Northern District of Georgia
Press releases recorded for this federal judicial district.
Three Men Sentenced for Trafficking Firearms and Other Gun-Related OffensesRead the Press Release
ATLANTA – Alvin Demar and Joshua Carter have been sentenced to federal prison for trafficking dozens of firearms that were later recovered from crime scenes in multiple states and Canada. Jamal Plunkett was sentenced for possessing one of the trafficked firearms.
“Firearm traffickers present an acute and dangerous threat to communities within and outside our district,” said U.S. Attorney Ryan K. Buchanan. “The sentencing of these defendants is an example of our office’s unwavering commitment to work with our federal, state, and local law enforcement partners to identify and dismantle gun trafficking operations, and to prosecute those who jeopardize the wellbeing of our communities by funneling firearms to criminals.”
“Identifying and disrupting firearms trafficking is one of ATF’s key missions,” said ATF Assistant Special Agent in Charge Alicia Jones. “These convictions and subsequent sentences send a clear message that firearm trafficking and the illegal possession and use of firearms will not be tolerated.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Between July 2021 and January 2022, Alvin Demar, a convicted felon with convictions for drug trafficking and aggravated robbery, paid individuals, including Joshua Carter, to straw purchase dozens of handguns in the metro Atlanta area. Demar then sold the straw-purchased weapons to other people who also trafficked them or used them in additional crimes.
The guns purchased and sold by Carter and Demar were recovered from crime scenes in Atlanta, Georgia; Baltimore, Maryland; the District of Columbia; Gainesville, Georgia; French Camp, California; Edmonton, Canada; and Toronto, Canada. Some of the firearms were used in shootings before they were confiscated by law enforcement. For example, in November 2021, Carter purchased a Glock pistol that was linked to three shootings in Atlanta. Carter also purchased a Ruger pistol equipped with an extended magazine, and within two months of the purchase, Jamal Plunkett, a convicted felon, stole and discharged the pistol 17 times in Gainesville, Georgia.
Demar also illegally possessed numerous firearms for his own use. For example, in December 2019, Demar was arrested by Atlanta police officers after a loaded Glock pistol was found in a vehicle he was driving. In November 2022, federal agents found another loaded Glock pistol in Demar’s bedroom, and they also seized a USAS-12 semiautomatic shotgun from his garage. The USAS-12 is a large-bore, military-type assault shotgun with a 10- or 20-round magazine. Under federal law, the USAS-12 is classified as a destructive device that must be registered in the National Firearms Registration and Transfer Record. Due to his criminal history, Demar was prohibited from possessing firearms of any type.
Alvin Marvin Demar, 47, of Decatur, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross to 15 years in prison to be followed by three years of supervised release. Demar was convicted of two counts of possession of a firearm by a prohibited person, conspiracy to make false statements to a federally licensed firearms dealer, making a false statement to a federally licensed firearms dealer, and possession of an unregistered destructive device. He pleaded guilty to these charges on March 27, 2024.
Joshua Carter, 29, of McDonough, Georgia, was sentenced by Judge Ross to three years in prison to be followed by two years of supervised release on June 5, 2024. Carter was convicted of conspiracy to make false statements to a federally licensed firearms dealer after he pleaded guilty on January 23, 2024.
Jamal Plunkett, 36, of Snellville, Georgia, was sentenced in a separate case on October 10, 2023, by U.S. District Judge Steve C. Jones. He is currently serving a sentence of four years, three months in federal prison to be followed by three years of supervised release. Plunkett was convicted of possession of a stolen firearm after he pleaded guilty on May 19, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the DeKalb County (Georgia) Police Department and Gainesville Police Department.
Assistant U.S. Attorney Theodore S. Hertzberg 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.
Two Men Sentenced for Robbery Spree in Metro AtlantaRead the Press Release
ATLANTA - Kujo Duako and Sammetrius Brooks have been sentenced for a string of armed robberies that targeted multiple businesses and a bank in metro Atlanta.
“Duako and Brooks terrorized innocent victims and jeopardized their lives during this violent crime spree,” said U.S. Attorney Ryan K. Buchanan. “The men’s arrest and prosecution are an example of the excellent coordination that the FBI and our district’s local law enforcement partners routinely leverage to remove dangerous criminals from our communities.”
“Carrying weapons into peaceful places of business and terrorizing hard-working citizens is something the FBI and our law enforcement partners will make every effort to prosecute and punish,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These sentences should be a warning to anyone who would consider armed robbery in our community, and hopefully bring some comfort to the victims that were affected during the commission of these crimes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On October 29, 2018, Duako attempted to rob a CVS store in the City of South Fulton, Georgia. During the robbery, Duako pointed a semi-automatic handgun at an employee and ordered her to walk to the cash register. Rather than comply with Duako’s demand, the employee fled to the rear of the store and engaged a fire alarm, thwarting the robbery.
Later that day, Duako robbed a Dollar General store, also located in South Fulton. Again, he pointed a handgun at an employee and demanded cash. On this occasion, Duako stole cash and personal property from the employee.
On October 30, 2018, Duako and a co-defendant, Sammetrius Brooks, drove to various locations in metro Atlanta, including an IHOP restaurant and a Family Dollar store in South Fulton, a Sprint store in Riverdale, Georgia, a Metro PCS store in College Park, Georgia, and a United Community Bank branch in Fairburn, Georgia. Duako robbed each of these businesses at gunpoint, stealing cash and cell phones. Brooks acted as the getaway driver.
Less than two hours after the robbery at the United Community Bank, law enforcement apprehended Duako and Brooks. Law enforcement recovered more than $9,000 in cash in Duako’s possession – the approximate amount of money stolen during the five robberies on October 30, 2018. Police also recovered several cell phones that were taken during the robbery at the Sprint store.
Kujo Duako, 35, of Ghana, West Africa, was sentenced by U.S. District Judge Jean-Paul “J.P.” Boulee on July 31, 2024, to 16 years in prison to be followed by three years of supervised release. Duako was convicted of robbery, conspiracy to commit robbery, possession of a firearm during a crime of violence, and armed bank robbery on April 24, 2024, after he pleaded guilty.
Sammetrius Brooks, 33, of Atlanta, Georgia, was sentenced by Judge Boulee on September 29, 2021, to 11 years, nine months in prison to be followed by three years of supervised release. Brooks was convicted of conspiracy to commit robbery, armed bank robbery, and possession of a firearm during a crime of violence on June 17, 2021, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, with valuable assistance from the Clayton County Police Department, South Fulton Police Department, Riverdale Police Department and Clayton County Sheriff’s Office.
Assistant U.S. Attorneys Johnny Baer and Joseph Plummer 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.
Man Pleads Guilty to Threatening U.S. RepresentativeRead the Press Release
ATLANTA – Sean Patrick Cirillo has pleaded guilty to transmitting interstate threats to injure U.S. Representative Marjorie Taylor Greene.
“Threatening to kill a public official is reprehensible,” said U.S. Attorney Ryan K. Buchanan. “Our office will not tolerate any form of violence, threats or intimidation against public officials. The prosecution of individuals who threaten the lives and welfare of public servants is a top priority for our office, as well as for our federal, state, and local law enforcement partners.”
“We will not normalize violent threats in America, whether targeting elected officials or average citizens,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Our democracy depends on the ability of members of Congress to do their jobs without fearing for their safety. We will continue to prosecute threats against public servants made in any form.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On three occasions on November 8, 2023, Sean Patrick Cirillo called the Washington, D.C. office of U.S. Representative Marjorie Taylor Greene and spoke with her staffers. During the calls, Cirillo made multiple threats, including the following:
•“I got a bead on her. Like a sniper rifle. A sniper rifle. And I’m gonna kill her next week. I’m gonna murder her;”
•“I’ll kill you too if you want;” and
•“You’re gonna die. Your family is gonna die.”
Sean Patrick Cirillo, 34, of Atlanta, Georgia, pleaded guilty to one count of transmitting interstate threats. A sentencing date has not yet been scheduled.
This case is being investigated by the Federal Bureau of Investigation.
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.
Two Foreign Nationals Plead Guilty to Participating in LockBit Ransomware GroupRead the Press Release
Two foreign nationals pleaded guilty today to participating in the LockBit ransomware group—at various times the most prolific ransomware variant in the world—and to deploying LockBit attacks against victims in the United States and worldwide.
“Today’s convictions reflect the latest returns on the Department’s investment in disrupting ransomware threats, prioritizing victims, and holding cybercriminals accountable,” said Deputy Attorney General Lisa Monaco. “In executing our all-tools cyber enforcement strategy, we’ve dealt significant blows to destructive ransomware groups like LockBit, as we did earlier this year, seizing control of LockBit infrastructure and distributing decryption keys to their victims. Today’s actions serve as a warning to ransomware actors who would attack Americans: we will find you and hold you accountable.”
“The defendants committed ransomware attacks against victims in the United States and around the world through LockBit, which was one of the most destructive ransomware groups in the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “But thanks to the work of the Computer Crime and Intellectual Property Section, along with its domestic and international partners, LockBit no longer claims that title. Today’s convictions represent another important milestone in the Criminal Division’s ongoing effort to disrupt and dismantle ransomware groups, protect victims, and bring cybercriminals to justice.”
According to court documents, Ruslan Magomedovich Astamirov (АСТАМИРОВ, Руслан Магомедовичь), 21, a Russian national of the Chechen Republic, Russia, and Mikhail Vasiliev, 34, a dual Canadian and Russian national of Bradford, Ontario, were members of LockBit. In the period between January 2020 and February 2024, LockBit grew into what was, at times, the most active and destructive ransomware group in the world. LockBit attacked more than 2,500 victims in at least 120 countries, including 1,800 victims in the United States. Those victims included individuals, small businesses, multinational corporations, hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. LockBit’s members extorted at least approximately $500 million in ransom payments from their victims and caused billions of dollars in additional losses to victims, including costs like lost revenue and for incident response and recovery.
LockBit’s “affiliate” members, including Vasiliev and Astamirov, first identified and unlawfully accessed vulnerable computer systems, and then deployed LockBit ransomware on those systems to both steal and encrypt stored data. When LockBit attacks were successful, LockBit’s affiliate members then demanded ransoms from their victims in exchange for decrypting the victims’ data and then claiming to delete the affiliates’ copies of the data. When victims did not pay the demanded ransoms, LockBit’s affiliates often left the victim’s data permanently encrypted and publish the stolen data, including highly sensitive information, on a publicly accessible internet site under LockBit’s control.
“Astamirov and Vasiliev thought that they could deploy LockBit from the shadows, wreaking havoc and pocketing massive ransom payments from their victims, without consequence,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “They were wrong. We, in New Jersey, along with our domestic and international law enforcement partners will do everything in our power to hold LockBit’s members and other cybercriminals accountable, disrupt and dismantle their operations, and put a spotlight on them as wanted criminals—no matter where they hide.”
“Astamirov and Vasiliev were members of the LockBit ransomware group, which has caused severe harm around the globe by attacking computer systems in over a hundred countries damaging organizations ranging from government and law-enforcement agencies to hospitals and schools,” said FBI Deputy Director Paul Abbate. “Today’s plea shows our relentless and unwavering commitment to ensuring that cyber criminals are brought to justice for their actions. The FBI is proud of the international collaboration that led to these individuals being held accountable under the law for the damage their actions have caused.”
Between 2020 and 2023, Astamirov deployed LockBit against at least 12 victims, including businesses in Virginia, Japan, France, Scotland, and Kenya. Operating under the online aliases “BETTERPAY,” “offtitan,” and “Eastfarmer,” he extorted $1.9 million from those victims. As part of his plea agreement, Astamirov agreed to forfeit, among other assets, $350,000 in seized cryptocurrency that he extorted from one of his LockBit victims. Astamirov was first charged and arrested in this matter in June 2023.
Between 2021 and 2023, Vasiliev, operating under the online aliases “Ghostrider,” “Free,” “Digitalocean90,” “Digitalocean99,” “Digitalwaters99,” and “Newwave110,” deployed LockBit against at least 12 victims, including businesses in New Jersey, Michigan, the United Kingdom, and Switzerland. He also deployed LockBit against an educational facility in England and a school in Switzerland. Through these attacks, Vasiliev caused at least $500,000 in damage and losses to his victims. Vasiliev was first charged in this matter and arrested in Canada by Canadian authorities in November 2022, and extradited to the United States in June.
Astamirov pleaded guilty to a two-count information charging him with conspiracy to commit computer fraud and abuse and conspiracy to commit wire fraud. He faces a maximum penalty of 25 years in prison. Vasiliev pleaded guilty to a four-count information charging him with conspiracy to commit computer fraud and abuse, intentional damage to a protected computer, transmission of a threat in relation to damaging a protected computer, and conspiracy to commit wire fraud. He faces a maximum penalty of 45 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The LockBit Investigation
Today’s guilty pleas follow a recent disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. This disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by documents filed in this case.
Today’s guilty pleas also follow prior announcements of charges brought in the District of New Jersey against four other LockBit members, including its alleged creator, developer, and administrator, Dmitry Yuryevich Khoroshev. According to an indictment unsealed in May, Khoroshev allegedly acted as the group’s administrator from as early as September 2019 through 2024. In that role, Khoroshev recruited new affiliate members, spoke for the group publicly under the alias “LockBitSupp,” and developed and maintained the infrastructure used by affiliates to deploy LockBit attacks. Khoroshev also took 20% of each ransom paid by LockBit victims, allowing him to personally derive at least $100 million over that period. Khoroshev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at https://tips.fbi.gov/home.
Other charges against LockBit members include the following:
- In February 2024, in parallel with the disruption operation, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as Wazawaka, m1x, Boriselcin, and Uhodiransomwar, with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s TOC Rewards Program, with information accepted through the FBI tip website at tips.fbi.gov/.
The U.S. Department of State’s TOC Rewards Program is also offering rewards of:
- Up to $10 million for information leading to the identification and location of any individuals who hold a key leadership position in LockBit; and
- Up to $5 million for information leading to the arrest and/or conviction in any country of any individual participating or attempting to participate in LockBit.
Information is accepted through the FBI tip website at www.tips.fbi.gov/.
Khoroshev, Matveev, Sungatov, and Kondratyev have also been designated for sanctions by the Department of the Treasury’s Office of Foreign Assets Control for their roles in launching cyberattacks.
Victim Assistance
LockBit victims are encouraged to contact the FBI and submit information at https://lockbitvictims.ic3.gov/. As announced by the Department in February, law enforcement, through its disruption efforts, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Submitting information at the IC3 site will enable law enforcement to determine whether affected systems can be successfully decrypted.
LockBit victims are also encouraged to visit www.justice.gov/usao-nj/lockbit for case updates and information regarding their rights under U.S. law, including the right to submit victim impact statements and request restitution, in the litigation against Astamirov and Vasiliev.
The FBI Newark Field Office, under the supervision of Special Agent in Charge James E. Dennehy, is investigating the LockBit ransomware variant. The FBI Atlanta Field Office, under the supervision of Special Agent in Charge Keri Farley; U.S. Attorney’s Office for the Northern District of Georgia; Ontario Provincial Police in Ontario, Canada; and Crown Attorney’s Office in Toronto, Canada, provided significant assistance in the Vasiliev matter. The United Kingdom’s NCA; France’s Gendarmerie Nationale Cyberspace Command and Cyber Division of the Paris Prosecution Office; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Justice and Police, Public Prosecutor’s Office for the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust have provided significant assistance and coordination in both matters and in the LockBit investigation generally.
Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey are prosecuting the charges against Astamirov and Vasiliev.
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division’s National Security Cyber Section also provided significant assistance.
Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
Roswell Man Indicted for Threatening FBI Director Christopher WrayRead the Press Release
ATLANTA – John Woodbury has been indicted on federal charges of transmitting interstate threats to injure FBI Director Christopher Wray and others.
“Sending threats to physically harm a public official in an attempt to thwart the administration of justice is a criminal offense,” said U.S. Attorney Ryan K. Buchanan. “Director Wray and other law enforcement officials work tirelessly to safeguard our freedoms and to protect our citizens from harm. Threats against such public servants, who have dedicated themselves to enforcing our criminal laws, is especially heinous. Our office will remain steadfast in helping to ensure that public officials are able to carry out their duties free from fear or intimidation.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On June 7, 2023, Woodbury allegedly posted a message on 4chan.org that threatened violence against FBI Director Wray and others. In his message, Woodbury made statements that included the following: “Let’s show them what a [expletive] ‘Nazi’ […] looks like […]. It’s time to burn these [expletive] down and hang them from trees. Hit them where it [expletive] hurts. Hit Chris at his home. Make his family fear stepping one foot outside their [expletive] door.”
John Woodbury, 34, of Roswell, Georgia was arrested and arraigned today before U.S. Magistrate Judge Catherine M. Salinas. Woodbury was indicted by a federal grand jury on July 9, 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.
Assistant U.S. Attorneys Matthew S. Carrico and Jennifer Keen 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.
Two Georgia Women Sentenced for Stealing Social Security BenefitsRead the Press Release
ATLANTA - Teresa Carter and Sharon Crowder have been sentenced for theft of government funds for their unlawful receipt of Social Security benefits intended for relatives, who died years earlier.
