Southern District of Georgia
Press releases recorded for this federal judicial district.
Garden City Resident Pleads Guilty to ThreateningRead the Press Release
SAVANNAH, GA – David Nolan Evans, 41, of Garden City, Georgia pled guilty last week before United States District Court Judge William T. Moore, Jr. for threatening to blow up the State Probation Office in Savannah.
Evidence presented at the guilty plea hearing revealed that Evans, who was on state probation at the time, called the 911 center on December 22, 2014 and threatened to use an explosive device to kill people at the State Probation Office in Savannah. As a result of his call, the Probation Office was evacuated. Later in January 2015, Evans constructed a fake bomb that he planted in a rest room at the State Probation Office. When questioned by law enforcement, Evans admitted that his threatening actions were motivated by a desire to get out of probation reporting requirements.
Evans now faces a sentence of up to 10 years in prison, 3 years supervised release, and a $250,000 fine. Evans’ sentencing hearing will be scheduled after the United States Probation Office completes a presentence investigation.
The Indictment arose out of a joint investigation by the FBI, the ATF, the Savannah Probation Office and Parole, and the Savannah-Chatham Metropolitan Police Department. Assistant United States Attorney Charlie Bourne is prosecuting the case on behalf of the United States. Any further questions should be directed to First Assistant James D. Durham at (912) 201-2547.
Former Chief Clerk of the Chatham CountyRead the Press Release
SAVANNAH, GA – Former Chief Clerk of the Chatham County Probate Court, Kim H. Birge, 61, has been indicted by a federal grand jury sitting in Savannah on charges of mail fraud and federal program fraud.
According to the allegations contained in the Indictment, between January 2011 and November 2014, Birge embezzled and stole more than $700,000 from the Probate Court’s bank accounts. Birge would deposit fees and conservatorship funds into the Court’s bank accounts, but would later write checks payable to cash out of those accounts for her personal benefit. In addition, Birge forged the signatures of conservators or their attorneys to create false documentation of conservatorship money being spent or disbursed.
Birge faces a maximum sentence of 20 years in prison, $250,000 fine and 3 years of supervised release on each of the four mail fraud charges, and a maximum sentence of 10 years in prison, $250,000 fine and 3 years of supervised release on the federal program fraud charge. An indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the United States Secret Service and the Savannah Chatham Metropolitan Police Department. Assistant United States Attorneys Brian T. Rafferty and Scarlett S. Nokes are prosecuting the case on behalf of the United States. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Waycross Man Sentenced to 25 Years for Production of Child Pornography and Coercion and Enticement of A MinorRead the Press Release
Waycross, GA: Donnel Cornelius Shavers, 23, of Waycross, Georgia, was sentenced yesterday to 25 years in prison by Chief United States District Court Judge Lisa Godbey Wood following his pleas of guilty to charges of production of child pornography and the coercion and enticement of a child under the age of 18 to engage in illegal sexual activity. The prison term will be followed by a life term of supervised release. Shavers will also be required to register as a sex offender upon his release from prison. Shavers pleaded guilty to the offenses on September 2, 2014.
United States Attorney Edward Tarver said, “This investigation again demonstrates the commitment of the U.S. Attorney’s Office to aggressively prosecute individuals who are involved in predatory and exploitative acts directed at children. Clearly, the conduct of this defendant was deplorable and damaging to his victims. We cannot and will not tolerate the types of offenses he committed. His pattern of predatory behavior as one of the many disturbing components of his criminal conduct and the lengthy punishment he received from the Court is completely justified.”
“HSI investigations involving child exploitation fall under Operation Predator, and this case is a clear demonstration of why we use the title of predator for those who seek to victimize the innocent,” said Ryan L. Spradlin, acting special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “The defendant in this case used social media to stalk his prey, enticed them to produce child pornography and then attempted to coerce them into meeting him so he could sexually assault them. Law enforcement has identified nearly a dozen victims of this scheme.”
Ware County Sheriff Randy F. Royal said, “I am proud of our investigator who began the initial investigation, which led to Mr. Shavers’ arrest. I am prouder still of the level of support and the spirit of cooperation between our agency and Homeland Security Investigations, which afforded the manpower and resources needed to broaden the scope of the investigation so that all the victims in this case will get the opportunity for justice.”
Evidence developed during the investigation revealed that Shavers communicated via Facebook with at least 10 minors. These communications led to the production of child pornography and the eventual coercion and enticement of several minor females to engage in sex acts with him.
This prosecution was the result of a joint investigation by the Ware County Sheriff’s Office and Homeland Security Investigations (HSI). This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorneys Daniel Crumby, Karl Knoche, and Joseph Newman prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Pooler Couple Sentenced to Federal Prison for Health Care Fraud SchemeRead the Press Release
Savannah, GA – Sheryl Evans, 55, of Pooler, Georgia, was sentenced earlier this week to 13 months in prison by United States District Court Judge William T. Moore, Jr. after pleading guilty to her role in a scheme to defraud the South Carolina Medicaid and federal Medicare programs. Sheryl Evans’s husband and partner-in-crime, Robert Evans, 53, also of Pooler, was sentenced to 6 months in prison. Additionally, the couple was ordered to repay over $189,000 of fraudulently obtained proceeds.
According to evidence presented at the guilty plea and sentencing hearings, Sheryl and Robert Evans jointly owned and operated Trio Medical Solutions in Pooler, Georgia, which purported to provide durable medical equipment such as back, knee and hand braces. While operating Trio from July 2010 until July 2012, the Evanses repeatedly used the identities of Medicaid and Medicare beneficiaries recruited from churches, senior citizen centers and low-income neighborhoods to bill the government for expensive medical equipment that was never purchased or provided.
United States Attorney Edward Tarver stated, “The Medicaid and Medicare programs exist to help the indigent, the disabled and the elderly obtain necessary medical services. Instead of helping those in need, however, these defendants took advantage of the programs and the beneficiaries for their own selfish purposes. This office will continue to aggressively prosecute those who prey upon the most vulnerable members of our communities and steal taxpayer funds.”
This case was a cooperative effort between the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), the FBI, and the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorneys Lamont Belk and Jennifer Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Multi-Convicted Felon Receives over 11 Years in PrisonRead the Press Release
Augusta, GA: Tyrone A. McDonald, 35, of Augusta, Georgia, was sentenced earlier this week by United States District Court Judge J. Randal Hall to a total of 137 months in prison: 77 months for trafficking narcotics and for possessing a firearm as a felon; and an additional 60 months for possessing a firearm in furtherance of that drug crime. After serving his combined 137-month prison sentence, McDonald will be on federal supervision for an additional 5 years. There is no parole in the federal system.
Evidence presented during McDonald’s jury trial revealed that on November 25, 2013, while searching for two fugitives in the Barton Village area, Richmond County Sheriff’s Office (RCSO) investigators located an assault rifle near three glass jars containing marijuana, methamphetamine, cocaine and scales hidden in the woods behind McDonald’s residence. Further examination revealed McDonald’s fingerprints on the firearm (later determined to be stolen) and several of the drug-related items. McDonald had two prior felony drug convictions.
McDonald’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting violent felons and drug dealers who illegally possess firearms and narcotics.
McDonald’s case was investigated by the Richmond County Sheriff’s Office and the ATF. Assistant United States Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201‑2547.
Augusta Resident Receives 20 Years in PrisonRead the Press Release
Augusta, GA: Ricky Lee Kennedy, 32, of Augusta, Georgia, was sentenced earlier this week by United States District Court Judge J. Randal Hall to 20 years in prison for possessing with the intent to distribute methamphetamine. There is no parole in the federal system.
Evidence presented during Kennedy’s guilty plea and sentencing hearings revealed that on July 29, 2014, Columbia County Sheriff’s Office (CCSO) received information that Kennedy would be bringing methamphetamine from Atlanta to the Columbia County area for distribution. CCSO Investigators surveilled Kennedy returning to Columbia County and, with the assistance of the Harlem Police Department, Kennedy was stopped. A drug-canine alerted on Kennedy’s vehicle where over 400 grams of pure methamphetamine and two loaded firearms were found. Kennedy had two prior serious drug convictions.
Kennedy’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting violent felons and drug dealers who illegally possess firearms and narcotics.
Kennedy’s case was investigated by the CCSO and the ATF. Assistant United States Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201‑2547.
Savannah Couple Sentenced to Federal Prison in Identity Theft & Tax Return ScamRead the Press Release
Savannah, GA – Sheryl Renita Wilson, 44, of Savannah, Georgia, was sentenced last week to 57 months in prison by United States District Court Judge William T. Moore, Jr. after pleading guilty to her role in an identity theft and tax return scam. Last month, Wilson’s partner-in-crime, Bryan Chester Coney, 32, also of Savannah, was sentenced to 61 months in prison.
According to evidence presented at the guilty plea and sentencing hearings, Wilson and Coney, who lived together in Savannah, used the stolen identities of others to file fraudulent tax returns with the IRS. Wilson and Coney stole the identities of over 75 individuals and claimed over $385,000 worth of fraudulent tax refunds. Both Wilson and Coney have a history of committing fraud-related crimes.
United States Attorney Edward Tarver stated, “Every year at this time, millions of law-abiding citizens truthfully complete their tax returns and timely file them with the IRS. Unfortunately, thieving criminals also attempt to use this time of year to steal — causing great harm to the victims of identity theft and to all taxpayers. The U.S. Attorney’s Office, partnering with the IRS-Criminal Investigations, will vigorously investigate and prosecute those who commit tax fraud. Tax fraudsters like these defendants can expect to spend the next several tax seasons in a federal prison.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. “As the defendants in this case have learned, stealing from the American people will not be tolerated and you will be held accountable.”
This case was investigated by Special Agents with IRS-CI. Assistant United States Attorney T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Convicted Felons Sentenced to Lengthy Prison Terms for Possessing Stolen FirearmsRead the Press Release
Waycross, GA – Benjamin Robert Taylor, 36, of Hortense, Georgia, was sentenced last week to 110 months in prison by Chief United States District Court Judge Lisa Godbey Wood after pleading guilty to possessing stolen firearms. Co-defendant Brian James Wilson, 27, of Brunswick, Georgia, was earlier sentenced to 120 months in prison by Judge Wood after pleading guilty to the same charge. Following their stays in prison, both Taylor and Wilson will be required to serve three years of supervised release.
According to evidence presented at the guilty plea and sentencing hearings, following a traffic stop, a search of the vehicle in which Taylor and Wilson were passengers led to the discovery and seizure of multiple stolen firearms, including a pistol, two semi-automatic rifles, and two shotguns. Further investigation revealed that all of the firearms seized during the traffic stop had been stolen in a burglary committed the day before along with multiple other firearms. Both Taylor and Wilson were multi-convicted felons at the time.
This case was jointly investigated by the ATF, the Brantley County Sheriff’s Office and the Glynn County Police Department. Assistant United States Attorney T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Lilburn Man Sentenced to over 10 Years for Attempted Online Enticement of A MinorRead the Press Release
AUGUSTA, GA – Sarawin Nat Intakanok, 37, of Lilburn, Georgia, was sentenced last week by United States District Court Judge J. Randal Hall to 130 months in prison, followed by 25 years of supervised release, for the Attempted Online Enticement of a Minor to Engage in Illicit Sexual Activity. Intakanok will be required to register as a sex offender. He pled guilty to that charge last week.
United States Attorney Edward Tarver said, “The online solicitation of minors for sexual purposes is deplorable, and the U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. This defendant committed a serious crime for which this punishment is justified.”
Evidence presented during the guilty plea and sentencing hearings revealed that Intakanok responded to an ad on Craigslist, and exchanged emails with a person he believed to be the father of a 13-year-old girl. After a month of communications, Intakanok, who had repeatedly expressed an interest in having sex with the 13-year-old, drove from Atlanta to Augusta to what he believed to be the girl’s residence. He was immediately arrested by law enforcement officers. When imposing the lengthy sentence, the Court cited to the egregious nature of Intakanok’s attempted sexual victimization of a minor and the need to deter not only Intakanok but others from engaging in such predatory conduct.
This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Former Richmond County Coroner Indicted on Federal Credit Card Fraud & Identity Theft ChargesRead the Press Release
AUGUSTA, GA: Grover F. Tuten, Jr., 72, the former Coroner for Richmond County, Georgia, was indicted earlier this week by a federal grand jury sitting in Savannah on charges related to his repeated and fraudulent use of a deceased person’s debit card. The indictment alleges that Tuten received cash payments as a result.
Tuten faces a federal charge of fraudulently using a debit card without authorization. If convicted, Tuten faces a maximum sentence of 10 years in prison and a $250,000 fine. Tuten also faces a count of aggravated identity theft. If convicted of that charge, Tuten would receive an additional 2-year prison sentence, consecutive to any other sentence imposed. Tuten already faces state charges of theft by taking and violation of oath by a public officer and is being prosecuted by the District Attorney’s Office for the Augusta Judicial Circuit.
U.S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation of Tuten was conducted by the FBI. Assistant U.S. Attorney Lamont A. Belk is prosecuting the federal case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Fort Gordan Resident Sentenced to over 5 Years in Prison and 30 Years of Supervised Release for Abusive Release for Abusive Sexual Contact with A ChildRead the Press Release
AUGUSTA, GA: David Dean Erskine, 43, most recently having lived at Fort Gordon Military Base, was sentenced today by United States District Court Judge J. Randal Hall to 63 months in prison, followed by 30 years of supervised release, for the abusive sexual contact with a minor. Erskine pled guilty to the charge in October 2014. Erskine, who was detained following his February 2014 arrest, was returned to custody at the conclusion of the sentencing hearing.
