Southern District of Georgia
Press releases recorded for this federal judicial district.
Brunswick, Georgia Woman Sentenced to 16 Years in Prison for Defrauding Medicaid of over $4 MillionRead the Press Release
BRUNSWICK, GA – Schella Logan Hope, 47, of Brunswick, Georgia, who was previously convicted by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a multi-million dollar Medicaid fraud conspiracy, was sentenced last month to 16 years in prison. The sentence was imposed by the Honorable Lisa Godbey Wood, Chief Judge for the United States District Court for the Southern District of Georgia, who also presided over Hope’s trial.
According to the evidence presented at trial and at sentencing, Hope was a licensed dietician who ran a business located in Brunswick, Georgia, known as Hope Nutritional Services. From 2005 through 2011, Hope misappropriated the identities of thousands of needy children between the ages of 0 and 5 that were enrolled in Head Start programs located throughout the state of Georgia. Once Hope obtained the identities of these children, she fabricated patient files, falsified prescriptions from doctors, and submitted $4 million worth of bogus claims to Medicaid for nutritional services that were not provided. The evidence further showed that Hope used the money she stole from Medicaid to pay for luxury automobiles, designer clothing, and luxury vacations, among other things.
In November 2013, after four days of testimony, a federal jury convicted Hope of 58 counts of conspiracy, health care fraud, aggravated identity theft and money laundering. Upon her convictions for these offenses, Chief Judge Wood remanded Hope to the custody of the United States Marshals.
United States Attorney Edward J. Tarver stated, “Medicaid and other federal programs cannot continue to sustain the enormous burden caused by phony business people like this defendant who work to defraud the United States Government. Vigorous and aggressive enforcement and prosecution is the only response that will help to ensure that these important programs remain available to provide needed assistance. The Department of Justice and this U. S. Attorney’s Office are committed to safeguarding federal health care programs from fraud and abuse and holding those who steal from the American taxpayers responsible for their crimes.”“Committing Medicaid fraud on any level is egregious behavior,” said Derrick L. Jackson, Special Agent in Charge of the U. S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “Today’s sentence demonstrates that when you use programs such as Head Start to facilitate your fraud even further, you will, indeed, pay the piper.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing handed down in this case reflects the severity of the crimes committed. Funds destined for the many federal programs, to include that of Medicaid, are for those who truly need them and not for the personal gains of such individuals as Ms. Hope. The FBI will continue to provide extensive investigative resources toward the protection of these much needed federally funded programs.”
Georgia Attorney General Sam Olens said, “Not only did Schella Hope cheat the Medicaid program out of millions of dollars, she stole the identities of the very children she was supposed to be helping. I am pleased that Judge Lisa Godbey Wood has handed down a sentence that fits the crime. My office will continue to work with the U. S. Attorney’s Office to aggressively prosecute those who defraud Georgia Medicaid.”
In addition to the sentence of imprisonment, Chief Judge Wood ordered that Hope pay more than $4 million in restitution to Medicaid, and serve 3 years of supervised release upon completion of the sentence of imprisonment. Mr. Tarver noted that there is no parole in the federal system.
The conviction and sentence of Hope resulted from a joint investigation by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; Georgia’s Department of Community Health; and Georgia Attorney General’s Medicaid Fraud Control Unit.
Assistant United States Attorneys Brian T. Rafferty and Assistant Attorney General Robin Daitch 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 Man Sentenced to 25 Years for Transporting A Minor with Intent to Engage in Sexual Conduct and Child Pornography ChargesRead the Press Release
STATESBORO, GA – Steve Lavon Biggins, 33, of Savannah, Georgia, was sentenced Wednesday by United States District Court Senior Judge B. Avant Edenfield to 25 years in prison, followed by supervised release for the remainder of his life, for Transporting a Minor with Intent to Engage in Illicit Sexual Conduct, Production of Child Pornography, and Transportation of Child Pornography. Biggins had been found guilty by a federal jury after a 2-day trial in Statesboro, in December 2013.
United States Attorney Edward Tarver said, “Crimes targeting children is reaching epidemic proportions. 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 met an underage girl online, lied to her to gain her trust, and engaged in illegal sex acts in violation of numerous federal laws. Lengthy sentences like the one handed down in this case help protect our children from predatory acts, and serve to deter others from engaging in similar conduct.”
Evidence presented during the trial revealed that Biggins, a 33-year-old truck driver posing as a man in his twenties named “Rodney,” engaged in text and telephone communications with a girl under the age of 16 with whom he initiated contact through the mobile application “Tagged.com.” After developing an in-person relationship with the victim, and without the knowledge of the girl’s parents, in July 2013, Biggins took the child on short-haul trips that spanned seven days, and included travel to South Carolina, Tennessee, and North Carolina, before returning to Georgia. While on the trip he engaged in sexual conduct that violated the laws of each state he entered, and photographed the same. Upon his return trip through Millen, Georgia, Biggins was stopped and immediately arrested by law enforcement officers. He has remained in custody since that time.
The arrest in this case was accomplished through the combined efforts of Millen Police Department, Jenkins County Sheriff’s Office, Georgia State Patrol, Georgia Bureau of Investigation, and the Federal Bureau of Investigation. 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 to identify and rescue victims.
FBI Special Agent Marcus Kirkland investigated the case. 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 Savannah-Chatham Metropolitan Police Chief Willie Lovett Indicted on Extortion, Gambling and Obstruction ChargesRead the Press Release
3 Others Charged For Their Roles in an Illegal Gambling Operation
SAVANNAH, GA – Former Savannah-Chatham Metropolitan Police (SCMPD) Chief Willie Clinton Lovett, 65, was indicted yesterday by a federal grand jury sitting in Savannah on charges of extortion, participating in an illegal gambling operation and conspiring to obstruct the enforcement of state criminal laws. Two other defendants, Randall Wayne Roach and Kenny Amos Blount, were also charged in the superseding indictment with running an illegal gambling business, and with conspiring with Lovett to obstruct the enforcement of Georgia gambling laws. A fourth defendant, Randall Wayne Roach, Jr., was charged with participating in an illegal gambling business.
According to the allegations contained in the superseding indictment, since 2004, Roach, Blount, Roach, Jr. and others would operate an illegal gambling business in Savannah during holiday celebrations, such as St. Patrick’s Day, and other events. The illegal gambling business would operate 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 and others. In return, Lovett provided protection to the illegal gambling business against enforcement of Georgia gambling laws. The superseding indictment alleges that in 2013, Lovett received cash payments on five separate 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.
Roach, Roach, Jr., Blount and Lovett each face a maximum sentence of 5 years in prison, $250,000 fine and 3 years of supervised release on the commercial gambling charge. Lovett, Roach and Blount also face a maximum sentence of 5 years in prison, $250,000 fine and 3 years of supervised release on the conspiracy to obstruct the enforcement of state criminal laws charge. Lovett faces a maximum of 20 years in prison, a $250,000 fine and 3 years of supervised release on each of the 5 extortion charges. 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. First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner are prosecuting the case on behalf of the United States. Any questions should be directed to Mr. Durham at (912) 201-2547Aubrey Lee Price, Former Bank Director Who Faked His Own Death, Pleads Guilty to Bank, Wire and Securities FraudRead the Press Release
STATESBORO, GA – Earlier today, Aubrey Lee Price, 47, pleaded guilty to bank, securities and wire fraud to resolve charges brought in the Southern District of Georgia and the Eastern District of New York relating to a multi-million dollar fraud scheme that Price executed to defraud dozens of investors and a federally insured bank. Based upon his guilty pleas, Price now faces up to 30 years in prison, millions of dollars in fines, and millions of dollars in restitution to the victims of his fraud. Today’s guilty plea took place before the Honorable B. Avant Edenfield, Senior United States District Judge for the Southern District of Georgia.
Southern District of Georgia United States Attorney Edward J. Tarver and Eastern District of New York United States Attorney Loretta E. Lynch announced the guilty pleas.
According to court filings and evidence presented at the guilty plea hearing, in 2010, an investment group controlled by Price invested approximately $10 million in the failing Montgomery Bank & Trust (“MB&T”), an FDIC-insured financial institution in Ailey, Georgia. Price was then made a director of MB&T and put in charge of investing the bank’s capital. Price told MB&T officials that he would invest the bank’s capital in U. S. Treasury securities, but instead, over the next eighteen months, 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, Price also defrauded numerous individuals who had invested in two investment funds Price managed, PFG LLC (“PFG”) and the Montgomery Growth Fund (“Montgomery Growth”). Price raised approximately $51 million from approximately 115 investors from across the country, and unsuccessfully invested funds in various equity securities, options, and real estate, including farms in South America. To cover up his losses, Price posted fake account statements on a secure PFG web site that fraudulently reflected fictitious assets and fabricated investment returns.
In mid-June 2012, Price sent acquaintances “suicide letters” in which he admitted he had defrauded MB&T Bank and his PFG investors, and suggested that he planned to kill himself by throwing himself off a high-speed ferry boat after it left the coast of 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 a several-month search, on December 31, 2013, Price was arrested after he presented a false identification to a member of the Glynn County Georgia Sheriff’s Department office during a routine traffic stop in Brunswick, Georgia.
U. S. Attorneys Tarver and Lynch credited the Federal Bureau of Investigation (FBI) in Georgia, under the direction of Special Agent in Charge Britt Johnson, and in New York, under the direction of Assistant Director in Charge George Venizelos, with the investigation leading to today’s guilty pleas. 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; the 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 is represented by Assistant United States Attorneys Brian T. Rafferty, T. Shane Mayes, and First Assistant United States Attorney James D. Durham of the U. S. Attorney’s Office for the Southern District of Georgia, and Assistant United States Attorneys Shannon C. Jones and Brian Morris of the U. S. Attorney’s Office for the 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: 47
Valdosta, GeorgiaS.D.G.A. Docket No. 612-CR-10
E.D.N.Y. Docket No. 13-CR-058Douglas, Georgia Man Charged with Armed Robbery of Wells Fargo BankRead the Press Release
WAYCROSS, GA – Nevada Powell, 33, pled not guilty yesterday before a Federal Magistrate Judge on to charges of Armed Bank Robbery, Brandishing a Firearm During a Crime of Violence, and Possession of a Firearm by a Prohibited Person. Powell was indicted by a federal grand jury sitting in Savannah earlier this month. According to the indictment, Powell stole approximately $38,000 from the Wells Fargo bank on April 16, 2014 “by force, violence and intimidation,” which included the use of a Mossberg 12 gauge shotgun and a simulated explosive device. The indictment also alleges that prior to the robbery Powell had been convicted of a felony offense. The charges follow an investigation by the Federal Bureau of Investigation, the Douglas Police Department, the Coffee County Sheriff’s Office, and the Georgia Bureau of Investigation. Powell has been ordered to remain in custody pending trial.