“Carter and Crowder chose to assume the responsibility of acting on behalf of loved ones as the recipients of their relative’s Social Security benefits,” said U.S. Attorney Ryan K. Buchanan. “Then they concealed the deaths of their relatives and knowingly and unlawfully continued to receive these government funds to which they were not entitled. The defendants’ prosecution and sentence should place others on notice that stealing money from the government and taxpayers is a serious offense.”
“As representative payees, these defendants had a responsibility to report the death of the beneficiary, rather they falsified information to the Social Security Administration (SSA) and wrongfully converted funds to their own use, which is a crime. These sentences demonstrate that we will continue to investigate representative payees who misappropriate funds issued by the SSA,” said Rodregas W. Owens, Special Agent in Charge, SSA Office of the Inspector General, Atlanta Field Division. “I want to thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Diane C. Schulman for their work in this case.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Teresa Carter was the representative payee for her father’s Social Security benefits. As the representative payee, she was required to spend all of his monthly benefits on his behalf and submit annual reporting statements to the SSA that documented any changes in his condition. Carter’s father died on July 17, 2006. Rather than report his death to the SSA, Carter continued to submit annual reporting statements to the SSA in which she falsely stated that her father was still alive.
In March 2023, when SSA investigators interviewed Carter, she admitted that her father had died and that she had submitted false statements after his death to continue to receive the benefits. But she falsely claimed that a Social Security employee told her to lie on the annual reporting form so that she could continue to receive the benefits which she falsely claimed were pension benefits from a private pension fund. In total, Carter stole over $130,000 in government funds.
Sharon Crowder acted as the representative payee for her brother’s Social Security benefits. Her brother died on September 10, 2009. Like Carter, Crowder did not report her brother’s death to the SSA. Instead, she submitted annual reporting statements to the SSA in which she falsely stated that her brother was still alive. When confronted by investigators in August 2023 about this deception, Crowder admitted that she submitted the false statements to the SSA and spent the funds knowing that she was not entitled to receive them. In total, Crowder stole more than $139,000 in government benefits.
Teresa Carter, 66, of Atlanta, Georgia, was sentenced by U.S. District Judge Michael L. Brown two years of probation with the first 90 days to be served on home confinement. She was also ordered to pay restitution in the amount of $130,182.90. Carter was convicted of this charge on March 7, 2024, after she pleaded guilty.
Sharon R. Crowder, 55, of Atlanta, Georgia, was sentenced by Judge Brown to four years of probation with the first six months to be served on home confinement. She was also ordered to pay restitution in the amount of $139,656.00. Crowder was convicted of this charge on March 12, 2024, after she pleaded guilty.
This case was investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman 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.
Former Georgia Insurance Commissioner Sentenced to PrisonRead the Press Release
ATLANTA - John Oxendine, the former Georgia Insurance Commissioner, was sentenced to three and a half years in prison for conspiracy to commit healthcare fraud in connection with unnecessary lab testing.
“Oxendine abused his position as the former Georgia Insurance Commissioner by undermining the integrity of the state’s healthcare system when he conspired with a physician to order hundreds of unnecessary and costly lab tests,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to work with our law enforcement partners to hold individuals accountable who prioritize personal greed at the expense of the public’s trust.”
“John Oxendine was motivated more by personal greed than his duty to patients and the citizens of Georgia whom he used to represent,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Not only did the former state insurance commissioner line his pockets off the unnecessary tests, but he also directed another to lie to federal agents to try and cover up the fraud. The FBI will continue to investigate healthcare fraud to ensure those who abuse the system are brought to justice.”
“The sentence imposed today reaffirms our commitment to protecting the integrity of our nation’s health insurance programs from those who illegally profit through fraudulent activities,” said Tamala E. Miles of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work closely with our federal law enforcement partners to bring bad actors who defraud our programs to justice.”
“Today’s sentencing should serve as a strong deterrent to those in positions of power who seek to exploit and defraud TRICARE, the military’s healthcare system relied on by our service members, retirees, and their families,” said Special Agent in Charge Darrin K. Jones, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our law enforcement partners will aggressively investigate allegations of healthcare fraud that put DoD personnel and their families at risk.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: John Oxendine conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing. Physicians associated with Dr. Gallups’ ENT practice were pressured to order these medically unnecessary tests from Next Health, a lab in Texas. As part of Oxendine’s healthcare fraud scheme, Next Health agreed to pay Oxendine and Dr. Gallups a kickback of 50 percent of the net profit for eligible specimens submitted by Dr. Gallups’ practice to the lab company.
In connection with the scheme, Oxendine gave a presentation at the Ritz Carlton in Buckhead, Georgia where he pressured doctors in Dr. Gallups’ practice to order the unnecessary tests. Next Health later submitted insurance claims seeking more than $3 million in payments from private health insurers for the unnecessary tests. The insurance companies paid more than $750,000 to Next Health because of these fraudulent claims. Next Health then paid $260,000 in kickbacks to Oxendine and Dr. Gallups. Some patients were also charged for the tests, receiving bills of up to $18,000.
To conceal the kickback payments, Oxendine and Dr. Gallups arranged for the payments to be made from Next Health to Oxendine Insurance Services, Oxendine’s insurance consulting business. Oxendine used a portion of the kickback money to pay a $150,000 charitable contribution and $70,000 in attorney’s fees for Dr. Gallups.
When a compliance officer at Dr. Gallups’ practice raised concerns about the kickbacks, Oxendine told Dr. Gallups to lie and say the payments were loans. He also directed Dr. Gallups to repeat the lie after he was questioned by federal agents about Next Health. When Oxendine was interviewed about Next Health by the Atlanta Journal-Constitution in connection with a private lawsuit, he falsely denied working with the lab company or receiving money from the business.John W. Oxendine, 62, of Port St. Joe, Florida, was sentenced by U.S. District Judge Steve C. Jones to three years, six months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $760,175.34, and a $25,000 fine. Oxendine was convicted on these charges on March 22, 2024, after he pleaded guilty.
This case is related to United States v. Gallups, criminal no. 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud and was sentenced to 33 months in prison.This case was investigated by the Federal Bureau of Investigation, Department of Health and Human Services, Office of the Inspector General, and Defense Criminal Investigative Service.
Assistant U.S. Attorneys Christopher J. Huber and David A. O’Neal prosecuted the case.
A video statement by U.S. Attorney Ryan K. Buchanan can be found here.
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.
Man Sentenced Following Multiple Arrests for Machinegun PossessionRead the Press Release
NEWNAN, Ga. – Drevion Evans has been sentenced to federal prison for possessing semiautomatic Glock pistols that were illegally converted to function as fully automatic machineguns, and for attempting to deliver one of those machineguns to his home, along with a pound of marijuana.
“Machinegun conversion devices, commonly known as ‘switches,’ are classified as illegal machineguns under federal law,” said U.S. Attorney Ryan K. Buchanan. “This investigation and subsequent prosecution demonstrate the high priority given by our office, and our federal, state, and local law enforcement partners, to removing these dangerous devices from criminals.”
“One of ATF’s top priorities is to deny criminals access to firearms and protect the rights of law-abiding citizens,” said ATF Assistant Special Agent in Charge Alicia Jones. “The offender illegally possessed firearms that subsequently could have been used against our citizens and our communities; ATF takes this very seriously.”
“I am glad the Chamblee Police Department was a major partner in assisting the U.S. Attorney’s Office with removing another armed and dangerous individual from the streets of our community,” said Chamblee Police Chief Michael Dieppa. “Our primary goal is to uphold justice and maintain the safety and trust of our community.”
“This arrest is only one example of the many benefits of having a valued partnership with our local, state, and federal partners,” stated Chief Mirtha V. Ramos, DeKalb County Police Department. “By working collaboratively, we will continue to reduce crime and violence in our community.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 15, 2022, a police officer on patrol in Chamblee, Georgia attempted to stop a vehicle driven by Drevion Evans. In response, Evans put his vehicle in reverse and attempted to flee. Evans was ultimately arrested, after which a search of his car revealed a .40 caliber pistol on the driver’s side floorboard. The pistol was loaded with an extended magazine and had been converted to fire automatically. Evans had no prior arrest history and was released from custody on a bond.
On October 20, 2023, Evans attempted to arrange the delivery of a second fully automatic pistol with an extended magazine to his home by hiring an Uber driver to collect a package from a Carroll County, Georgia store. The driver picked up the package but delivered it to the Carrollton Police Department after noticing an odor of marijuana emanating from the package. Police officers searched the package and discovered 16 one-ounce bags of marijuana and the loaded, illegally modified pistol (which had been reported stolen).
Ten days later, police officers in DeKalb County, Georgia saw Evans’s vehicle and stopped him for outstanding warrants issued by a judge in Carroll County. While detaining Evans, one of the officers observed a 9mm pistol with an extended magazine on the floorboard in front of the driver’s seat. This third firearm was also equipped with a machinegun conversion device.
Drevion Micah Evans, 24, of Lithonia, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr. to six years, six months in prison to be followed by five years of supervised release. Evans pleaded guilty to three counts of possession of a machinegun and one count of possession of a firearm in furtherance of a drug trafficking crime on January 10, 2024.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Carrollton Police Department, Chamblee Police Department, and DeKalb County Police Department.
Assistant U.S. Attorney Theodore S. Hertzberg 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 Used-Car Dealer Convicted of $3 Million Fraud SchemeRead the Press Release
GAINESVILLE, Ga. - Mitchell Simpson, who orchestrated a $3 million scheme to defraud companies that provided floor-plan financing to his used-car dealership, has pleaded guilty to wire fraud.
“This defendant abused the trust of the companies that loaned him money to operate his car dealership,” said U.S. Attorney Ryan K. Buchanan. “We will continue to prosecute individuals motivated by greed who use illegal practices to deceive unsuspecting businesses.”
“Simpson deceived the lenders who placed their trust in him and now he will be held accountable for his greed,” said Mitchell Jackson, Senior Supervisory Special Agent, of FBI Atlanta’s Gainesville Office. “As this conviction demonstrates, the FBI will not tolerate anyone who fraudulently steals or takes money that they did not earn.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From early 2012 through early 2019, Simpson operated Mitch Simpson Motors, a used car dealership in Cleveland, Georgia. Three floor-plan lenders, Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC-OK, each provided Simpson with a revolving line of credit, also known as floor-plan financing, so that Simpson could purchase an inventory of vehicles to re-sell to customers. Each line of credit was governed by a written contract, also known as a floor-plan financing agreement. Simpson was required to abide by the terms and conditions of the agreements, and he was required to provide the floor-plan lenders with complete and truthful information concerning all matters related to the agreements.
When Simpson wanted to borrow money to purchase a vehicle to add to his dealership’s inventory, he would contact one of the floor-plan lenders and provide that lender with a description of the vehicle, including the vehicle identification number, and the amount of the loan requested. If the vehicle was subject to any other liens or security interests, Simpson was required to disclose that fact to the floor-plan lender. If Simpson led the lender to believe that the vehicle was not subject to any other liens or security interests, the lender would transfer the requested funds to Simpson’s custody and control. In return for the loan, the dealership would grant the floor-plan lender a purchase-money security interest in the vehicle. Simpson was required to keep the vehicle free from all other liens and security interests until sold.
Simpson defrauded the floor-plan lenders by using a single vehicle as collateral for more than one floor-plan loan, which is a deceptive and illegal practice referred to in the used-car industry as double floor-planning and triple floor-planning –a practice expressly prohibited by the floor-plan financing agreements.
To hide the double and triple floor-planning, Simpson made false and misleading statements and omitted material facts in his communications with the floor-plan lenders. Also, whenever Simpson sold a vehicle in which one of the floor-plan lenders held a security interest, Simpson was required to hold the proceeds from the sale of that vehicle in trust for the secured lender and promptly pay the secured lender all amounts due under the applicable floor-plan financing agreement.
But Simpson did not always pay the floor-plan lenders, as required. In addition, he played a shell game with vehicle titles and did not always provide truthful information to lenders concerning the location of vehicles and concerning whether vehicles had been sold. This is an illegal practice referred to in the used-car industry as operating “out of trust,” which was expressly prohibited by the floor-plan financing agreements. Simpson’s fraudulent scheme resulted in a loss of more than $3 million to the floor-plan lenders.
Sentencing for Mitchell C. Simpson, 56, of Cornelia, Georgia, is scheduled for October 8, 2024, at 11:00 a.m. before U.S. District Judge Steve C. Jones in Gainesville, Georgia.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys John Russell Phillips and David A. O’Neal 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.
Three More Paycheck Protection Program Defendants Sentenced to PrisonRead the Press Release
ATLANTA – Teldrin Foster, John Gaines, and Carla Jackson have been sentenced for their roles in a scheme to steal Paycheck Protection Program (“PPP”) funds during the COVID-19 pandemic. To date, a total of 23 individuals have been convicted and sentenced in connection with the fraudulent scheme.
“Foster, Gaines, and Jackson, together with 20 other defendants who have already been sentenced for their participation in this criminal scheme, took advantage of a relief program designed to keep small businesses afloat during the COVID-19 pandemic,” said U.S. Attorney Ryan K Buchanan. “These defendants have been held accountable for depriving this program of funds desperately needed by some of the most vulnerable in our society. And their sentences send a clear message that fraud against the government will not be tolerated.”
“COVID-19 disaster relief loans were issued by the government to help businesses struggling to survive during a pandemic, not to use for personal pleasures like these defendants used them for,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to hold accountable those who abused taxpayer dollars and diverted them from citizens who desperately needed them.”
“Those who took advantage of the COVID-19 pandemic relief programs are realizing from these sentences that even after four years since Congress enacted them, they are still being held accountable,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue investigating and forwarding for prosecution to the U.S. Attorney’s Office those who committed fraud against the government.”
According to U.S. Attorney Buchanan, the second superseding indictment, and other information presented in court: From April 2020 through August 2020, Foster worked with co-defendant Darrell Thomas and others to fraudulently obtain at least 14 fraudulent loans. Each of the 14 businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11 million. The loan applications certified that: each applicant’s business was in operation on February 15, 2020, and had employees for whom it paid salaries and payroll taxes or paid independent contractors; the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
The PPP loan applications reported that each business maintained between 59 and 69 employees and generated approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report quarterly payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. In fact, none of the businesses had employees or incurred payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets were all fabricated. Some of the supporting documents the businesses submitted were substantively identical, including the Form 941s, bank statements, and W2 payroll spreadsheets – where the reported figures were identical but purported employee names had been changed.
Gaines worked with co-defendant Thomas and others to obtain a fraudulent PPP loan in the amount of $806,710, for a Georgia business called Gaines Reservation and Travel. But that business had no employees or payroll expenses. To support the fraudulent PPP loan application, Gaines provided Thomas with fabricated bank statements for Gaines Reservation and Travel that reflected fake payroll deductions. After the PPP loan was approved, the funds were deposited into an account controlled by Gaines. Gaines later directed payments to Thomas that were disguised as payments for rent and payroll, which are approved expenses under the PPP.
Jackson laundered some of the proceeds of Gaines Reservation and Travel’s PPP loan, receiving over $300,000 of the stolen PPP funds into her business’s bank account. The funds were transferred via a check in the amount of $155,252.50 and a wire transfer in the amount of $179,985.72. The check falsely claimed that the funds were provided to Jackson as consulting fees and daily business management, and the wire transfer documentation falsely stated that the funds were for payroll services. In actuality, Jackson was assisting Gaines in concealing the stolen PPP funds from detection and seizure by federal law enforcement.
U.S. District Judge Jean-Paul “J.P.” Boulee sentenced the defendants as follows:
- Teldrin Foster, 42, of Atlanta, Georgia, was sentenced to 10 years and one month in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $9,606,627. On February 15, 2024, he was convicted by a jury of six counts of conspiracy to commit bank fraud and wire fraud, eight counts of conspiracy to commit wire fraud, six counts of bank fraud, fourteen counts of wire fraud, six counts of making false statements to a federally insured financial institution, and one count of money laundering.
- John Gaines, 59, of Marietta, Georgia, was sentenced to five years and three months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $806,710. On January 31, 2024, he pleaded guilty to one count of money laundering.
- Carla Jackson, 56, of Tucker, Georgia, was sentenced to three years in prison, to be followed by two years of supervised release. She was also ordered to pay restitution in the amount of $335,238. On February 15, 2024, she was convicted by a jury of two counts of money laundering.
To date, a total of 24 individuals have been charged in connection with the fraudulent scheme. Twenty other individuals have pleaded guilty and been sentenced, while one defendant’s charges remain pending.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Tal Chaiken, Samir Kaushal, Nathan Kitchens, and Norman Barnett of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting 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.
Newton County Board of Commissioners Chairman and Real Estate Broker Charged with Money LaunderingRead the Press Release
ATLANTA – Marcello Banes, Chairman of the Newton County Board of Commissioners, and Stephanie Lindsey, a real estate broker and attorney, have been indicted by a federal grand jury for conspiring to launder money obtained from wire fraud and honest services wire fraud.
“By allegedly laundering proceeds obtained from a fraud conspiracy, these defendants violated the trust placed in them by their client, their constituents, and their fellow commissioners,” said U.S. Attorney Ryan K. Buchanan. “Public officials who undermine the public’s faith in our institutions by abusing their power for personal gain must be held accountable.”
“Banes and Lindsey undermined the public’s confidence in government and business in Georgia,” said FBI Atlanta Special Agent in Charge Keri Farley. “This indictment is a stern warning that anyone who violates our laws will be brought to face justice.”