The evidence at Erskine’s guilty plea and sentencing hearings showed that, while the six-year-old daughter of a military member was visiting another residence on Fort Gordon military base in the Fall of 2013, Erskine, who was living in that residence at the time, exposed his penis to the girl, and asked her to touch it. When questioned about the accusation, Erskine admitted the conduct. The investigation arose out of comments made by the girl to a relative, who reported the information to the girl’s mother. The mother then contacted Army Criminal Investigation Division (CID) who undertook a forensic interview of the girl, and interviewed several other individuals, including Erskine. It was later learned that Erskine engaged in the same type of behavior on at least two other occasions.
The FBI’s Cyber Crime/Child Exploitation Task Force (CCCX) also assisted with the investigation. The case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Kingsland Man Pleads Guilty to Embezzling over $1.2 Million from EmployerRead the Press Release
Brunswick, GA: James Jeffrey Hosea, 56, of Kingsland, Georgia, pleaded guilty last week before Chief United States District Judge Lisa Godbey Wood in connection with a long-term embezzlement scheme he perpetrated upon his employer.
According to evidence presented at the guilty plea hearing, Hosea was employed by TDS Telecommunications Corp. Over the course of nearly seven years, Hosea executed an embezzlement scheme whereby he created a fake vendor, falsified invoices from that fake vendor, and then submitted those phony invoices to his employer for electronic payment to a PayPal account. Once the invoices were paid by his employer, Hosea would then transfer the money from the PayPal account to his personal bank accounts. Hosea made over 800 fraudulent transactions. As part of the plea agreement, Hosea consented to a judgment against himself in the amount of $1,230,634.21, which represents the sum stolen from his employer.
Hosea pled guilty to wire fraud. He faces a maximum statutory sentence of 20 years in prison and a $250,000 fine. Hosea’s sentencing will be scheduled after the United States Probation Office completes a presentence investigation. Hosea remains out on bond pending his sentencing.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney T. Shane Mayes is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Vidalia, Georgia Attorney Indicted on Federal Fraud and Identity Theft ChargesRead the Press Release
Savannah, GA: Wilson R. Smith, 63, a licensed attorney from Vidalia, Georgia, was indicted this week by a federal grand jury sitting in Savannah on charges related to an alleged scheme to settle his clients’ cases without their knowledge and to steal the settlement proceeds. The indictment alleges that Smith stole over $1 million in fraudulently obtained settlement proceeds.
Smith faces federal charges of mail fraud and bank fraud. If convicted of those two charges, Smith faces a maximum sentence of 50 years in prison and a $1,250,000 fine. Smith also faces a count of aggravated identity theft. If convicted of that charge, Smith would receive an additional two-year prison sentence, consecutive to any other sentence imposed. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Smith already faces state charges of theft by deception and forgery. Smith’s state case was investigated by the Georgia Bureau of Investigation and is being prosecuted by District Attorney Hayward Altman of the Middle Judicial Circuit. Since his arrest on state charges, Smith has remained in custody at the Toombs County Jail.
First Assistant United States Attorney James D. Durham is prosecuting the federal case on behalf of the United States. The investigation of this case remains ongoing.
Savannah Residents Charged with Conspiring to Engage in Sex Trafficking ChildrenRead the Press Release
Savannah, GA: Jeremy Emmanuel Grant and Desalshia Adrien Williams, both 26 and from Savannah,were indicted by a federal grand jury today for their roles in an alleged conspiracy to engage in the sex trafficking of minors. The indictment alleges that from at least June 2014 to January 2015, Grant and Williams conspired to recruit, harbor, and transport minors to work as prostitutes in Savannah and elsewhere.
Grant and Williams are charged with one count of conspiracy to engage in sex trafficking of children. If convicted, Grant and Williams face a maximum possible sentence of life imprisonment. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.The indictment of Grant and Williams arises out of an ongoing investigation conducted by the FBI, the Pooler Police Department, and Savannah-Chatham Metropolitan Police Department (SCMPD). Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, which is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Multi-Convicted Felon Receives Almost 20 Years in Prison for Possessing A FirearmRead the Press Release
Augusta, GA: Jacky Ray Burley, 51, of Warrenton, Georgia, was sentenced yesterday before United States District Court Judge J. Randal Hall to 235 months in prison for possessing a firearm as a multi-convicted felon. There is no parole in the federal system.
Evidence presented during Burley’s guilty plea and sentencing hearings revealed that on November 25, 2013, Burley used a shotgun to robthe Dollar General store located at 644 Main Street in Thomson, Georgia. Burley fled the store and was later arrested after a high-speed car chase ended at a roadblock in Warren County, Georgia. Before the Dollar General robbery, Burley’s criminal history included three prior burglary convictions. As a result of his lengthy criminal history, Burley qualified as an Armed Career Criminal, which subjected him to a minimum 15-year prison sentence. Judge Hall’s sentence exceeded the mandatory minimum by almost 5 years.
Burley’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting felons previously convicted of drug offenses or crimes of violence and who are found to be in possession of firearms, as well as those who commit violent gun offenses.
United States Attorney Tarver said. “Law enforcement’s top priority is the safety of our citizens. We will bring the full force of justice on dangerous criminals who possess firearms. Those dangerous felons who possess firearms will be investigated, prosecuted, and can expect to serve lengthy prison sentences in federal prison.”
“This sentence is another reminder that ATF remains on the frontline of preventing violent crimes along with our law enforcement partners,” said ATF Special Agent in Charge Carl Walker. “We will not allow residents to suffer such criminal behavior, especially that which threatens the safety of innocent civilians and law enforcement officers.”
Burley’s case was investigated by the ATF. Assistant United States Attorney Lamont A. Belk prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Defendant with Ties to Mexican Cartel Sentenced to 18 Years for Drug ConspiracyRead the Press Release
Savannah, GA: Eric Arrana-Garcia, 39, a citizen of Mexico who previously lived in Blackshear, Georgia, was sentenced last week by United States District Judge William T. Moore, Jr. to 18 years in prison for his role in a meth conspiracy operating in southeast Georgia and elsewhere. Arrana-Garcia is the last defendant to be sentenced as part of “Operation Ice Breaker,” a joint federal and state investigation which targeted a drug trafficking ring with ties to a Mexican drug cartel.
According to evidence presented in court hearings and in court documents, Arrana-Garcia received large quantities of crystalized methamphetamine (also known as “Ice”) from Mexican sources in California, which he transported for distribution throughout southeast Georgia. In addition, Arrana-Garcia had an arsenal of firearms, many of which he used during various drug transactions, sold, or traded for Ice. Arrana-Garcia was identified by coconspirators as a Mexican drug cartel member who could “make undesirables disappear.”
As part of Operation Ice Breaker, large quantities of Ice and multiple firearms were seized. In addition, 6 other defendants were convicted and received lengthy sentences:
- Jorge Ramos, 42, a citizen of Mexico previously living in Savannah, was sentenced to 163 months in prison;
- Mary Riggins, 48, from Blackshear, Georgia, was sentenced to 156 months in prison;
- Vernon Dowlings, 30, from Blackshear, Georgia, was sentenced to 128 months in prison;
- Jacob Lattanzie, 28, from Blackshear, Georgia, was sentenced to 87 months in prison;
- James Yarbrough, 36, from Blackshear, Georgia, was sentenced to 74 months in prison; and,
- Joshua King, 29, from Blackshear, Georgia, was sentenced to 135 months in prison.
Operation Ice Breaker was investigated by Homeland Security Investigations (HSI), ATF, FBI, the Chatham County Counter Narcotics Team (CNT), the Glynn Brunswick Narcotics Enforcement Team (GBNET), the Pierce County Sheriff’s Office, and the Blackshear Police Department. Assistant United States Attorneys E. Gregory Gilluly, Jr. and Tania D. Groover prosecuted the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Wayne County Pharmacy Tech Pleads Guilty to Conspiring to Distribute Thousands of Pain PillsRead the Press Release
Brunswick, GA: Buffy Bradford, 37, of Wayne County, Georgia, pled guilty earlier this week before Chief United States District Court Judge Lisa Godbey Wood for her role in a conspiracy to distribute thousands of highly addictive pain pills.
According to information outlined in court and in court documents, Buffy Bradford worked as a pharmacy technician at Wayne Memorial Hospital, located in Wayne County, Georgia. Between September 2013, and March 2014, Bradford stole over 48,000 units of highly addictive controlled substances from Wayne Memorial so they could be unlawfully sold on the streets. The pills stolen included Hydrocodone and Alprazolam (Xanax). Bradford now faces up to 10 years in federal prison. A sentencing hearing will be held after the U. S. Probation Office completes a presentence investigation. There is no parole in the federal system.
The case was investigated jointly by the Georgia Drugs and Narcotics Agency and the DEA. Assistant United States Attorney E. Greg Gilluly, Jr. is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Former Savannah-Chatham Police Officer Indicted on Drug Conspiracy ChargeRead the Press Release
Savannah, GA: Derrick Andre Fullmer, 27, of Pooler, Georgia, was indicted this week by a federal grand jury sitting in Savannah on charges related to a conspiracy involving the illegal possession and distribution of the controlled substance MDMA, more commonly known as “ecstasy” or “molly.” Fullmer was charged with conspiring to distribute molly as well as aiding and abetting other conspirators. During much of the time of the charged conspiracy, Fullmer was an officer with the Savannah-Chatham Metropolitan Police Department (SCMPD).
Fullmer was arraigned before United States Magistrate Judge G.R. Smith today. The charge against Fullmer carries a 20-year maximum prison sentence. U. S. Attorney Ed Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was conducted by the FBI, the Chatham Savannah Counter Narcotics Team (CNT) and SCMPD. Assistant United States Attorney Scarlett S. Nokes is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Chatham County Deputy Sheriff Pleads Guilty to Federal Charge of Producing Child PornographyRead the Press Release
Savannah, GA: Richard Adam Hall, 52, a former Chatham County Deputy Sheriff from Savannah, Georgia, pled guilty yesterday before United States District Court Judge William T. Moore, Jr. to producing child pornography. Yesterday’s plea resolves federal charges brought against Hall, which alleged that Hall coerced a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
According to evidence presented at the guilty plea hearing, Hall’s residence was searched by law enforcement officials as part of an investigation into allegations that, while he was a deputy sheriff, Hall had had molested a child. During the search of Hall’s residence, law enforcement officials recovered numerous sexually explicit photographs of a juvenile male. Further investigation revealed that the minor depicted in the photographs traveled with Hall to Tennessee and Florida, where the minor was molested by Hall on multiple occasions. The sexually explicit photographs of the minor were taken by Hall when the victim was approximately 12 years old.
As a result of his plea to a federal charge, Hall faces a statutory penalty of not less than 15 years nor more than 30 years in a federal prison; a fine up to $250,000; and 5 years of supervised release. United States Attorney Edward Tarver noted that there is no parole in the federal system. Hall’s sentencing will be scheduled upon the completion of a presentence investigation conducted by the United States Probation Office.
Earlier this year, a Chatham County grand jury indicted Hall on 25 counts of child molestation and related offenses. State charges against Hall remain pending.
The federal charges against Hall arose out of a joint investigation by Homeland Security Investigations, the Chatham County District Attorney’s Office, the Chatham County Sheriff’s Office, and the Savannah-Chatham Metropolitan Police Department. Assistant United States Attorneys Brian T. Rafferty and Daniel R. Crumby are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Russian Citizen Sentenced to Federal Prison for Illegally Exporting Firearm Parts to RussiaRead the Press Release
Savannah, GA: Viacheslav Zhukov, 33, a Russian citizen and lawful permanent resident of the United States, was sentenced last week by United States District Court Judge William T. Moore, Jr. to 51 months in federal prison for his role in illegally exporting firearm accessories from Savannah, Georgia to co-conspirators in Russia.
According to evidence presented during the guilty plea and sentencing hearings, Zhukov mailed multiple packages containing firearm magnifier scopes to Russia without obtaining an export license from the United States Department of Commerce. Various firearm magnifier scopes are controlled under the Export Administration Regulations for crime control purposes and require a license from the United States Department of Commerce to export to Russia. In an attempt to conceal his crimes, Zhukov misrepresented the contents of packages he mailed to Russia on United States Postal Service Customs Declaration forms.
United States Attorney Edward J. Tarver said, “Our export laws are critical in protecting the national security of the United States. I am proud that our law enforcement community quickly investigated Zhukov and successfully seized many of these packages before they ended up in the wrong hands. We will continue to work with our law enforcement partners to enforce national security laws for the safety of all Americans.”
“We are committed to working with our law enforcement partners to dismantle and disrupt any illicit scheme involving the illegal exportation of weapons and related material, including in this case sensitive firearms accessories intended for Russia,” said Special Agent in Charge Brock D. Nicholson of HSI Atlanta, who oversees the agency’s criminal investigations in Georgia and the Carolinas. “This case is a perfect example of the great work being done by our Border Enforcement Security Task Force in Savannah.”