United States Attorney Edward Tarver commented: “Our citizens should be able to patron local businesses free from the threat of violence. The United States Department of Justice and this United States Attorney’s Office consider the cessation of violent crime and the protection of American citizens to be its top priority. We will continue to vigorously prosecute this type of activity when it occurs within federal jurisdiction.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Mr. Powell is now federally charged with a serious armed robbery wherein he also left behind a hoax IED/explosive device for law enforcement to deal with. The FBI is appreciative of the quick response by the Douglas Police Department and the Coffee County Sheriff’s Office that led to Powell’s capture as well as the hard work of the GBI in the handling of that hoax IED. “
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 the Defendant’s guilt beyond a reasonable doubt.
Assistant United States Attorney Jennifer G. Solari 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.
Guilty Plea Entered by Final Defendant Charged in Augusta, Georgia Sex Trafficking RingRead the Press Release
Five defendants have now pled guilty to charges arising out of
Sex Trafficking of a Minor InvestigationAUGUSTA, GA – William Warren Hart, 35, of Hephzibah, Georgia, pled guilty last week before Senior United States District Court Judge Dudley H. Bowen, Jr. for his role in a sex trafficking organization which operated in Augusta, Georgia, in 2013. Hart, who faces up to five years in prison for his limited role in the sex trafficking organization, pled guilty to Using a Facility of Interstate Commerce to Facilitate the Carrying on of a Business Involving Prostitution. The other four Defendants charged include:
Charles Henry Castillo, a/k/a “Joe King,” 32, of Augusta, Georgia,
Allison Jontil Barnes, a/k/a “Jah” and “Shantae Davis,” 29, of Augusta, Georgia,
Shelica Daniels, a/k/a “Red,” 27, of Augusta, Georgia, and,
Heather Leigh Hedrick, 30, of Augusta, Georgia.Each of these four Defendants pled guilty previously to Conspiring to Engage in the Sex Trafficking of a Minor. The charge carries a possible sentence of life imprisonment. A sentencing date has not yet been scheduled.
United States Attorney Edward Tarver stated, “Georgia’s children are at risk and continue to be vulnerable to exploitation. More collaborative efforts and faster responses by law enforcement agencies are needed to protect our children. The aggressive prosecution of individuals like these Defendants will continue to be a priority for the Department of Justice and this United States Attorney’s Office.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, said, “The Defendants in this case clearly illustrate the need for law enforcement, working within the community, to protect our youth who remain vulnerable to those who would prey on them. The FBI will continue to provide significant investigative resources toward investigations that focus on juvenile sex trafficking within Georgia.”
According to evidence presented during several guilty plea hearings, Daniels, in the summer of 2013, encouraged a 16-year-old girl to leave home and begin working for and with Daniels as a prostitute. Daniels placed ads on Backpage.com using a pseudonym for the victim to facilitate the criminal conduct. Soon afterwards, Barnes, who met the victim through Daniels, encouraged the victim to begin working for Barnes in the same way. Ultimately, the two met up with Castillo, who assumed a leadership role in the operation. Castillo enlisted the assistance of Hedrick and Barnes in preparing images and videos of the minor to be used to advertise her availability for prostitution. Hart assisted Barnes in posting some of those advertisements on Backpage.com.
On August 26, 2013, the FBI received a tip from the National Center for Missing and Exploited Children that a juvenile’s images were being posted on Backpage.com for prostitution services. Through an undercover operation conducted that same day, agents and officers with the FBI’s Computer Crime Child Exploitation (CCCX) Task Force identified and arrested Castillo, Hedrick, and Barnes, and rescued the 16-year-old victim at Castillo’s apartment.
This prosecution was the result of a joint investigation of the FBI’s CCCX Task Force, made up of Augusta-area FBI agents; the Georgia Bureau of Investigation; Richmond County Sheriff’s Office; and the Columbia County Sheriff’s Office. 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 Patricia Rhodes and 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.Two Savannah Men Charged with Conspiring to Deal in Counterfeit CurrencyRead the Press Release
Savannah, GA – Henry Grady Wall, 35, and James Wesley Kelly, 55, both from Savannah, Georgia, were indicted by a federal grand jury sitting in Savannah earlier this month for allegedly conspiring to deal in counterfeit $50 bills. The indictment alleges that both Wall and Kelly knowingly used counterfeit notes to purchase money orders at a grocery store in Port Wentworth, Georgia.
Both Wall and Kelly were arraigned yesterday in before U. S. Magistrate Judge G.R. Smith on a charge of conspiracy. The conspiracy charge carries a maximum prison sentence of 5 years, and a maximum fine of $250,000. Wall was charged separately with dealing and passing counterfeit currency. Each of those charges carries a 20-year maximum prison sentence. United States Attorney Tarver emphasized that the 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 ongoing investigation of this case is being conducted by Special Agents with the United States Secret Service. 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.
15 More Defendants Charged in Stolen Identity & Tax Fraud SchemeRead the Press Release
A Total of 56 Defendants (39 Federal and 17 State) Have Been Charged in a Joint Investigation Combating Identity Theft & Tax Fraud in the Statesboro, GA Area
STATESBORO, GA – Five federal indictments, unsealed today in federal court, have charged 15 additional defendants with their roles in a large-scale identity theft and tax fraud scheme. Each of the indictments alleges that the defendants were involved in using stolen identities to submit bogus income tax returns and to fraudulently receive tax refunds to which they were not entitled. To date, 56 defendants (39 federal and 17 state) have been charged in a joint federal and state investigation into identity theft and tax fraud rings operating in and around the Statesboro, Georgia area. The 15 currently charged defendants are alleged to have operated around the Claxton, Georgia area. The investigation is ongoing.
Earlier this week, law enforcement officials arrested 13 of the 15 federal defendants charged. Federal defendants Santana Lundy, 29, of Statesboro, Georgia, and Katrina Beasley, 32, of Claxton, Georgia, remain fugitives. 6 defendants indicted on state charges were also arrested. Initial appearances for the federally indicted defendants in custody were held today before U. S. Magistrate Judge G.R. Smith in the federal courthouse in Statesboro, Georgia.
United States Attorney Edward Tarver said, “Our operation has already resulted in dozens of convictions followed by lengthy prison sentences. The U. S. Attorney’s Office and our federal and state law enforcement partners will not stop until the individuals running these identity theft and tax fraud rings within our District are found, prosecuted, and sentenced.”
IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, "Today's announcement exemplifies the intense focus on the rigorous pursuit of identity theft by IRS and our law enforcement partners. IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will continue to vigorously pursue those who undermine the integrity of the U. S. tax system."
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “The additional charges and arrests not only demonstrate the extensive nature of this tax fraud scheme but also the law enforcement resolve to address it. The FBI will continue to partner with its various law enforcement agencies to ensure that this type of criminal activity is firmly addressed and brought to a halt.”
Staci Guest, Director of the Office of Special Investigations, Department of Revenue, stated, “These arrests show how serious the State of Georgia is at finding and arresting individuals committing identity theft fraud. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat this growing trend.”
Statesboro Director of Public Safety Wendell Turner said, “The Statesboro Police Department is proud of the continued investigative efforts regarding the defrauding of our citizens’ tax dollars. Keeping up this type of pressure over the course of several years will hopefully send a strong message to the offenders that we will not waver in our efforts to deter their criminal behavior and if they continue this type of behavior, they will be arrested and prosecuted. We are also thankful for our continued partnerships with all of our local and federal counterparts that result in these types of successes.”
If convicted, each federal defendant faces a maximum penalty of 20 years in prison for the wire fraud conspiracy and wire fraud charges, a maximum penalty of 10 years in prison for the theft of public money and access device fraud charges, a maximum penalty of 5 years in prison for the conspiracy to commit theft of public money charge, and a 2-year mandatory, consecutive prison sentence for each charge of aggravated identity theft. Each of these charges also carries a fine of up to $250,000.
United States Attorney Edward J. 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.
FBI Special Agent Marcus Kirkland, IRS Special Agents Gwen Weston and Jason Dulin, and Sergeant James Winskey of the Statesboro Police Department, assisted by their agencies’ colleagues, are conducting the investigation. Assisting in this week’s arrests were the United States Marshal’s Service, the Georgia State Patrol, the Georgia State Probation Office, the Claxton Police Department, the Swainsboro Police Department, and the sheriff’s offices for Bulloch and Evans counties. Assistant United States Attorneys Lamont A. Belk and C. Troy Clark are prosecuting these cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
List of 15 Federal Defendants Charged
AISHIA MILLS, 32, of Statesboro, Georgia
ANGELLICA ROBERTS, 28, of Claxton, Georgia
CANDACE HILLS, 24, of Claxton, Georgia
CHRYSTAL HARLIE, 33, of Statesboro, Georgia
DEONDRAY RICHARDSON, 40, of Keysville, Georgia
KATRINA BEASLEY, 32, of Claxton, Georgia
LATASHA CHARLES, 29, of Statesboro, Georgia
MARQUITA WATSON, 31, of Claxton, Georgia
MARTISHA HILL, 41, of Augusta, Georgia
MARY MCDILDA, 63, of Claxton, Georgia
MELISSA WHITFIELD, 34, of Statesboro, Georgia
MONICA WHITFIELD, 33, of Statesboro, Georgia
SANTANA LUNDY, 29, of Statesboro, Georgia
STACEY WILLIAMS, 41, of Statesboro, Georgia
TERRY GORDON, 33, of Swainsboro, Georgia
List of 6 State Defendants Charged
CHRYSTAL KEY, 40, of Statesboro, Georgia
ANTONIA KEY, 43, of Statesboro, Georgia
WHITNEY G. PERKINS, 27, of Statesboro, Georgia
LATOYA J. WILKERSON, 28, of Statesboro, Georgia
SHEENA LITTLES, 29, of Register, Georgia
VICTORIA H. ASH, 43, of Claxton, Georgia
12 Defendants Charged in Drug Trafficking ConspiracyRead the Press Release
BRUNSWICK, GA - A federal indictment was unsealed earlier this month which charges 12 defendants with conspiring to traffic large amounts of methamphetamine, cocaine, oxycodone, and other drugs in Appling, Bacon, Coffee, Jeff Davis, Telfair, and Wayne Counties, Georgia.
The charges resulted from a joint investigation by the DEA, the GBI, the Bacon County Sheriff's Office, the Jeff Davis County Sheriff's Office, the Coffee County Sheriff's Office, the Brantley County Sheriff’s Office, the Ware County Sheriff’s Office, and with assistance from the Waycross Judicial Circuit District Attorney's Office and the United States Marshal's Service.
If convicted of the drug trafficking conspiracy charge, each defendant faces a maximum of 40 years in prison and a potential fine of $5,000,000.