“This is a case of a public official breaking the public’s trust to enrich himself and a realtor who did not serve her client, but instead, assisted the public official in breaking the law,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Criminal Investigation special agents, our law enforcement partners, and the U.S. Attorney’s office are working together to hold those who break the law accountable.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: In 1999, Jasper, Morgan, Newton, and Walton Counties established a Joint Development Authority (JDA) to create an industrial area to attract industries to bring jobs and investment to the region. The JDA is controlled by an eight-member board of directors, with two members from each of the four counties. Marcello Banes, as the Chairman of the Newton County Board of Commissioners, represented Newton County on the JDA.
In 2018, a company identified in the indictment as “Company A” expressed an interest in purchasing approximately 40 acres of the JDA’s land for commercial development. Banes responded to Company A’s interest in the parcel by coordinating a brokerage agreement between Company A and Lindsey by which Company A would pay Lindsey’s CSL Realty Group (CSL) $150,000 upon completion of Company A’s purchase of the parcel.
The indictment alleges that at the time Company A entered this brokerage agreement, Banes and Lindsey misled Company A into believing that the commission was only intended for Lindsey. Neither Banes nor Lindsey disclosed to Company A that Lindsey would pay most of the commission -- which was contingent on the JDA voting to approve the sale -- to Banes. Had Company A’s owners known Banes would receive any of the commission, they would not have entered the brokerage agreement.
At a JDA board meeting on January 22, 2019, Banes voted along with other JDA members to pass a resolution authorizing the transfer of the parcel, which allowed the purchase of the land by Company A. Banes allegedly never disclosed to the JDA that, upon Company A’s acquisition of the land, Company A would pay $150,000 to Lindsey, who would funnel most of the payment to Banes.
Company A’s purchase was finalized on March 1, 2019. Although Lindsey was not present at the closing and neither she nor CSL were referenced in the closing documents, Lindsey contacted Company A the next day to collect the $150,000 payment. Shortly after receiving the payment, Lindsey allegedly passed $100,000 of it to Banes through a newly formed business entity they created. Banes used a substantial amount of that payment for a new house he was building in Newton County.
In addition to the money laundering offense, Lindsey is charged with two federal tax violations which allege that she filed two federal income tax returns for 2019 in which she claimed false business deductions to reduce her tax liability for the $150,000 payment.
Banes is also charged with lying to FBI special agents during a 2023 interview. The indictment alleges that he falsely told FBI agents that he was unaware Lindsey was involved as a broker for the sale of the land to Company A.
Marcello C. Banes, 48, and Stephanie R. Lindsey, 52, both of Covington, Georgia, were charged with conspiracy to launder money obtained from wire fraud and honest services wire fraud, and with money laundering. The grand jury also indicted Lindsey for federal income tax fraud and Banes for making materially false statements to FBI special agents.
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 each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S 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) 581-6016. 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 a Cargo Theft Ring Sentenced to PrisonRead the Press Release
ROME, Ga. – Yunior Hernandez a/k/a “Yunior Hernandez Guzman,” Roberto Quesada Lopez, Carlos Alberto Valdes, and Yubani Millares Vera have been sentenced to prison for multiple cargo thefts throughout the Southeastern United States totaling more than $1.7 million.
“Thefts of interstate shipments disrupt the production and delivery of needed goods and result in detrimental financial impact on businesses, consumers, and the U.S. economy generally,” said U.S. Attorney Ryan K. Buchanan. “The sentencing of these defendants is an example of our office’s commitment to prosecute these criminals as well as a warning to others that these offenses are an investigative priority for our federal, state, and local law enforcement partners.”
“The FBI takes cargo theft very seriously, due to the significant impact it has on the United States economy, and the potential for stolen goods to be used to fund other criminal organizations,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This theft conspiracy did not stop at our state border, and neither did our investigation. Thanks to our partnership with Miami agencies, we tracked these thieves across the entire southeast, and now they will be held accountable for their crimes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Throughout 2019, the defendants, Yunior Hernandez, Roberto Quesada Lopez, Carlos Alberto Valdes, and Yubani Millares Vera, operated a cargo theft ring throughout the Southeastern United States. In total, the defendants stole cargo worth more than $1.7 million. The stolen goods were then taken to Florida and sold.
The defendants stole over:
•$500,000 worth of computers in Macon, Georgia, on May 18, 2019;
•$640,000 worth of computers meant for the Centers for Disease Control in Emerson, Georgia, on June 11, 2019;
•$110,000 worth of copper in Denmark, Tennessee, on July 21, 2019;
•$110,000 worth of copper in Glade Springs, Virginia, on September 2, 2019;
•$110,000 worth of copper in Fairview, Tennessee, on October 6, 2019; and
•$340,000 worth of apparel in Kingsland, Georgia, on November 16, 2019.
Yunior Hernandez, 50, of Homestead, Florida, was sentenced to two years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay $880,857.43 in restitution. Hernandez was convicted of conspiracy on December 20, 2022, after he pleaded guilty.
Carlos Alberto Valdes, 55, of Hialeah, Florida, was sentenced to three years, 10 months in prison to be followed by three years of supervised release. He was ordered to pay $1,543,890.60 in restitution. Valdes was convicted of conspiracy on January 19, 2023, after he pleaded guilty.
Roberto Quesada Lopez, 44, of Hialeah, Florida, was sentenced to two years, six months in prison. He was ordered to pay $1,229,888.32 in restitution. Lopez was convicted of conspiracy on July 18, 2023, after he pleaded guilty.
Yubani Millares Vera, 49, of Hialeah, Florida, was sentenced to five years in prison to be followed by three years of supervised release. He was ordered to pay at least $1,760,479.12 in restitution. Millares Vera was convicted of conspiracy on March 14, 2024, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. Assistance was provided by the Miami-Dade County Police Department, Economic Crime Bureau, and the Federal Bureau of Investigation Miami Field Office.
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.
Settlement Reached with Fulton County Schools to Protect the Civil Rights of Students with DisabilitiesRead the Press Release
ATLANTA - The United States Attorney’s Office entered into a settlement agreement with Fulton County Schools in Georgia to resolve an investigation of the district’s response to an escalating series of student-on-student sexual assaults on a school bus serving students with special needs. The United States conducted its investigation under Title IX of the Education Amendments of 1972, Title II of the Americans with Disabilities Act (ADA), and the Equal Educational Opportunities Act of 1974.
“Children with disabilities can be especially vulnerable and deserve to thrive in a learning environment free of violence of any kind, including when traveling to and from school aboard buses,” said U.S. Attorney Ryan K. Buchanan. “We applaud the school district’s willingness to cooperate with our investigation and to amicably resolve this matter to ensure the protection and safety of these children.”
“A school district’s responsibility is to protect its students, particularly students whose disabilities make them especially vulnerable,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “As a result of the agreement reached today, Fulton County Schools will work to ensure that all students are safe on their school buses, and that bus drivers and monitors are trained to watch for and prevent sexual harassment and assault. Schools have a responsibility to address barriers to reporting sexual assault and to effectively investigate reports, taking into account the special needs or vulnerabilities of any affected students and their families. The Civil Rights Division will hold schools accountable to this critical obligation.”
The United States’ investigation found that the district lacked adequate procedures and failed to train employees in the proper reporting of and response to student-on-student sexual harassment and assault; failed to appropriately accommodate the special needs of students with disabilities in preventing and responding to sexual assault; and failed to make the reporting and complaint process accessible for parents and guardians with limited English proficiency. This agreement will strengthen the district’s policies and procedures for responding to student-on-student sexual assault and ensure that the district’s response accounts for the unique needs of students with disabilities and Limited English Proficient parents.
As a part of the settlement, the school district, among other actions, agrees to:
•revise its policies for responding to complaints of sexual misconduct;
•provide appropriate district personnel with training on student-on-student sexual misconduct, including the vulnerabilities unique to students with disabilities;
•ensure it provides students with disabilities the accommodations they need to participate in the district’s educational programs, particularly accommodations that support the communication needs of students with disabilities; and
•afford appropriate language assistance services to Limited English Proficient parents and guardians.
The U.S. Attorney’s Office for the Northern District of Georgia worked in collaboration with the Department of Justice’s Civil Rights Division’s Educational Opportunities Section to investigate this case. Aileen Bell Hughes, Deputy Chief, Public Integrity and Civil Rights Section was the lead attorney for the district in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Secures Agreement with Georgia School District to Protect Civil Rights of Students with DisabilitiesRead the Press Release
The Justice Department announced today a settlement agreement with Fulton County Schools in Georgia to resolve the department’s investigation of the district’s response to an escalating series of student-on-student sexual assaults on a school bus serving students with special needs. The department conducted its investigation under Title IX of the Education Amendments of 1972, Title II of the Americans with Disabilities Act (ADA) and the Equal Educational Opportunities Act of 1974.
“A school district’s responsibility is to protect its students from sexual assault and harassment, particularly students whose disabilities make them vulnerable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools have a responsibility to address obstacles in reporting sexual assault and to take into account the special needs or vulnerabilities of any affected students and their families. The Justice Department will continue working to ensure that our schools are safe learning environments free from sexual harassment and equitable for students with disabilities.”
“Children with disabilities can be especially vulnerable and deserve to thrive in a learning environment free of violence of any kind, including when traveling to and from school aboard buses,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We applaud the school district’s willingness to cooperate with our investigation and to amicably resolve this matter to ensure the protection and safety of these children.”
The department’s investigation found that the district lacked adequate procedures and failed to train employees in the proper reporting of and response to student-on-student sexual harassment and assault; failed to appropriately accommodate the special needs of students with disabilities in preventing and responding to sexual assault; and failed to make educational and school communications, particularly those related to the complaint reporting and investigation process, accessible for parents and guardians with limited English proficiency. The agreement will strengthen the district’s policies and procedures for responding to student-on-student sexual assault and ensure that the district’s response accounts for the unique needs of students with disabilities and Limited English Proficient (LEP) parents.
The district cooperated with the department throughout the investigation. Among other actions, under the settlement agreement, the district will:
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Revise its policies for responding to complaints of sexual misconduct;
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Provide district staff with trainings on student-on-student sexual misconduct;
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Ensure it provides students with disabilities the accommodations they need to participate in the district’s educational programs, particularly accommodations that support the communication needs of students with disabilities; and
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Provide appropriate language assistance services to LEP parents and guardians.
The enforcement of Title IX, Title II and the Equal Educational Opportunities Act are top priorities for the Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the Educational Opportunities Section’s work is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
The U.S. Attorney’s Office for the Northern District of Georgia worked in collaboration with the Civil Rights Division’s Educational Opportunities Section to investigate this case. Information about the U.S. Attorney’s Office for the Northern District of Georgia can be found at www.justice.gov/usao-ndga/about.
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El Departamento de Justicia llega a un acuerdo con un Distrito Escolar de Georgia para proteger los derechos civiles de los estudiantes con discapacidadesRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo de conciliación con las Escuelas del Condado de Fulton en Georgia para resolver la investigación del Departamento de la respuesta del distrito a una serie de agresiones sexuales entre estudiantes en un autobús escolar que atiende a estudiantes con necesidades especiales. El Departamento llevó a cabo su investigación bajo del Título IX de las Enmiendas Educativas de 1972, el Título II de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés) y la ley de Igualdad de Oportunidades Educativas de 1974.
«La responsabilidad de un distrito escolar es proteger a sus estudiantes del acoso y la agresión sexuales, especialmente aquellos cuyas discapacidades los hacen especialmente vulnerables», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Las escuelas tienen la responsabilidad de abordar los obstáculos en la denuncia de agresiones sexuales y de tener en cuenta las necesidades especiales o vulnerabilidades de los estudiantes afectados y sus familias. El Departamento de Justicia continuará a trabajar para garantizar que nuestras escuelas sean entornos seguros del aprendizaje, libres del acoso sexual, y que sean equitativas para estudiantes con discapacidades».
«Los niños con discapacidades pueden ser especialmente vulnerables y merecen florecer en un entorno del aprendizaje libre de cualquier tipo de violencia, incluyendo durante el viaje en autobús hacia y desde la escuela,» declaró Ryan K. Buchanan, el Fiscal Federal para el Distrito Norte de Georgia. «Felicitamos al distrito por su disposición a cooperar con nuestra investigación y a resolver este asunto de manera amistosa, con el fin de asegurar la protección y seguridad de estos niños».
La investigación del Departamento descubrió que el distrito carecía de procedimientos adecuados y no capacitó a los empleados en la adecuada notificación y respuesta ante casos de agresión y acoso sexuales entre estudiantes; no acomodó adecuadamente las necesidades especiales de los estudiantes con discapacidades para prevenir y responder a las agresiones sexuales; y no hizo que las comunicaciones educativas y escolares, especialmente aquellas relacionadas con el proceso de notificación e investigación de quejas, fueran accesibles para los padres y tutores con un dominio limitado del inglés. El acuerdo fortalecerá las políticas y los procedimientos del distrito de respuesta ante agresiones sexuales entre estudiantes y garantizará que la respuesta del distrito considere las necesidades únicas de estudiantes con discapacidades y padres con un dominio limitado del inglés (LEP, por sus siglas en inglés).
El distrito cooperó con el Departamento durante toda la investigación. Entre otras acciones, en virtud del acuerdo conciliatorio, el distrito:
- Revisará sus políticas de respuesta a quejas de conducta sexual indebida;
- Proporcionará capacitaciones al personal del distrito sobre la conducta sexual indebida entre estudiantes;
- Se asegurará de que proporcione a los estudiantes con discapacidades los acomodos que necesitan para participar en los programas educativos del distrito, en particular las adaptaciones que respaldan las necesidades de comunicación de los estudiantes con discapacidades; y
- Proporcionará servicios de asistencia lingüística adecuados a los padres y tutores LEP.
La aplicación del Título IX, el Título II y la ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles. Puede encontrar información adicional sobre la División de Derechos Civiles del Departamento de Justicia en su sitio web en www.justice.gov/crt, e información adicional sobre el trabajo de la Sección de Oportunidades Educativas está disponible en www.justice.gov/crt/educational-opportunities-section. Los miembros del público pueden informarnos de posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
La Fiscalía Federal para el Distrito Norte de Georgia trabajó en colaboración con la Sección de Oportunidades Educativas de la División de Derechos Civiles en la investigación de este caso. Información sobre la Fiscalía Federal para el Distrito Norte de Georgia se puede encontrar en www.justice.gov/usao-ndga/about.
Tapestry Hospice Settles Healthcare Kickback Claims for $1.4 MillionRead the Press Release
ATLANTA – Tapestry Hospice of Northwest Georgia, LLC, and its owners and managers, David Lovell, MD, Stephanie Harbour, Ben Harbour, and Andrew Nall (collectively “Tapestry”), agreed to pay $1.4 million to resolve allegations that they violated the False Claims Act by entering into kickback arrangements with medical directors in exchange for referrals of hospice patients to Tapestry.
“By entering into kickback arrangements, health care providers can cause doctors to make medical decisions that are motivated by financial gain, rather than the patient’s best interest,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to ensuring the accountability of health care providers who put their own financial needs ahead of their patients.”
“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly evade our federal healthcare programs for their own benefit,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The message is clear, the FBI will not tolerate companies operating corporate-wide schemes to illegally line their pockets.”
“Decisions regarding end-of-life care are incredibly difficult and personal, and families must be able to trust the intentions of their chosen providers,” said Georgia Attorney General Chris Carr. “Those who instead take advantage of the system for their own personal gain will be held accountable.”
This case began when a former employee of Tapestry filed a whistleblower complaint alleging that Tapestry paid kickbacks to medical directors to induce them to refer patients to Tapestry. These alleged kickbacks included monthly stipends and a signing bonus paid to the medical directors. The compensation allegedly increased when the medical director referred more patients and decreased when the medical director failed to make referrals.
The Government alleges that these arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), and caused the submission of false claims in violation of the False Claims Act, 31 U.S.C. § 3729, et seq.
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Kathy Erwin (the Relator) under the qui tam or whistleblower provisions of the False Claims Act, U.S. ex rel. Erwin v. Tapestry Hospice of Northwest Georgia, LLC, et al., No. 1:18-cv-4320-AT. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The Relator has received $252,000 from the settlement.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia the Federal Bureau of Investigation and the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorney Adam D. Nugent and Georgia Assistant Attorney General Rick Tangum. 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.
Mexico-Based Drug Cartel Leaders Indicted and SanctionedRead the Press Release
Rodolfo Maldonado-Bustos, also known as Don Jose, and Euclides Camacho-Goicochea, also known as El Quilles, who occupy leadership roles in the La Nueva Familia Michoacana drug cartel, were charged by a federal grand jury with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States.
Earlier today, the U.S. Department of the Treasury’s Office of Foreign Asset Control (OFAC) announced financial sanctions against Camacho-Goicochea and Maldonado-Bustos, who are fugitives believed to be residing in Mexico.
“These actions demonstrate that in addition to holding cartel leaders accountable for their crimes, we are working together with our partners at the Treasury Department to hit the cartels’ criminal operations where it hurts the most – their profits,” said Attorney General Merrick B. Garland. “We will continue to mobilize a whole-of-government effort to disrupt the cartels profiting from the drug trafficking and human smuggling that devastate communities and endanger our national security.”