“U. S. Customs & Border Protection, through a harmonized multi-agency effort with Homeland Security Investigations and as part of the Savannah Border Enforcement Task Force, has been successful in preventing the illegal export of weapon accessories to Russia. Today’s sentence is the best evidence of an already successful partnership in our shared areas of interest,” said Lisa Beth Brown, U. S. Customs & Border Protection Area Port Director in Savannah, Georgia.
Savannah-Chatham Metropolitan Police Department Assistant Chief Julie Tolbert, who was acting Chief at the time of arrest, pointed to the arrest by a Metro detective assigned to the Department of Homeland Security and the assistance of Metro SWAT officers as positive signs that the department is working with all agencies to protect the public. “Nothing good could come from a foreign visitor purchasing parts to weapons in Savannah and sending them to other parts of the world,” she said. “Through our association with Homeland Security, we were able to curtail a dangerous situation. I applaud our officers and the federal agents who facilitated this investigation and arrest.”
The investigation of this case was led by HSI, with assistance from U. S. Customs & Border Protection, U. S. Postal Inspection Service, and Savannah-Chatham Metropolitan Police Department. Assistant United States Attorneys Tania Groover and Charlie Bourne prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Serenity Hospice to Pay over $581,000 to Resolve False Claims Act LitigationRead the Press Release
Savannah, GA: Serenity Hospice Care, LLC of Dublin, Georgia, along with an affiliate corporation, has agreed to pay the United States a total of $581,504.46 to settle allegations that it submitted or caused the submission of false claims to the Medicare program for certain patients who were not eligible for hospice under Medicare regulations. The Medicare hospice benefit is available to patients who elect palliative care (care designed to relieve the pain, symptoms, or stress of terminal illness) instead of curative care (care designed to cure an illness or condition), and who have a life expectancy of six months or less if their illness runs its normal course.
The civil settlement resolves allegations that were originally part of a lawsuit filed under the qui tam (or “whistleblower”) provisions of the False Claims Act, in which a private party (known as the “relator”) can file an action on behalf of the United States and receive a portion of any recovery. As a result of the settlement, the relator will receive a share of the settlement proceeds.
United States Attorney Edward Tarver stated, “This case demonstrates that the United States Attorney’s Office for the Southern District of Georgia is committed to preserving the integrity of the Medicare program. The settlement helps ensure that the Medicare hospice benefit is used appropriately for patients who truly qualify.”
The case was investigated by Special Agent David J. Graupner, Department of Health and Human Services, Office of Inspector General, and Investigator Kimberly Reinken of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorneys Edgar D. Bueno and Charles W. Mulaney. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Four Waynesboro Residents Sentenced for Their Roles in Stolen Identity and Tax Refund SchemeRead the Press Release
Augusta, GA: Kamilya Nicholson, 31, Regina Bunyon, 37, Shequita Bush, 29, and Tamaka Smith, 35, all of Waynesboro, Georgia, were each sentenced to federal prison last month by United States District Court Judge J. Randal Hall for their roles in a stolen identity and tax refund scheme.
United States Attorney Edward J. Tarver said, “These defendants abused the trust of the American people to line their own pockets. This Office will continue to work hard every day to ensure those people who cheat the system are held accountable.”
“The sentences rendered today is a message to others that there are consequences to stealing and using other individuals’ personal identifying information,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers.”
The evidence presented at the guilty plea and sentencing hearings established that Nicholson, Bunyon, Bush, and Smith worked together to steal the names, birthdates, and social security numbers of unsuspecting victims, which they then used to file bogus income tax returns with the Internal Revenue Service seeking tax refunds. In total, the defendants attempted to defraud the IRS out of approximately $350,000.00 of taxpayers’ money.
For their roles in the scheme, Nicholson was sentenced to 20 months in prison, Bunyon was sentenced to 30 months in prison, Bush was sentenced to 18 months in prison, and Smith was sentenced to 24 months in prison. Mr. Tarver noted that parole has been abolished in the federal system.
IRS-CI Special Agent Roger Garland and FBI Special Agent Paul Kubala investigated the case. Assistant United States Attorney C. Troy Clark prosecuted this case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Savannah-Chatham Metropolitan Police Chief Convicted on Extortion, Gambling, Obstruction, and Other ChargesRead the Press Release
Savannah, GA: Former Savannah-Chatham Metropolitan Police (SCMPD) Chief Willie Clinton Lovett, 66, was convicted last week by a federal jury on charges of extortion, participating in an illegal gambling operation, conspiring to obstruct the enforcement of state criminal laws, and providing false statements to federal agents. United States District Court Judge William T. Moore, Jr. presided over Lovett’s 5-day jury trial.
United States Attorney Edward J. Tarver stated, “We are pleased with the jury’s verdict. For over a decade, Mr. Lovett chose to be the person he was sworn to protect the community against; that is, a criminal. While the public should be reminded that the vast majority of law enforcement officers live by their oaths, the public should also know that this Office will continue to work tirelessly with our FBI partners to investigate, prosecute, and convict criminals in police clothing. While we mark an end to a sad chapter in Savannah’s law enforcement history, this Office looks forward to continuing our work with new leadership to combat the violent crime that plagues our communities.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The conviction of former Police Chief Lovett concludes an extensive federal investigation that was initiated based on the numerous allegations of criminal conduct by Lovett. The FBI, being tasked with oversight on such allegations of public corruption, embarked on a sensitive but necessary investigation that ultimately furthers the public’s trust in those that serve them. The FBI thanks the hard work of those prosecutors that presented this case as well as that of the jurors who listened to and deliberated the facts of this case.”
According to evidence presented during the trial, for over a decade, Randall Wayne Roach and others operated an illegal gambling business in Savannah during holiday celebrations, such as St. Patrick’s Day, New Year’s Day, and other events. The illegal gambling business operated in violation of Georgia gambling laws, but free from law enforcement intervention. As a Major and then Chief of SCMPD (formerly the Savannah Police Department), Lovett extorted cash payments from Roach. In return, Lovett provided protection to the illegal gambling business against enforcement of Georgia gambling laws. Lovett received cash payments on several occasions in exchange for protection against the enforcement of the criminal gambling laws of the State of Georgia, which payments came from the proceeds of the illegal gambling business. Lovett then knowingly provided false information to FBI agents investigating the case about his relationship with Roach and the gambling operation. Roach pled guilty before Lovett’s trial to his role in the criminal activities. Roach testified against Lovett, detailing his gambling operation and the cash payments made to Lovett for protection.Lovett was convicted of one count of aiding a gambling operation, one count of conspiring to obstruct the enforcement of state gambling laws, two counts of extortion, and two counts of providing false statements. Lovett was acquitted on three additional counts of extortion. Lovett faces a maximum sentence of 60 years in prison, a $1,500,000 fine, and 3 years of supervised release. A sentencing hearing will be scheduled upon completion of a presentence investigation by the United States Probation Office. Lovett was allowed to remain on a bond pending his sentencing.
Mr. Tarver commended the hard work and dedication of the FBI, which investigated the case. Special Agent Joshua W. Hayes led the FBI’s investigation.
First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner prosecuted the case on behalf of the United States. Any questions should be directed to Mr. Durham at (912) 341-7842.
Aubrey Lee Price, Former Bank Director Who Faked His Own Death, Sentenced to 30 Years in PrisonRead the Press Release
Statesboro, GA: Edward J. Tarver, United States Attorney for the Southern District of Georgia, and Loretta E. Lynch, United States Attorney for the Eastern District of New York, announced that Aubrey Lee Price, 48, was sentenced today in Statesboro federal court to 30 years in federal prison for perpetrating a Ponzi scheme that resulted in millions of dollars of losses to dozens of Price’s investors and led to the collapse of a federally insured bank. Today’s sentencing took place before the Honorable B. Avant Edenfield, United States District Judge for the Southern District of Georgia.
“Through a web of lies and deceit, Aubrey Lee Price conned his elderly investors and a federally insured bank of more than $70 million, and then attempted to further his con and avoid accountability by faking his own death. However, his life on the lam ended with a routine traffic stop. Today’s sentence sends a strong message to those who seek to defraud the investing public and our financial institutions that we will pursue them and bring them to justice,” stated United States Attorney Lynch.
“The sentence imposed today reflects the magnitude of Aubrey Lee Price’s fraud,” said United States Attorney Tarver. “Price engaged in a staggering betrayal of trust, leaving his elderly investors practically penniless, and at the same time, contributing to the collapse of a federally insured bank. For his crimes, Price richly deserves the heavy sentence handed down today by the Court.”George Venizelos, Assistant Director in Charge, FBI New York Field Office, along with J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While today’s sentencing of former banker Aubrey Lee Price concludes a lengthy investigation as well as an extensive and resource-intensive manhunt, it does not restore the financial harm done to his many victims. The FBI would like to express its gratitude to those many and varied law enforcement agencies whose efforts in the investigation and apprehension of Mr. Price made today’s sentencing possible. We are hopeful that this announcement will provide some solace to his victims.”
Jason T. Moran, Special Agent in Charge, FDIC Office of Inspector General, stated: “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the United States Attorney’s Office and our law enforcement colleagues in investigating the fraud that led to the conviction of Aubrey Lee Price. It is particularly troubling when bank insiders violate the public trust and engage in activities that impact the safety and soundness of our nation’s banks.”
“Theft of employee benefit assets jeopardizes the benefits of workers. This case reaffirms the Labor Department’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs,” said Isabel Colon, Regional Director of the United States Department of Labor Employee Benefit Security Administration’s Atlanta Regional Office.
According court filings and evidence presented at the guilty plea and sentencing hearings, Price embezzled over $21 million in capital from MB&T, and lost much of it by investing in risky equity securities and options. To cover up his fraud, Price provided MB&T officials with bogus account statements and other false documents which falsely indicated the bank’s capital was safely held in an account at a financial services firm, when in truth, most of the money was gone. A further investigation of Price revealed that between June 2009 and June 2012, he also defrauded approximately 115 individual investors who had invested $51 million in two investment funds he managed. Price lost almost all of that money through speculative trading, and to cover up his losses, Price posted fake account statements on a secure web site that fraudulently reflected fictitious assets and fabricated investment returns for each investor.In mid-June 2012, Price sent acquaintances “suicide letters” in which he admitted he had defrauded MB&T Bank and Price’s individual investors, and that he planned to kill himself by throwing himself off a high-speed ferry boat after it left Key West, Florida. As a result of the suicide claim, the United States Coast Guard searched to no avail for Price’s body. Shortly after sending the letters, Price disappeared. After more than a year of searching for Price, he was arrested on December 31, 2013, after he presented a false identification during a routine traffic stop in Brunswick, Georgia.
Price has been in custody since his arrest on December 31, 2013. In addition to being sentenced to 30 years’ imprisonment, Price was also sentenced to serve a term of 5 years of supervised release. Tarver noted that there is no parole in the federal system. As part of his sentence, Price will also be ordered to pay restitution to the victims of his crimes in an amount to be determined at a restitution hearing to be held by February 1, 2015. In addition, Price was ordered to forfeit a total of $51 million, representing the proceeds of his crimes.
U. S. Attorneys Tarver and Lynch credited the FBI in Georgia, under the direction of Special Agent in Charge Johnson, and in New York, under the direction of Assistant Director in Charge Venizelos, with the investigation leading to today’s sentencing. They also thanked the United States Attorney’s Office for the Southern District of Florida; the United States Attorney’s Office for the Northern District of Georgia; the Securities and Exchange Commission (SEC), Atlanta Regional Office; the Federal Deposit Insurance Corporation (FDIC); the Federal Reserve Board, Office of Inspector General; the United States Coast Guard; the United States Department of Labor; the Lowndes County Georgia Sheriff’s Department; the Glynn County Georgia Sheriff’s Department; the Toombs County Georgia Sheriff’s Department; and the Marion County Florida Sheriff’s Department for their cooperation and assistance in the investigation and prosecution of Price.
The government was represented by Assistant United States Attorney Brian T. Rafferty of the U. S. Attorney’s Office, Southern District of Georgia, and Assistant United States Attorneys Shannon C. Jones and Brian Morris of the U. S. Attorney’s Office, Eastern District of New York.
This prosecution was the result of efforts by President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U. S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.The Defendant:
AUBREY LEE PRICE
Age: 48
Valdosta, Georgia
S.D.G.A. Docket No. 612-CR-10
E.D.N.Y. Docket No. 13-CR-058Statesboro Man Sentenced to 15 Years for Requesting and Receiving Child PornographyRead the Press Release
Statesboro, GA: Stuart Powell Johnson, 52, of Statesboro, Georgia, was sentenced earlier this week by United States District Court Chief Judge Lisa Godbey Wood to 15 years in prison, followed by twenty years of supervised release, for soliciting images of child pornography over the Internet. He will be required to register as a sex offender. Johnson pled guilty to the crime on June 16, 2014.
United States Attorney Edward Tarver said, “Using the Internet in an effort to access images depicting child sexual abuse promotes the further victimization of our children and cannot be tolerated. The U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who exploit our children. This defendant committed a serious crime for which a lengthy punishment is justified.”
“This is an entirely appropriate sentence for a defendant who trafficked in the sexual exploitation of children,” said Brock D. Nicholson, Special Agent in Charge of Immigration Customs Enforcement Homeland Security Investigations (ICE HSI), in Atlanta. “Most importantly, we were able to identify and save a previously unknown victim who was suffering from abuse in Texas through the outstanding work of our computer forensics analyst in Savannah. In the fight against child pornography, these innocent victims will always come first for HSI.”