The 12 defendants charged are:
- Crecencio Ortiz-Castillo, 21, of McRae, Georgia;
- Mauricio Lepe-Cholico, 36, of Baxley, Georgia;
- John Thomas Register, 38, of Alma, Georgia;
- Westley Kayeon Kennedy, 27, of Alma, Georgia;
- Recardo Mantabbyon Harris, 35, of Nicholls, Georgia;
- Markeish Lamaryia Wilkins, 27, of Alma, Georgia;
- Jeremy Peterson, 26, of Alma, Georgia;
- Ottie Lafayette Corbitt, 28, of Douglas, Georgia;
- Johnny Leon Drake, 36, of Baxley, Georgia;
- Nathan Peter Newham, 34, of Hazlehurst, Georgia;
- Irene Kennedy, 54, of Alma, Georgia; and
- Contory Kennedy, 22, of Alma, Georgia.The defendants were arraigned last week in federal court in Brunswick where they all entered pleas of not guilty. Of the 12 defendants appearing, Irene Kennedy, Contory Kennedy, and Markeish Wilkins were released on secured bonds, while the other 9 defendants were denied bond and ordered detained pending a trial.
United States Attorney Edward Tarver emphasized that the 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 Governments burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorney Charlie Bourne is prosecuting the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Multi-Convicted Felons Sentenced in Case Involving the Burglary of Firearms from A Rincon, Georgia ResidenceRead the Press Release
SAVANNAH, GA - James Seyfried, 55, from Palm Coast; Florida, Finlandia Pineda, 56, from Palm Coast, Florida; and Elaine Taylor, 61, from Alma, Georgia were sentenced yesterday to lengthy prison terms by Senior U. S. District Court Judge B. Avant Edenfield in a case that involved the burglary of a Rincon, Georgia residence of numerous firearms and other items. Each defendant earlier pled guilty to possessing firearms as a convicted felon. Seyfried was sentenced to serve 120 months in prison, Pineda was sentenced to serve 115 months in prison, and Taylor was sentenced to serve 70 months in prison. All three will serve 3 years of supervised release upon their release from prison.
United States Attorney Edward J. Tarver stated, “The combination of repeat offenders with multiple felony convictions and home burglaries makes for a volatile situation, particularly when firearms are the target. Thanks to the quick work of our law enforcement partners, a number of stolen firearms did not end up in our communities to be used in the commission of additional crimes. Dangerous felons who have failed attempts at rehabilitation, continue to commit crimes and possess firearms should do hard time for a long time in a federal prison.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta, stated, “The FBI-led Southeast Georgia Violent Crime Task Force is pleased with the role it played in removing three dangerous repeat offenders from our streets while recovering numerous firearms, including several fully automatic machine guns. With the establishment of this task force, area law enforcement are better prepared to address those more violent individuals in a more comprehensive and effective manner as seen here.”
According to evidence presented during the guilty plea and sentencing hearings, Taylor, a multi-convicted felon, received information that a Rincon, Georgia resident had a number of safes in his home containing cash, firearms, and other items. Taylor recruited Seyfried and Pineda, also multi-convicted felons, in a conspiracy to burglarize the Rincon home. On April 15, 2013, the defendants stole the safes from the Rincon home and transported them to Florida. Once in Florida, the defendants were able to open the safes, which contained 16 firearms, including fully automatic rifles (machine guns) and semi-automatic firearms, as well as silencers, smoke grenades, and thousands of dollars in cash.
Taylor’s criminal history includes over 100 felony convictions, including convictions for tax fraud, counterfeiting, and an aggravated assault. Seyfried, who was on federal supervised release at the time of the burglary, has felony convictions that include cocaine trafficking and possessing a firearm as a convicted felon. Pineda’s criminal history includes a murder-for-hire conviction, where she attempted to hire a hit man to murder Seyfried, her husband at the time.
The investigation of this case was conducted by the FBI Safe Streets Violent Crime Task Force of Southeast Georgia, which was assisted by the Effingham County Sheriff’s Office and the Bacon County Sheriff’s Office. Assistant United States Attorneys E. Greg Gilluly, Jr. and 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.
Augusta Business Woman Sentenced to over 23 Years in Prison for Investor Fraud SchemeRead the Press Release
AUGUSTA, GA: REGINA M. PREETORIUS, 47, of Augusta, Georgia was sentenced yesterday to 280 months in prison by U. S. District Court Judge J. Randal Hall for her role in a multi-million dollar investor fraud scheme. After a lengthy jury trial in September 2013, Preetorius was convicted of eight counts of mail fraud, two counts of wire fraud, and three counts of money laundering.
Evidence presented at trial and during sentencing showed that between 2004 and 2009, Preetorius defrauded dozens of investors out of homes and over $1 million. The victims included private investors and distressed homeowners facing imminent foreclosure. Preetorius promised certain investors that that they would make enormous returns off of their investments in real estate; instead, Preetorius used the homes and money to support her lavish lifestyle.
United States Attorney Edward J. Tarver said, “This defendant stole millions of dollars in money and property from dozens of victims. Preetorius’s promises of realizing the American Dream quickly turned to nightmares for her victims. She now has over two decades in a federal prison cell to sleep on the harm she has caused others.”
In addition to the ordered term of imprisonment, Preetorius was ordered to pay $1,457,374.67 in restitution. After Preetorius is released from prison, she will serve three years of supervised release. Regarding the length of the prison sentence, Mr. Tarver noted that parole was abolished in the federal system in 1984.
FBI Special Agent Paul Kubala and IRS-CI Special Agent Roger Garland 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.
Savannah Man Pleads Guilty to Armed Bank RobberyRead the Press Release
AUGUSTA, GA – An indictment was returned yesterday by a federal Grand Jury sitting in Savannah, Georgia against William Arnold Debow, 53, a federally licensed firearms dealer who was doing business as The Ponderosa Trading Company. Debow was charged with 28 counts of knowingly transferring a firearm to a convicted felon and with 10 counts of illegally transferring a handgun to out of state residents.
Knowingly transferring a firearm to a felon carries a maximum prison sentence of 10 years and a maximum fine of $250,000 for each count. Illegally transferring a handgun to an out of state resident carries a maximum 5 year prison sentence and a $250,000 fine for each count. United States Attorney Edward Tarver emphasized that the 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 ATF. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Gun Dealer Indicted for Sale of Firearms to A FelonRead the Press Release
April 4, 2014
AUGUSTA, GA – An indictment was returned yesterday by a federal Grand Jury sitting in Savannah, Georgia against William Arnold Debow, 53, a federally licensed firearms dealer who was doing business as The Ponderosa Trading Company. Debow was charged with 28 counts of knowingly transferring a firearm to a convicted felon and with 10 counts of illegally transferring a handgun to out of state residents.
Knowingly transferring a firearm to a felon carries a maximum prison sentence of 10 years and a maximum fine of $250,000 for each count. Illegally transferring a handgun to an out of state resident carries a maximum 5 year prison sentence and a $250,000 fine for each count. United States Attorney Edward Tarver emphasized that the 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 ATF. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Waycross Man Sentenced to 210 Months in Prison for Firearms ViolationRead the Press Release
WAYCROSS, GA -- DERECK JEROME BROWN, 33, of Waycross, Georgia, was sentenced last week before Chief United States District Court Judge Lisa Godbey Wood to 210 months in prison for possessing a firearm as a convicted felon.
Evidence presented during Brown’s guilty plea and sentencing hearings revealed that in October 2012, a search warrant was conducted at Brown’s home, which resulted in the discovery of a Lorcin 9mm pistol, crack cocaine, marijuana, and a significant amount of cash. At the time, Brown was prohibited from possessing the firearm and qualified as an Armed Career Criminal as a result of four prior felony convictions involving cocaine trafficking and the obstruction of law enforcement officers.
United States Attorney Edward J. Tarver said, “The United States Attorney’s Office must, and will, continue to aggressively prosecute those who endanger the safety of our communities. Successful investigations like these are the result of cooperation between federal, state, and local law enforcement agencies.”
Brown’s case resulted from a joint investigation by ATF and the Waycross Police Department. 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.
Final 2 Defendants Sentenced in Stolen Identity and Tax Fraud SchemeRead the Press Release
STATESBORO, GA -- TIDAESHA V. TAYLOR, 27, and GREGORY F. SMITH, JR., 21, were sentenced last week before United States District Court Judge B. Avant Edenfield in Statesboro, Georgia for their roles in a stolen identity and tax fraud scheme centered in Statesboro, Georgia. In total, 13 individuals were charged, convicted, and sentenced in a scheme to steal identities and submit false tax returns that cost the American taxpayers over $1 million in bogus tax refunds.
United States Attorney Edward J. Tarver said, “In the midst of another tax season, cases like these demonstrate the substantial risks to the millions of honest tax filers of having their personal information stolen and fraudulently used. The United States Attorney’s Office will continue its efforts to protect the integrity of the federal income tax filing system and to prosecute those responsible for stealing the identities of legitimate taxpayers in order to deny them the refunds to which they are entitled.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “This case involved numerous individuals working together to defraud the government, as well as taxpayers, in a systematic manner. The law enforcement response, similarly, consisted of various law enforcement groups working together in a systematic manner to stem the tide of this organized criminal enterprise. The FBI will continue to dedicate significant resources and personnel toward the investigation of such groups that would do so much harm to so many.”
IRS Special Agent in Charge Veronica F. Hyman-Pillot stated, “The sentences these defendants received will not replace the losses that were incurred or the harm endured by the victims. However, they do illustrate that IRS Criminal Investigation, along with our law enforcement partners, are committed to pursuing individuals who commit these types of crimes. We will continue to unite and utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”
In 2013, Taylor and Smith, along with 11 others, were indicted on charges ranging from a conspiracy to defraud the IRS to identity theft. According to evidence presented during guilty plea and sentencing hearings, these schemers stole personal identifiers, such as names, dates of birth, and Social Security numbers, from medical records and other sources, which they then used to submit fraudulent tax returns in order to obtain tax refunds to which they were not entitled.
Taylor and Smith were the last to be sentenced of the 13 defendants originally charged. Each of the 13 defendants and their sentences are as follows:
ERICA BALDWIN, 31, of Statesboro, Georgia, was sentenced on January 7, 2014, to 81 months in prison.
TRACY DENSON, 44, of Statesboro, Georgia, was sentenced on February 13, 2014, to 100 months in prison.
SHAKITA EASON, 30, of Statesboro, Georgia, was sentenced on January 7, 2014, to 104 months in prison.
YOLANDA EDMOND, 36, of Statesboro, Georgia, was sentenced on October 8, 2013, to 32 months in prison.
GLORIA EVANS, 44, of Statesboro, Georgia, was sentenced on October 8, 2013, to 39 months in prison.
JOSHUA MINCEY, 20, of Statesboro, Georgia, was sentenced on January 7, 2014, to 48 months in prison.
PORSCHE S. PINKNEY, 19, of Augusta, Georgia, was sentenced on January 14, 2014, to 65 months in prison.
DWAN SCOTT, 32, of Statesboro, Georgia, was sentenced on January 14, 2014, to 72 months in prison.
JENNA SCOTT, 28, of Jacksonville, Florida, was sentenced on January 23, 2014, to 75 months in prison.
GREGORY F. SMITH, JR., 21, of Stone Mountain, Georgia, was sentenced on March 5, 2014, to 95 months in prison.