“These cartel members allegedly imported massive amounts of heroin from Mexico to the Atlanta area and elsewhere in the United States,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The federal indictments in conjunction with the recent imposition of OFAC sanctions send a strong message that our office, in coordination with our law enforcement partners, will relentlessly investigate, prosecute, and defund individuals around the globe who import deadly drugs into our communities.”
“Denying drug cartels the profits earned from distributing poison in our communities is an essential tool in DEA’s efforts to combat these drug cartels,” said Special Agent in Charge Robert J. Murphy of the Drug Enforcement Administration (DEA) Atlanta Field Division. “DEA Atlanta will continue to attack the La Nueva Familia cartel on all fronts by arresting its members, as well as seizing their drugs and assets.”
“IRS Criminal Investigation special agents are highly skilled financial investigators who can unravel complex schemes cartels use to hide their money,” said Special Agent in Charge Demetrius Hardeman of IRS Criminal Investigation (IRS-CI)’s Atlanta Field Office. “IRS-CI and other members of the Organized Crime Drug Enforcement Task Forces will continue working together to bring these international criminals to justice.”
According to the indictments and other information presented in court, in September 2016, agents of the DEA and the IRS-CI initiated an investigation into Mexico-based La Nueva Familia Michoacana cartel members allegedly importing heroin, cocaine, and marijuana into the United States, including to the Northern District of Georgia. As part of the investigation, agents identified Maldonado-Bustos as a high-level cartel member who allegedly coordinated the manufacturing of large quantities of heroin in Mexico.
In particular, the investigation revealed that Maldonado-Bustos allegedly directed the harvesting of gum from opium fields, procured chemicals to process the gum into heroin, and supplied Camacho-Goicochea and other conspirators in Mexico with the heroin to import into cities in the United States, including Atlanta, and Houston. The investigation further revealed that Camacho-Goicochea allegedly coordinated the collection and return of drug proceeds from the United States back to Mexico. In early 2017, agents seized over $580,000 in drug proceeds from vehicles and homes in the Atlanta area, which were ultimately destined for the cartel in Mexico.
Rodolfo Maldonado-Bustos, also known as Don Jose, 59, and Euclides Camacho-Goicochea, also known as El Quilles, 51, both of Guerrero, Mexico, were charged with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States. Camacho-Goicochea was also charged with conspiracy to launder monetary instruments. The indictments were returned in August 2017 and were recently unsealed.
The DEA and IRS-CI investigated the case.
Assistant U.S. Attorney Rebeca Ojeda for the Northern District of Georgia is prosecuting the case against Camacho-Goicochea and Maldonado-Bustos. Assistant U.S. Attorney Laurel Milam for the Northern District of Georgia and Assistant U.S. Attorney Nicholas Hartigan for the Eastern District of North Carolina, provided valuable assistance to the investigation.
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 disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (the Strike Force) is to degrade and dismantle major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets (CPOTs), Regional Priority Organization Targets (RPOTs), 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 U.S. Attorney for the Northern District of Georgia.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mexico-Based Drug Cartel Leaders Indicted and SanctionedRead the Press Release
ATLANTA –Rodolfo Maldonado-Bustos, a.k.a. “Don Jose,” and Euclides Camacho-Goicochea, a.k.a. “El Quilles,” who occupy leadership roles in the La Nueva Familia Michoacana drug cartel, were charged by a federal grand jury with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States.
Earlier today, the U.S. Department of the Treasury’s Office of Foreign Asset Control (OFAC) announced financial sanctions against Camacho-Goicochea and Maldonado-Bustos, who are fugitives believed to be residing in Mexico.
“These actions demonstrate that in addition to holding cartel leaders accountable for their crimes, we are working together with our partners at the Treasury Department to hit the cartels’ criminal operations where it hurts the most – their profits,” said Attorney General Merrick B. Garland. “We will continue to mobilize a whole-of-government effort to disrupt the cartels profiting from the drug trafficking and human smuggling that devastate communities and endanger our national security.”
“These cartel members allegedly imported massive amounts of heroin from Mexico to the Atlanta area and elsewhere in the United States,” said U.S. Attorney Ryan K. Buchanan. “The federal indictments in conjunction with the recent imposition of OFAC sanctions send a strong message that our office, in coordination with our law enforcement partners, will relentlessly investigate, prosecute, and defund individuals around the globe who import deadly drugs into our communities.”
“Denying drug cartels the profits earned from distributing poison in our communities is an essential tool in DEA’s efforts to combat these drug cartels,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA Atlanta will continue to attack the La Nueva Familia cartel on all fronts by arresting its members, as well as seizing their drugs and assets.”
“IRS Criminal Investigation special agents are highly skilled financial investigators who can unravel complex schemes cartels use to hide their money,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS-CI and other members of the Organized Crime Drug Enforcement Task Forces will continue working together to bring these international criminals to justice.”
According to U.S. Attorney Buchanan, the indictments, and other information presented in court: In September 2016, agents of the Drug Enforcement Administration (DEA) and the Internal Revenue Service Criminal Investigation (IRS-CI) initiated an investigation into Mexico-based La Nueva Familia Michoacana cartel members allegedly importing heroin, cocaine, and marijuana into the United States, including to the Northern District of Georgia. As part of the investigation, agents identified Maldonado-Bustos as a high-level cartel member who allegedly coordinated the manufacturing of large quantities of heroin in Mexico.
In particular, the investigation revealed that Maldonado-Bustos allegedly directed the harvesting of gum from opium fields, procured chemicals to process the gum into heroin, and supplied Camacho-Goicochea and other conspirators in Mexico with the heroin to import into cities in the United States, including Atlanta, Georgia and Houston, Texas. The investigation further revealed that Camacho-Goicochea allegedly coordinated the collection and return of drug proceeds from the United States back to Mexico. In early 2017, agents seized over $580,000 in drug proceeds from vehicles and homes in the Atlanta area, which were ultimately destined for the cartel in Mexico.
Rodolfo Maldonado-Bustos, a.k.a. “Don Jose,” 59, and Euclides Camacho-Goicochea, a.k.a. “El Quilles,” 51, both of Guerrero, Mexico, were charged with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States. Camacho-Goicochea was also charged with conspiracy to launder monetary instruments. The indictments were returned in August 2017 and were recently unsealed.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Rebeca Ojeda is prosecuting the case against Camacho-Goicochea and Maldonado-Bustos. Assistant U.S. Attorney Laurel Milam, as well as Assistant U.S. Attorney Nicholas Hartigan, who is presently with the U.S. Attorney’s Office for the Eastern District of North Carolina, provided valuable contributions to the investigation.
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 disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (the Strike Force) is to degrade and dismantle major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets (CPOTs), Regional Priority Organization Targets (RPOTs), 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 U.S. Attorney for the Northern District of Georgia.
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.
Georgia Attorney and Former Atlanta Police Officer Sentenced for $15M COVID-19 Relief Fraud ConspiracyRead the Press Release
A Georgia attorney and former City of Atlanta police officer was sentenced today to seven years and three months in prison for conspiring to defraud the Paycheck Protection Program (PPP) of approximately $15 million.
According to court documents and evidence presented at trial, Shelitha Robertson, 62, of Atlanta, conspired with Chandra Norton to submit fraudulent PPP loan applications on behalf of businesses that Robertson and Norton each owned. The fraudulent loan applications falsely inflated the number of employees and average monthly payroll for each of the applicant businesses and included false supporting tax documentation, inducing larger PPP loans than Robertson or Norton could legitimately obtain. Robertson and Norton submitted fraudulent applications on behalf of four businesses Robertson owned, resulting in $7,020,779 in PPP funds deposited into bank accounts Robertson owned and controlled. Robertson then used the loan proceeds for her personal benefit, including purchasing luxury items, such as a 10-carat diamond ring, and transferring funds to family members and to Norton.
A federal jury convicted Robertson in December 2023 of on one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering. Norton pleaded guilty in November 2020 and is scheduled to be sentenced on Aug. 14.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG); Inspector General Jennifer L. Fain of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); and Acting Inspector General Heather M. Hill of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FDIC-OIG, and TIGTA investigated the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Bernita Malloy for the Northern District of Georgia prosecuted the case.
Gang Member Sentenced for Assault on a Federal Correctional OfficerRead the Press Release
ATLANTA - Cody Todd has been sentenced for assault on a Bureau of Prisons correctional officer at the U.S. Penitentiary in Atlanta, Georgia (USP-Atlanta).
“This defendant’s pattern of violent behavior continued while he was in custody, resulting in a vicious attack that left a correctional officer seriously injured,” said U.S. Attorney Ryan K. Buchanan. “Correctional officers must be permitted to do their jobs without the threat or fear of violence, and those who bring them harm will be prosecuted.”
“The FBI has zero tolerance for anyone who uses violence against law enforcement officers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We will always hold criminals accountable for their actions and will not hesitate to pursue those who repeatedly violate the law, even behind bars.”
“Todd’s sentencing sends a clear message that those who threaten or harm our correctional officers will be held accountable,” said Randilee Giamusso, Spokesperson for the Federal Bureau of Prisons. “The safety of our corrections employees and security of our facilities will always be the Federal Bureau of Prisons’ top priority in our mission to ensure public safety.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On January 28, 2021, Cody Todd assaulted a correctional officer while he was in custody as a pretrial detainee at USP-Atlanta. Todd hit the officer in the face, knocked him to the floor, and then struck the officer several more times while the officer was incapacitated. This assault left the officer with significant injuries.
At the time of the assault, Todd was being detained on charges of racketeering activity in connection with his crimes committed as a member of the Ghost Face Gangsters. The racketeering activity included, among other offenses, murder, attempted murder, kidnapping and robbery.
Todd was separately convicted of conspiracy to commit racketeering and sentenced to 16 years in prison. Todd had also previously been convicted of battery on four separate occasions.
Cody Ryan Todd, 34, of Carrollton, Georgia, was sentenced by U. S. District Judge Victoria M. Calvert to six years and five months in prison, two years and 11 months of which will be served concurrently with the sentence on his racketeering conviction. Todd was found guilty by a jury on February 1, 2024.
This case was investigated by the Federal Bureau of Investigation and Federal Bureau of Prisons.
Assistant U. S. Attorneys Richard Beaulieu and Alison Prout 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.
Former Assistant City Attorney and Police Officer Sentenced in an Approximately $15M PPP Fraud SchemeRead the Press Release
ATLANTA – Shelitha Robertson, who formerly served as an Assistant City Attorney and police officer for the City of Atlanta, has been sentenced for fraudulently obtaining approximately $15 million in loans under the Paycheck Protection Program (PPP), a federal stimulus program authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“Motivated by greed, Robertson deceptively obtained funds that were designated to provide emergency financial relief to struggling small businesses during the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will continue to work with our law enforcement partners to investigate and prosecute criminals who stole pandemic relief funds.”
“Today the defendant in this case was held accountable for fraudulently obtaining millions of dollars through the Paycheck Protection Program and using those stolen funds to enrich herself, while small businesses were struggling during the pandemic,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “The FDIC OIG remains committed to working with our law enforcement partners to pursue and bring to justice those who took advantage of such pandemic relief programs and threatened the integrity of our Nation’s financial institutions.”
“Scheming to divert vital funds from legitimate businesses that needed support during the pandemic undermines the integrity of SBA’s programs,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Our office remains steadfast in pursuing those who exploit federal programs for personal gain. I would like to thank the US. Attorney’s Office and our law enforcement partners for their unwavering commitment to the pursuing justice in this case.”
“The Treasury Inspector General for Tax Administration will aggressively pursue individuals who commit fraud against the American taxpayer by making false claims to obtain Paycheck Protection Program loans intended for legitimate businesses who needed it to survive the pandemic,” stated Special Agent in Charge Mark H Morini, Jr. “We want to express our gratitude to our federal partners and the U.S. Attorney’s Office for their assistance in holding these individuals to account.”
According to U.S. Attorney Buchanan, the court documents and evidence presented at trial: Shelitha Robertson and other co-conspirators submitted PPP loan applications on behalf of four businesses that she owned and controlled. The loan applications falsely inflated the number of employees and average monthly payroll for each of the four businesses, resulting in larger PPP loans than Robertson would be legitimately entitled to obtain. Robertson and her co-conspirator, Chandra Norton, also submitted false tax documents to support the inflated statements in each loan application. Robertson used the loan proceeds to purchase luxury items, including a 10-carat diamond ring. She also transferred funds to Chandra Norton and family members.
Shelitha Robertson, 62, of Atlanta, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to seven years, three months in prison to be followed by three years of supervised release. A jury convicted Robertson of one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering on December 19, 2023.
This case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), the U.S. Small Business Administration Office of Inspector General (SBA-OIG), and Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorneys Bernita B. Malloy and Trial Attorney Ariel Glasner of the Department of Justice Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 202, 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 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 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.
U.S. Attorney’s Office and Fulton County District Attorney Office Launch Summer Youth Mentorship ProgramRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia in partnership with the Fulton County District Attorney’s Office will launch the fourth annual Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention Program (“Summer Mentorship Program”). The kick-off for this year’s program will be held on May 31, 2024, at the Atlanta Technical College Preparatory Academy.
“This intensive mentoring program is an investment in our youth that will offer a solid foothold on a path to economic, social, and educational opportunities, while keeping them engaged over the summer,” said U.S. Attorney Ryan K. Buchanan. “Our continued partnerships with community leaders, law enforcement, and families are all vital to successfully reducing recidivism and improving community safety.”
“Every summer during my time as District Attorney, our team has joined with U.S. Attorney Ryan Buchanan and his team to bring the Credible Messenger Program to at-risk youth in Fulton County,” said Fulton County District Attorney Fani Willis. “Our cooperative efforts have made a real difference in getting kids back on track, and we look forward to another summer of working with kids and making Fulton County a safer, more just place for everyone.”
“Community involvement remains the key to maintaining an environment of structure and accountability for our at-risk youth,” said Shawanda Reynolds-Cobb, Commissioner of the Department of Juvenile Justice. “Over the past several years, Project Safe Neighborhood has become an invaluable tool in promoting positive outcomes through reduced recidivism.”
The Summer Mentorship Program will engage youth between the ages of 15 and 19 who are on felony probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement, and an evidence-based, cognitive-behavioral, life-skills session utilizing the Forward Thinking and Project EGRESS curriculum. This year, participants will also be encouraged to simultaneously enroll in Atlanta Technical College’s Dual Achievement Program to earn a high school diploma while also obtaining a technical certificate in a specific career pathway. Youth who actively participate each day will also receive a weekly stipend for their work.
This initiative is being implemented by the Southeast Credible Messengers and the PSN Prevention and Reentry program of the U.S. Attorney’s Office. Southeast Credible Messengers is a community-based collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative is led by the Offender Alumni Association (OAA), Inc.
We would also like to thank leadership from the Georgia Department of Juvenile Justice Office of Reentry Services, Fulton County Juvenile Court, the City of Atlanta Cure Violence Initiative, the Credible Messenger Mentoring Movement (CM3), Emerging 100 of Atlanta, the Rocket Foundation, and the local business community for their continued partnership and support of the summer program.
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.
Three Men Sentenced for Trafficking Drugs and FirearmsRead the Press Release
ROME, Ga. - James Lewallen Meeks, a Georgia Department of Corrections inmate, and two conspirators, Jamey Michael Latty and Mark Anthony Powell, have been sentenced to federal prison for their roles in trafficking firearms, methamphetamine, and fentanyl in Northwest Georgia.
“While serving a sentence for a violent crime in a Georgia Correctional Facility, Meeks continued his criminal activity by brokering a number of illegal firearm and drug transactions with his co-defendants in Northwest Georgia,” said U.S. Attorney Ryan K. Buchanan. “Meeks will now serve two decades in federal prison after completing his state sentence, and his co-defendants are headed to federal prison as well.”
“This case exemplifies our commitment to prevent drug trafficking and criminal activity from poisoning our communities,” stated ATF Assistant Special Agent in Charge Alicia Jones. “It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent drug enterprises.”
“Our communities remain under attack by criminal drug trafficking organizations with no regard for the harm and destruction they cause,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “This investigation and subsequent arrests of the individuals in this violent drug trafficking organization demonstrate DEA’s commitment to protecting our community by destroying these drug trafficking organizations.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Starting around February 2022, James Lewallen Meeks, an inmate at Wheeler Correctional Facility in Alamo, Georgia, used a contraband cell phone to coordinate with Jamey Michael Latty and Mark Anthony Powell to sell firearms and drugs. Specifically, in March 2022, Meeks worked with Latty to sell methamphetamine in Rockmart, Georgia, and later sell methamphetamine and a Glock pistol to an individual in Cave Springs, Georgia. Meeks also coordinated repeatedly with Powell to sell methamphetamine and what turned out to be a mixture of fentanyl and xylazine to the same individual in Carrollton, Georgia. Along with the drugs, Powell sold ammunition and five firearms, including an UZI .22 caliber long rifle with a silencer, at the direction of Meeks. In April 2022, Latty separately sold ammunition and four firearms, including an AR-style rifle designed as a machine gun, to the same individual in Rome, Georgia.
On June 2, 2022, Latty was arrested in Hiram, Georgia in possession of approximately one kilogram of methamphetamine. That same day, Powell was arrested in Carrollton after leading law enforcement on a vehicle chase during which approximately one kilogram of methamphetamine was thrown out of Powell’s truck window. A pistol and a substance containing fentanyl was found in Powell’s vehicle at the time of his arrest. Agents also executed a federal search warrant at a residence in Carrollton, where some of the drug and firearms transactions had occurred, and seized six firearms from the residence, including rifles, shotguns, and a pistol. Latty and Powell were prohibited from possessing firearms and ammunition because each had previously been convicted of a felony offense.