Evidence presented during the guilty plea and sentencing hearings revealed that Johnson, who had previously been convicted of a child-pornography-related offense when in the military, used an email account and an international website to solicit images depicting child sexual abuse for his own sexual gratification. At the time Johnson was a registered sex offender, and used other individuals’ computers and wireless connections in an effort to avoid detection. Significantly, the forensic review of a number of the images located in Johnson’s email account led to the identification of a girl in San Antonio who was being sexually exploited there.
This prosecution was the result of a cooperative investigation conducted by HSI in St. Louis, Savannah, and HSI’s Cyber Crimes Center. Law enforcement assistance was also provided by the Bulloch County Sheriff’s Office, and the Florida Department of Law Enforcement. The case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
El Paso Man Sentenced to over 17 Years for Online Enticement of A MinorRead the Press Release
Brunswick, GA: Aaron Flores, 26, of El Paso, Texas, who was more recently stationed at Kings Bay, Georgia, was sentenced earlier this week by United States District Court Chief Judge Lisa Godbey Wood to over 17 years in prison, followed by 20 years of supervised release, for the Online Enticement of a Minor to Engage in Sexual Activity. He will also be required to register as a sex offender. Flores pled guilty to the crime on May 20, 2014.
United States Attorney Edward Tarver said, “The defendant’s predatory behavior warrants the significant sentence imposed. The U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such destructive acts towards our children.”
Evidence presented during the guilty plea and sentencing hearings revealed that Flores, then 25, but posing as a 15-year-old on a social media profile page, engaged in numerous online communications through “Tagged.com” and “Kik” in an effort to meet with minors to engage in illicit sexual conduct, and to receive illicit images from the minors. In early September 2013, Flores contacted a 13-year-old girl living in Camden County and, through a series of chats, convinced her to sneak out of her home during the night and travel with him to his on-base apartment to engage in sexual activity. A short time later, a concerned neighbor alerted the girl’s parents that the girl had snuck out, which led to law enforcement involvement. Images and chats on Flores’s phone, as well as further investigative efforts in other jurisdictions, revealed efforts to solicit other minors. The Court cited to Flores’s “ruinous acts” of sneaking a 13-year-old girl onto a military base and engaging in oral sex in support of the lengthy sentence.
This prosecution was the result of a cooperative investigation conducted by the U. S. Naval Criminal Investigative Service, Kingsland Police Department, and St. Mary’s Police Department. Assistance was also provided by the Denver Police Department and Royal Canadian Mounted Police. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Brunswick Man Sentenced Prison for Theft of Social Security and Medicare BenefitRead the Press Release
Brunswick, GA: Jerry Barnett, 64, of Brunswick, Georgia, was sentenced this week by United States District Court Chief Judge Lisa Godbey Wood to serve 5 months in prison and 5 months’ house arrest, to repay $82,864 in stolen proceeds, and to forfeit an additional $75,000 after earlier pleading guilty to stealing just over $82,000 in Social Security and Medicare benefits.
According to evidence presented at the guilty plea and sentencing hearings, Barnett was deemed unable to work and approved to receive disability benefits from the Social Security Administration (SSA) in 2005. Barnett returned to work in May 2007, however, and concealed his employment income from SSA by accepting payment in his spouse’s name. When offered an opportunity to correct his status in March 2013, Barnett falsely denied he had any employment income and certified that he remained unable to work. From May 2007 until October 2013, Barnett wrongfully collected $75,161 in disability payments and $7,703.18 in Medicare benefits. As part of his sentence, Barnett was ordered to pay restitution in the amount of $82,864.18 to the SSA and Medicare. In addition to restitution, the Court ordered Barnett to forfeit another $75,000.00 to the U. S. Government.
United States Attorney Edward Tarver stated, “Federal benefits programs are meant to help those who are truly in need. Our Office will continue to aggressively prosecute federal program fraud to recover the taxpayers’ money and ensure it is put to its proper use.”
Thomas Caul, Special Agent in Charge for the Social Security Administration, Office of the Inspector General, Atlanta Field Division (Southeast), said, “The Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public trust. I’m grateful that the U. S. Attorney’s Office shares our determination to ensure the integrity of SSA’s programs.”
The case was investigated jointly by the Office of the Inspector General for the Social Security Administration and the Office of the Inspector General for Health and Human Services. Assistant United States Attorney Jennifer G. Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Jesup, GA Siblings Plead Guilty in Multi-Million Dollar Stolen Identity and Tax Fraud SchemeRead the Press Release
Savannah, GA: Gregory Allen, 31, and Leisha Allen, 33, brother and sister from Jesup, Georgia, pled guilty on Monday before the United States District Court Chief Judge Lisa Godbey Wood for their roles in a stolen identity and tax fraud scheme operating in Wayne County, Georgia.
Evidence presented at the guilty plea hearings showed that Gregory and Leisha Allen were operators of a fraudulent tax preparer business, B & C Superior Tax Services. Gregory and Leisha Allen were members of a conspiracy that filed hundreds of fraudulent tax returns in order to illegally obtain tax refund checks. The fraudulent tax returns were electronically filed using the stolen names and social security numbers of others, including people who were incarcerated or deceased. Members of the conspiracy filed returns seeking over $2 million in fraudulent tax refunds.
United States Attorney Edward J. Tarver said, “These defendants were part of a criminal organization that tried to steal over two million dollars from the American people. The United States Attorney’s Office will continue to work with our law enforcement partners to prosecute those who steal the identities of others and to safeguard our tax dollars from fraud.”
“The Allens stole the identities of individuals who were incarcerated and those who were deceased in order to perpetuate a scheme to steal government money,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “These types of criminals must be and will continue to be pursued in order to obtain justice for our nation.”
The investigation of this case was led by the IRS Criminal-Investigation. Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Federal Prison Guard Convicted of Attempting to Smuggle Cell Phone into Prison for an InmateRead the Press Release
Dublin, GA: Meagan Deaton, 23, from Douglas, Georgia, pled guilty and was sentenced earlier this week in federal court in Dublin, Georgia, for her role in attempting to smuggle a cell phone into a federal prison facility for an inmate.
According to evidence presented during the guilty plea hearing, Deaton, a former Federal Bureau of Prisons (BOP) Contract Correctional Officer assigned to the Correctional Institution in McRae, Georgia attempted to provide a cell phone to an inmate on October 17, 2013 in exchange for money. After entering her plea of guilty, Deaton was sentenced to 30 days in prison, 60 hours of community service, and one year of supervised release.
United States Attorney Edward Tarver said, “This defendant chose to place her own selfish interests above the safety of other BOP employees and the public she was sworn to protect. Those who attempt to smuggle contraband into federal prisons can expect to join the inmates from whom they are attempting to profit.”
Bob Bourbon, Special Agent in Charge, U. S. Department of Justice, Office of the Inspector General, said: “Introducing contraband such as cellphones into a prison is dangerous and can place BOP employees and other inmates in the institution at risk. This has been a successful team effort to identify, investigate, and prosecute this matter.”
The case was investigated the U. S. Department of Justice, Office of the Inspector General. Assistant U. S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.
Augusta Man Sentenced for Repackaging Pesticide and Making A False Statement to Federal AgentsRead the Press Release
Augusta, GA: Zong Geng Chen, 47, of Augusta, Georgia was sentenced last week by U. S. District Court Judge J. Randal Hall to 5 months in prison followed by 5 months of home confinement and 3 years of supervised release for illegally repackaging pesticides to distribute to restaurants across the country and for making a false statement to federal agents.
According to the evidence presented during the guilty plea and sentencing hearings, the United States Environmental Protection Agency (“EPA”) was referred to investigate Chen and his company, Chen and Friends Pest Solutions, later renamed C&Z Pest Solutions, after state investigators discovered repackaged pesticide inside a restaurant in Missouri that Chen had distributed. In December, 2012, after an EPA investigation, Chen entered into a Consent Order and Final Agreement with the EPA where he agreed to cease repackaging pesticide and pay a fine of $9,433.01 for previous violations. In late 2013, investigators with the EPA received information that additional repackaged insecticide was recovered in restaurants in Indiana and Missouri. An investigation showed that these bottles of repackaged pesticide could be traced back to Chen and were distributed after Chen agreed to cease repackaging. As part of the labeling on his repackaged pesticide, Chen warned not to show the pesticide to the “health department.”
Thereafter, Special Agents with the EPA conducted a covert conversation with Chen, during which the agents posed as perspective customers and Chen stated that he was allowed to sell pesticide. A few days later, EPA Special Agents held another conversation where they identified themselves and questioned Chen about his repackaging pesticides and his compliance with the Consent Order and Final Agreement. At that time, Chen falsely assured agents that he was not repackaging pesticides again because he knew it was wrong.
“If pesticides are not handled safely and as directed there can be severe, even fatal, consequences,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “Last week’s sentencing demonstrates EPA’s commitment to implementing pesticide regulations to protect public health. EPA and its partner agencies will prosecute those who break the law in order to make a profit.”
United States Attorney Edward J. Tarver said, “In this case, the defendant was repacking and distributing pesticides to restaurants, thereby putting patrons in harm’s way. This Office will continue to assist its partner agencies in investigating and prosecuting those who put the safety of our communities at risk.”
EPA Special Agents Chuck Carfagno, Mike Sparks, and Kimmy Poon conducted the investigation which led to the information and plea. Assistant United States Attorney C. Troy Clark is the prosecutor in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Hephzibah Man Sentenced to 30 Years for Sexually Exploiting A MinorRead the Press Release
Augusta, GA: Rahmad Ali James, 37, of Hephzibah, Georgia, was sentenced last week by United States District Court J. Randal Hall to 30 years in prison, followed by supervised release for 10 years, for the Sexual Exploitation of a Minor through the production of child pornography. James pled guilty to the charge in May 2014.
United States Attorney Edward Tarver said, “The protection of our children is, and should be, a priority to which the Department of Justice takes swift and aggressive enforcement action. This defendant exploited a child entrusted to his care by molesting her and photographing her, and then posting those images on the Internet in violation of numerous federal laws. Lengthy sentences like the one imposed here help protect our children from predatory acts, and serve to deter others from engaging in similar conduct.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lengthy prison sentence handed down today reflects the serious nature of the crimes committed in this case. The FBI will continue to provide extensive investigative resources in getting such child predators as Rahmad James off of our streets.”
Evidence presented during the guilty plea and sentencing hearings revealed that James, while living in the Atlanta area, molested a girl who lived in the same house where he was staying. The molestation occurred when the girl was between the ages of 8 and 15. James photographed the molestation, and after returning to Hephzibah, uploaded those and other child pornography images onto an international website in order to receive similar-type images from others. After executing a federal search warrant at James’s Hephzibah residence in February 2014, officers and agents located a large collection of child pornography on various forms of computer media belonging to James. James was immediately arrested, and was thereafter indicted and charged with four counts involving the production of child pornography, and five counts of distributing child pornography. He has remained in custody since February 2014.
The arrest in this case was accomplished through the efforts of members of the FBI’s Metro Atlanta Child Exploitation Task Force and its Computer Crime Child Exploitation Task Force (MATCH/CCCX) made up of agents and officers of the FBI, Georgia Bureau of Investigation, Richmond County Sheriff’s Office and Columbia County Sheriff’s office. This case was prosecuted as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Waycross Man Pleads Guilty to Enticing Minors to Engage in Sex Acts and with Producing Child PornographyRead the Press Release
Brunswick, GA: Donnell Cornelius Shavers, 22, of Waycross, Georgia, pled guilty earlier this week before Chief United States District Court Judge Lisa Godbey Wood to enticement of minors to engage in sex acts and to the production of child pornography. Shavers will be sentenced after the completion of a presentence investigation by the U. S. Probation Office.
The case against Shavers and his codefendant Jacques Donte Taylor arose out of a joint investigation by Homeland Security Investigations and the Ware County Sheriff’s Office, with additional assistance from the Liberty County Sheriff’s Office. The case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Daniel R. Crumby is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former VA Employee Sentenced to 5 Years in Prison for Defrauding the Government of over $450,000Read the Press Release
DUBLIN, GA – LORETTA SMITH, 41, of Glenwood, Georgia, was sentenced in last week by Senior U. S. District Court Judge Dudley H. Bowen to serve 5 years in prison for defrauding the U. S. Department of Veterans Affairs (“VA”) through fraudulent worker’s compensation claims.
According to the evidence presented during the guilty plea and sentencing hearings, SMITH, while employed with the VA in Dublin as a nurse, submitted bogus worker’s compensation claims to the Department of Labor from 2009 through 2013. SMITH falsely claimed costs for travel which she did not make, and falsely claimed costs for medical treatment which she did not receive. As a result of her bogus claims to the Department of Labor, SMITH received more than $450,000 to which she was not entitled.
United States Attorney Edward Tarver stated, “This defendant, who was hired by the federal government to help those in need, chose, instead, to help herself to taxpayer money she wasn’t entitled to receive. This sentence sends this strong message to those who would lie and cheat to get taxpayer money: you can expect to spend years in a federal prison.”
Upon her release from prison, SMITH will serve 3 years of supervised release. Additionally, she was sentenced to pay $454,000 in restitution and a $454,000 forfeiture judgment.
