of these defendants.”
“The success of this investigation and the subsequent arrests of these drug dealers demonstrates DEA’s commitment to fighting drug trafficking organizations responsible for driving addiction and destroying communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2021, Drug Enforcement Administration special agents, and Atlanta-Carolinas High Intensity Drug Trafficking Area task force officers, discovered that Julio Martinez-Guzman was operating a drug distribution ring from two residential locations in Rome, Georgia. Martinez-Guzman had previously been convicted of drug trafficking in the Northern District of Georgia. During their 2021 investigation, agents identified Martinez-Guzman’s customers as well as his narcotics suppliers, who obtained and distributed quantities of illegal drugs in the North Georgia area, including heroin, methamphetamine, cocaine, and oxycodone.
Each of the following defendants subsequently pleaded guilty to drug trafficking offences and received the following sentences:
- Adrian Robinson, 42, of Cedartown, Georgia, was sentenced to six years in prison followed by three years of supervised release. Robinson was convicted of possession with intent to distribute methamphetamine on May 29, 2024, after he pleaded guilty.
- Julio Martinez-Guzman, 54, of Rome, Georgia, was sentenced to 20 years in prison followed by five years of supervised release. Martinez-Guzman was convicted of conspiracy to possess with intent to distribute methamphetamine, cocaine, oxycodone, and heroin on February 26, 2024, after he pleaded guilty.
- Jesse Willard Brooks, 41, of Rome, Georgia, was sentenced to eight years, four months in prison followed by five years of supervised release. Brooks was convicted of possession with intent to distribute methamphetamine on February 15, 2024, after he pleaded guilty.
- James Carden, 42, of Villa Rica, Georgia was sentenced to five years, three months in prison followed by five years of supervised release. Carden was convicted of conspiracy to possess with intent to distribute heroin and methamphetamine on February 14, 2024, after he pleaded guilty.
- Reginal Eric Dowdy, 46, of Cedar Bluff, Alabama, was sentenced to three years, ten months in prison followed by five years of supervised release. Dowdy was convicted of possession with intent to distribute methamphetamine on February 15, 2024, after he pleaded guilty.
- Casanova DePaul Pritchett, 53, of Calhoun, Georgia was sentenced to two years, six months in prison followed by five years of supervised release. Pritchett was convicted of conspiracy to possess with intent to distribute cocaine and oxycodone on February 26, 2024, after he pleaded guilty.
Abel Santoyo-Santana, age 26, of Mexico remains a fugitive. If you have information pertaining to his whereabouts, please contact your local law enforcement agency.
This case was investigated by the Drug Enforcement Administration, North Georgia High Intensity Drug Trafficking Area (HIDTA) Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives with valuable assistance provided by the Rome-Floyd Metro Task Force, Floyd County Police Department, Polk County Police Department, Rome Police Department, Whitfield County Sheriff’s Office, and Cedartown Police Department.
Assistant U.S. Attorney Amy M. Palumbo prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Insurance Broker Pleads Guilty to Defrauding Peach State Federal Credit UnionRead the Press Release
ATLANTA - Heleonel Gonzalez has pleaded guilty to bank fraud for orchestrating a $6 million scheme to defraud Peach State Federal Credit Union.
“Gonzalez devised a lucrative scheme cloaked in fraud and deception to steal loan proceeds from Peach State Federal Credit Union for his personal gain,” said U.S. Attorney Ryan K. Buchanan. “This office will continue to work closely with law enforcement to investigate and prosecute those who engage in financial crimes that jeopardize the integrity of the U.S. financial system.”
“The FBI works hard to make sure greed like this doesn’t pay off and those who commit fraud are held accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “The fraudulent scheme in this case harmed a Georgia business, costing it millions of dollars.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately January 2023 through January 2024, Heleonel Gonzalez conducted a scheme to defraud Peach State Federal Credit Union. P1 Finance – a division of Peach State Federal Credit Union – loaned money to commercial borrowers, such as condominium associations, so that borrowers could use the loan proceeds to pay the premiums on their property and casualty insurance policies. Gonzalez owned and operated Sharp Insurance Agency, Inc. in Miami Lakes, Florida.
On at least 20 occasions, for the purpose of influencing the actions of Peach State Federal Credit Union, Gonzalez falsely and fraudulently represented to P1 Finance that a customer of Sharp Insurance Agency authorized him to apply for a premium-financing loan on the customer’s behalf. Gonzalez fraudulently signed and submitted to P1 Finance a Premium Finance Agreement and Disclosure Statement. This document falsely represented that Sharp Insurance Agency, as the agent of Citizens Property Insurance Corporation in Jacksonville, Florida, had issued a property and casualty insurance policy to the customer, and that the policy was then in force and effect. Gonzalez fraudulently represented that the loan proceeds advanced by P1 Finance would be used to pay the premiums on the policy, and for no other purpose. But Gonzalez knew these representations were false.