After Latty was indicted, he fled the state and assumed a false identity. Through the efforts of multiple state and federal agencies, Latty was eventually located and apprehended by U.S. Deputy Marshals in Collinsville, Alabama.
After pleading guilty to conspiracy to possess with the intent to distribute a controlled substance, possession with intent to distribute a controlled substance, and carrying a firearm during and in relation to a drug trafficking crime, U.S. District Judge William M. Ray, II sentenced the three men as follows:
- James Lewallen Meeks, 39, of Dallas, Georgia, was sentenced to 20 years in prison to be followed by eight years of supervised release, consecutive to the time he is already serving in state custody.
- Jamey Michael Latty, 45, of Centre, Alabama, was sentenced to 15 years and one month in prison to be followed by five years of supervised release.
- Mark Anthony Powell, 43, of Jackson, Georgia, was sentenced to 10 years, seven months in prison to be followed by eight years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with invaluable assistance from the Georgia State Patrol, Haralson Paulding County Drug Task Force, Paulding County Sheriff’s Office, Polk County Police Department, Michigan State University Police Department, the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force Office, and the Special Response Team of DeKalb County, Alabama Sherriff’s Office.
Assistant U.S. Attorney Rebeca M. Ojeda 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.
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.
Two Alleged Members of a Transnational Money Laundering Organization Arrested for Laundering Millions of Dollars in Drug ProceedsRead the Press Release
Two alleged members of a transnational money laundering organization were arrested on criminal charges related to their alleged involvement in a scheme to launder millions of dollars in illegal drug proceeds for Mexican drug trafficking organizations, including the Sinaloa and Jalisco cartels (also known as CJNG).
Li Pei Tan, 46, of Buford, Georgia, was arrested today. Chaojie Chen, 41, a foreign national residing in Chicago, was arrested on April 18.
According to court documents, Tan and Chen allegedly worked for a money laundering organization that laundered millions of dollars in proceeds related to the importation of illegal drugs into the United States, primarily through Mexico, and the unlawful distribution of these drugs. Tan, Chen, and their co-conspirators allegedly traveled throughout the United States to collect proceeds derived from trafficking in fentanyl and other drugs (or to cause them to be collected). They allegedly communicated and coordinated with co-conspirators in China and other foreign countries to arrange for the laundering of these proceeds through financial transactions that were designed to conceal the illicit source of the drug proceeds.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, the Sinaloa and Jalisco cartels are at the heart of the fentanyl crisis in the United States.
Tan and Chen are charged in separate criminal complaints with conspiring to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; and DEA Administrator Anne Milgram made the announcement.
The DEA’s Special Operations Division, Bilateral Investigations Unit is investigating the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in Chicago, Atlanta, and Charlotte, North Carolina.
Trial Attorney Mary K. Daly of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Edgardo J. Rodriguez for the Eastern District of Virginia are prosecuting the case, with assistance from the U.S. Attorneys’ Offices for the Northern District of Georgia and Northern District of Illinois.
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 www.justice.gov/OCDETF.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gynecologist, Two Pharmacists, and Others Sentenced for Operating Massive “Pill Mill” NetworkRead the Press Release
ATLANTA – Thirteen individuals, including an Atlanta-area gynecologist and two pharmacists, have now been sentenced for their roles in operating an Atlanta-area “pill mill” network that supplied addicts and drug dealers with large amounts of dangerous prescription drugs through illegal prescribing and dispensing.
“These individuals showed no regard for the safety and well-being of our community when illegally distributing prescription drugs,” said U.S. Attorney Ryan K. Buchanan. “We are resolute in our efforts to fight the opioid epidemic on all fronts, and licensed professionals who exploit and endanger the public with illicit drug operations for personal greed are no exception and will be held accountable.”
“Pharmaceutical products that are distributed for non-medical reasons can be just as deadly as illicit drugs,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division. “Dr. Mills distributed vast quantities of pharmaceutical products and had total disregard for human life. The moment he decided to illegally distribute drugs, he became nothing more than a drug trafficker.”
“As one of several members of the Organized Crime Drug Enforcement Task Forces, IRS Criminal Investigation is proud to work side-by-side with other law enforcement partners to combat organized crime,” said Demetrius Hardeman, CI Special Agent in Charge, Atlanta Field Office. “The sentence today signifies the end to an Atlanta area criminal operation. Criminal enterprises are on notice that their illegal activities will be investigated and forwarded to the U.S. Attorney’s Office for prosecution.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Anthony Mills was a medical doctor, licensed to practice medicine in the State of Georgia since 1997, whose specialty was listed with the medical board as "Gynecology.” Since at least October of 2018, Dr. Mills operated a pill mill out of his personal home where he issued hundreds of prescriptions for controlled substances (such as large quantities of oxycodone) to addicts and drug dealing sponsors in exchange for cash. Dr. Mills did not obtain prior medical records of his patients, conduct physical exams, or do anything to establish a valid patient-physician relationship. Instead, he often issued prescriptions in the names of individuals he never met or evaluated. Some of the prescriptions that Dr. Mills issued were in the names of individuals whose identities had been stolen or who were incarcerated or deceased at the time Dr. Mills wrote the prescriptions.
A large percentage of the illegitimate prescriptions were filled by licensed pharmacist Raphael Ogunsusi through his pharmacies, Evansmill Pharmacy and Retox Pharmacy located in Stonecrest and Conyers, respectively. Ogunsusi knew that Dr. Mills’ prescriptions were illegal, but he nonetheless filled those prescriptions.
Ogunsusi accepted large cash payments in exchange for filling these illegal prescriptions, including as much as $900 to fill just one prescription for oxycodone and $500 to fill one prescription for Percocet. Ogunsusi knew these prices were well over the market value for legitimate controlled substance prescriptions. To disguise the significantly inflated prices that he was charging, Ogunsusi falsified the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the prescriptions. Ogunsusi also required sponsors to purchase a battery of additional non-controlled substances, which he referred to as the “Shebang,” as a condition for filling illegal controlled substance prescriptions. The purpose of these non-controlled substances was to maximize his profits and to conceal that most of his customers only wanted to fill controlled substances at his pharmacies. Ogunsusi also directed his pharmacy employees, including another licensed pharmacist, to fill the illegal prescriptions.
In addition to Dr. Mills and Ogunsusi, numerous pill sponsors who obtained illegal prescriptions from Dr. Mills were charged and sentenced, with the most recent sentencing occurring on May 22, 2024. These sponsors obtained prescriptions from Dr. Mills and/or Ogunsusi and sold them to drug users.
U.S. District Judge William M. Ray, II sentenced the defendants in this case as follows:
- Anthony Mills, M.D., 57, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to 11 years in prison and three years of supervised release.
- Raphael Ogunsusi, RPh, 71, of Conyers, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and money laundering and was sentenced to nine years and seven months in prison and one year of supervised release.
- Moses Kirigwi, RPh, 32, of Atlanta, Georgia, pleaded guilty to using a telephone in connection with the unlawful dispensing and distribution of prescription controlled substances and was sentenced to 90 days in prison and one year of supervised release with the first three months served in home detention.
- Thomika Riley, 50, of McDonough, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to six years and six months in prison and three years of supervised release.
- Brittany Tinker, 30, of Stonecrest, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to six years and six months in prison and three years of supervised release.
- Natalie Jackson, 40, of East Point, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to four years and three months in prison and two years of supervised release.
- Rogerick Smith, 46, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to seven years and eight months in prison and three years of supervised release.
- Keandre Bates, 31, of Decatur, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to nine years and two months in prison and three years of supervised release.
- Jeana Alston, 43, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to three years and one month in prison and two years of supervised release.
- Chafulumisa Lisbon, 33, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to nine years and two months in prison and three years of supervised release.
- Javon Hamilton, 34, of Bluffton, South Carolina, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to nine years and two months in prison and three years of supervised release.
- Marcena Jordan, 30, of Albany, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to 10 years in prison and three years of supervised release.
- Travious Polain, 33, of Decatur, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to five years and 10 months in prison and three years of supervised release.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation. The Rockdale County Sherriff’s Office, Rockdale County District Attorney’s Office, DeKalb County Police Department, DeKalb County District Attorney’s Office, Richland County (South Carolina) Sheriff’s Department, Saluda County (South Carolina) Sheriff’s Office, Sandy Springs Police Department, Georgia Department of Community Supervision, and Georgia Drugs and Narcotics Agency also provided valuable assistance in this case.
Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam prosecuted the case.
This prosecution 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 by using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF.
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.
Man Sentenced for Laundering over $4.5M Obtained from Business Email Compromise and Romance Fraud SchemesRead the Press Release
ATLANTA - Malachi Mullings has been sentenced to 10 years in federal prison for laundering more than $4.5 million derived from romance fraud scams and business email compromise schemes, including a criminal conspiracy that defrauded a health care benefit program.
“Motivated by greed, Mullings and his co-conspirators brazenly stole millions of dollars from companies and elderly victims located throughout the United States,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to collaborate closely with our law enforcement partners to bring to justice those who perpetrate these frauds, including at the expense of elderly citizens especially vulnerable to these schemes.”
“Malachi Mullings used various schemes to fraudulently obtain money to feed his greed, and in some cases took advantage of the elderly to do it,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are skilled financial investigators who can unravel complex financial transactions and money laundering schemes criminals use to hide their ill-gotten money. We will also continue pursuing criminals who commit financial fraud on government programs, financial system, and the elderly.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2019 through July 2021, Mullings opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. Mullings used those accounts to launder millions of dollars of fraud proceeds generated by business email compromise (BEC) schemes targeting, among others, a health care benefit program and private companies, and romance fraud scams targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the funds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam perpetrated on an elderly victim, which Mullings used to purchase a Ferrari.
Malachi Mullings, 31, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Michael L. Brown to 10 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to victims. He pleaded guilty to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses on January 17, 2023.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, Office of the Inspector General.
Assistant U.S. Attorney Kelly K. Connors prosecuted the case, with Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section.
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.
Man Sentenced for Laundering over $4.5M Obtained from Business Email Compromise and Romance Fraud SchemesRead the Press Release
A Georgia man was sentenced today to 10 years in prison for laundering more than $4.5 million derived from business email compromise (BEC) schemes, including a scheme that defrauded a health care benefit program, and romance fraud schemes.
According to court documents and evidence presented at sentencing, Malachi Mullings, 31, of Sandy Springs, opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. From at least 2019 through July 2021, Mullings used those accounts to launder millions of dollars of fraud proceeds generated by BEC schemes targeting, among others, a health care benefit program and private companies, and romance fraud schemes targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the proceeds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam, which Mullings used to purchase a Ferrari.
Mullings pleaded guilty in January 2023 to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Kansas City Region; Special Agent in Charge Demetrius D. Hardeman of IRS Criminal Investigation (IRS-CI) Atlanta Field Office; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Eugene S. Kowel of the FBI Omaha Field Office made the announcement.
HHS-OIG, IRS-CI, and the FBI investigated the case.
Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Gainesville Man Charged with Distributing Fentanyl Resulting in Overdose DeathRead the Press Release
GAINESVILLE, Ga.- Bobby Joe Holloman has been arraigned on federal charges for distributing fentanyl and possessing a firearm as a convicted felon.
“Holloman’s alleged fentanyl distribution led to two overdoses, resulting in the death of one victim,” said U.S. Attorney Ryan K. Buchanan. “Fentanyl is an extremely potent drug that too often leads to overdosing or death when used in even miniscule amounts. We are committed to prosecuting those who callously peddle this dangerous drug in our communities.”
“Holloman plagued our communities with fentanyl, fueling the deadliest drug epidemic our country has ever seen, and for that he will be held accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This indictment demonstrates the FBI’s commitment to work diligently along with our partners to investigate and remove these dangerous drug dealers from our streets.”
“The dangers of fentanyl are more evident than ever as we see innocent lives being taken by this drug every day,” said Chris Hosey, Director, Georgia Bureau of Investigation. “This case is a warning to those who seek to ruthlessly poison our Georgia communities with deadly drugs such as fentanyl, that we will stand with our law enforcement partners to combat this issue and save lives. We will continue to investigate drug related cases and work to hold drug distributors and traffickers accountable for their actions.”
“I am grateful for the hard work of our local, state, and federal partners who have worked tirelessly to help remove dangerous drugs like fentanyl from our community,” said Jay Parrish, Chief of Police, Gainesville Police Department. “This case exemplifies how these partnerships work to make our city safer.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Bobby Joe Holloman allegedly sold fentanyl, which resulted in two victims suffering an overdose. One victim survived after paramedics used Narcan to revive him; however, the other victim died. About a month later, Holloman was on the scene during the investigation of another overdose death when a gun was found that belonged to him. At that time, Holloman had been previously convicted in February 2021, of the felony offense of possession with intent to distribute cocaine and a felon in possession of a firearm.
Bobby Joe Holloman, 50, of Gainesville, Georgia, was arraigned before U.S. Magistrate Judge J. Clay Fuller on May 13, 2024. He was indicted by a federal grand jury on May 7, 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, the Georgia Bureau of Investigation, and the Gainesville Police Department.
Assistant U.S. Attorney Jennifer Keen 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 Ryan K. Buchanan Recognizes National Police WeekRead the Press Release
ATLANTA – In honor of National Police Week, U.S. Attorney Ryan K. Buchanan recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 12, 2024, through Saturday, May 18, 2024.
“Every day, law enforcement officers selflessly risk their lives to help protect our families, friends, and neighbors, and all while facing unforeseen dangers,” said U.S. Attorney Ryan K. Buchanan. “We are grateful for the dedication and bravery of these men and women and their commitment to public safety.”
In 1962, U.S. President John F. Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. The National Law Enforcement Officer Memorial Fund’s preliminary report indicates that 136 law enforcement officers died in the line of duty in 2023.
During National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. Here in the Northern District of Georgia we also solemnly commemorate the five officers who tragically died in the line of duty within the past year:
- Sergeant Marc Andrew McIntyre, Spalding County Sheriff's Office, End of Watch: December 29, 2023
- Officer Kenya D. Galloway, Atlanta Police Department, End of Watch: January 4, 2024
- Deputy Sheriff Eric A. Minix, Coweta County Sheriff's Office, End of Watch: January 4, 2024
- Trooper Jimmy Cenescar, Georgia State Patrol, End of Watch: January 28, 2024
- Trooper First Class Chase Winston Redner, Georgia State Patrol, End of Watch: February 20, 2024
Each year, the National Law Enforcement Officer Memorial Fund in Washington, D.C. also hosts an Annual Candlelight Vigil to memorialize those who sacrificed their lives. The names of hundreds of officers killed in the line of duty are engraved on the walls of the Memorial and their names will be read aloud during the 36th Annual Candlelight Vigil being held tonight, Monday, May 13, 2024, at 8:00 p.m. Eastern Time. The Candlelight Vigil will be livestreamed on YouTube, Facebook, and Twitter.
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 Diversity Program Manager at Facebook and Nike Sentenced to Federal Prison for $5 Million FraudRead the Press Release
ATLANTA - Barbara Furlow-Smiles, a former diversity program manager at Facebook and Nike, has been sentenced for stealing more than $5 million based on an elaborate scheme involving fraudulent vendors, fictitious paperwork, and cash kickbacks.
“Furlow-Smiles shamelessly violated her position of trust as a DEI executive at Facebook to steal millions from the company utilizing a scheme involving fraudulent vendors, fake invoices, and cash kickbacks,” said U.S. Attorney Ryan K. Buchanan. “After being terminated from Facebook, she brazenly continued the fraud as a DEI leader at Nike, where she stole another six-figure sum from their diversity program. Her prison sentence reflects the consequences of her decision to orchestrate an intricate scheme to defraud two of her employers for personal profit.”
“As Lead Strategist at Facebook, Furlow-Smiles’ employer put an extreme amount of trust in her, only to have that trust completely violated,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “After she was fired, she carelessly continued her fraudulent schemes at Nike, thinking she was untouchable. As a result, she not only threw away a lucrative career, but will serve time behind bars for her excessive greed.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Barbara Furlow-Smiles served as Lead Strategist, Global Head of Employee Resource Groups and Diversity Engagement at Facebook, Inc., now known as Meta Platforms, Inc., doing business as Meta. From January 2017 to September 2021, she led Diversity, Equity, and Inclusion (DEI) programs at Facebook and was responsible for developing and executing DEI initiatives, operations, and engagement programs. In her position, Furlow-Smiles had access to company credit cards. She also had the authority to submit purchase requisitions and approve invoices for authorized vendors of Facebook.
Furlow-Smiles used her position at Facebook to cheat and defraud the company. She caused Facebook to pay numerous individuals for goods and services that were never provided and then directed those individuals to kick back the fraudulent proceeds to her, often in cash. Her scheme operated in two ways.
First, Furlow-Smiles linked PayPal, Venmo, and Cash App accounts to her Facebook credit cards and used those accounts to pay friends, relatives, and other associates for goods and services that in truth were never provided to Facebook. To conceal the bogus charges, Furlow-Smiles submitted fraudulent expense reports, falsely claiming that her associates or their businesses had performed work on programs and events for Facebook, such as providing swag or marketing services, when in fact they had not done so.