ASHA K. SPAULDING, 37, of Claxton, Georgia, was sentenced on October 8, 2013, to 154 months in prison.
TIDAESHA V. TAYLOR, 27, of College Park, Georgia, was sentenced on March 5, 2014, to 75 months in prison.
ANDREA WEBB, 31, of Register, Georgia, was sentenced on January 7, 2014, to 51 months in prison.
FBI Special Agent Marcus Kirkland and IRS-CI Special Agent Gwen Weston led the investigation in this case. They were assisted by the Statesboro Police Department, the Bulloch County Sheriff’s Office, and Region 5 of the Georgia Bureau of Investigation. 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.
Superseding Indictment Charges Widow with Murder in Fort Stewart SlayingRead the Press Release
Dublin, GA – LORETTA SMITH, 41, of Glenwood, Georgia, pled guilty last week before Senior District Court Judge Dudley H. Bowen to defrauding the U. S. Department of Veterans Affairs (“VA”) through fraudulent worker’s compensation claims.
According to the evidence presented during the guilty plea, SMITH, while employed with the VA, 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 $460,000 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. Theft of taxpayer money by a federal employee is an abuse of trust and will not be tolerated.”
Monty Stokes, Special Agent in Charge, U. S. Department of Veterans Affairs, Office of Inspector General, said, “We are disappointed in Smith’s betrayal of public trust. She was hired to help veterans, but allegedly chose to cheat the system for her own personal gain. This has been a successful team effort in identifying, investigating, and prosecuting this matter.”
SMITH faces up to 20 years in federal prison, a fine of up to $250,000, and 5 years supervised release. A sentencing hearing will be scheduled after the U. S. Probation Office conducts a presentence investigation. After her guilty plea, SMITH was ordered into custody by Senior Judge Bowen.
The case was investigated by the Department of Labor, Office of Inspector General. Assistant U. S. Attorney Carlton Bourne is prosecuting the case on behalf of the United States. For additional questions, please contact James D. Durham, First Assistant United States Attorney at (912) 201-2547.
Superseding Indictment Charges Widow with Murder in Fort Stewart SlayingRead the Press Release
SAVANNAH, GA -- A superseding indictment was returned late yesterday by a federal grand jury sitting in Savannah, Georgia, charging LILLIE MAE EUBANK, 39, with first degree murder in the beating death of her husband, Specialist John Joseph Beans Eubank, 29, on November 30, 2013, on Fort Stewart. MS. EUBANK’s codefendant and brother, CARL EVAN SWAIN, was charged with the murder in January. Federal law provides that a murder occurring within the special maritime and territorial jurisdiction of the United States is a federal crime. Fort Stewart lies within the territorial jurisdiction of the United States.
EUBANK was first charged last week by criminal complaint. She was ordered detained pending trial by United States Magistrate Judge GR Smith on Tuesday. Mr. Tarver stressed that a criminal complaint and an indictment are only an accusations and are 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 case is being investigated by the FBI's Southeast Georgia Violent Crime Task Force, with assistance provided by Army-CID. Assistant U. S. Attorneys Cameron Heaps Ippolito and Brian T. Rafferty are prosecuting the case on behalf of the United States.Leader of International Sex-Trafficking Ring Sentenced to Life in PrisonRead the Press Release
Operation Dark Night, the Largest Sex-Trafficking Organization Ever Prosecuted in the
Southern District of Georgia, Results in 23 Convictions and the Rescue of 12 VictimsSAVANNAH, GA – Joaquin Mendez-Hernandez, also known as “El Flaco,” 35, formerly of Mexico, was sentenced today by Senior U. S. District Court Judge B. Avant Edenfield to life in prison for his role in a sex-trafficking conspiracy that exploited dozens of women. The investigation into this conspiracy, dubbed Operation Dark Night, has resulted in the conviction of 23 defendants and the rescue of 12 victims.
United States Attorney Edward J. Tarver stated, “It is reprehensible that an international sex-trafficking organization set up shop within our very own communities. This organization destroyed the lives of many victims through fear, violence, and intimidation, all for the love of money. Those responsible will now pay the price in a federal prison.”
“While it is extremely satisfying to see these defendants held accountable for their atrocious crimes, the clear victory in this case was the rescue of their victims,” said Special Agent in Charge Brock D. Nicholson, who oversees Homeland Security Investigations in Georgia and the Carolinas. “From the testimony they provided in court, these women have begun to rebuild their lives and I applaud their bravery and courage in confronting their abusers and rejecting the roles they were forced into.”
According to evidence presented during numerous guilty plea and sentencing hearings, local and federal law enforcement agencies identified and dismantled an international sex trafficking enterprise that spread from Mexico to Savannah, Georgia. Members of the organization enticed women from Mexico, Nicaragua, and elsewhere to travel to the United States with false promises of the American Dream. Once inside the United States, the women were threatened and forced to commit acts of prostitution at numerous locations in Savannah and throughout the southeast. Women were forced to engage in sexual activity with as many as 50 people a day. To make sure the women complied, members of the organization threatened the women, used violence against them, and held children hostage in Mexico. Members of the organization would also trade their victims to other members who operated in other states, such as Florida and North and South Carolina.
Each of the 23 defendants arrested in Operation Dark Night have pled guilty and been sentenced. Two additional defendants, Eugenio Prieto-Hernandez and Daniel Ribon-Gonzalez, remain fugitives. A listing of the defendants and their sentences or fugitive status is attached.
Operation Dark Night represents the largest sex-trafficking investigation ever prosecuted in the Southern District of Georgia. The operation was conducted by U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from FBI, ATF, U. S. Customs and Border Protection (CBP), CBP Air and Marine Operations, IRS-Criminal Investigations, Coast Guard Investigative Services, Savannah-Chatham Metropolitan Police Department, Chatham County Sheriff’s Office, Garden City Police Department and Chatham County Counter Narcotics Team.
Twelve victims were rescued as a part of Operation Dark Night. HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions. Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Assistant United States Attorneys Tania Groover 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 or [email protected].13-14
OPERATION DARK NIGHT
DEFENDANTS
Eugenio Prieto-Hernandez – Fugitive
Joaquin Mendez-Hernandez (a/k/a “El Flaco”) – life in prison
Juan Carlos Pena – 240 months in prison
Luisa Capilla-Lancho – 60 months in prison
Jorge Lira-Xochicale – 66 months in prison
Mayer Sanchez-Calderon – 180 months in prison
Claudio Sanchez-Calderon – 180 months in prison
Omar Peralta-Rodriquez – 37 months in prison
Neurby Celenia Diaz – 72 months in prison
Antonio Ubaldo Mendez-Lopez – 46 months in prison
Cesar Aguilar-Rebollar – 21 months in prison
Sylvia Barrera – 27 months in prison
David Reyes – 18 months in prison
Antonio Ramirez-Catalan – 48 months in prison
Jose Ricardo Vazquez-Garcia – 36 months in prison
Daniel Ribon-Gonzalez – Fugitive
Marisol Ferreriras – 13 months in prison
Paresh Patel – 7 months in prison
Sergio Valazquez Martinez – 12 months in prison
Fernando Pelayo Silverio – 18 months in prison
Arturo Salquil-Gomez – 12 months in prison
Jose Hernandez Trujillo – 25 months in prison
Silvstre Aguilar Sayago – 27 months in prison
Rodolfo Hernandez Guiterrez – 23 months in prison
Alex Martinez Moncon – 22 months in prisonPooler Resident Indicted on Two Local RobberiesRead the Press Release
SAVANNAH, GA -- BOBBY JOE WHITE, JR., 42, of Pooler, Georgia was indicted last week by the federal grand jury sitting in Savannah for robbing the Sea Island Bank and the Biomat USA Savannah Blood Plasma Donation Center. According to the indictment, White allegedly robbed the Sea Island Bank on November 1, 2013 by “force, violence, and intimidation.” Three weeks later, on November 22, 2013, White allegedly robbed the Biomat USA Savannah Plasma Donation Center of about $8,000 in cash.
White faces a maximum sentence of 20 years in prison, a $250,000 fine and 3 years of supervised release for each robbery 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 arose out of an investigation by the FBI Safe Streets Violent Crime Task Force of Southeast Georgia, which was assisted by the Pooler Police Department and the Savannah-Chatham Metropolitan Police Department. Assistant United States Attorney Charlie Bourne is prosecuting the case on behalf of the United States.
8 Defendants Indicted on Federal Drug Trafficking ChargesRead the Press Release
SAVANNAH, GA – A federal grand jury sitting in Savannah, Georgia returned an indictment last week charging 8 defendants with trafficking powder and crack cocaine and marijuana in the Savannah area and elsewhere. This federal indictment follows state charges, where the Eastern Judicial Circuit/Chatham County District Attorney’s Office indicted 20 others for their involvement in the drug-trafficking conspiracy.
The indictment follows an 18-month Organized Crime Drug Enforcement Task Force (OCDETF) investigation into drug trafficking activities from Savannah to California. Agents with the DEA and the Chatham-Savannah Counter Narcotics Team (CNT) led the joint investigation. The investigation culminated in arrests and search warrants being executed on September 11, 2013, in the following locations: Port Wentworth, Garden City, and Savannah. During the investigation, agents seized large quantities of powder cocaine, crack cocaine, marijuana and other illegal drugs. Agents also seized over $250,000 in cash.
United States Attorney Edward Tarver said, “Drug dealers beware. If you are pushing poison in our communities, federal and state law enforcement will unite to make sure you are prosecuted to the fullest extent of the law, and that your ill-gotten-gains will be forfeited.”
Eastern Judicial Circuit / Chatham County District Attorney Meg Heap stated, “An operation and resulting seizure of this magnitude was made possible through the collaborative focus and team effort of the U. S. Attorney’s Office, DEA, Counter Narcotics Team and the District Attorney’s Office. By each of these agencies working together towards a common goal, we can ensure that large scale drug operations such as these are effectively razed and prosecuted appropriately for their crimes.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “All participating agencies played a crucial role in the eradication of a criminal network. These drug trafficking activities posed a significant threat to the quality of life in the affected communities. Dismantling drug trafficking organizations makes communities a safer place. I want to thank our federal, state and local law enforcement counterparts who had a direct impact in making this investigation a success.”
Chatham-Savannah Counter Narcotics Director Everett Ragan said, “This is a classic example of the cooperation between the Chatham-Savannah Counter Narcotics Team, the DEA- Savannah field office, and the U. S. Attorney’s Office seeking to remove another major drug organization from the streets of Chatham County.”
The 8 defendants indicted on federal charges include:
ANTONIO ACOSTA, Savannah, 37;
NAKIEA J. HAMPTON, Savannah, 33;
CHRISTOPHER CRIMLEY, Port Wentworth, 39;
KEVIN SPEAK, Savannah, 31;
SHERONE MCBRIDE, Garden City, 36;
SHAMONE MCBRIDE, Garden City, 36;
TRAVIEL PERKINS, Savannah, 36; and,
WILLIAM MCDONALD, Savannah, 39.Upon conviction, each defendant faces up to 20 years in prison, a $1,000,000 fine, and a period of supervised release. Mr. Tarver stressed 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 the defendants’ guilt beyond a reasonable doubt.