As a result of Gonzalez’s false and fraudulent representations, Peach State Federal Credit Union made the requested loans and transferred approximately $6 million to Gonzalez. He then used the loan proceeds to pay personal debts and expenses. Peach State Federal Credit Union would not have made the loans but for Gonzalez’s false and fraudulent representations.
Sentencing for Heleonel Gonzalez, 48, of Miami Lakes, Florida, is scheduled for February 20, 2025, at 2:00 p.m. before U.S. District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney John Russell Phillips is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
United States Reaches Settlement Agreement to Make Daycare Program Accessible for Children with DisabilitiesRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia has entered into a settlement agreement with Smarter Kids Child Care (“Smarter Kids”) located in Smyrna, Georgia, to resolve allegations that Smarter Kids violated the Americans with Disabilities Act (“ADA”) by denying a child an opportunity to participate in its daycare program on the basis of his autism.
“Access to childcare is essential for all parents, including those parents raising children with disabilities” said U.S. Attorney Ryan K. Buchanan. “Children with disabilities deserve equal opportunities to participate in daycare programs, and my office looks forward to working with Smarter Kids to ensure it meets this critical obligation.”
Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, and privileges of any place of public accommodation. Smarter Kids is a private entity that operates childcare facilities that are places of “public accommodation” within the meaning of Title III of the ADA.
Based on the agreement, Smarter Kids will adopt a non-discrimination policy to ensure ADA compliance. Smarter Kids will also provide mandatory training for all employees who consider requests for reasonable accommodations or make enrollment decisions. Additionally, Smarter Kids will pay $7,000 in compensation to the complainant and $1,000 to the United States as a civil penalty.
The case is being handled by Assistant U.S. Attorney Rahul Garabadu and Senior Civil Investigator Tamara Jones.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Settlement Agreement:
smarter_kids_settlement_agreement_executed.pdfHalfway House Employee Arrested for Sexual Assault of Federal InmateRead the Press Release
ATLANTA – Former residential halfway house employee, Tristan Cox, 33, of Atlanta, Georgia, made his initial appearance on November 13, 2024, before U.S. Magistrate Judge Justin S. Anand on federal charges of non-consensual sexual contact with a federal inmate in his custody. Cox was released on a $10,000 bond.
“The Department of Justice takes seriously its commitment to keep inmates and detainees safe from harm within its correctional and detention facilities,” said U.S. Attorney Ryan K. Buchanan. “This commitment to humane treatment extends to contract facilities like halfway houses and to contract employees like Cox. He is charged with grievous conduct that undermined the Department’s efforts and injured someone in our custody.”
“Residential Reentry Centers, or halfway houses, are intended to provide a safe, structured, supervised environment for inmates who are nearing the end of their sentences to help them transition back into society,” said Eric R. Fehlman, Special Agent in Charge of the Department of Justice Office of the Inspector General Southeast Region. “Inmates should never experience assault of any kind at the hands of employees working in custodial settings.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The Bureau of Prisons (BOP) contracts with various non-governmental organizations to operate Residential Reentry Centers (RRCs), also known as halfway houses, to aid inmates nearing their release date from federal incarceration.
The Department of Justice’s Office of Inspector General received a complaint alleging that Cox, a BOP contract employee working at the Atlanta RRC as a Residence Monitor, sexually assaulted an inmate resident who was under Cox’s care and custody in April 2024. The inmate resident alleged that Cox sexually assaulted him in a supply room during Cox’s overnight shift. DNA evidence tested by the FBI corroborated the inmate resident’s account.
Any sexual contact between a BOP employee and a BOP inmate is a criminal offense prohibited under the federal Prison Rape Elimination Act of 2003.
Members of the public are reminded that a criminal complaint and arrest warrant contain only 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 a trial.
This case is being investigated by the Department of Justice Office of Inspector General.
Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
The United States Attorney’s Office Finds Conditions at Fulton County Jail in Georgia Violate the Constitution and Federal LawRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia and the Department of Justice’s Civil Rights Division announced its findings concluding that Fulton County and the Fulton County Sheriff’s Office routinely violate the constitutional and statutory rights of persons incarcerated at the Fulton County Jail and fail to adequately protect incarcerated persons from substantial risk of serious harm.