After these individuals received the payments from Facebook, they returned the vast majority of the money to Furlow-Smiles. They paid these kickbacks in cash and through account transfers to others, including her husband. They paid the cash kickbacks in person and by Federal Express or mail, sometimes wrapping the cash in other items, such as T-shirts. Furlow-Smiles also directed associates to pay one another, or others to whom she owed money, to conceal her involvement in the scheme.
Second, Furlow-Smiles caused Facebook to onboard several vendors that were owned and operated by friends and associates who paid her kickbacks. Furlow-Smiles approved fraudulent invoices for these vendors. After Facebook paid the invoices, Furlow-Smiles directed the vendors to return a portion of the money they received to her.
Furlow-Smiles recruited numerous individuals to participate in the scheme. These individuals included friends, relatives, former interns from a prior job, nannies and babysitters, a hair stylist, and her university tutor. She also caused Facebook to make payments for her benefit to others who did not pay kickbacks. For example, Furlow-Smiles caused Facebook to pay nearly $10,000 to an artist for specialty portraits and more than $18,000 to a preschool for tuition.
After Furlow-Smiles was terminated from Facebook, she worked for Nike from November 2021 to February 2023, serving as Senior Director of Diversity, Equity & Inclusion. In that position, she was responsible for supporting DEI initiatives, developing strategies, and hosting DEI events. She was primarily responsible for a Juneteenth event in New York during her time at Nike.
As she had done at Facebook, Furlow-Smiles circumvented the vendor process at Nike to commit fraud. She linked her Nike corporate card to her PayPal and Venmo accounts. She then paid her associates with PayPal and Venmo, causing fraudulent charges to her Nike card. The associates kicked back portions of the payments to Furlow-Smiles, who submitted fraudulent expense reports to Nike to cover her tracks. The expense reports falsely claimed that the payments were related to the Juneteenth event.
In total, Furlow-Smiles stole more than $4.9 million from Facebook and over $120,000 from Nike based on fictitious charges and fraudulent invoices. She used the money to fund a luxury lifestyle in California, Georgia, and Oregon.
Barbara Furlow-Smiles, 38, of Marietta, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to five years, three months in prison to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $4,981,783.58 to Facebook and $121,054.50 to Nike, for a total of $5,102,838.08. Furlow-Smiles was convicted of wire fraud on December 11, 2023, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Stephen H. McClain and Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Duluth Man Convicted of Methamphetamine Trafficking Following a Jury TrialRead the Press Release
ATLANTA - Jorge Rodriguez Martinez was found guilty by a federal jury for his role in a scheme to distribute multiple kilograms of methamphetamine in the metro-Atlanta area. Martinez was charged with one count of conspiracy to possess methamphetamine with the intent to distribute, and one count of possessing methamphetamine with the intent to distribute. Rodriguez Martinez was convicted on both counts following a three-day trial.
“Methamphetamine trafficking funnels poison into our communities,” said U.S. Attorney Ryan K. Buchanan. “This defendant’s conviction sends a strong warning to others that those who peddle dangerous drugs will be held accountable for their conduct.”
“The investigation and subsequent conviction of this criminal drug dealer demonstrates the DEA’s commitment to fight the drug cartels who have no regard for the citizens of our community,” 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: On October 7, 2020, a confidential source (“CS”) working with agents from the DEA, placed multiple recorded phone calls to Rodriguez Martinez to purchase several kilograms of methamphetamine. After the phone calls, Rodriguez Martinez, who was being surveilled by federal law enforcement agents, travelled to a location in the metro-Atlanta area to meet with a drug supplier at a Dunwoody apartment complex. Rodriguez Martinez traveled to the CS’s residence where he dropped off his truck containing multiple kilograms of methamphetamine, switched vehicles, then drove away.
The CS placed additional recorded phone calls to Rodriguez Martinez, during which Rodriguez Martinez confirmed that the drugs were in the truck and agreed to return to the CS’s residence to pick up the drugs. Rodriguez Martinez next travelled to the CS’s residence, picked up the methamphetamine, and quickly departed. Shortly thereafter, the Georgia State Patrol stopped Rodriguez Martinez’s vehicle and located approximately three kilograms of methamphetamine on the front passenger floorboard.
Jorge Rodriguez Martinez, 56, of Duluth, Georgia, is scheduled to be sentenced on July 29, 2024, at 2:30 p.m. before U.S. District Judge Steve C. Jones. Rodriguez Martinez was found guilty by a federal jury on April 25, 2024.
This case is being investigated by the Drug Enforcement Administration.
Special Assistant U.S. Attorney McClellon D. Cox, III, and Assistant U.S. Attorney Sandra E. Strippoli are prosecuting the case. This case was previously prosecuted by Special Assistant U.S. Attorney Rachel S. Lyons.
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.
Settlement of Race Discrimination Lawsuit Against Cobb County Fire Department ReachedRead the Press Release
ATLANTA - A settlement has been reached with Cobb County, Georgia, through a consent decree, resolving the United States’ claims that Cobb County’s use of certain screening devices in its hiring process for entry-level firefighters resulted in a pattern or practice of discrimination against African Americans in violation of Title VII of the Civil Rights Act of 1964.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin, and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact upon a protected group unless the defendant can prove that such practices are job-related and consistent with business necessity.
“Every person, regardless of race, deserves an equal opportunity to compete for jobs. Employers should identify and eliminate policies and procedures that create a discriminatory impact on applicants based on race,” said U.S. Attorney Ryan K. Buchanan. “Our office will continue to devote resources to eliminate prejudicial policies that illegally deprive qualified candidates of a fair chance to compete for employment opportunities.”
“This settlement should send a strong message to employers that reliance on a job applicant’s credit history may be discriminatory and unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Consumer credit checks create a Catch-22 for people seeking access to job opportunities. Cobb County’s hiring practices created artificial barriers that prevented qualified Black job candidates from being considered for firefighter positions. Discriminatory barriers, like credit checks, not only cost candidates a fair chance at a job, they also prevent the public from being served by firefighters drawn from the most robust hiring pool possible.”
The lawsuit, filed in the Northern District of Georgia, alleges that the County engaged in discrimination with two parts of its entry-level firefighter hiring process. The United States’ lawsuit challenges the County’s use of a credit check to screen out firefighter candidates based on the County’s review of their credit histories. The lawsuit also challenges the County’s past use of a written examination designed to determine placement level in college classes as a method for ranking candidates to move forward in the firefighter hiring process. The County’s use of these employment practices disproportionately removed qualified African Americans from consideration for a firefighter position. The complaint further alleges that the credit check and the use of the written exam to rank applicants do not lawfully identify the best qualified candidates for the firefighter position.
Under the terms of the consent decree, which is subject to court approval, Cobb County will no longer use a credit check as part of its firefighter selection process, nor will it resume using the written exam as a rank-order selection device. The County will pay $750,000 in back pay to eligible African Americans who were denied employment because of the challenged employment practices, and will make up to 16 priority hires, with retroactive seniority, from the group of applicants disqualified by the challenged practices.
The U.S. Attorney’s Office for the Northern District of Georgia brought this case in collaboration with the Department of Justice’s (DOJ) Civil Rights Division’s Employment Litigation Section. The case was brought by Aileen Bell Hughes, Deputy Chief of the Public Integrity and Civil Rights Section, and DOJ Employment Litigation Section attorneys Brian McEntire and Juliet Gray.
Ensuring that local, county, and state governments comply with Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office, Northern District of Georgia. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
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.
Parcel Interdiction Operation Results in Multiple Seizures of Drugs and GunsRead the Press Release
ATLANTA – The U.S. Attorney for the Northern District of Georgia is pleased to announce the results of a coordinated multi-agency, two-week parcel interdiction operation that resulted in the seizure of illegal drugs and firearms being shipped through the district.
“We are relentless in our efforts to identify, disrupt, and prosecute those who use the U.S. Mail to traffic illegal drugs and firearms,” said U.S. Attorney Ryan K. Buchanan. “Our continued collaboration with federal, state, and local law enforcement partners is a priority crucial to curtailing the illegal flow of drugs and weapons into our communities. Those contemplating illegal shipments of such contraband should be aware of the serious consequences of committing this crime.”
“The U.S. Postal Inspection Service seeks to identify, disrupt, and dismantle drug trafficking organizations that attempt to illegally utilize the mail system,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “I commend the hard work and countless hours put forth by all of our law enforcement partners to coordinate resources to combat illicit drug activity.”
During a two-week period in March 2024, a team of federal, state, and local law enforcement agencies conducted an operation targeting suspicious parcels in the mail stream. This coordinated effort, by the U.S. Attorney’s Office and multiple District Attorneys’ Offices, federal, state, and local law enforcement agencies, resulted in the seizures of fentanyl, methamphetamine, cocaine, psilocybin (mushrooms), oxycodone, Xanax, steroids, marijuana, numerous firearms, and large amounts of currency suspected of being related to narcotics trafficking. To date, the operation has resulted in the arrests of four individuals for drug trafficking offenses.
The parcel interdiction team included the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, Customs and Border Protection, Homeland Security Investigations, the Georgia Bureau of Investigation, West Metro Regional Drug Enforcement Office, Bartow-Cartersville Drug Task Force, Bartow County Sheriff’s Office, Calhoun Police Department, Carroll County Sheriff’s Office, Haralson County Sheriff’s Office, Polk County Sheriff’s Office, Rome/Floyd Metro Drug Task Force, Sandy Springs Police Department, and the Atlanta-Carolinas HIDTA. The Cherokee Judicial Circuit District Attorney’s Office, the Tallapoosa Judicial Circuit District Attorney’s Office, and the Coweta Judicial Circuit District Attorney’s Office also provided invaluable support to the operation and subsequent investigations.
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.
Justice Department Secures Agreement with Cobb County, Georgia, to Resolve Allegations of Race Discrimination in Firefighter Hiring ProcessRead the Press Release
The Justice Department has secured an agreement with Cobb County, Georgia, resolving the United States’ claim that the County violated Title VII of the Civil Rights Act (Title VII) by using credit checks and a written exam that discriminated against African American firefighter candidates based on race. Cobb County has stopped using the challenged hiring practices and will pay $750,000 in back pay to applicants disqualified by those practices. The County will also hire up to 16 of those applicants with retroactive seniority.
“This settlement should send a strong message to employers that reliance on a job applicant’s credit history may be discriminatory and unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Consumer credit checks create a Catch-22 for people seeking access to job opportunities. Cobb County’s hiring practices created artificial barriers that prevented qualified Black job candidates from being considered for firefighter positions. Discriminatory barriers, like credit checks, not only cost candidates a fair chance at a job, they also prevent the public from being served by firefighters drawn from the most robust hiring pool possible.”
“Every person, regardless of race, deserves an equal opportunity to compete for jobs. Employers should identify and eliminate policies and procedures that create a discriminatory impact on applicants based on race,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Our office will continue to devote resources to eliminate prejudicial policies that illegally deprive qualified candidates of a fair chance to compete for employment opportunities.”
The department’s lawsuit, filed in the Northern District of Georgia, alleges that Cobb County discriminated in its firefighter hiring process in two ways. First, by screening out candidates based on their credit histories. Many employers use credit checks when screening applicants based on a mistaken assumption that credit history is a measure of character or job fitness. As the department alleges, Cobb County could not establish a connection between credit history and job performance or character and thus did not have a lawful reason for using credit history as part of its hiring process. Second, Cobb County ranked candidates based on their performance on a written examination designed to determine placement level in college classes. The department alleges that these practices disproportionately removed African Americans from consideration for firefighter positions without providing any evidence that candidates who advanced based on these practices were more qualified to serve as firefighters.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin, and religion. Title VII prohibits not only intentional discrimination but also prohibits employment practices that result in a disparate impact upon a protected group, unless such practices are job related and consistent with business necessity.
The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. More information about the Civil Rights Division can be found at www.justice.gov/crt and more information about the division’s Employment Litigation Section can be found at www.justice.gov/crt/employment-litigation-section.
Attorneys Brian McEntire and Juliet Gray of the Civil Rights Division’s Employment Litigation Section and Deputy Chief Aileen Bell Hughes for the Northern District of Georgia’s Public Integrity & Civil Rights Section are handling the matter.
U.S. Attorney’s Office and Georgia Department of Public Health to Host Opioid Prevention and Recovery FairRead the Press Release
ROME, Ga. – The U.S. Attorney’s Office for the Northern District of Georgia, and the Georgia Department of Public Health Northwest Health District, will 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 free, family-friendly event, “Spring Into Wellness: An Opioid Prevention and Recovery Community Resource Fair,” takes place on Tuesday, May 14, 2024, from 4 p.m. to 7 p.m., at the Champions Center at LakePoint Sports, 261 Stars Way, Emmerson, Georgia. Anyone wishing to attend may register at https://shorturl.at/gmJS4, but registration is not required.
“The opioid epidemic continues to bring immeasurable destruction to communities and devastation to families who have endured the tragic loss of a loved one,” said U.S. Attorney Ryan K. Buchanan. “Our office is resolute in our commitment to engage with federal, state, and local law enforcement partners to investigate and prosecute those who threaten our communities with poisons, as well as with our community partners to promote public health and safety and spread awareness of resources for those struggling with substance abuse.”
“Opioid overdose deaths are preventable,” says Dr. Gary Voccio, Health Director for the ten-county Northwest Health District. “The best way to prevent them is to continue to improve opioid prescribing to reduce exposure to opioids, prevent abuse, and stop addiction. Resources at this community event can help accomplish this.”
Concerns about Bartow County’s 32 opioid deaths in 2022 (the most recent annual data available) and the county’s 29.9 age-adjusted opioid death rate – compared to just 18.6 for the state of Georgia – led the organizers of this community event to prioritize this public gathering of stakeholders and concerned citizens. Local public health officials have also noted recent, alarming nationwide increases in illicit fentanyl exposures in children younger than six years old as cause for critical concern.
The event organizers have outlined several goals: (1) to increase community awareness of and access to prevention and recovery resources; (2) to share inspirational stories from local community members who have overcome opioid-misuse disorder; and (3) to learn about fentanyl overdose-prevention strategies for youth and families. Organizers expect several dozen opioid-overdose prevention resources to participate and provide information to the public.
U.S. Attorney Buchanan, Dr. Voccio, and several Bartow County officials will also welcome attendees and speak briefly at the event.
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.
Man Indicted for Threatening Fulton County District AttorneyRead the Press Release
ATLANTA – Marc Shultz has been indicted by a federal grand jury in Atlanta on charges of transmitting interstate threats to injure Fulton County District Attorney Fani Willis because of her prosecution of Former President Donald Trump. Shultz made his initial appearance in federal court in San Diego, California on May 2, 2024, and will be formally arraigned in Atlanta in June.
“Sending death threats to a public official is a criminal offense that will not be tolerated,” said U.S. Attorney Ryan K. Buchanan. “Our office will continue to diligently coordinate with our federal, state, and local law enforcement partners to help protect public officials while performing their duties and who deserve to do so free from threats of harm and intimidation.”
“Threats against any individual, credible or not, is a very serious crime that the FBI will not tolerate,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Threats of violence against government officials, specifically, threaten the very fabric of our democracy. We want everyone to know that if you engage in such behavior, you will be held accountable to the fullest extent of the law.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On October 4, 2023, and again on October 5, 2023, Shultz allegedly posted multiple comments to two separate YouTube live stream videos. His comments threatened District Attorney Willis with violence and murder including a statement that she “will be killed like a dog.”
Marc Shultz, 66, of Chula Vista, California was indicted by a federal grand jury on April 24, 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.
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.
Cartersville Man Pleads Guilty to Producing Child PornographyRead the Press Release
ROME, Ga. – Ian Alicea Prewett has pleaded guilty to sexual exploitation of a child. In connection with his guilty plea, Prewett admitted he engaged in sex acts with minors under the age of 18 and enticed a child under the age of eight to produce sexually explicit images.
"Prewett preyed upon innocent children by enticing them to send him sexually explicit images and then victimized two minors, including during an out-of-state trip, by sexually assaulting those children,” said U.S. Attorney Ryan K. Buchanan. “This office remains steadfast in our commitment to work with our law enforcement partners to uncover and prosecute child sexual predators attempting to lurk behind the anonymity of the internet.”
“Due to the dedication of our special agents and law enforcement partners, Prewett is no longer able to victimize children within our communities,” said Anthony J. Patrone, Acting Special Agent in Charge of HSI Atlanta that covers Georgia and Alabama. “HSI will continue to seek justice for victims and hold child predators accountable.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On various dates between 2020 and 2022, Ian Alicea Prewett uploaded sexually explicit digital images of minors to Instagram. While he tried to conceal his online identity, in May 2023, federal agents identified him as the individual who uploaded the images and obtained a warrant to search his home. During the search, agents discovered a cell phone associated with the Instagram accounts that Prewett used to distribute child pornography.
Additionally, at the time agents executed the search warrant, Prewett was awaiting trial in Cobb County, Georgia, for statutory rape, child molestation, and child enticement. Those charges resulted from Prewett chatting with a 14-year-old girl on Instagram, asking her to send him sexually explicit photographs of herself, meeting her at her school bus stop, engaging in sexual intercourse with her, and then dropping her off at her school.