Assistant United States Attorney, E. Greg Gilluly is prosecuting the case on behalf of the United States. For additional questions, please contact James D. Durham, First Assistant United States Attorney at (912) 201-2547.
Bluffton Man Sentenced to 15 Years in Prison for Conspiracy to Smuggle Firearms, Stolen Cars to BoliviaRead the Press Release
SAVANNAH, GA: ROBERTO BARRERO, 46, a naturalized American citizen originally from Bolivia, was sentenced last week by Senior Judge B. Avant Edenfield to 15 years in prison for his role in a far-reaching conspiracy whose goals included smuggling firearms and stolen cars to Bolivia, smuggling contraband cigarettes to New York, trafficking cocaine, and laundering millions of dollars of drug proceeds. The organization was investigated as part of Operation Pulaski, a long-term undercover operation that resulted in federal charges against 45 defendants and the seizure of 188 firearms, over 200 grams of heroin, over 3 kilograms of cocaine, and 9 stolen vehicles.
United States Attorney Edward J. Tarver stated, Operation Pulaski was an innovative effort to fight organized criminal activity that impacts not just South Georgia, but the entire east coast and foreign countries, as well. Smugglers, gun runners, drug traffickers, and other criminals should take this sentence as a warning signal that the Port of Savannah is not available to them as a gateway to commit their crimes within the United States of America. If they attempt to use our ports in this way, they will be prosecuted and punished.
“Yesterday’s sentence is a direct result of ATF and our law enforcement partners working on the frontline of preventing violent crime by leveraging technology and utilizing our expertise, resulting in a safer community for the citizens of Savannah and the surrounding area”, said ATF Special Agent in Charge Christopher Shaefer. “Removing firearms and the criminals who illegally use and traffic firearms from the street makes a positive impact and contributes to stabilizing those areas which are fraught with criminal activity.”
BARRERO was convicted of conspiracy to deal in firearms without a license, to transport stolen vehicles across state lines, to possess untaxed cigarettes, and to commit money laundering. He was also convicted of carrying a firearm during and in relation to drug trafficking. At sentencing, Judge Edenfield noted that BARRERO was responsible for trafficking over 50 firearms, 9 stolen vehicles, 2,370 cartons of untaxed cigarettes, and 935.15 grams of cocaine. He also conspired to launder between 2 and 18 million dollars in drug proceeds. He obliterated the serial numbers from 19 of the firearms, to avoid their detection by law enforcement. Finally, the Court noted that BARRERO traded 23 firearms for 2 stolen cars, attempted to convert some semiautomatic firearms to fully automatic machineguns, and recruited multiple individuals to participate in the conspiracy. BARRERRO was also ordered to pay $130,571.32 in restitution and a $200 special assessment. Once he is released from prison, he will serve five years of supervised release. Mr. Tarver noted that there is no parole in the federal system.
BARRERO and six of his codefendants were convicted after pleas of guilty to various counts of a 52-count Superseding Indictment returned by the Grand Jury of the Southern District of Georgia on July 10, 2013. Two additional codefendants were charged in the indictment but have not yet been apprehended.
The case was the result of a long-term undercover investigation conducted by the ATF, in cooperation with the Georgia Department of Revenue, Homeland Security Investigations, and United States Customs and Border Protection.
Assistant United States Attorney Cameron Heaps Ippolito prosecuted this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547 or [email protected].
7 Former Bank Officers Plead Guilty in Loan-Fraud Scheme That Preceded Collapse of First National Bank of SavannahRead the Press Release
SAVANNAH, GA: Alan Robert Fleming, 37, from Savannah, Georgia, pled guilty Tuesday before United States District Court Chief Judge Lisa Godbey Wood for his role in a massive loan-fraud scheme against First National Bank of Savannah and other federally-insured banks. Fleming was the last of 7 former officers of First National Bank to plead guilty to charges in a 47-count indictment returned by a federal grand jury sitting in Savannah in January 2013.
The 7 convicted former officers of First National Bank include:
- Heys Edward McMath III, 59, the former President and CEO of First National Bank, pled guilty on November 12, 2013 to conspiring to defraud First National Bank and other federally-insured banks;
- Stephen Michael Little, 65, the former Executive Vice President and CFO of First National Bank, pled guilty on January 15, 2014 to 2 counts of bank fraud;
- Robert Wilson Dailey, 52, the former City President and Senior Lending Officer of First National Bank, pled guilty on January 17, 2014 to 2 counts of bank fraud;
- Jay Patrick Gardner, 63, the former Vice President of Credit Administration of First National Bank, pled guilty on October 25, 2013 to a single count of bank fraud.
- Isaac Jefferson Mulling, 53, a former Senior Vice President and commercial loan officer of First National Bank, pled guilty on January 16, 2014 to 2 counts of bank fraud.
- Alan Robert Fleming, 37, the former City President of the Tybee Island branch and a commercial loan officer of First National Bank, pled guilty on January 21, 2014 to 2 counts of bank fraud;
- Jeffrey Allen Farrell, 45, the former City President of the Richmond Hill branch and a commercial loan officer of First National Bank, pled guilty on January 15, 2014 to a single count of false entries made in bank records.
United States Attorney Edward J. Tarver said, “These Defendants chose to hand out millions of dollars in fraudulent loans and to falsify numerous bank records, all in an effort to gamble with other people’s money and to hide the true 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 losses by the Federal Deposit Insurance Corporation (FDIC). As the nation continues to recover from a banking crisis of epic proportions, citizens should know this: no matter the complexity of the scheme, bank officers who place FDIC-funds at risk through fraud and other criminal conduct will be brought to justice.”Matt Alessandrino, FDIC Assistant Inspector General for Investigations, stated, “The FDIC Office of Inspector General is proud to join our law enforcement colleagues in announcing the pleas of seven former bank officials for their roles in a complex loan-fraud scheme that contributed to the failure of First National Bank and caused losses to the Deposit Insurance Fund. It is especially important to investigate and prosecute cases where trusted insiders abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
“Bank executives who deliberately falsify and fabricate bank records to fraudulently deceive regulators, bank boards of directors, and the public must be brought to justice for their actions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We will continue to work with our law enforcement partners to vigorously pursue wrongdoers whose fraudulent actions impact any bank or bank-holding company regulated by the Federal Reserve Board’s supervision program.”“The Treasury Office of Inspector General is proud to be a part of this joint effort to combat bank fraud which affects the U. S. Treasury," said John L. Phillips, Assistant Inspector General for Investigations.
According to evidence presented during the guilty plea 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.
The Defendants will be sentenced after the United States Probation Office completes their presentence investigations. All of the Defendants remain on bond pending sentencing.
This case is 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.
Martinez Man Sentenced to 24 ½ Years for Attempted Online Enticement of A Minor and Destruction of EvidenceRead the Press Release
AUGUSTA, GA – Fawad Shah Syed, 47, of Martinez, Georgia, was sentenced yesterday by United States District Court Judge J. Randal Hall to over 24 years in prison, followed by ten years of supervised release, for the Attempted Online Enticement of a Minor to Engage in Sexual Activity, Destruction of Records in a Federal Investigation, and Attempted Destruction of Records in a Federal Investigation. He was also ordered to pay a $6,000 fine, and will be required to register as a sex offender. Syed had been convicted of those crimes by a federal jury in September 2013.
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 lengthy punishment is justified.”
Evidence presented during the trial and sentencing hearing revealed that Syed, posing as a man in his twenties named “Daniel,” engaged in online communications with a person he believed to be a 14-year-old girl who he initiated contact with online. After four days of text messaging and several attempts to meet the girl, Syed showed up at what he believed to be the girl’s residence with condoms and alcohol. He was immediately arrested by law enforcement officers. Shortly thereafter, he contacted his wife from jail, and before telling her what charges he faced, instructed her to delete his email account and remotely wipe his phone. He also asked her to wipe his computer. Mrs. Syed cooperated with law enforcement thereafter, providing an investigator with Syed’s computer and testifying at trial. Syed’s computer was searched, and revealed online texts that Syed had last summer with a 13-year-old girl in the Evans, Georgia area. The Court cited to Syed’s pattern of predatory behavior as one of the many disturbing components of his criminal conduct when imposing the lengthy sentence.
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. 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 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.
Jury Finds Pill-Mill Doctor Guilty of 51 CountsRead the Press Release
In total, 10 defendants convicted 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 found guilty by a federal jury on last week of all charges relating to his role the running of East Health Center, a pill-mill clinic that operated in Garden City in 2011. United States District Court Judge William T. Moore, Jr. presided over AZMAT’s five-day jury trial. AZMAT was found guilty of conspiring to dispense oxycodone and other drugs without legitimate medical purpose, 49 counts of dispensing without legitimate medical purpose, and conspiracy to launder money. He will be sentenced at a future date and faces up to 20 years imprisonment on each count.
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 had been indicted with five co-defendants. The following pleaded guilty to related offenses before trial:
Sean Michael Clark, age 34, Boca Raton, Florida (Conspiracy)
Adelaida M. Lizama, age 28, Boca Raton, Florida (Conspiracy)
Daniel John Wise, age 35, West Palm Beach, Florida (Conspiracy)
Candace Anne Carreras, age 26, Boca Raton, Florida (Misprision of Felony)
Shelly Lynn Morford, age 31, Fort Lauderdale, Florida (Misprision of Felony)None of these other five defendants, who either organized or worked for the clinic, 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 of the other defendants had any connection to the State of Georgia before opening the clinic.
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 and are awaiting sentencing. Adelard LeFrancois, III, 44, of Boca Raton, Florida and Francis J. Barbuscia, 37, of Plantation, Florida, entered guilty pleas on August 3, 2012. Each pleaded guilty to conspiring to knowingly and intentionally distribute and dispense, and cause to be distributed and dispensed, quantities of controlled substances, including oxycodone, not for a legitimate medical purpose. Konstantinos Afthinos, 32, of Florida pleaded guilty to misprision of felony on November 5, 2012. On November 7, 2012, Dr. Kenneth Gossett, age 52, of Rome, Georgia, pleaded guilty to conspiring to knowingly and intentionally dispense controlled substances not for a legitimate medical purpose. These defendants have not yet been sentenced. Nuvest LLC, a Florida corporation which financed the startup costs for East Health Center, pleaded guilty to maintaining a 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 $2,000,000, representing proceeds of unlawful activity laundered by the corporation.
United States Attorney Edward Tarver said, “The United States Attorneys’ Office, in partnership with federal, state, and local investigative agencies, has demonstrated time and again that illegitimate pain clinics such as East Health Center will be shut down, the participants prosecuted, and their money forfeited if they open in our neighborhoods. During the last two years, we have seen a number of pill-mills relocate their unlawful businesses to the State of Georgia. 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. This case sends a strong message to would-be clinic operators that they are not welcome in the Southern District of Georgia and will be prosecuted.”