“In Fulton County, people in custody awaiting formal charges or trials frequently must protect themselves from brutal physical attacks, endure frequent excessive force, manage their wellbeing with inadequate food and unsanitary living conditions, and hope they can find access to a strained medical and mental health care program. This is unacceptable,” said U.S. Attorney Ryan K. Buchanan. “Our Constitution requires humane conditions while incarcerated that, at a minimum, ensure people in custody are safe. The findings regarding the Fulton County Jail reveal grave and diffuse failures to safeguard the men and women housed in its facilities, including a disturbing frequency of deaths among incarcerated people. We expect Fulton County and the Fulton County Sheriff’s Office to share our sense of urgency about the seriousness of the violations described in this report and to work cooperatively with our Office and the Department of Justice to remedy these systemic deficiencies in the Jail.”
“Lashawn Thompson’s horrific death was symptomatic of a pattern of dangerous and dehumanizing conditions in the Fulton County Jail,” said Attorney General Merrick B. Garland. “The Justice Department’s report concluded that Fulton County and the Fulton County Sheriff’s Office allowed unsafe and unsanitary conditions at the Jail. As a result, people incarcerated in the Fulton County Jail suffered harms from pest infestation and malnourishment and were put at substantial risk of serious harm from violence by other incarcerated people — including homicides, stabbings and sexual abuse. The unconstitutional and unlawful conditions at the Fulton County Jail have persisted for far too long, and we are committed to working with Fulton County and the Fulton County Sheriff’s office to remedy them.”
“We cannot turn a blind eye to the inhumane, violent, and hazardous conditions that people are subjected to inside the Fulton County Jail," said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Detention in the Fulton County Jail has amounted to a death sentence for dozens of people who have been murdered or who died as a result of the atrocious conditions inside the facility. It’s not just adults but also children who are subjected to conditions and treatment that violate the constitution and defy federal law. Many people held in jails in our country have not been convicted — they are awaiting hearings, trial dates or are serving short sentences for misdemeanors. At the end of the day, people do not abandon their civil and constitutional rights at the jailhouse door. Jails and prisons across the country must protect people from the kind of gross violations and unconstitutional conditions that we have uncovered here. We hope our findings report sounds an alarm that will prompt Fulton County officials to work with the Justice Department to implement the reforms necessary to ensure constitutional conditions going forward.”
The 97-page report details its findings from a comprehensive investigation of the Jail, which is funded and operated by Fulton County and the Fulton County Sheriff’s Office. The investigation included the Main Jail, also known as “Rice Street,” in Atlanta and three annex facilities: the Marietta Annex in Atlanta, the North Annex in Alpharetta, and the South Annex in Union City. The Jail currently houses around 2,000 people and in recent years the population has surpassed 3,000 people.
The report concludes that the conditions of confinement at the Jail do not meet basic constitutional standards. The noted deficiencies include the following:
- Fulton County and the Fulton County Sheriff’s Office fail to protect people from the substantial risk of serious harm from violence by other incarcerated people, including homicides, stabbings, and sexual abuse.
- Officers use excessive force against incarcerated people.
- The Jail houses incarcerated people in constitutionally inadequate living conditions that are unsanitary and dangerous.
- The Jail fails to provide adequate medical and mental health services.
- The Jail’s restrictive housing practices expose people, including 17-year-old children, to substantial harm, discriminate against people with mental health disabilities, and fail to provide incarcerated people due process of law.
- The Jail fails to provide special education services to 17-year-old boys and girls who are entitled to those services while they are incarcerated at the facility.
The unlawful and dangerous practices identified in the report are long-standing and have contributed to multiple deaths and other serious harm:
- From 2022 to the present, six incarcerated people have died in violence at the Jail.
- In 2023, more than 300 stabbings occurred in the Jail which involved contraband and makeshift weapons.
- Four deaths from suicide happened at the Jail in the past four years, including as recently as April of this year.
The United States conducted its investigation under the Civil Rights of Institutionalized Persons Act (CRIPA), the Americans with Disabilities Act, and 34 U.S.C. § 12601, which prohibit law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law. These statutes authorize the Attorney General to file a lawsuit in federal court seeking court-ordered remedies to eliminate a pattern or practice of unlawful conduct. Fulton County and the Fulton County Sheriff’s Office have been provided written notice of the supporting facts for the conclusions in the report and the minimum remedial measures necessary to address the alleged violations.
The U.S. Attorney’s Office for the Northern District of Georgia joined together with the Department of Justice Civil Rights Division’s Special Litigation Section to conduct the investigation.
The case is being handled by Assistant U.S. Attorneys Tiffany Johnson, Aileen Bell Hughes, and Rebeca Ojeda of the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. To provide information related to the investigation of the Fulton County Jail, please call 1-888-473-4092 or email the Department of Justice at [email protected].
Attachment - Fulton County Jail Findings Report:
fulton_county_jail_findings_report.pdf