The case was investigated by Special Agents with the Department of Labor, Office of Inspector General and the Department of Veteran’s Affairs, Office of Inspector General. Assistant U. S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.
Government Settles False Claims Act Allegations Against Optim HealthcareRead the Press Release
SAVANNAH, GA: Optim Healthcare, based in Savannah, and others have agreed to pay the United States a total of $4 million to settle allegations that they submitted false claims to the Government.
The Government’s investigation was initiated when it received numerous complaints that patients, who lived in the Savannah area, had to undergo major surgical procedures at Optim Healthcare’s rural hospital located in Tattnall County, approximately 90 miles away. In December 2008, Optim Healthcare purchased then Tattnall Memorial Hospital and later renamed it Optim Medical Center – Tattnall. The Government alleges that the primary motivation in having these surgeries performed at Optim Medical Center – Tattnall was financial, and not based on patient need or desire.
The settlement announced today resolves allegations that between 2008 and 2012, Optim Healthcare, through its physician-owned hospital in Tattnall County and through its ambulatory surgical center in Savannah, submitted claims for surgical and other medical procedures to Medicare that were: (1) improperly inflated, (2) misidentified in order to receive a higher rate of reimbursement, and (3) in violation of the federal prohibition against physician self-referrals, commonly known as the Stark Law. The Stark Law is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is based solely on the best interests of the patient.
United States Attorney Edward J. Tarver said, “Healthcare is not about making as much money as possible. Programs like Medicare operate on the honesty and decency of its providers, and this office will actively pursue those who misuse the federal healthcare programs or their beneficiaries for financial gain.”
“Today’s settlement demonstrates that the OIG will aggressively investigate all allegations made against trusted healthcare providers who misrepresent services and violate the Physician Self-Referral Statute,” said Derrick L. Jackson, Special Agent in Charge of the United States Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “This kind of behavior adversely affects both patient care and healthcare costs, and will not be tolerated.”
The settlement resolves allegations that were originally part of a federal lawsuit filed under the whistleblower provisions of the False Claims Act which allow private citizens with knowledge of false claims to file suit on behalf of the Government and to share in any recovery.
The case was investigated by Special Agent Mark Creamer, Department of Health and Human Services, Office of Inspector General. The United States was represented by Assistant United States Attorney Edgar Bueno. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Richmond County Deputy Sentenced in Identity Theft SchemeRead the Press Release
AUGUSTA, GA: Sean Lydell Street, 39, a former Richmond County, Georgia Deputy Sheriff, was sentenced yesterday by U. S. District Court Judge J. Randal Hall to 24 months in prison for stealing personal identification information to be used as part of a fraudulent tax refund scheme.
According to the evidence presented during the guilty plea and sentencing hearings, Street worked for the Richmond County Sheriff’s Office from 2007 through 2012. During the last part of 2011 and the first part of 2012, Street used the personal identification information of over 100 individuals, which he obtained through his work as a law enforcement officer, to create a list containing the name, birthdate, and social security number of each person. Street then passed this list to an acquaintance knowing that the information would be used to file fraudulent tax returns with the United States Internal Revenue Service. In exchange, Street hoped to gain at least $1,000.00 per stolen identity. In total, individuals used the information from Street’s list to file 76 bogus tax returns which claimed $414,826.00 in false refunds. The IRS paid a total of $76,424.00 in refunds prior to the discovery of the fraud.
United States Attorney Edward J. Tarver said, “Aggravated identity theft and stolen identity tax refund fraud are serious crimes that have serious consequences. Mr. Street is now walking a different beat on the way to federal prison.”
“Mr. Street exploited his position as a law enforcement officer for his own personal financial gain which came at the expense of the community he was entrusted to serve,” stated Special Agent in Charge, IRS Criminal Investigation Veronica F. Hyman-Pillot. “This sentence is a message to others that there are consequences to stealing and using other individual's personal identifying information.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “Identity theft in furtherance of fraudulent tax returns is a significant and growing crime problem that victimizes not only those individuals but also the taxpayer. The FBI will continue to do its part in combating this trend and ensuring that those individuals engaged in such criminal activities are held accountable for their actions.”
IRS-CI Special Agent Jeffrey Pippin Hale, FBI Special Agent Paul Kubala, and Deputies from the Richmond County Sheriff’s Office conducted the investigation which led to the information and plea. Assistant United States Attorney C. Troy Clark prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Georgia Doctor Sentenced to 20 Years in Prison for Operating Pill-Mill ClinicsRead the Press Release
BRUNSWICK, GA – CLEVELAND J. ENMON, 36, of Decatur, Georgia, who was convicted by a federal jury of over 90 counts of drug distribution offenses for his role in prescribing hundreds of thousands of pain medications for no legitimate medical purpose, was sentenced last month to 20 years in prison by U. S. Chief District Court Judge Lisa Godbey Wood.
According to the evidence presented at trial and at the sentencing hearing, ENMON was a licensed physician in California and Georgia since in or about 2005. In May 2011, ENMON began working at Brunswick Wellness, a “pill mill” located in Brunswick, Georgia. During a two-month period while working at Brunswick Wellness, ENMON wrote prescriptions to thousands of people from all over the Eastern United States, from Maine to Florida, for no legitimate medical purpose. Most of these “patients” were drug dealers or drug addicts. For writing these unlawful prescriptions, ENMON was paid almost $70,000 by the owners of Brunswick Wellness.
After agents of the DEA executed search warrants at Brunswick Wellness in July 2011, and shut it down, ENMON opened up his own “pill mill” in Jesup, Georgia, known as Ocean Care, where he continued to write prescriptions for massive amounts of controlled substances for no legitimate medical purpose. Before Ocean Care was shut down in December 2011, ENMON raked in almost $500,000 for writing these bogus prescriptions, some of which ENMON used to buy himself a yellow Ferrari Spyder. The DEA later seized the Ferrari, along with tens of thousands of dollars from bank accounts in ENMON’s name.
At ENMON’s trial, numerous patients, employees, other doctors, and members of the Brunswick and Jesup communities testified about ENMON’s criminal conduct at both Brunswick Wellness and Ocean Care. The trial testimony showed that ENMON would issue prescriptions to virtually anyone who was willing to pay him $350 fee for a prescription. At least one patient testified that she “paid” for her prescription by arranging for a prostitute to provide services to ENMON. Other evidence showed that ENMON even prescribed massive amounts of prescription medications to a pregnant woman, who later gave birth to a baby born addicted to pain medications.
In December 2013, after four days of testimony, a federal jury convicted ENMON of 92 counts of Conspiracy to Unlawfully Dispense Controlled Substances, Unlawful Dispensation of Controlled Substances, and Money Laundering. ENMON has been in the custody of the United States Marshals since before trial in this matter.
ENMON is the fifth and final defendant convicted in connection with the investigation of the Brunswick Wellness and Ocean Care pill mills. Other convicted included:
- Ronald R. Colandrea, of Miami, Florida, who was the owner of Brunswick Wellness, and who is now serving 7 years in prison and was required to forfeit more than $500,000 in cash and vehicles;
- Natalie Anderson, of Jesup, Georgia, who was the manager of Brunswick Wellness, and who is now serving 5 years in prison;
- Dr. Dennis Momah, of Portland, Oregon, who was another doctor at Brunswick Wellness, and who surrendered his medical license and is now serving 3 years in prison; and,
- Dr. Bruce Tetalman, of Augusta, Georgia, who was also a doctor at Brunswick Wellness, and who surrendered his medical license and is now serving 5 years of probation.
United States Attorney Edward J. Tarver stated, “Cleveland Enmon was a drug dealer in a white coat who chose a Ferrari over the welfare of patients. ‘Pill Mill’ doctors, office managers, and owners who think about setting up shop in the Southern District of Georgia should know this: the cost of pushing your poison in our communities is a federal prison cell.”In addition to the prison sentence, Chief Judge Wood ordered that ENMON serve 5 years of supervised release upon release from prison. Tarver noted that there is no parole in the federal system.
The case was investigated by the DEA, the Glynn-Brunswick Narcotics Enforcement Team; and Wayne County Sheriff’s Office. Assistant United States Attorneys Brian T. Rafferty and Jeffrey J. Buerstatte prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Another Pill-Mill Doctors Sentenced to over A Decade in Federal PrisonRead the Press Release
In total, 10 defendants sentenced and $2 million forfeited relating
to the prosecution of a phony pain clinic in Garden City, GeorgiaSAVANNAH, GA – DR. NAJAM AZMAT, 57, of Waycross, Georgia, was sentenced in the United States District Court on August 6, 2014 to serve 11 years and 1 month in prison. On January 17, 2014, a federal jury found AZMAT guilty of numerous offenses related to his role in a pill mill clinic that operated in Garden City, Georgia in 2011. The offenses of which AZMAT was found guilty included conspiracy to dispense oxycodone and other drugs without legitimate medical purpose, 49 counts of dispensing without legitimate medical purpose, and conspiracy to launder money. United States District Court Judge William T. Moore, Jr. presided over AZMAT’s five-day jury trial and imposed his sentence.
According to evidence presented at the trial, AZMAT worked at East Health Center from February 21 to March 18, 2011. During that time, AZMAT wrote prescriptions for 196 patients, 96% of whom received prescriptions for oxycodone, a powerful and highly addictive pain killer. Nearly two-thirds of the patients seen by AZMAT traveled long distances to receive their prescriptions, often coming from Kentucky, Ohio, and Florida. Patients typically paid $300 to be seen by AZMAT or one of the other doctors who worked at East Health Center following AZMAT’s departure on March 18, 2011. During the trial, patients testified that they were addicted to oxycodone and learned of the clinic through aggressive marketing techniques conducted by the clinic organizers at rival pill-mill clinics in Florida. AZMAT was paid $2,000 per day, typically in cash, at the end of each day he worked.
AZMAT was indicted with five co-defendants, each of whom was recently sentenced to terms of imprisonment by Judge Moore on the dates indicated:
Sean Michael Clark, 34, Boca Raton, Florida (Conspiracy) 40 months on August 1;
Adelaida M. Lizama, 28, Boca Raton, Florida (Conspiracy) 18 months on August 4;
Daniel John Wise, 35, West Palm Beach, Florida (Conspiracy) 42 months on July 30;
Candace A. Carreras, 27, Boca Raton, Florida (Conspiracy) 24 months on August 4;
Shelly Lynn Morford, 32, Fort Lauderdale, Florida (Misprision of Felony) 13 months on July 9.In addition to the defendants named in the indictment, other targets of the investigation previously pleaded guilty to offenses related to the phony pain clinic operation have also been sentenced by Judge Moore:
Adelard LeFrancois III, 44, Boca Raton, Florida (Conspiracy) 54 months on July 30;
Francis J. Barbuscia, 38, Plantation, Florida, (Conspiracy) 42 months on July 30;
Konstantinos Afthinos, 34, Lake Worth, Florida (Misprision of Felony) 15 months on August 1;
Dr. Kenneth Gossett, 53, Rome, Georgia, (Conspiracy) 42 months on August 1.Nuvest LLC, a Florida corporation which financed the startup costs for East Health Center, pleaded guilty to maintaining drug-involved premises. The corporation, which provided the funds used to launch and operate the clinic, admitted that the clinic was opened for the purpose of dispensing oxycodone, hydrocodone, and other drugs without legitimate medical purpose. As part of a plea agreement, the corporation forfeited the sum of $2 million, representing proceeds of unlawful activity laundered by the corporation.
Eight of the other nine defendants, who either organized or worked for the clinic, had never had any medical education, training, or experience aside from having been associated with earlier pill-mill operations in South Florida. The organizers decided to open the clinic in Garden City because of changes in Florida law which restricted non-medical doctors from owning pain clinics. None had any connection to the State of Georgia before opening the clinic.
United States Attorney Edward Tarver said, “The United States Attorney’s Office, in partnership with federal, state, and local investigative agencies, will continue to aggressively prosecute the participants in illegitimate pain clinics. These pill-mills prey upon their so-called ‘patients’ by draining them of time and assets, fueling their drug addictions, and depriving them of legitimate medical treatment. As we have demonstrated through numerous prosecutions in the last 2 years, our intention is to shut down these pill mills, prosecute the participants, and forfeit their illegal proceeds. I trust a strong message of warning has been sent to anyone considering such unlawful ventures in the Southern District of Georgia.”
The investigation of East Health Center resulted from a joint investigation by the Drug Enforcement Administration (DEA), Georgia Bureau of Investigation (GBI), Chatham Savannah Counter Narcotics Team (CNT), the Internal Revenue Service (IRS), and the United States Marshals Service.
Harry S. Sommers, the Special Agent in Charge of the DEA’s Atlanta Field Division stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; in this case, it was about the greed of a physician who oversaw the operations of this pill mill. DEA and its law enforcement partners will continue to expend their time, energy, and resources in an effort to stem the tide against the growing prescription drug abuse problem.”
“The resolution of the Azmat case is a good example of the positive results that occur when state and federal agencies combine efforts in addressing the illegal distribution of narcotics,” said Scott Whitley, Special Agent in Charge of the GBI Southeastern Regional Drug Enforcement Office. “The abuse of prescription narcotics is a critical issue which the GBI remains committed to addressing in various ways. These include the investigation of rogue medical offices which exist for the sole purpose of the illegal distribution of controlled narcotics.”