Harry S. Sommers, 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; it is about greed and those involved in pill-mill activity are in fact drug dealers. This investigation was a success because of the cooperative spirit between all agencies involved.”
Veronica F. Hyman-Pillot, IRS Special Agent in Charge, added, “We are proud to work with our law enforcement partners at the local, county, state, and federal levels, to bring to justice individuals who use their knowledge and power to commit crimes for their own personal gain. IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
“The conviction of Dr. Najam Azmat is a good example of 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 GBI remains committed to addressing pharmaceutical diversion and other drug crimes in the State 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.
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.
Savannah Man Indicted for Bank Robbery SpreeRead the Press Release
Savannah, GA – Charles Johnson III, a/k/a “Chuckie,” 26, of Savannah, Georgia, was indicted last week by a federal grand jury sitting in Savannah on charges related to six bank robberies in the Savannah area. Johnson was charged with one count of bank robbery, one count of conspiracy to commit armed bank robbery, five counts of armed bank robbery, two counts of using a firearm during a crime of violence and the unlawful possession of a firearm by a convicted felon.
The indictment alleges that Johnson robbed: (1) the Wells Fargo Bank located at 14009 Abercorn Street, Savannah, Georgia on September 25, 2012; (2) the Savannah Postal Credit Union located at 22 Oglethorpe Professional Building, Savannah, Georgia on November 8, 2012; (3) the Heritage Bank located at 620 Stephenson Avenue, Savannah, Georgia on November 26, 2012; (4) the First Chatham Bank located at 7401 Hodgson Memorial Drive, Savannah, Georgia on December 18, 2012; (5) the Colony Bank located at 7011 Hodgson Memorial Drive, Savannah, Georgia on January 3, 2013; and, (6) the Savannah Bank located at 100 Chatham Parkway, Savannah, Georgia on July 11, 2013.
United States Attorney Edward Tarver stated, “The crimes alleged in this indictment are violent acts committed against the entire community. The harm inflicted extends beyond the financial, to include the fear and trauma experienced by bank employees, customers, and the pain levied on their own families. The Department of Justice’s top priority is to protect the American people. This Office will continue to work with our law enforcement partners to remove violent offenders from our community.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “It is criminal investigations such as this that benefit from the FBI’s recently formed Safe Streets Violent Crime Task Force based in Savannah. Agents and investigators assigned to this task force serve as a force multiplier in addressing and apprehending our community’s more violent and aggressive offenders.”
No initial appearance in court has been scheduled. If convicted on all counts, Johnson faces amandatory minimum prison sentence of 30 years and up to a maximum sentence of life. Mr. 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 the Federal Bureau of Investigation with assistance from the Savannah-Chatham Metropolitan Police Department S.W.A.T. Team and Tactical Investigations Unit. Assistant United States Attorneys Brian T. Rafferty and Tania D. Groover 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.
Southern District of Georgia’s U. S. Attorney’s Office Collects over $71 Million in Civil, Criminal and Asset Forfeiture Cases in Fiscal Year 2013Read the Press Release
SAVANNAH, GA - U. S. Attorney Edward Tarver announced today that the Southern District of Georgia collected over $71 million in civil, criminal and asset forfeiture actions in Fiscal Year (FY) 2013. The Office collected $31,621,385.97 in criminal and civil actions in FY 2013. Of this amount, $29,153,117.82 was collected in criminal actions and $2,468,268.15 was collected in civil actions. Additionally, the Office, working with partner federal agencies, collected $40,435,520.24 in asset forfeiture actions in FY 2013.
U. S. Attorney Tarver stated, “The amount of money collected in criminal, civil and asset forfeiture actions by the men and women of the United States Attorney’s Office in FY 2013 is by far the largest collection year in the Office’s history. The amounts collected dwarf the Office’s yearly budget. In other words, this Office earns its keep and then some.”
Additionally, Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U. S. Attorney’s Offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The U. S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U. S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Former Pooler Police Officer Indicted on Chargers Related to Drug ConspiracyRead the Press Release
Savannah, GA – John William Stanley, 46, of Pooler, Georgia, was indicted this week by a federal grand jury sitting in Savannah on charges related to a conspiracy involved in the illegal possession and distribution of numerous controlled substances. Stanley was charged with aiding and abetting that conspiracy, with assisting the conspirators in order to prevent their apprehension, and with concealing the conspirators’ crimes instead of reporting those crimes to the appropriate authorities. At the time of the charged crimes, Stanley was an officer with the City of Pooler Police Department.
United States Attorney Edward Tarver stated, “Those charged with enforcing the law are not above it. This office remains committed, with our law enforcement partners, to prosecuting public corruption, so that the citizens of this district can be confident in the true loyalties of those sworn to protect and defend them.”
No initial appearance in court has been scheduled. The most serious of the charges against Stanley carries a 20-year maximum prison sentence. Mr. 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 Federal Bureau of Investigation and the Chatham Savannah Counter Narcotics Team, with assistance from the U. S. Drug Enforcement Agency. The City of Pooler Police Department cooperated fully with the investigation. FBI Special Agent Christopher B. Blair is the lead case agent. First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner are prosecuting the case on behalf of the United States.
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption cases, by their very nature, are serious breaches of the public’s trust that require and receive priority investigative handling by the FBI. Those investigations involving police officers engaged in criminal conduct take on an even greater sense of urgency. The FBI will continue to make such cases a priority and asks that anyone with information regarding such activity to contact their nearest FBI field office.”
Pooler Police Chief Mark Revenew stated: “The City of Pooler Police Department fully cooperated with the investigation and is committed to eradicating corruption from the law enforcement profession. We want to ensure the public that allegations such as the ones here will not be tolerated.”
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Alabama Man Indicted for First Degree Murder in Fort Stewart SlayingRead the Press Release
SAVANNAH, GA – An indictment was returned today by a federal grand jury sitting in Savannah, Georgia, charging CARL EVAN SWAIN, aka “COWBOY,” 43, a resident of Alabama, with first degree murder in the beating death of Specialist John Joseph Beans Eubank, 29, on November 30, 2013, on Fort Stewart. Federal law provides that a murder occurring within the special maritime and territorial jurisdiction of the United States is a federal crime. Fort Stewart lies within the territorial jurisdiction of the United States.
United States Attorney Edward Tarver stressed 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 is being investigated by the Federal Bureau of Investigation. Assistant U. S. Attorneys Cameron Heaps Ippolito, Karl I. Knoche, and Tania D. Groover are prosecuting the case on behalf of the United States.Missing Georgia Bank Director, Accused of Embezzling More Than $20 Million, Arrested in BrunswickRead the Press Release
SAVANNAH, GA: AUBREY LEE PRICE, 47, originally from Lyons, Georgia, who was indicted in July 2012 by a federal grand jury sitting in the Southern District of Georgia on a charge that he defrauded the Montgomery Bank & Trust, Ailey, Georgia, of over $21 million, was arrested today by members of the Glynn County Sheriff’s Department conducting a random vehicle and traffic stop.
According to the allegations in the Indictment against PRICE, in 2010, an investment group controlled by PRICE invested approximately $10 million in the failing Montgomery Bank & Trust (“MB&T”). PRICE was then made a director of MB&T and put in charge of investing the bank’s capital. Over the next eighteen months, PRICE stole, misappropriated and embezzled over $21 million from MB&T. To cover up his fraud, PRICE provided MB&T officials with bogus account statements which falsely indicated the bank’s capital was safely held in an account at a financial services firm.
Before today’s arrest, PRICE was last seen in June 2012, boarding a ferry terminal in Key West, Florida, bound for Fort Myers, Florida. PRICE disappeared after writing a letter to acquaintances and regulators that he had lost a large amount of money, and that he planned to take his own life.
The FBI has been actively searching for PRICE since the date of his disappearance. PRICE was arrested by deputies from the Glynn County Sheriff’s Department on Interstate 95 in Brunswick, Georgia, for a vehicle and traffic violation. When deputies learned of PRICE’s true identity, he was taken into custody.
PRICE will make his initial appearance on the federal arrest warrants on January 2, 2013, at 10:00 a.m., at the federal courthouse in Brunswick, Georgia.
In the Southern District of Georgia, PRICE is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000. PRICE faces additional charges in New York. 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 indictment of PRICE arises out of an ongoing and joint investigation by FDIC-OIG Special Agent John Crawford; Federal Reserve Board OIG Special Agent Amy Whitcomb; and, FBI Special Agent Ed Sutcliff. First Assistant United States Attorney James Durham and Assistant United States Attorney Brian Rafferty are prosecuting the case for the United States.
Waynesboro Tax Preparer Sentenced to 2 Years in Prison for Preparing False Tax ReturnsRead the Press Release
AUGUSTA, GA - CARLOS NEWTON, 44, of Waynesboro, Georgia was sentenced last week by United States District Court Judge Dudley H. Bowen, Jr. to 2 years in prison for his role in the preparation of numerous fraudulent federal tax returns.
According to evidence presented during his guilty plea and sentencing hearings, Newton worked as a tax preparer from 2009 through 2011. During this time, Newton placed fictitious businesses, fictitious income, and fictitious expenses on federal income tax forms, which fraudulently qualified some of his clients for refunds through the earned income tax credit. For his services, Newton requested additional fees from his clients. He referred to those fees as “love offerings.” Newton prepared 22 fraudulent federal tax returns between January 2009 and January 2011. The federal government paid out almost $90,000 in refunds based upon these bogus returns.United States Attorney Edward Tarver said, “As we prepare to enter tax season, cases like this one demonstrate the substantial risks to the return preparer for filing false returns. The United States Attorney’s Office will continue our efforts to protect the integrity of the IRS Return Preparer Program and to apprehend those responsible for stealing the hard-earned money of honest taxpayers.”
Special Agent Roger Garland of IRS-Criminal Investigations investigated the case. 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.Waynesboro Man Sentenced to Years for Distribution and Receipt of Child PornographyRead the Press Release
AUGUSTA, GA – Stephen Jeffrey Babb, 28, of Waynesboro, Georgia was sentenced today by United States District Court Judge J. Randal Hall to over 24 years in prison, followed by lifetime of supervised release, for distributing and receiving child pornography. He was also ordered to pay $6,000 in restitution to victims of this offense. Babb had pled guilty to the charges January 2013. Babb will be required to register as a sex offender.According to the evidence presented at Babb’s plea and sentencing hearings in September 2012, Babb was actively trading child pornography images through the use of various email addresses while using the free wireless services of Augusta-area fast food restaurants. Babb also posted information on one or more international websites where he advertised the availability of child pornography. Babb was identified through the combined investigative efforts of Homeland Security Investigations and the Burke County Sheriff’s Office. Following the execution of a search warrant, Babb’s computer was found to contain over 870 still images and 93 video images of child pornography. At the conclusion of the sentencing hearing, Babb 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 belief that an adult would create images that show the sexual abuse of innocent children. It is beyond shocking that an adult would take steps to avoid detection so that he could knowingly sell, trade and swap the despicable images with others. Babb 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.”