Prior to his arrest in May 2023, Prewett used social media to entice numerous minors to create sexually explicit material and engage in sexual acts. One of his victims was a minor under eight years old living in the United Kingdom. Prewett directed her to send him pictures and videos of herself performing sexual acts. Prewett also instructed a minor from Mobile, Alabama to do the same. Prewett later traveled to Alabama to meet, photograph, and engage in sex acts with the minor.
Sentencing for Ian Alicea Prewett, 30, of Cartersville, Georgia, is scheduled for September 3, 2024, at 3:00 p.m. before U.S. District Judge William M. Ray, II in Rome, Georgia.
This case is being investigated by Homeland Security Investigations with assistance from the Cobb County Police Department, Bartow County Sheriff’s Office, Georgia Bureau of Investigation, and Wiltshire Police (United Kingdom).
Assistant U.S. Attorneys Theodore S. Hertzberg and Calvin A. Leipold, III are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. 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.
Four Defendants in Firearms Trafficking Ring SentencedRead the Press Release
ATLANTA – A firearms trafficking ring has been dismantled and four people have been sentenced to years in prison for conspiring to buy guns in the metro Atlanta area that were later smuggled to the Dominican Republic.
“Firearms traffickers present an immediate danger to communities within and outside our district,” said U.S. Attorney Ryan K. Buchanan. “We are committed to working with our federal, state, local, and international partners to disrupt the illegal flow of firearms by identifying and prosecuting those who illegally purchase and traffic these weapons.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice,” said Assistant Special Agent in Charge Alicia Jones, Atlanta Field Division. “This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results.”
“These defendants took steps to disguise dozens of illegally acquired firearms using everyday household items further hidden in shipping containers. Proactive and collaborative law enforcement played a vital role in thwarting the illicit trafficking of deadly weapons both in the United States and overseas,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “I commend HSI New York’s Border Enforcement Security Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Attorney’s Office for the Northern District of Georgia for their unwavering commitment to the public’s safety.”
“These sentences were made possible through close coordination between our federal, local, and international law enforcement partners,” said Special Agent Edwin Lopez, Homeland Security Investigations Attaché, U.S. Embassy, Santo Domingo. “Our thanks especially goes out to the Dominican Republic’s Transnational Criminal Investigative Unit (TCIU) which contributed significantly to the final outcome of this investigation.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In 2021, Jonathan Hiraldo Abreu contacted Cornel Rashard Miley to inquire about a firearm Miley advertised for sale. Hiraldo Abreu met Miley in Georgia to purchase the gun. Miley then agreed that he and his wife, Charqweshia Sierra Miley, would acquire additional firearms for Hiraldo Abreu in exchange for a premium paid for each gun. To obtain the additional guns, the Mileys repeatedly deceived licensed firearms dealers by falsely certifying at the point of sale that they were purchasing the firearms. In fact, Hiraldo Abreu was the actual purchaser who provided the money to the Mileys and told them which guns to buy. Within less than seven months, the Mileys purchased at least 73 firearms for Hiraldo Abreu, all of which were Glock 9 mm semiautomatic pistols.
Hiraldo Abreu traveled from Pennsylvania to Georgia in November 2021, December 2021, February 2022, and April 2022 to pick up guns from the Mileys. In June 2022, Hiraldo Abreu recruited his cousin, Jose Munoz, who was living in Rhode Island, to manage the gun purchases in his place. Munoz met Hiraldo Abreu in Pennsylvania, traveled to Georgia, directed the Mileys’ purchase of 22 firearms, and then returned to Hiraldo Abreu’s home. Within approximately three weeks, nine of the firearms that the Mileys purchased under Munoz’s supervision were recovered during an x-ray inspection of a shipping container in Santo Domingo, Dominican Republic. The guns had been stashed inside the container with various household goods without having been declared or approved for export.
Although the Mileys were Georgia residents when they bought guns for Hiraldo Abreu between November 2021 and April 2022, they relocated to Arizona in June 2022. Hiraldo Abreu paid the Mileys to fly back to Georgia so they could falsely claim Georgia residency and buy more guns for him in July 2022. After returning to Arizona, the Mileys were arrested when officers observed them operating a vehicle with a fictitious license plate. The Mileys were armed, and a search of their vehicle uncovered more than 3,200 rounds of ammunition, nearly three dozen handgun magazines, and body armor.
After the defendants pleaded guilty to conspiracy to make a false statement to a federally licensed firearms dealer in connection with the acquisition of a firearm, U.S. District Judge Sarah E. Geraghty sentenced them as follows:
- Jonathan Hiraldo Abreu, 31, of Reading, Pennsylvania, was sentenced to four years, two months in prison to be followed by two years of supervised release.
- Charqweshia Sierra Miley, 33, of Lithonia, Georgia and Golden Valley, Arizona, was sentenced to two years, three months in prison to be followed by two years of supervised release.
- Cornel Rashard Miley, 31, of Lithonia, Georgia and Golden Valley, Arizona, was sentenced to two years, three months in prison to be followed by two years of supervised release.
- Jose Munoz, 21, of Cranston, Rhode Island, was sentenced to one year and one month in prison to be followed by two years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations with assistance from the New York City Police Department, the Department of Commerce Bureau of Industry and Security, and the Dominican Republic’s customs authority, Dirección General de Aduanas.
Assistant U.S. Attorney Theodore S. Hertzberg 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.
Investment Professional Indicted on Multi-Million-Dollar Investment Fraud SchemeRead the Press Release
ATLANTA – Craig Allen, executive officer of C.M. Allen Capital Management, Inc., has been indicted on charges arising from a multi-million-dollar fraud scheme that defrauded investors across the United States.
“Allen abused his clients’ trust by allegedly stealing millions of dollars to support his lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “The defendant deceived and falsified documents to conceal his thefts to provide his investors with a false sense of financial security. We will continue to prosecute individuals who cheat investors out of their hard-earned money.”
“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 Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is hopeful that Allen’s indictment will send a strong message to anyone who would try to take advantage of unsuspecting investors for their own personal greed.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Allen, the sole shareholder and executive officer of C.M. Allen Capital Management, Inc., allegedly defrauded dozens of investors across the country through his management of the Cheetah Fund. Around February 2019, prospective investors received documents that reported Cheetah achieved annual investment returns as high as seventy-three percent.
Once invested in Cheetah, clients received fraudulent monthly account statements showing false investment gains, and tax documents reporting the false gains. Allen allegedly misled investors to believe the tax forms were prepared by Cheetah’s purported auditor at an accounting firm. But the Fund did not employ an auditor and Allen reported gains when the Fund continuously lost money. In addition to these misrepresentations, Allen used money from new investors to repay prior investors, and to fund his lifestyle. Cheetah investors lost more than $7 million because of Allen’s investment fraud scheme.
Craig Murfee Allen, 53, of Atlanta, Georgia, was indicted by a federal grand jury on February 23, 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. The U.S. Securities and Exchange Commission (SEC) also provided valuable assistance. The SEC has filed a separate civil case, SEC v. Craig Allen, Case Number 1:24-cv-01771-SDG.
Assistant U.S. Attorneys Natasha Cooper and Christopher J. Huber 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.
Dog Broker Sentenced to Federal Prison for Filing False Tax ReturnsRead the Press Release
ATLANTA - Justin Daniels has been sentenced for filing false tax returns in connection with his dog-brokering business. Daniels falsely underreported over $1 million in income between 2015 and 2018.
“Rather than pay his fair share of taxes, Daniels spent years submitting fraudulent returns in the name of personal greed,” said U.S. Attorney Ryan K. Buchanan. “This office will continue to work with our law enforcement partners to pursue and prosecute those who exploit our tax system at the expense of law-abiding taxpayers.”
“Justin Daniels’ sentence is an example of what people who willfully fail to report all their income can expect as the outcome of their crime,” said Lisa Fontanette, Assistant Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation will continue investigating and holding accountable individuals who intentionally conceal income and evade taxes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Since 2006, Daniels had earned a living as a dog broker selling Yorkie, Morkie, and Shi-Tzu puppies. Although Daniels’s customers believed he was selling the puppies directly, the puppies were being raised by breeders in Kentucky and Tennessee. This dog brokering business was lucrative and the cost of the puppies ranged from $800 to $1,200. Between 2015 and 2018, Daniels received and deposited more than $2.3 million into personal checking accounts. Daniels significantly underreported his income on his taxes. Based on information that Daniels provided to his tax preparer, Daniels underreported $1,186,830 in gross receipts during the years 2015 to 2018, resulting in additional tax due of $258,265. At the same time, Daniels was submitting false information on his tax returns and representing to private lenders that he made substantially more money to obtain loans.
Justin Daniels, 48, of Marietta, Georgia, was sentenced to one year, two months in prison to be followed by one year of supervised release on April 22, 2024. He was also ordered to pay restitution in the amount of $258,265. Daniels was convicted on these charges on December 5, 2023, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney David A. O’Neal and former Assistant U.S. Attorney Thomas Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office Hosts HBCU Regional ForumRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia recently partnered with the Department of Justice to host the inaugural Historically Black Colleges and Universities (HBCU) Regional Forum at Clark Atlanta University in Atlanta, Georgia. The Regional Forum introduced HBCU students, faculty, and staff to the Department’s diverse range of programs and initiatives.
“Historically Black Colleges and Universities provide students with an environment for achieving academic excellence as well as the skills to serve as future leaders in their communities, in our office, and in the Department of Justice,” said U.S. Attorney Ryan K. Buchanan. “We were honored to join with other federal agencies, and local officials and partners, to promote professional opportunities and development available to HBCU students through career paths with the U.S. Attorney’s Office and the Department of Justice.”
The forum was held on April 18 and 19, 2024 and featured plenary and breakout sessions that showcased the wide array of resources, partnerships, and funding opportunities available from the Department. These sessions included:
- A discussion between U.S. Attorney Buchanan and Dr. George French Jr., President of Clark Atlanta University, about the role of HBCUs in advancing justice and equity.
- A conversation between U.S. Attorney Buchanan, Assistant U.S. Attorney Brent Gray, and Officer Brandon White of the Chamblee Police Department. Officer White was the victim of a hate crime in 2012 and spoke about how he had been beaten and verbally abused outside an Atlanta convenience store. His case resulted in criminal prosecution of his attackers by the U.S. Attorney’s Office and was one of the first successful prosecutions under the federal hate crimes statute based on sexual orientation. Officer White also discussed how this experience led him to pursue a career in law enforcement.
- A presentation by Acting Director of the Department of Justice Community Relations Service, Justin Lock, and Assistant U.S. Attorneys Marissa Fallica and Rahul Garabadu about the Department’s United Against Hate community outreach program, which connects federal, state, and local law enforcement with local communities to combat unlawful acts of hate.
During the two-day event, members of the HBCU community also heard from other components of the Department of Justice including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, the Federal Bureau of Prisons, Environmental and Natural Resources Division, the Civil Rights Division, the Criminal Division, the Justice Management Division, the Office of Justice Programs, the Office on Violence Against Women, the Office of Community Oriented Policing Services, the Office of Attorney Recruitment & Management, and the Office for Victims of Crime. Representatives from the U.S. Probation and Pretrial Services, the Federal Air Marshal Service, and the White House Initiative on HBCUs also made presentations. The presenters provided students with information about their work, and strategies on how students could pursue careers in federal law enforcement.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Arrested for Crashing into FBI GateRead the Press Release
ATLANTA - Erving Lee Bolling, 48, of Easley, South Carolina, had his initial appearance on April 3, 2024, on the federal charge of depredation of federal property after he attempted on April 1, 2024, to breach security at the FBI Atlanta’s Headquarters in Chamblee, Georgia by ramming his vehicle into a security barrier.
“The safety of our law enforcement partners is one of the highest priorities of this office,” said U.S. Attorney Ryan K. Buchanan. “Bolling’s alleged damage to federal property during his attempt to unlawfully enter a federal facility created a risk of safety to federal agents and staff that cannot be tolerated.”
“The safety of our employees is of paramount concern for us at the FBI, and any attempts to breach our facility will be met with stiff penalties,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to agents’ diligence and quick-thinking, the incident was prevented from escalating into a more dangerous situation, and for that we are grateful. We will continue to do everything in our power to ensure the continued safety of our employees.”
According to U.S. Attorney Buchanan, the charge, and other information presented in court: On April 1, 2024, Bolling, driving an orange Buick Encore, allegedly rammed into a barrier at FBI Atlanta’s headquarters while attempting to breach the perimeter. After crashing into a barrier, Bolling exited the vehicle and allegedly attempted to follow an FBI employee into the secure parking lot area by walking past the gate. Bolling was immediately taken into custody by FBI agents. Dekalb County Police Department officers and EMS then responded to the scene. Bolling was ultimately transported to the hospital for medical care and evaluation.
Members of the public are reminded that the complaint only contains an allegation. The defendant is presumed innocent of the charge and it will be the government’s burden to seek an indictment before a federal grand jury and to ultimately prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Katherine I. Terry 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.
Former Office Manager Sentenced to Federal Prison for Embezzling over $8.5 MillionRead the Press Release
ATLANTA – Sonya Hesenius, a former office manager and executive assistant for a company in Alpharetta, Georgia, has been sentenced to federal prison for embezzling more than $8.5 million between 2015 and 2020.
“Hesenius will now be held accountable for her flagrant theft of millions of dollars from her employer to support a lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Hesenius was entrusted with handling the financial responsibilities for the company where she worked. But she chose to steal from the company, blatantly using company funds to pay for expensive, overseas vacations for herself and family members, plastic surgery, shopping binges at exclusive retail stores, and other exorbitant purchases.”
“Hesenius worked in a position of trust for a company that expected her to honor that trust,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Instead, she chose to abuse it and her personal greed not only hurt the company, but everyone who worked for them. This sentence should send the message that the FBI takes wire fraud extremely seriously and will work to hold offenders accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between 2015 and 2020, Sonya Hesenius was employed as an office manager and executive assistant at a company in Alpharetta, Georgia that provides third-party yard management services. During her employment, Hesenius made fraudulent charges on corporate credit cards and caused the company to reimburse her personal credit card for personal expenses. To conceal her scheme, she coded and approved all the charges herself, withheld supporting documentation from the company, and disguised the unauthorized expenditures in the company’s accounting system as legitimate expenses such as newspaper advertisements. Hesenius further spread the expenditures among different job sites to further conceal the fraud.
Hesenius used the fraudulently obtained funds to live a lavish lifestyle, resulting in staggering losses to her employer. Her fraudulent activities included company expenditures for: (1) more than $172,000 on her daughter’s wedding; (2) more than $600,000 at Saks Fifth Avenue on items such as designer handbags; (3) over $460,000 for herself, family members, and friends to travel all over the world; (4) flying herself and her family on private jets to vacations in France, Greece, Hawaii, and Turks and Caicos, totaling more than $145,000; (5) tickets to attend University of Tennessee sporting events, the Kentucky Derby, the Masters, the Stanley Cup Finals, and various concerts, totaling more than $238,000; (6) a recreational vehicle costing more than $100,000, using $40,000 of company money as a down payment; (7) hundreds of thousands of dollars on high-end furniture; (8) plastic surgery and dental expenses; and (9) conversions of company funds into cash through over $1 million in PayPal, Venmo, and Square transfers to herself and family members. In total, Hesenius embezzled $8,614,729.37 over the course of the fraud scheme.
Sonya Hesenius, 60, of St. Petersburg, Florida, was sentenced by U.S District Judge Victoria M. Calvert to six years in prison to be followed by three years of supervised release. Hesenius was also ordered to pay restitution in the amount of $8,614,729.37. Hesenius was convicted on these charges on November 29, 2023, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney David A. O’Neal 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.
City of Atlanta’s Former Chief Financial Officer Pleads Guilty to Federal Program Theft and Tax ObstructionRead the Press Release
The City of Atlanta’s former chief financial officer (CFO) pleaded guilty today to federal program theft and to obstructing an IRS audit.
According to court documents, from 2011 to 2018, Jimmie Anthony “Jim” Beard, 60, of Fort Lauderdale, Florida, oversaw the City of Atlanta’s Department of Finance, in which his primary responsibility was to manage the city’s financial condition. At least as early as 2015, Beard devised and executed a scheme to use his authority as CFO to obtain money and property from Atlanta for his own use, including to pay for thousands of dollars in personal travel expenses for himself, his family, and his travel companions, and to buy and possess restricted machine guns.
Further, while CFO, Beard submitted a 2013 personal income tax return to the IRS in which he claimed that he operated a personal business that incurred more than $33,500 in alleged losses in 2013. In 2015, while being audited in relation to these purported losses, Beard provided to the IRS receipts for airfare and hotels that Beard falsely claimed were personal business expenses. The expenses were actually paid to Beard while working for the City and using his City of Atlanta credit card.
Beard is scheduled to be sentenced on July 12 and faces a maximum penalty of 13 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan Buchanan for the Northern District of Georgia; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Keri Farley of the FBI Atlanta Field Office; and Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI and IRS-CI are investigating the case.
Trial Attorney Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson for the Northern District of Georgia are prosecuting the case. Former Assistant U.S. Attorney Jeffrey Davis for the Northern District of Georgia provided valuable assistance.
Atlanta’s Former Chief Financial Officer Pleads Guilty to Theft of Government Funds and Tax ObstructionRead the Press Release
ATLANTA - The City of Atlanta’s former Chief Financial Officer (“CFO”), Jimmie “Jim” A. Beard, pleaded guilty today to theft of government funds, which included the purchase and possession of two machine guns, and obstructing federal tax laws.