Chatham Savannah Counter Narcotics Team Director Dwane E. Ragan noted, “The investigation and prosecution of the East Health Center is a classic example of local, state, and federal agencies working together to dismantle an organization who preyed upon the weakness and addictions of many of our citizens. The successful prosecution of this case eliminated a notorious pill mill from our community.”
“Those individuals who line their pockets with money gained through preying on so-called patients will not go undetected and will be held accountable,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “The Azmat sentence is a vital element in maintaining public confidence that these individuals and others who commit similar crimes will be held accountable.”
Assistant United States Attorneys Karl Knoche, Greg Gilluly, and Jeffrey Buerstatte prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
32 WIC Participants Convicted for Selling Their WIC Vouchers for CashRead the Press Release
SAVANNAH, GA – 32 participants in the Georgia Women, Infant, and Children (“WIC”) Program pled guilty and were sentenced this week before United States Magistrate Judge James E. Graham for their roles in selling their WIC vouchers and the vouchers of their minor children for cash.
According to evidence presented during the guilty plea and sentencing hearings held earlier this week in Statesboro, Georgia, the WIC program is a federally funded program that provides healthy foods for low-income pregnant and postpartum women, and to infants and children up to age 5. Participants of the program receive food vouchers from local health clinics. These vouchers are designed to provide nutritious food to help the mothers and children who are deemed nutritionally at risk. In this case, the defendants sold their WIC vouchers and those of their minor children for cash to individuals working for Super Kids Variety, a phony grocery store formerly located on Victory Drive in Savannah. Workers for Super Kids Variety would pay pennies on the dollar for WIC vouchers; the vouchers would then be submitted to the U. S. Department of Agriculture for the full amount as if the healthy foods had been provided to the WIC participants. From July 2011 through December 2012, Super Kids Variety redeemed $2.6 million in WIC vouchers. During that same time period, the 4 WIC-eligible Wal-Marts located in the Savannah area redeemed only $1.4 million.
The 32 WIC participants were indicted in June of this year, following a 2-year investigation. Also in June, 54 defendants, including those who worked for Super Kids Variety, were indicted for allegedly opening numerous phony grocery stores across Georgia and defrauding the WIC and Food Stamp programs of over $19 million. This case is still pending.
United States Attorney Edward Tarver said, “Federal food programs are paid for by federal taxpayers and are designed to help those in need. These defendants chose to help themselves and to literally take food from the mouths of children. Buyers and sellers of WIC vouchers and food stamps beware; you will face federal criminal charges and pay the price for your crimes.”
Georgia Department of Public Health Commissioner Brenda Fitzgerald, M.D. stated, “The Georgia Department of Public Health (DPH) supports this U. S. Attorney’s ongoing work to eliminate WIC fraud wherever it happens. The progress prosecutors are making is a clear indication that, together, our partnership is working for Georgia. The convictions handed down should serve as a clear warning to anyone looking to defraud Georgia’s WIC program that fraud doesn’t pay. Criminals will be caught and prosecuted.”
Sentences for the 32 convicted WIC participants, all residents of Savannah, ranged from probation, to house arrest, to prison. All of the defendants were ordered to perform community service and to pay the full amount of restitution for the WIC vouchers they unlawfully sold. These 32 defendants alone were responsible for unlawfully selling over $100,000 in WIC vouchers. The convicted WIC participants included:
Chiquita Armstead, 40
Yontalay Bennett, 28
Precious Bevins, 24
Shanika Blige, 23
Deanna Boles, 23
Candace Bostick, 23
Danitra Bostick, 26
Tia Bowers, 25
Tonya Clark, 41
Jocelyn Easterling, 49
Deonka Ellison, 24
Ebony Ellison, 27
Joanne Ferguson, 43
Tameshia Jackson, 24
Koneisha Jenkins, 26
Latisha Jones, 30
Jameise’ Mayberry, 23
Quinta Meggett-Mike, 37
Ebony Roberson, 26
Shakiela Roberts, 28
Jasmine Sammuel, 24
Deanna Scott, 25
Whitney Stokes, 25
Regina Styles, 22
Hope Taylor, 33
Ebonilaestei Tremble, 34
Linda Walker, 22
Tiera Walthour, 23
Alexis Washington, 26
Rhonda Washington, 32
Amber Wilson, 23
Ke’airra Young, 24The cases were investigated by the United States Department of Agriculture, Office of Inspector General, the Georgia Department of Public Health, Office of Inspector General, the FBI, and other law enforcement agencies. Assistant United States Attorney E. Gregory Gilluly and First Assistant United States Attorney James D. Durham prosecuted the cases on behalf of the United States.
Former Chatham County Deputy Sheriff Indicted on Federal Child Pornography ChargeRead the Press Release
Savannah, GA – Richard Adam Hall, 52, of Savannah, Georgia was indicted this week by a federal grand jury sitting in Savannah on charges of producing child pornography, transporting a minor to engage in sexual activity, and other charges. In part, the indictment alleges that Hall, a former Chatham County Deputy Sheriff, coerced a minor to engage in sexually explicit conduct for the purpose of producing child pornography. The indictment further alleges that Hall transported a minor across state lines for the purpose of engaging in sexual activity. Earlier this year, a Chatham County grand jury indicted Hall on 25 counts of child molestation and related offenses.
If convicted on all counts of the federal indictment, Hall could face a maximum sentence of life in prison and a $1 million fine. The federal indictment of Hall arises out of a joint investigation by HSI, the Chatham County District Attorney’s Office, the Chatham County Sheriff’s Office, and the Savannah-Chatham Metro Police Department. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorneys Daniel R. Crumby is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Hoboken Woman Sentenced to 57 Months in Prison for Embezzling over $400, 000 from EmployerRead the Press Release
WAYCROSS, GA – Angela Diane Griffis, 46, of Hoboken, Georgia, was sentenced last week to 57 months in prison by United States District Court Chief Judge Lisa Godbey Wood after earlier pleading guilty to embezzling over $400,000 from her employer.
According to evidence presented at the guilty plea and sentencing hearings, Griffis was employed as the office manager of a pediatric medical practice group in Waycross, Georgia. Over the course of nearly six years, Griffis schemed to embezzle from her employer by preparing fraudulent checks and electronic transfers for her own benefit. To cover up the scheme, Griffis made fraudulent entries in her employer’s accounting records to make it appear as if the fraudulent expenses were legitimate when, in fact, they were not. The stolen money was used to finance Griffis’s lavish lifestyle, including paying for numerous vacations, shopping sprees, and other personal expenses. As part of the sentence, Griffis was ordered to pay restitution in the amount of $406,545.26 to the victims.
United States Attorney Edward Tarver stated, “Protecting our community from financial fraud and economic crimes, whether occurring in the public or private sector, is a top priority for this Office. Griffis’s embezzlement scheme inflicted upon her employer and the community an unnecessary harm well beyond the direct financial impact. This United States Attorney’s Office and its law enforcement partners will continue to vigorously investigate and prosecute financial crimes.”
The case was jointly investigated by the FBI and the Waycross Police Department, Criminal Investigations Section. Assistant United States Attorney T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Pierce County Sheriff Sentenced to 93 Months in Prison for Providing Protection to Drug TraffickersRead the Press Release
WAYCROSS, GA – Randy Strickland, 55, a former Pierce County, Georgia Deputy Sheriff, was sentenced yesterday by United States District Court Judge William T. Moore, Jr. to 93 months in federal prison for providing protection for drug traffickers.
According to evidence presented during Strickland’s guilty plea and sentencing hearings, Strickland agreed to act as “security” for individuals he believed were dealing meth, by acting as the lookout. Strickland’s drug activities occurred while he was in uniform and armed, and while he was driving his police vehicle. After receiving information about Strickland’s apparent criminal activities, Pierce County Sheriff Ramsey Bennett immediately requested federal law enforcement assistance. As a result, Strickland’s last “protection detail” was for a confidential informant and under the watchful eyes of several federal agents. On that occasion, Strickland agreed to act as the lookout for who he believed to a drug dealer selling ounces of methamphetamine. Shortly after receiving his charged fee of $100, which at Strickland’s direction was placed in a potato chip bag on the side of a road, Strickland was arrested by federal authorities.
United States Attorney Edward Tarver stated, “Instead of protecting citizens, Strickland chose to serve drug dealers. His actions tarnished the badge and the community’s trust. While the public should be reminded that the vast majority of law enforcement officers live by their oaths, the public should also know that the U. S. Attorney’s Office will prosecute criminals dressed in police clothing.”
ATF Special Agent in Charge Christopher Shaefer said, “The criminal conduct of former Pierce County Deputy Sheriff Randy Strickland is unconscionable and unthinkable for those serving faithfully within the criminal justice community. Today’s sentencing of Strickland will serve as notice to others that this conduct will not be tolerated and ATF will use all resources to reduce violent crime.”
“Mr. Strickland compromised his integrity and the oath he took to uphold Georgia laws and protect members of society, not to mention putting other law enforcement officers in danger, through his corrupt scheme to provide security for drug traffickers,” said Ryan L. Spradlin, acting special agent in charge of U. S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Atlanta. “Thanks to the hard work of HSI special agents and our partners at the ATF, FBI, Pierce County Sheriff’s Office, and the U. S. Attorney's Office, Strickland is being held accountable for this betrayal of the public’s trust.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case, while centering on a corrupt law enforcement officer, illustrates how the law enforcement community responds swiftly to such breaches of the public trust. The FBI will continue to work with those law enforcement partners in ensuring that the public’s trust in the criminal justice system is well founded and that those officers violating their oaths of office are identified and held accountable.”
Pierce County Sheriff Ramsey Bennett commented, “I’m pleased that justice was served and Mr. Strickland will pay his debt to society for the crimes he committed and his breach of trust to the people he swore to serve.”
This case was investigated by ATF, HSI, FBI and local law enforcement. Assistant United States Attorneys Greg Gilluly and Tania Groover prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United states Attorney James D. Durham at (912) 201-2547.Savannah Resident Indicted for Illegally Exporting Firearms Parts to RussiaRead the Press Release
SAVANNAH, GA – Viacheslav Zhukov, 33, was indicted last week by a federal grand jury sitting in Savannah for his role in illegally exporting firearm parts from Savannah, Georgia to others in Russia. The indictment alleges that Zhukov, a Russian citizen and lawful permanent resident of the United States living in Savannah, mailed multiple packages containing firearm magnifier scopes to Russia without obtaining an export license from the United States Department of Commerce. Various firearm magnifier scopes are controlled under the Export Administration Regulations for crime control purposes and require a license from the United States Department of Commerce to export to Russia. The indictment further alleges that Zhukov misrepresented the contents of packages he mailed to Russia on the customs declarations forms presented to the United States Postal Service.
Zhukov’s arraignment was held yesterday in Savannah before U. S. Magistrate Judge G.R. Smith. Zhukov was ordered detained pending trial. If convicted on all counts, Zhukov faces a 25 year maximum prison sentence. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was led by HSI, with assistance from the U. S. Customs & Border Protection, the U. S. Postal Inspection Service, and the Savannah-Chatham Metropolitan Police Department. Assistant United States Attorneys Tania Groover and Charlie Bourne are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Reidsville Man Indicted as Felon in Possession of FirearmsRead the Press Release
STATESBORO, GA -- Robert Beecher,60, from Reidsville, Georgia, was indicted in June by a federal grand jury sitting in Savannah for possessing several firearms as a convicted felon. Beecher faces a minimum penalty of 15 years in prison if it is determined that he has three qualifying felony convictions and is classified as an Armed Career Criminal under federal law.
Evidence presented during an earlier detention hearing held at the federal courthouse in Statesboro, Georgia established that Beecher had multiple felony convictions dating back to the 1970s, including convictions for arson, burglary, and aggravated assault. Testimony during the hearing also revealed that Beecher was in possession of multiple firearms at his residence in Reidsville on May 7, 2014, the day of his arrest. Based on the evidence presented during Beecher’s detention hearing, U. S. Magistrate Judge G.R. Smith ordered Beecher detained pending trial.
U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the FBI and the ATF. Assistant United States Attorney Carlton R. Bourne, Jr. is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Waycross Men Charged with Enticing Minors to Engage in Sex Acts and with Producing Child PornographyRead the Press Release
SAVANNAH, GA: JACQUES DONTE TAYLOR, 22, and DONNEL CORNELIUS SHAVERS, 22, both of Waycross, Georgia, were indicted by a federal grand jury sitting in Savannah earlier this week on numerous counts of enticing minors to engage in sexual acts and with production of child pornography. In part, the indictment alleges that from January through March of 2014 TAYLOR and SHAVERS persuaded, induced, and enticed two minors to engage in sexually explicit conduct for the purpose of producing child pornography.
United States Attorney Edward J. Tarver said, “These defendants have been charged with committing heinous acts against young children. Our children deserve protection from those who abuse and prey on them. The U. S. Attorney’s Office will continue to aggressively prosecute those who violate the innocence of our children.”
“The online exploitation of children is a problem being faced by law enforcement agencies at all levels of government,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “By working with local partners like the Ware County Sheriff’s Office, HSI special agents can use their unique authorities and technical expertise to help fully investigate crimes against children and ensure their perpetrators are brought to justice.”
Ware County Sheriff Randy F. Royal stated, “I am proud of our investigator, Detective Hope Salinas, who began the initial investigation, which led to Mr. Taylor and Mr. Shavers’ arrests and their being charged with child molestation and other state-level felonies. I am prouder still of the level of support and the spirit of cooperation between our agency and Homeland Security Investigations, which afforded the manpower and resources needed to broaden the scope of the investigation so that all the victims in this case will get the opportunity for justice.”