“Despite the defendant’s attempts to cover his tracks by using an open Wi-Fi network at a fast food restaurant, he couldn’t hide from the Homeland Security Investigation special agents who brought him to justice for the crimes he committed against the most innocent,” said Brock D. Nicholson, special agent in charge of HSI Atlanta, who oversees agency operations in Georgia and the Carolinas. “Trafficking in child pornography is an outrageous offense that has no place in our society. This successful prosecution by the U. S. Attorney’s Office and stiff prison sentence sends a strong message to other predators: stop victimizing children or be prepared to spend decades behind bars.”
Burke County Sheriff Gregory Coursey added, “Because this was a joint effort between the Department of Homeland Security and the Burke County Sheriff’s Office, I would like to take this opportunity to thank the Department of Homeland Security for their assistance. This is a prime example of what can be accomplished when agencies come together, share information and work towards a common goal.”
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.Federal Jury Convicts Savannah Man for Transporting A Minor with Intent to Engage in Illicit Sexual Conduct and Child Pornography ChargesRead the Press Release
STATESBORO, GA – Steve Lavon Biggins, 33, of Savannah, Georgia, was convicted Tuesday by a federal jury after a 2-day trial before U. S. District Court Judge B. Avant Edenfield for Transporting a Minor with Intent to Engage in Illicit Sexual Conduct, Production of Child Pornography, and Transportation of Child Pornography.
United States Attorney Edward Tarver said, “This defendant misrepresented his identity and age through his conversations with a girl he met online in order to gain her trust. He developed a relationship with her, transported her across the southeast in a tractor trailer, engaged in illegal sex acts, and took photographs of that activity in violation of numerous federal laws. These acts are deplorable, and the U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. Biggins’ arrest rescued one victim, and his conviction will help protect other children from such future predatory acts.”Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated, “This conviction brings with it a strong reminder that there are dangerous individuals out there that will exploit and harm our children. The FBI is not only pleased with the jury’s verdict but also with the combined law enforcement response in getting a dangerous individual such as Mr. Biggins off of our streets.”
Evidence presented during the trial revealed that Biggins, a 33-year-old truck driver posing as a man in his twenties named “Rodney,” engaged in text and telephone communications with a girl under the age of 16 with whom he initiated contact through the mobile application “Tagged.com.” After developing an in-person relationship with the victim, and without the knowledge of the girl’s parents, in July 2013, Biggins took the child on short-haul trips that spanned seven days, and included travel to South Carolina, Tennessee, and North Carolina, before returning to Georgia. While on the trip he engaged in sexual conduct that violated the laws of each state he entered, and photographed the same. Upon his return trip through Millen, Georgia, Biggins was stopped and immediately arrested by law enforcement officers. He has remained in custody since that time.
The arrest in this case was accomplished through the combined efforts of Millen Police Department, Jenkins County Sheriff’s Office, Georgia State Patrol, Georgia Bureau of Investigation and the Federal Bureau of Investigation. Tarver commented that 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.
Biggins faces a mandatory minimum sentence of 10 years in prison (and a maximum of life), for the Transportation of a Minor charge; 15 to 30 years on the Production of Child Pornography charge; and 5 to 20 years on the Transportation of Child Pornography charge. Each charge also carries a fine of up to $250,000, and between 5 years and life of supervised release. Biggins remains in custody pending his sentencing hearing. A sentencing date will be scheduled following completion of a presentence investigation and report.
FBI Special Agent Marcus Kirkland investigated the case. 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.
Five Defendants Plead Guilty in Statesboro, Georgia to Tax Fraud and Identity Theft SchemeRead the Press Release
22 Defendants Convicted So Far This Year in Stolen Identity Tax Fraud Schemes
STATESBORO, GA: Five federal defendants – ALECEIA LOVETT, CIERRA JOHNSON, KANDICE WHITE, DANIELLE CLARK, and SIRBRINA BANGS – pled guilty last week before United States District Court Judge B. Avant Edenfield in Statesboro, Georgia for their involvement in a stolen identity tax fraud scheme.
Earlier this year, these five defendants, along with 17 others who were also involved in similar schemes, were charged with federal crimes ranging from conspiracy to defraud the IRS to identity theft from medical records. According to evidence presented during hearings in these cases, the participants in these schemes illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, which they then used to prepare and submit fraudulent tax returns in order to unlawfully obtain tax refunds.
United States Attorney Edward J. Tarver said, “These cases demonstrate the continuing commitment of the United States Attorney’s Office to protecting the privacy of medical records and the hard-earned money of honest taxpayers. This investigation is ongoing. Our law enforcement partners will continue to track down these identity thieves and bring them to justice.”
The five defendants who pled guilty last week are among the 24 defendants federally charged this year as participants in stolen identity tax fraud schemes in the Statesboro, Georgia area. The status of each of these 24 defendants’ cases is listed (in alphabetical order) as follows:
ERICA BALDWIN, 31, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
SIRBRINA BANGS, 26, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 5, 2013 to conspiracy to commit theft of public funds. Her sentencing hearing has not yet been scheduled.
DANIELLE CLARK, 26, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 5, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
TAMEIKA CLARK, 24, of Statesboro, Georgia, was re-indicted on December 3, 2013 with 26 counts of wire fraud conspiracy, wire fraud, aggravated identity theft, and access device fraud. Her trial date has not yet been scheduled.
TRACY DENSON, 44, of Statesboro, Georgia, was charged in April 2013 and pled guilty on July 30, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
SHAKITA EASON, 30, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 18, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
YOLANDA EDMOND, 36, of Statesboro, Georgia, was charged in April 2013, pled guilty on July 11, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records, and was sentenced on October 8, 2013 to 32 months in prison.
GLORIA EVANS, 44, of Statesboro, Georgia, was charged in April 2013, pled guilty on July 11, 2013 to wire fraud conspiracy and aggravated identity theft, and was sentenced on October 8, 2013 to 39 months in prison.
DEQUILLIA HILL, 43, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to conspiracy to commit theft of public funds and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
CIERRA JOHNSON, 22, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 4, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
ALECEIA LOVETT, 29, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 4, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
TACARRO MORGAN, 25, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
JOSHUA MINCEY, 20, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. His sentencing hearing has not yet been scheduled.
RICHARD PARKER, 60, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to conspiracy to commit theft of public funds. His sentencing hearing has not yet been scheduled.
PORSCHE S. PINKNEY, 19, of Augusta, Georgia, was charged in April 2013 and pled guilty on August 21, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
EULA MAE RODRIGUEZ, 47, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
DWAN SCOTT, 32, of Statesboro, Georgia, was charged in April 2013 and pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
JENNA SCOTT, 28, of Jacksonville, Florida, was charged in April 2013 and pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
DEVANG SHAH, 32, of Sylvania, Georgia, was charged in September 2013 with conspiracy to commit theft of public funds. His guilty plea hearing has not yet been scheduled.
GREGORY F. SMITH, JR., 21, of Stone Mountain, Georgia, was charged in April 2013 and pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft. His sentencing hearing has not yet been scheduled.
ASHA K. SPAULDING, 37, of Claxton, Georgia, was charged in March 2013 and pled guilty on March 12, 2013 to wire fraud conspiracy, aggravated identity theft, and assisting in the preparation of false tax returns and was sentenced on October 8, 2013 to 154 months in prison.
TIDAESHA V. TAYLOR, 27, of College Park, Georgia, was charged in April 2013 and pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
ANDREA WEBB, 31, of Register, Georgia, was charged in April 2013 and pled guilty on June 5, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
KANDICE WHITE, 25, of Sylvania, Georgia, was charged in September 2013 and pled guilty on December 4, 2013 to conspiracy to commit theft of public funds and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
The defendants not yet sentenced face a maximum penalty of 20 years in prison for the charges of wire fraud conspiracy and wire fraud, 10 years in prison for the charges of access device fraud and misuse of medical records, five years in prison for the charge of conspiracy to commit theft of public funds, and a 2-year mandatory, consecutive prison sentence for aggravated identity theft. Each of these charges also carries a fine of up to $250,000.
FBI Special Agent Marcus Kirkland and IRS-CID Special Agent Gwen Weston are the federal law enforcement officers who have been leading the investigation in these cases, in connection with the Statesboro Police Department and other state and local agencies. Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Federal Jury Convicts Brunswick, Georgia Woman in $4 Million Medicaid Fraud SchemeRead the Press Release
Waycross, GA – Randy Strickland, 55, a former Pierce County, Georgia Deputy Sheriff, pled guilty last week before United States District Court Judge William T. Moore, Jr. for his role in trafficking methamphetamine.
According to the evidence presented during his guilty plea hearing, 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 “security 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 be 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, "Former Deputy Sheriff Strickland’s actions tarnished the badge and the community’s trust. Police corruption leaves a stain on the good work of our law enforcement community. Make no mistake that defendants who violate the trust of this community, law enforcement or otherwise, will be prosecuted to the fullest extent of the law.”
“Mr. Strickland abused his position of public trust and demonstrated a complete lack of integrity by protecting people he believed to be meth dealers,” said Brock D. Nicholson, 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 the assistance of our partners at the ATF, FBI, Pierce County Sheriff’s Office, and the U.S. Attorney's Office, his schemes have been broken.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “While the guilty plea of former Pierce County Deputy Sheriff Strickland concludes a sensitive and critical joint investigation, it also concludes one man's career in law enforcement. These law enforcement based public corruption cases clearly illustrate the harm that can be done to the community as well as the criminal justice system, but they also provide an opportunity for those many committed law enforcement officers to re-dedicate themselves to the oaths that they were sworn to uphold.”“The criminal conduct of former Pierce County Deputy Sheriff Strickland is unconscionable and unthinkable for those serving faithfully within the criminal justice community,” said ATF Special Agent in Charge Christopher Shaefer. “The guilty plea will provide many opportunities for him to reflect on his actions and serve as notice to others that the ATF and our law enforcement partners will not tolerate this type of conduct.”
Pierce County Sheriff Ramsey Bennett stated, “It is of utmost importance that the public not perceive that we in law enforcement act as though we are ‘above the law.’ The investigation and prosecution of Randy Strickland should reassure the general public that I, as Sheriff will not tolerate law enforcement officers in my jurisdiction that violate the law and the public trust. Those of us who take an oath to serve and protect the public and uphold the constitution must be vigilant in regard to our duties and what the public expects of us.”
Strickland faces up to 20 years in prison for his conviction. There is no parole in the federal system. Strickland’s sentencing will be scheduled after the U.S. Probation Office completes a presentence investigation report.
This case was investigated by ATF, HSI, FBI and local law enforcement. Assistant United States Attorneys Greg Gilluly and Tania Groover 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.