“Jim Beard abused his power as the CFO for the City of Atlanta to steal tens of thousands of dollars from taxpayers to fund personal trips, luxuries, and even custom-built machine guns, then lied to the IRS and submitted altered records when called to account for suspicious write-offs,” said U.S. Attorney Ryan K. Buchanan. “The people of the City of Atlanta deserved better stewards of taxpayer money, and Beard’s guilty plea today is a demonstration that public officials who abuse their power will be held accountable.”
“Beard’s continuous abuse of his position as one of the most powerful executives in the City of Atlanta is not only a violation of his oath, but a violation to all other public official’s credibility, which erodes public trust in government,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities. It is our hope that by holding Beard accountable for his greed it will help regain some of the public’s trust.”
“As a public official, Beard was delegated to conduct city business on behalf of Atlanta residents,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Instead, he chose to steal from public coffers for his own benefit and willfully broke federal tax laws. Let Beard’s plea today serve as notice to others entrusted with carrying out government business on behalf of the people that IRS special agents and our law enforcement partners will investigate, and our justice system will hold accountable those who break the public’s trust.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately November 2011 to May 2018, Beard served as the CFO of the City of Atlanta. As CFO, Beard directed and managed the Department of Finance, with primary responsibility for oversight and management of the City’s financial condition.
During his tenure, Beard devised and executed a scheme to obtain money and property from the City of Atlanta for private use, including using City of Atlanta funds to: (1) pay for personal travel expenses for himself, his family, and his travel companions; (2) buy items for personal use, including two machine guns; (3) pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, but Beard kept the money and did not give the reimbursement funds to the City of Atlanta; and (4) pay for travel that Beard falsely claimed to the IRS was related to his personal consulting business.
In total, Beard stole at least tens of thousands of dollars from the City of Atlanta. By way of example only:
- In August 2015, Beard used his City credit card to pay $1,278.72 for a hotel room at the J.W. Marriott Hotel in Chicago, Illinois for a three-night weekend stay. Beard told the City that the hotel room was for a “Swap Advisory Engagement.” In reality Beard was not in Chicago that weekend, but booked the hotel for his stepdaughter to attend the Lollapalooza music festival.
- In December 2015, Beard ordered two custom-built machine guns using a $2,641.90 check from the City, telling the manufacturer that the machine guns were for the Atlanta Police Department (“APD”) – even though he personally possessed the guns until about March 2017, when he abandoned the firearms at APD’s Executive Protection Office at City Hall.
- In April 2016, Beard used his City credit card to pay $648.20 for airfare from Atlanta, Georgia to New Orleans, Louisiana for a weekend trip to the New Orleans Jazz and Heritage Festival. However, Beard had no City business in New Orleans during that weekend and traveled with a personal companion. Additionally, he later represented to the IRS that this trip was for his personal consulting business and was not reimbursed by the City, claiming the charge as a business deduction to reduce the amount of personal taxes he owed.
- In June 2016, Beard used his City credit card to pay $951.20 for airfare to Washington, D.C. and $24.32 for a taxi for a meeting with the Municipal Securities Rulemaking Board (“MSRB”). Even though Beard charged the travel to the City, Beard asked the MSRB to reimburse him personally for these costs and submitted copies of his receipts to the MSRB. As a result, the MSRB issued a check to Beard in the amount of $1,276.52, which Beard kept and deposited into his personal bank account.
During his tenure as CFO, Beard also submitted to the IRS a tax return for 2013, in which he claimed that he owned a consulting business which incurred more than $33,500 in alleged business losses in 2013, including $12,000 for travel expenses and $7,115 for deductible meals and entertainment expenses. In July 2015, the IRS advised Beard that it was auditing that tax return and requested that Beard provide documentation to support the purported expenses for his consulting business. In response, Beard falsely provided: (1) receipts for airfare and hotels that Beard paid for using his City of Atlanta credit card (which Beard had previously told the City of Atlanta were for City business and his job as CFO); (2) expense reports for personal meals with his wife and personal companions; and (3) altered receipts that hid from the IRS the fact that the charges were incurred in connection with Beard’s work for the City of Atlanta. In reality, none of those expenses were for a consulting business.
In determining the actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing for Jimmie “Jim” A. Beard, 60, of Fort Lauderdale, Florida is scheduled for July 12, 2024, at 2:00 p.m. before U.S. District Judge Steve C. Jones.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson, Department of Justice Trial Attorney Trevor Wilmot, and former Assistant U.S. Attorney Jeffrey Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Metro Atlanta Man Sentenced for Laundering Fraudulently Obtained COVID-19 Unemployment FundsRead the Press Release
ATLANTA - Austin Martin Siampwizi was sentenced on April 1, 2024, for laundering money procured from fraudulent unemployment claims filed during the height of the COVID-19 pandemic.
“Siampwizi laundered proceeds from fraudulent unemployment claims filed using the stolen identities of more than 50 victims,” said U.S. Attorney Ryan K. Buchanan. “His sentence of imprisonment is an example of our office’s commitment to work closely with our federal and state law enforcement partners to hold individuals accountable for defrauding the CARES Act program.”
“Austin Martin Siampwizi engaged in a scheme to purchase and subsequently cash hundreds of money orders that were funded with fraudulently obtained unemployment insurance (UI) benefits. The UI benefits were from fraudulent online claims submitted to the Washington Employment Security Department using stolen identities. Today's sentencing affirms the U.S. Department of Labor, Office of Inspector General’s commitment to working with our federal and state law enforcement partners to investigate identity theft involving the UI program,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
“The defendant chose to enrich himself by committing fraud, further depleting limited funds that were designated to help businesses struggling to survive during the pandemic,” said Robert C. Donovan, Acting Special Agent in Charge, U.S. Secret Service Atlanta Field Office. “This case signifies our commitment to protect citizens and businesses from fraud and identity theft. We will continue to work closely with our local, state, and federal law enforcement partners to prosecute those who abuse these programs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed as a result of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible. That temporary federal program was administered by state employment agencies.
Siampwizi laundered money obtained from fraudulent unemployment claims submitted to the Employment Security Department of Washington State. These claims were filed using stolen personally identifiable information of over 50 individuals. Siampwizi also submitted fraudulent Economic Injury Disaster Loan and Paycheck Protection Program loan applications for his two businesses, Global Car Rental, LLC, and Global Group Development & Construction, LLC.
Siampwizi, 47, of Atlanta, Georgia, was sentenced to three years, one month in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $279,210.52. On December 14, 2023, Siampwizi pleaded guilty to money laundering conspiracy.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, and the U.S. Secret Service.
Assistant U.S. Attorney Sarah E. Klapman 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.
Northern District of Georgia U.S. Attorney and Procurement Collision Strike Force Director Host Antitrust SummitRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia, the Department of Justice’s Antitrust Division, and the Procurement Collusion Strike Force (“PCSF”) hosted a summit where procurement officials and law enforcement partners from across the Atlanta metropolitan area convened to raise awareness concerning collusion, corruption, and fraud schemes that target government spending. spending.
"Our office is committed to working closely with our federal, state, and local partners to ensure that the citizens of this district receive government services free from collusion, corruption, and fraud,” said U.S. Attorney Ryan K. Buchanan. “Our close collaboration with the Antitrust Division, in particular, allows us to better identify, investigate, and prosecute procurement fraud and, in so doing, assure the public that safeguarding taxpayer funds ranks as a top priority.”
“Today’s summit is a valuable opportunity for the PCSF to forge vital partnerships with representatives from the U.S. Attorney’s Office for the Northern District of Georgia and several local, state and federal law enforcement agencies that are dedicated to protect the integrity of the federal government’s contracts,” said Director Glad. “Our partnerships increase awareness and combine resources and tools that protect taxpayers’ money.”
During the summit, U.S. Attorney Buchanan and Director Glad reflected on the PCSF’s growth and success since its inception in 2019. They detailed additional resources the Department of Justice has dedicated to combat procurement collusion and emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending. They also sharpened the PCSF’s focus on the challenges, risks, and opportunities posed by significant government spending in and around the Atlanta metropolitan area under the Investment in Infrastructure and Jobs Act, which will provide billions in federal spending in Georgia over the next several years.
Presentations at the summit outlined the ways that federal, state, and local government agencies can partner with the PCSF to address these emerging threats. Other topics discussed at the summit included ways that government agencies can strengthen their procurement processes to better protect taxpayer funds and meet the mission to provide services to residents. Summit participants included representatives from the FBI, Department of Transportation Office of Inspector General, Environmental Protection Agency Office of Inspector General, Department of Commerce Office of Inspector General, Department of Homeland Security Office of Inspector General, General Services Administration Office of Inspector General, Air Force Office of Special Investigations, Department of the Army Criminal Investigative Division, Defense Criminal Investigative Service, Georgia Department of Education, Georgia Department of Transportation, and City of Atlanta Office of Inspector General.
The PCSF is the Department of Justice’s coordinated, national law enforcement effort to target antitrust crimes and related fraudulent schemes that impact procurement, grant, and program funding at all levels of government — federal, state, and local. The PCSF is comprised of the Antitrust Division, multiple U.S. Attorney’s Offices around the country, the FBI, and the Inspectors General for multiple federal agencies.
Since its inception in November 2019, the PCSF has opened more than 100 criminal investigations and trained more than 31,000 people. In that time, the PCSF and Antitrust Division have investigated and prosecuted over 65 companies and individuals involving more than $500 million worth of government contracts. The summit marks the Department’s continued support of the PCSF as it enters its fifth year. To learn more about the PCSF, or to report collusion affecting government contracts, please visit www.justice.gov/atr/procurement-collusion-strike-force.
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.
California Man Sentenced for Cell Phone Trade-in Fraud SchemeRead the Press Release
ATLANTA - David Shemtov has been sentenced after a jury convicted him of wire fraud based on a scheme involving the fraudulent trade-ins of thousands of cell phones.
“The ability to exchange electronic devices for cash value or gift cards provides users the important benefit of recovering some worth for devices they no longer need,” said U.S. Attorney Ryan K. Buchanan. “Shemtov chose to exploit this process to fraudulently obtain substantially inflated value for devices he traded and at great expense to the victim company. His sentence of imprisonment should serve as a warning to others that this fraudulent activity will be prosecuted.”
“Shemtov used lies and schemes to pad his own pockets, causing financial harm to the companies and ultimately costing consumers more money,” said FBI Atlanta Assistant Special Agent in Charge Sean Burke. “Today’s sentence sends a clear message to others who think they will not be caught – FBI Special Agents will find you.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: David Shemtov facilitated a year-long fraud scheme in which he developed a method to deceive a cell phone trade-in company about the nature of the cell phones in which he was trading. The cell phone trade-in process was handled by a third-party provider (the Victim Company) that oversaw the mailing and receipt of the devices, and the reimbursement payments – typically in the form of Apple gift cards. After experimenting through systematic trial and error, Shemtov uncovered a feature of the Victim Company’s trade-in program that allowed for manipulation of the nature and value of the phone trade-in by the customer.
To perpetrate the scheme, Shemtov lied about the phone model, used false names, adjusted the settings of every phone that he sent for trade-in, and remotely unlocked the phones. To avoid detection, he opened post office boxes in multiple states and used dozens of fake names and different email addresses. Shemtov’s conduct caused the Victim Company to pay substantially more than the true value of these devices. For instance, more than 500 of the trade-in requests claimed to be for an iPhone XS Max, for a trade-in value of $550.00 when, in fact, the devices were iPhone 6’s, with a trade-in value of only $60.00. Shemtov initiated over 8,000 cell phone trades and successfully tricked the company more than 1,000 times, receiving an overpayment of more than $450,000.00.
Shemtov, 31, of Los Angeles, California, has been sentenced to three years, one month in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $532,542.00, as well as a fine of $100,000.00. Shemtov was found guilty by a jury on November 20, 2023.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Angela Adams and Alison B. Prout 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.
Former Georgia Detention Officer Pleads Guilty to Civil Rights Violation for Strangling Female DetaineeRead the Press Release
A former detention officer with the Fulton County, Georgia, Sheriff’s Office pleaded guilty today to violating a detainee’s civil rights by using excessive force while booking her into a Fulton County detention facility.
Monique Clark, 32, pleaded guilty to one count of deprivation of rights under color of law.
“This defendant wrapped his hands around the throat of a handcuffed woman and strangled her into unconsciousness while she was being booked into the Fulton County Jail system,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This conduct was cruel, abusive and violated Fulton County Sheriff’s office policies that clearly restrict use of chokeholds and neck restraints. The Justice Department will prosecute officials who violate the civil rights of people held in our jails and prisons by using excessive or deadly force.”
“Clark’s conduct in abusing a handcuffed inmate by strangling her is reprehensible,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Thankfully, Clark’s actions do not reflect the diligence and seriousness with which the majority of detention officers fulfill their roles each day in helping to secure our jails and protect the welfare of detainees.”
“By violating his sworn oath as a detention officer to protect people, Clark betrayed every honest, hardworking officer, and crossed the line to criminal behavior,” said Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. “Let this plea be a reminder that the abuse of inmates by prison staff will not be tolerated by the FBI and will always be pursued for prosecution.”
According to court documents, the victim was arrested by officers of the Alpharetta, Georgia, Police Department and brought to the Fulton County North Annex Jail, where Clark was working as a detention officer. While the victim was being booked into the jail, Clark placed his hands around her neck and choked her until she lost consciousness. At the time that Clark choked the victim, the victim was handcuffed and posed no threat to officers or anyone else. As Clark was aware, Fulton County Sheriff’s Office policy prohibited officers from using chokeholds and neck restraints except in response to an imminent threat of death or serious bodily injury.
A sentencing hearing will be scheduled at a later date. Clark faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Atlanta Field Office and the Fulton County Sheriff’s Office’s Office of Professional Standards investigated the case.
Assistant U.S. Attorney Bret Hobson for the Northern District of Georgia and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.
Former Georgia Insurance Commissioner John Oxendine Pleads Guilty in Health Care Fraud SchemeRead the Press Release
ATLANTA - John W. Oxendine, the former Georgia State Insurance Commissioner, pleaded guilty today to conspiracy to commit health care fraud in which a co-conspirator and he referred unnecessary medical tests to a lab company in Texas in return for hundreds of thousands of dollars in kickbacks.
“John Oxendine, as the former state-wide insurance commissioner, knew the importance of honest dealings between doctors and insurance companies,” said U.S. Attorney Ryan K. Buchanan. “But for personal profit he willfully conspired with a physician to order hundreds of unnecessary lab tests, costing hundreds of thousands of dollars. He will now be held accountable for violating the public’s trust.”
“This scheme to bill for unnecessary services has no place in our healthcare system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “It not only increased healthcare costs for all beneficiaries, but they also violated the trust of patients. John Oxendine not only profited from this scheme but took it a step farther and directed another to lie to federal agents to try and cover up the fraud.”
“Individuals who participate in kickback schemes risk undermining the integrity of federal health care programs,” said Special Agent in Charge Tamala E. Miles, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to aggressively investigate anyone engaging in illicit activities to protect taxpayer-funded federal health care programs from abuse by bad actors.”
“Today’s plea should serve as a strong deterrent to those in positions of power who seek to exploit and defraud TRICARE, the military’s healthcare system relied on by our service members, retirees, and their families,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This investigation is part of an ongoing effort by the Defense Criminal Investigative Service to work with our law enforcement partners and aggressively investigate allegations of healthcare fraud that affect the Department of Defense and put its personnel at risk.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: John Oxendine conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing. Physicians associated with Dr. Gallups’s ENT practice were pressured to order these medically unnecessary tests from Next Health, a lab in Texas. As part of Oxedine’s health care fraud scheme, Next Health agreed to pay Oxendine and Dr. Gallups a kickback of 50 percent of the net profit for eligible specimens submitted by Dr. Gallups’s practice to the lab company.
In connection with the scheme, Oxendine gave a presentation at the Ritz Carlton in Buckhead where he pressured doctors in Dr. Gallups’s practice to order the unnecessary tests. Next Health later submitted insurance claims seeking more than $2,500,000 in payments from private health insurers for the unnecessary tests. The insurance companies paid almost $700,000 to Next Health because of these fraudulent claims. Next Health then paid $260,000 in kickbacks to Oxendine and Dr. Gallups. Some patients were also charged for the tests, receiving bills of up to $18,000.
To conceal the kickback payments, Oxendine and Dr. Gallups arranged for the payments to be made from Next Health to Oxendine Insurance Services, Oxendine’s insurance consulting business. Oxendine used a portion of the kickback money to pay debts for Dr. Gallups: a $150,000 charitable contribution and $70,000 in attorney’s fees.
When a compliance officer at Dr. Gallups’s practice raised concerns about the kickbacks, Oxendine told Dr. Gallups to lie and say the payments from Oxendine to Dr. Gallups were loans. He directed Dr. Gallups to repeat the lie after he was questioned by federal agents about Next Health. And when interviewed about Next Health by the Atlanta Journal-Constitution in connection with a private lawsuit, Oxendine falsely denied working with the lab company or receiving money from the business.
This case is related to United States v. Gallups, criminal no. 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud.Sentencing for John W. Oxendine, 61, of Johns Creek, Georgia, is scheduled for July 12, 2024, at 10 am before U.S. District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Defense Criminal Investigative Service.
Assistant U.S. Attorneys Christopher J. Huber and David A. O’Neal 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.