The federal indictment of TAYLOR and SHAVERS arises out of a joint investigation by the HSI and the Ware County Sheriff’s Office, with additional assistance from the Liberty County Sheriff’s Office. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Daniel R. Crumby is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Jesup Brother and Sister Charged in Stolen Identity and Tax Fraud SchemeRead the Press Release
SAVANNAH, GA -- GREGORY ALLEN, 31, and LEISHA ALLEN, 33, brother and sister from Jesup, Georgia, were arraigned last week on a federal indictment for their alleged roles in a stolen identity and tax fraud scheme operating in Wayne County, Georgia. The federal indictment alleges that Leisha and Gregory Allen filed fraudulent tax returns in order to illegally obtain tax refund checks for their personal benefit. The indictment further alleges that the Allens filed hundreds of fraudulent tax returns using the stolen names and social security numbers of others, including deceased individuals, in order to claim over a million dollars in fraudulent tax refunds.
United States Attorney Edward J. Tarver said, “The burgeoning crime of stealing the identities of innocent people for the purpose of filing false tax returns places all Americans at risk. The damage to unsuspecting victims is severe and long-lasting. Identity thieves beware: this is a real crime, against real people, with real consequences. Know that you will be investigated, prosecuted, and sent to federal prison for your crimes. This case is one of many examples of the continuing efforts of federal law enforcement and the United States Attorney’s Office to combat identity-theft schemes designed to steal tax dollars.”
“This is a case of greed, deceit, manipulation and theft directed at the United States Department of Treasury and the American taxpayer,” stated Veronica F. Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “We will continue to aggressively pursue identity theft in order to protect our nation’s tax system and millions of Americans who could fall prey to this crime.”
Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was led by the IRS Criminal Investigation. Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Dublin Man Sentenced to over 21 Years for Distribution of Child PornographyRead the Press Release
AUGUSTA, GA – Herbert Eugene Burroughs, 47, of Dublin, Georgia was sentenced last week by United States District Court Senior Judge Dudley H. Bowen, Jr. to over 21 years (262 months) in prison, followed by ten years of supervised release, for distributing child pornography. Burroughs pled guilty to two counts of distributing child pornography in December 2013. He will be required to register as a sex offender.
According to the evidence presented at Burroughs’s plea and sentencing hearings, between April and June 2013, Burroughs, who was in Dublin, exchanged email messages with, and distributed child pornography to, a person he believed to be the mother of two young girls in Maryland, in an effort to meet the woman and her children to engage in illicit sexual conduct with the girls. In fact, the mother was an undercover FBI agent working to identify and arrest child predators. After obtaining a federal search warrant to review Burroughs’s email account, agents found that during that same time period and continuing at least until August of 2013, Burroughs actively traded child pornography with others through numerous email communications. He had approximately 3,200 images and 164 videos depicting child sexual abuse in his account.
When imposing the lengthy prison sentence, Judge Bowen noted the troubling nature of the evidence in the case and the need to provide an example to others who may be similarly inclined. At the conclusion of the hearing, Burroughs was returned to the custody of the United States Marshal Service to serve his sentence.
United States Attorney Edward J. Tarver stated, “It is beyond shocking that an adult would send child pornographic images to a mother of two young girls, in order to arrange to have sex with those girls. It is impossible to know how many other children may have been at risk if Burroughs had not been identified and stopped. Burroughs committed a serious crime for which lengthy punishment is justified. There is no higher priority than the protection of our nation’s children. This United States Attorney’s Office will continue its efforts to prosecute those who endanger the safety of our children.”
Special Agent in Charge, FBI Atlanta Field Office, J. Britt Johnson, stated, “This investigation was the result of information sharing and coordination among several components within the FBI that learned of Burroughs and his activities online which further led to his identification and arrest. It is the hope of the FBI that others engaged in similar activities to the distribution of child pornography will take note of the significant prison sentence handed down to Mr. Burroughs in federal court”
This case was investigated by FBI SA Daniel E. O'Donnell and SA Jacqueline Dougher from Baltimore, who work with the FBI's Violent Crimes Against Children (VCAC), Major Case Coordination Unit (MCCU), and by FBI SA Edward Sutcliff in Statesboro, Georgia.This case was brought as part of Project Safe Childhood, a U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Augusta Minister Sentenced to More Than 12 Years in Prison for Check-Cashing SchemeRead the Press Release
AUGUSTA, GA – Jesse Jefferson Flournoy, II, 37, of Augusta, Georgia was sentenced earlier this month to 148 months in prison by United States District Court Judge J. Randal Hall for his role in a check-cashing scheme that involved cashing over 80 United States Treasury and University Bank checks for a total loss of $450,465.52. This sentencing followed a lengthy jury trial in July 2013, where Flournoy was convicted of one count of Conspiracy to Defraud the United States, thirteen counts of Theft of Public Money, and eight counts of Aggravated Identity Theft.
Evidence presented at trial and during sentencing showed that between September 2011 and January 2012, Flournoy played a vital role in a check-cashing scheme that involved cashing checks which were either generated as the result of filing a fraudulent tax return or were stolen from the United States mail before reaching the intended payee. Flournoy would obtain the checks from co-conspirators, forge the individual payees’ names on each check, create a bogus power of attorney form, in part by forging the individuals’ signatures, recruit an accomplice to actually cash the check, and then send money back to his co-conspirators after taking his “cut” from each check. In addition, the evidence showed a number of fraudulent tax refunds were electronically deposited directly into bank accounts controlled by Flournoy. The entire time Flournoy participated in this fraudulent scheme, he also served as the leader of the Transformation Empowerment Christian Center in Augusta, Georgia.
United States Attorney Edward J. Tarver said, “Schemes dealing with fraudulent tax refunds are not aimed at stealing from the ‘faceless victim’ of the government. The funds in the United States Treasury represent the money earned and paid by every American citizen. As such, this Office will continue to vigorously investigate and prosecute crimes involving theft from the American people.”
In addition to the ordered term of imprisonment, Flournoy was ordered to pay $450,465.52 in restitution. After Flournoy is released from prison, he will serve three years of supervised release. Regarding the length of the prison sentence, Mr. Tarver noted that parole has been abolished in the federal system.
FBI Special Agent Paul Kubala, IRS-CI Special Agent Roger Garland, and Secret Service agent Tom Norris conducted the investigation which led to the indictment. Assistant United States Attorney C. Troy Clark and former Assistant United States Attorney David M. Stewart prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Final Defendant Sentenced in Dodge County Area Drug Trafficking OrganizationRead the Press Release
DUBLIN, GA – Dwight Eady, 31, of Milan, Georgia was sentenced earlier this month by Senior United States District Court Judge Dudley Bowen to 70 months in prison for his role in a cocaine trafficking organization operating out of Dodge, Telfair, and Laurens Counties, Georgia, and elsewhere. Eady was the twenty-first and final defendant to be sentenced for his role in the drug ring. A list of others convicted and sentenced in the case is included below.
Evidence presented during numerous guilty plea and sentencing hearings revealed that Nico Harswell, a co-defendant of Eady, supplied multi-kilogram quantities of cocaine to various individuals in the Telfair, Laurens, and Dodge County area between 2010 and 2012. Several federal wiretaps were obtained which helped identify the members of the drug conspiracy and led to the seizure of a significant amount of cocaine and over $60,000 in cash. Additionally, several vehicles were seized and forfeited.
United States Attorney Edward J. Tarver stated, “This case provides another example of the outstanding results achieved when federal and state law enforcements partner together to investigate and prosecute large-scale drug trafficking organizations. If you push poison in our communities, you can expect to spend years in a federal prison.”
The case was investigated by the DEA, the Oconee Drug Task Force, the Telfair County Sheriff’s Office, and the Laurens County Sheriff’s Office, with assistance from the Georgia State Patrol and the United States Marshal’s Service. Assistant United States Attorneys Charlie Bourne and Greg Gilluly prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
The defendants convicted and sentenced in the case are:
Nico Harswell, 40, of Rentz, Georgia
210 months / 5years supervised release / $2500 fineRonald Harell, 37, of Helena, Georgia
188 months / 5 years supervised release / $2000 fineJames Austin, 31, of McRae, Georgia
151 months / 5 years supervised release / $1500 fineStephin White, 52, of McRae, Georgia
124 months / 5 years supervised release / $1500 fine / 40 hours community serviceDeandre Graham, 28, of McRae, Georgia
38 months / 5 years supervised release / $1000 fine / 40 hours community serviceKemo Pauldo, 35, of Dublin, Georgia
70 months / 5 years supervised release / $2000 fine / 40 hours community serviceMelvin Hughes, 34, of McRae, Georgia
168 months / 5 years supervised release / $2000 fineBrandon Woods, 23, of Dublin, Georgia
90 months / 5 years supervised release / $3000 fineJames Harswell, 33, of Dublin, Georgia
64 months / 5 years supervised release / $2000 fineShonta Burney, 39, of Rentz, Georgia
37 months / 5 years supervised release / $2000 fineKendya Hughes, 33, of McRae, Georgia
32 months / 1 year supervised release / $200 special assessmentCynthia Reynolds, 34, of Jacksonville, Georgia
18 months / 1 year supervised releaseJimmy Tucker, 43, of Laurens County, Georgia
30 months / 5 years supervised release / $1000 fine / 40 hours community serviceAntonio Smiley, 35, of Hinesville, Georgia
120 months / 5 years supervised release / $2000 fineJohnny Fabian, 60, of Ludowici, Georgia
45 months / 5 years supervised release for each count / $1000 fine / $200 special assessmentGary Duty, 39, of Dublin, Georgia
48 months / 1 year supervised release / $200 special assessmentTron Baker, 34, of Hinesville, Georgia
27 months / 5 years supervised release / $1500 fine / 40 hours community serviceRobert Nico Perry, 33, of Glenwood, Georgia
36 months / 1 year supervised releaseChad Mitchell, 33, of Eastman, Georgia
180 months / 5 years supervised release / $3500 fineGary Wesley, 40, of Helena, Georgia
57 months / 5 years supervised release / $1000 fine7 Former Bank Officers Sentenced in Loan-Fraud Scheme That Preceded Collapse of First National Bank of SavannahRead the Press Release
SAVANNAH, GA: 7 former officers of First National Bank of Savannah were sentenced during three days of hearings last week before United States District Court Chief Judge Lisa Godbey Wood. Each of the defendants had earlier pled guilty to their role in a massive loan-fraud scheme against First National Bank and other federally insured banks.
The 7 convicted former officers of First National Bank received the following sentences:
- Heys Edward McMath III, 59, the former President and CEO of First National Bank, was sentenced to serve 42 months in prison, to pay $9,749,264.83 in restitution, and to serve 3 years of supervised release after his release from prison;
- Stephen Michael Little, 65, the former Executive Vice President and CFO of First National Bank, was sentenced to serve 20 months in prison, to pay $72,571.25 in restitution, to pay a fine of $100,000, and to serve 3 years of supervised release after his release from prison;
- Robert Wilson Dailey, 52, the former City President and Senior Lending Officer of First National Bank, was sentenced to serve 38 months in prison, to pay $158,518.13 in restitution, and to serve 3 years of supervised release after his release from prison;
- Jay Patrick Gardner, 63, the former Vice President of Credit Administration of First National Bank, was sentenced to serve 2 years of probation and to pay $14,800 in restitution.
- Isaac Jefferson Mulling, 55, a former Senior Vice President and commercial loan officer of First National Bank, was sentenced to serve 22 months in prison, to pay $157,543.60 in restitution, and to serve 3 years of supervised release after his release from prison.
- Alan Robert Fleming, 38, the former City President of the Tybee Island branch and a commercial loan officer of First National Bank, was sentenced to serve 38 months in prison, to pay $3,891,870.28 in restitution, and to serve 3 years of supervised release after his release from prison;
- Jeffrey Allen Farrell, 45, the former City President of the Richmond Hill branch and a commercial loan officer of First National Bank, was sentenced to serve 10 months in prison, to pay $57,771.25 in restitution, and to serve 3 years of supervised release after his release from prison.
United States Attorney Edward J. Tarver said, “These Defendants handed out millions of dollars in fraudulent loans, falsified countless bank records, and lied to federal bank regulators, all in an effort to gamble with other people’s money and to hide the failing condition of the bank that they ran. Their fraudulent conduct put at risk the deposits of those who sought a safe place to keep their money, and ultimately caused a payout of enormous losses by the Federal Deposit Insurance Corporation (FDIC). No matter the complexity of the scheme, this United States Attorney’s Office will bring those bank officers who place FDIC-funds at risk through fraud and other criminal conduct to justice.”Fred Gibson, Jr., Principal Deputy Inspector General of the FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing the sentencings resulting from our investigation of the fraud that contributed to the failure of the First National Bank of Savannah and a loss to the Deposit Insurance Fund of more than $90 million. We are particularly concerned when financial institution insiders abuse their positions of trust to commit crimes and seek to undermine the integrity of the financial services industry. We are committed to continuing our efforts throughout the country to bring guilty parties to justice, help maintain public trust and confidence in the banking system, and protect the FDIC’s Deposit Insurance Fund from further losses.”
“The sentences of the seven bank officers involved in this complex scheme make it clear that criminals who undermine banks or bank-holding companies regulated by the Federal Reserve Board will be vigorously prosecuted,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “I commend all those involved in this complex investigation for their hard work and dedication, which led to this outcome.”“This investigation conducted with our law enforcement counterparts demonstrated that bank officials and persons in positions of trust who violate the law will be thoroughly investigated and held accountable for their actions,” said AIGI John L. Phillips of the Department of Treasury.
According to evidence presented during the guilty plea and sentencing hearings, as First National Bank’s financial condition began to deteriorate, the Defendants schemed to hide from the bank, members of the bank’s Board of Directors, and from federal regulators millions of dollars in non-performing loans. The Defendants accomplished their scheme by unlawfully loaning money to unqualified nominees to make interest and other payments on other non-performing loans; by enticing others to take over non-performing loans with hidden promises, side deals and other terms unfavorable to First National Bank; and by recruiting other banks to fund non-performing loans based upon fraudulent misrepresentations about the quality of the loans. To assist in their scheme, the Defendants falsified and fabricated numerous bank documents and records. First National Bank failed and was taken over by the FDIC on June 25, 2010. The FDIC estimates that First National’s failure will cost the Deposit Insurance Fund over $90 million.
This case was the result of a joint investigation conducted by Special Agent Amy Whitcomb of the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; Special Agent Lance Endy of the FDIC Office of Inspector General; Assistant Special Agent In Charge Anthony Scott of the U.S. Department of Treasury Office of Inspector General; and, Forensic Auditor Karen Hartley of the United States Attorney’s Office. First Assistant United States Attorney James Durham and Assistant United States Attorney Jennifer Solari prosecuted the case on behalf of the United States.
54 Defendants Charged in $18 Million WIC & Food Stamp Fraud ConspiracyRead the Press Release
34 additional defendants charged with allegedly
selling their federal food benefits for cashSAVANNAH, GA: A federal indictment, today unsealed in Savannah, has charged 54 defendants for their alleged roles in a massive fraud upon the WIC and Food Stamp programs. The indictment represents one of the largest federal food program frauds ever prosecuted, which fraud allegedly involved the purchase of over $18 million in WIC vouchers and Food Stamp benefits for cash through a number of purported grocery stores set up throughout Georgia. In addition to the 54-defendant indictment, 34 other defendants have been charged separately for allegedly selling their WIC vouchers and Food Stamp benefits for cash. A list of all of the defendants charged is attached.
Georgia’s Women, Infant, and Children (WIC) program provides infant formula, juice, eggs, fresh fruits and vegetables, and other healthy foods to low-income pregnant and postpartum women, and to infants and children up to age 5 who are nutritionally at risk. Participants in the WIC program receive 3-month supplies of WIC vouchers, which they can exchange at authorized stores for the healthy foods listed on the vouchers. The Food Stamp Program, now known as the Supplemental Nutrition Assistance Program (SNAP), provides “Food Stamp” benefits to low-income families through Electronic Benefit Transfer (EBT) cards, which are similar to debit cards. It is a crime to exchange WIC or Food Stamp benefits for cash. Both the WIC and Food Stamp programs are administered through the United States Department of Agriculture (USDA), and paid for by federal tax dollars.
The 54-defendant indictment alleges that a number of defendants conspired to open purported grocery stores in Savannah, Macon, Atlanta, Garden City, Lithonia, LaGrange, Stone Mountain, Riverdale, and elsewhere for the purpose of buying WIC and Food Stamp benefits for cash. Once the purported stores were opened and approved as WIC and Food Stamp vendors, many of the defendants allegedly canvassed low-income neighborhoods and solicited WIC and Food Stamp participants to illegally exchange their benefits not for food, but for cash. The defendants then allegedly bought WIC and Food Stamp benefits for cash at a fraction of the amount they received from the USDA by redeeming the benefits they had purchased. The defendants also allegedly conspired to launder over $18 million in proceeds received from their fraud upon the WIC and Food Stamp programs.
The 34 defendants charged separately from the larger indictment are alleged to have sold for cash over $1,000 worth of their own WIC or Food Stamp benefits and the WIC or Food Stamp benefits of their minor children.
United States Attorney Edward J. Tarver said, “This prosecution is one of the largest federal food program frauds ever brought. The Government alleges that the defendants stole taxpayer-funded benefits intended to feed the most needy families and children in our communities. Fraudsters beware: the U. S. Attorney’s Office is committed to working with our federal and state partners to investigate and prosecute complex financial fraud, especially when it attacks government programs funded by taxpayers of the United States.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who create businesses for the purpose of specifically defrauding the taxpayer funded WIC and SNAP programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations. “It should also serve as a warning to all stores, that participate in the WIC and SNAP programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the U. S. Attorney’s Office, and all of its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs. The USDA-OIG applauds the steadfastness and resolution of the U. S. Attorney’s Office to also prosecute the WIC and EBT benefit recipients who chose to sell their benefits rather than use them for their intended purpose of purchasing nutritious foods for themselves and their eligible children.”
“The enduring cooperation between the Georgia Department of Public Health (DPH), local law enforcement, and the U. S. Attorney’s Office should send a clear signal to those contemplating WIC fraud,” said Brenda Fitzgerald, M.D., DPH’s commissioner, who commended the prosecution. “We are committed to working together to detect and eliminate fraud, and to preserve precious funds for those who need it most.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The protection of such important federally funded programs as the WIC and Food Stamp program from such wholesale fraud is paramount. The families and their children who truly need and rely on these programs count on that law enforcement protection and the taxpayers demand it. The FBI will continue to work with its many and varied law enforcement partners in combating such rampant cases of fraud against the U. S. Government.”
“The WIC and Food Stamp programs are designed to provide necessary nutrition for the most vulnerable members of our society,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to have assisted the U. S. Department of Agriculture and others in protecting this program from alleged fraudulent activity in the State of Georgia.”
Each of the 54 defendants listed in the larger indictment have been charged with one count of mail and wire fraud conspiracy, which carries a maximum sentence of 20 years in prison and a fine of up to $250,000, and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison and a fine of up to $500,000. The United States further seeks the forfeiture of $20 million and various bank accounts and assets, including a 2008 Land Rover and a 2008 Mercedes Benz. Each of the 34 defendants charged with conspiring to sell their federal food benefits face a maximum sentence of 5 years in prison and a $250,000 fine. Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The indictments arise out of a joint investigation by Special Agents with the United States Department of Agriculture, Office of Inspector General; investigators with the Georgia Department of Health and Human Services and Georgia Department of Public Health, Office of Inspector General; and Special Agents with the FBI and HSI. Multiple members of these agencies, assisted by the U. S. Marshals’ Southeast Regional Fugitive Task Force and numerous other local law enforcement personnel, arrested a number of the defendants earlier today. Initial appearances are being held today and tomorrow in Savannah, Macon, and Atlanta.
Assistant United States Attorney E. Gregory Gilluly and First Assistant United States Attorney James D. Durham, both with the U. S. Attorney’s Office for the Southern District of Georgia, are prosecuting the cases for the United States.
31-14
List of Defendants Charged in 54-Defendant Indictment
Brandon Sapp, AKA “B,” 37, Austell, Georgia
Kimberly Sapp, AKA “Kimberly Walker,” AKA “The Money Wizard,” 34, Austell, Georgia
Calvin Williams, AKA “Slick,” 39, Atlanta, Georgia
Isaac Martin, AKA “Ike,” 37, Jonesboro, Georgia
John P. Jones, AKA “JP,” 39, Ellenwood, Georgia
Wayne Jackson, AKA “J5,” 32, Atlanta, Georgia
Gregory Thomas, AKA “Rich Gregg,” 37, Atlanta, Georgia
Kerry Adams, AKA “Big Skreed,” AKA “Skrump,” 38, Atlanta, Georgia
Brian Lockhart, AKA “Lock,” 47, Atlanta, Georgia
Henry Ward, AKA “TY,” AKA “TYE,” AKA “Grand Hustle,” 32, Savannah, Georgia
Vincent Harper, 40, Atlanta, Georgia
Ostrando S. Brock, AKA “Shun,” AKA “Shawn,” 32, Mableton, Georgia
Jesse McCoy, AKA “Jay Mac,” 42, Ellenwood, Georgia
Terence Cosby, AKA “Me Gold,” 33, Savannah, Georgia
Raymond Hargrove, 27, Savannah, Georgia
Jacqueline Beauchamp, AKA “Jackie,” 25, Pooler, Georgia
Elizabeth Beauchamp, 28, Pooler, Georgia
Gerald Patilla, AKA “PT,” 30, Savannah, Georgia
Clayton Talley, 32, Pooler, Georgia
Ebony Jacobs, 28, Savannah, Georgia
Olajawon Simmons, AKA “Wan,” AKA “Won,” 27, Savannah, Georgia
Reginald Simmons, AKA “Reggie,” 28, Savannah, Georgia
Gary Grier, AKA “Bundee”, AKA “Dee,” 37, Atlanta, Georgia
Magregor Warner, AKA “KB,” 40, Atlanta, Georgia
Benjamin Tookes, AKA “B,” AKA “Ben,” 40, Atlanta, Georgia
Carlos Davis, AKA “Lo,” 38, Atlanta, Georgia
Raymond Hixon, AKA “Dre,” 38, Atlanta, Georgia
Thomas Thornton, AKA “Big Bo,” 27, Atlanta, Georgia
Branden Jordan, 32, Atlanta, Georgia
Mark White, 38, Atlanta, Georgia
Tobias Render, AKA “Tee,” AKA “Toby,” 33, Atlanta, Georgia
Eric Burkes, AKA “E,” 25, Atlanta, Georgia
Aryay Strong, 31, Atlanta, Georgia
Marshall Sears, 38, Atlanta, Georgia
Suleyma Arreola, 21, Marietta, Georgia
Emory White, 32, Marietta, Georgia
Obryan Moore, AKA “OB,” 29, Powder Springs, Georgia
Terry Mitchell, Jr., 43, LaGrange, Georgia
Corey Mitchell, AKA “Stick,” 39, Atlanta, Georgia
Luquoise Clay, AKA “Qui,” 30, Atlanta, Georgia
Jessica Cameron, AKA “Keta,” 30, Grantville, Georgia
Joshua Dunlap, 38, Monticello, Georgia
Maurice Fudge, AKA “Reese,” 39, Macon, Georgia
Quinton Matthews, AKA “Q,” AKA “Chuck Matthews,” 39, Macon, Georgia
Charles Jackson, AKA “Cooley Slim,” AKA “Corey,” 35, Lithia Springs, Georgia
Ronnie Zachary, AKA “City,” 29, Byron, Georgia
Porsha Drewery, AKA “Parsha,” 37, Macon, Georgia
Taquilla Johnson, AKA “Quilla,” 35, Macon, Georgia
Raheem Waller, 30, Atlanta, Georgia
Travis Rich, 35, Atlanta, Georgia
Marlon Dobbins, 29, Atlanta, Georgia
Derrick Heard, AKA “Da Man,” AKA “Heard,” 43, Atlanta, Georgia
Rahdriq Turner, AKA “Rah Rah,” 36, Rockmart, Georgia
Antonio Dorsey, AKA “Bear,” 34, East Point, GeorgiaList of Defendants Charged In Separate Indictments
Chiquita Armstead, 40, Savannah, Georgia
Yontalay Renee Bennett, 28, Savannah, Georgia
Precious T. Bevins, 24, Garden City, Georgia
Shanika C. Blige, 22, Savannah, Georgia
Deanna W. Boles, 23, Savannah, Georgia
Candice Bostick, 23, Savannah, Georgia
Danitra Bostick, 26, Savannah, Georgia
Tia K. Bowers, 25, Savannah, Georgia
Tonya D. Clark, 41, Savannah, Georgia
Jocelyn Easterling, 48, Savannah, Georgia
Ebony Ellison, 27, Savannah, Georgia
Deonka S. Ellison, 24, Savannah, Georgia
Joanne Ferguson, 42, Savannah, Georgia
Fanchon Nyticia Hill, 26, Jesup, Georgia
Shaquanna C. Hooper, 24, Savannah, Georgia
Tameshia Natasha Jackson, 24, Savannah, Georgia
Koneshia N. Jenkins, 26, Pembroke, Georgia
Latisha V. Jones, 30, Savannah, Georgia
Jameise’ Mayberry, 23, Savannah, Georgia
Quinta Meggett-Mike, 37, Garden City, Georgia
Ebony Roberson, 26, Savannah, Georgia
Shakeila D. Roberts, 22, Savannah, Georgia
Jasmine S. Sammuel, AKA “Jazmi Beasley,” AKA “Jazmi Smith,” 24, Savannah, Georgia
Deanna K. Scott, 24, Savannah, Georgia
Whitney Denise Stokes, 25, Savannah, Georgia
Regina C. Styles, 21, Savannah, Georgia
Hope Taylor, 33, Savannah, Georgia
Ebonilaestei Tremble, 34, Savannah, Georgia
Linda J. Walker, 22, Savannah, Georgia
Tiera L. Walthour, 23, Savannah, Georgia
Alexis Washington, 26, Savannah, Georgia
Rhonda Washington, 31, Savannah, Georgia
Amber Shaniqua Wilson, 23, Savannah, Georgia
Ke’Airra Young, 24, Savannah, Georgia