Federal Jury Convicts Brunswick, Georgia Woman in $4 Million Medicaid Fraud SchemeRead the Press Release
BRUNSWICK, GA SCHELLA LOGAN HOPE, 47, of Brunswick, Georgia, was convicted earlier this month by a federal jury of various health care fraud, aggravated identity theft, and money laundering offenses for her role in a $4 million scheme upon the Georgia Medicaid program. Chief United States District Court Judge Lisa Godbey Wood presided over HOPE’s 5-day jury trial.
According to evidence presented during the trial, HOPE was a licensed dietician who ran a business located in Brunswick, Georgia, known as Hope Nutritional Services. From 2005 through 2011, HOPE stole the identities of thousands of needy children between the ages of 0 and 5 that were enrolled in Head Start programs located throughout the state of Georgia. Once HOPE obtained the identities of these children, HOPE fabricated patient files, falsified prescriptions from doctors, and submitted $4 million worth of claims to Medicaid for nutritional services that were not provided. HOPE then used the money she stole from Medicaid to pay for luxury automobiles, designer clothing, and vacations, among other things.
Coconspirator Arlene Murrell pled guilty before HOPE’s trial to her role in the scheme. Murrell testified against HOPE at trial, and detailed how she helped HOPE commit the fraud.
HOPE was convicted of 58 counts of Conspiracy to Commit Health Care Fraud; Health Care Fraud; Aggravated Identity Theft; and Money Laundering. Upon her convictions for these offenses, Chief Judge Wood remanded HOPE to the custody of the United States Marshals pending sentencing in the case.
United States Attorney Edward J. Tarver stated, “Defendant Hope preyed upon American taxpayers stealing the identities of low-income Georgia families and then billing Medicaid for over $4 million in nutrition services that were never provided. This United States Attorney’s Office will continue its efforts to prosecute all who seek to defraud American taxpayers by scamming federal programs. Because of Ms. Hope’s criminal efforts to feed her extravagant lifestyle, she will have to rely upon the federal prison system for her own nutritional services.”“The Head Start Program provides many of our nation’s children with invaluable services and opportunities,” said Derrick L. Jackson, Special Agent in Charge of the US Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “To use the Head Start Program as a vehicle to submit false and fraudulent claims to the Medicaid system is unacceptable and the OIG will continue to pursue these kinds of egregious cases.“
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Those who defraud our publicly funded healthcare programs such as Medicaid and Medicare are taking valuable services and resources away from those in need. This guilty verdict reaffirms that the FBI will continue to provide significant investigative resources toward identifying, investigating and presenting for prosecution such individuals that, by engaging in such criminal conduct, put themselves before others."
Georgia Attorney General Sam Olens said, “Fraud of taxpayer monies will not be tolerated in any form. Head Start is a program intended to offer assistance to children from low income families. The fact that this Defendant used the Head Start Program and children in need to assist in her scam is especially appalling.”
“The Georgia Department of Community Health has made it a top priority to ferret out fraud, waste and abuse in our Medicaid program. Our collaborative work with state and federal agencies enables us to ensure Medicaid program dollars are being used to provide health care services to Georgia’s most vulnerable populations,” said Clyde L. Reese III, Esq., commissioner of the Georgia Department of Community Health.
At sentencing, HOPE faces 10 years in prison for each of the 17 health care fraud offenses; 20 years in prison for the various money laundering offenses; and 2 years consecutive prison sentences for each of the various aggravated identity theft offenses. HOPE also faces up to 3 years of supervised release, and may be ordered to pay restitution to the victims in this case.
The convictions of HOPE and Murrell resulted from a joint investigation by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; Georgia’s Department of Community Health; and the Georgia Attorney General’s Medicaid Fraud Control Unit.
Assistant United States Attorneys Brian T. Rafferty and David Stewart, along with Assistant Attorney General Robin Daitch, 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.
FreshPoint, Inc. Pays $4.2 Million to Settle False Claims LitigationRead the Press Release
SAVANNAH, GA: FreshPoint, Inc. a wholly owned subsidiary of Sysco Corporation, has paid the United States $4.2 million to settle allegations that it submitted false claims to the United States in connection with the sales of fresh fruit and vegetables to the Department of Defense and other Department of Defense customers.
The settlement resolves allegations that during the period of December 17, 2007 through September 11, 2009, FreshPoint over-charged the government on thousands of sales by improperly adding random price mark-ups known as “marketing earned income” or “MEI” to invoices submitted by FreshPoint to the Department of Defense. These invoices were submitted pursuant to contracts that FreshPoint had with Department of Defense to supply fresh fruits and vegetables to its customers, including military troops. MEI was added to bring the price of those fresh fruits and vegetables to the perceived market value of the products. The United States contends that this addition of MEI was a violation of the contracts in place between FreshPoint and Department of Defense.
United States Attorney Edward J. Tarver said, “This settlement demonstrates the commitment of the United States Attorney’s Office to the vigorous enforcement of the False Claims Act. All contractors who do business with the Government are expected to abide by the rules, no matter who you are. Enforcement actions such as this are necessary to protect American taxpayers and to protect our troops.”
The civil settlement announced today resolves allegations against FreshPoint and Sysco that were originally part of a qui tam or whistleblower lawsuit, filed by Charles Hall, a former FreshPoint employee. As a result of today’s settlement, Mr. Hall will receive a share of the settlement proceeds. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery.
United States Attorney Tarver praised the hard work of Defense Criminal Investigative Services Special Agent Heather Hamed and Retired Defense Criminal Investigative Services Special Agent Chip Curington, along with Defense Contract Audit Agency Auditor Keith Melville. The United States was represented by Assistant United States Attorneys Shannon Heath Statkus and Edgar D. Bueno, and Trial Attorney Kelley Hauser from the Department of Justice, Civil Frauds Division. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former NSA Subcontractor Pleads Guilty to Making False StatementsRead the Press Release
AUGUSTA, GA: Allison Michelle Waddell, 33, of Beech Island, South Carolina pled guilty last week to information charging her with making false statements, in violation of 18 U.S.C. § 1001. The false statements concerned the number of hours she worked for a National Security Agency (“NSA”) subcontractor. In total, Waddell claimed she worked almost 750 more hours than she actually did, which caused the government to pay out $60,000 more than was actually owed.
According to the evidence presented during the guilty plea hearing, Waddell worked as an analytic reporter for an NSA subcontractor from August 2009 through October 2010 and again from October 2011 to September 2012. During those time periods, Waddell submitted numerous timesheets falsely stating the number of hours she had worked.
United States Attorney Edward J. Tarver said, “False claims submitted to our United States Government for payments not owed is theft and should be punished to the full extent of the law. Americans cannot afford, and can no longer turn a blind eye to, this type of corruption. The number one priority of the United States Attorney’s Office is the protection of the American people.”
Waddell faces a maximum penalty of 5 years in prison and a $250,000.00 fine. In addition, the Court can order Waddell to pay full restitution. As part of her plea agreement with the government, Waddell has already paid $10,000.00 toward restitution.
NSA Office of Inspector General Investigators Kristen M. McGrath and Robert L. Gaskill and Paul A. Tarnuzzer, an agent with the Defense Criminal Investigative Service, 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.
Former School Teacher Sentenced to 14 Years in Prison in $8 Million Food Stamp Fraud CaseRead the Press Release
Federal authorities dismantled an organization that operated 13 phony
grocery stores across Georgia which trafficked in Food Stamp and WIC benefitsSAVANNAH, GA: Rashella Reed, 41, a former Atlanta Public School teacher from Riverdale, Georgia, was sentenced on Wednesday by United States District Judge William T. Moore, Jr. to serve 14 years in prison for her role in a massive $8 million fraud upon the Food Stamp and WIC programs. Earlier this year, Reed and 2 others were convicted after a 4-day jury trial of conspiring to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly known as the Food Stamp Program, and the Women, Infant and Children Program (WIC). In addition to her prison sentenced, Reed was ordered to serve 3 years of supervised release upon her release from prison and to pay $8,254,239.46 in restitution.
According to evidence presented during the trial and at Reed’s sentencing, Reed and others conspired to traffic over $8 million in government benefits from the Food Stamp and WIC programs, and to launder the proceeds of their ill-gotten gains. The scheme involved 13 storefronts throughout Georgia, including stores in Savannah, Augusta, Atlanta, Decatur, Macon and Columbus. Reed owned and operated the Decatur, Georgia store known as, “The Baby Spot.” The 13 stores amounted to “pretend” grocery stores, which were used as a front to buy over $8 million in food stamp benefits and WIC vouchers for cash. Food Stamp and WIC recipients were paid anywhere from $.10 to $.60 on the dollar for their benefits; Reed and other conspirators pocketed the rest. The organization was attempting to expand into Alabama and Tennessee when it was dismantled by federal agents investigating the case. A total of 16 defendants were charged with the scheme; 13 pled guilty and 3 were convicted at trial. To date, this case was the largest prosecution of its kind in the State of Georgia.
United States Attorney Edward J. Tarver said, “SNAP and WIC are part of the hunger safety net put in place to provide assistance to eligible, low income individuals and families who qualify. These defendants scammed federal food programs, swindled American taxpayers and literally took food out of the mouths of children. The work of dedicated and hardworking federal agents prevented this scam from spreading further into neighboring states and costing taxpayers many more millions of dollars. This case is an example of the work that federal agents and prosecutors are doing to end fraud in federal programs.”
Karen Citizen-Wilcox, Special Agent-in-Charge of the United States Department of Agriculture, Office of Inspector General said, “This OIG investigation shows how greed attracts individuals at all levels. Ms. Reed was college educated and employed as a teacher. However, she found it necessary to take part in a multi-million dollar fraud scheme that offended the sensibilities of the American taxpayer and deprived needy individuals of nutrition. The jury conviction and 14 year sentence handed down by U.S. District Court Judge Moore serves as an extreme eye opener for individuals who think that such crimes only get a slap on the hand. OIG remains ever committed to such investigations and to working with the DOJ to prosecute individuals consumed by such greed.”
The prosecution of this case arose out of an investigation led by Special Agent Salina Walker of the USDA-OIG. Assistant United States Attorneys James D. Durham and E. Gregory Gilluly prosecuted the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Pierce County Deputy Sheriff Arrested on Drug Trafficking ChargeRead the Press Release
Brunswick, GA - Pierce County Sheriff's Deputy Randy Strickland, 55, was arrested on federal charges yesterday for his role in the trafficking of methamphetamine. Strickland had his initial appearance today in federal court in Brunswick, Georgia before United States Magistrate Judge James E. Graham, where he was ordered detained without a bond.
According to papers filed with the District Court, Deputy Strickland allegedly agreed to act as “security” for individuals he believed were dealing meth, by acting as the lookout. Strickland’s drug activities allegedly occurred while he was in uniform and while he was driving his police vehicle. When Pierce County Sheriff Ramsey Bennett received information about Strickland’s apparent criminal activities, he immediately requested federal law enforcement assistance.
United States Attorney Edward Tarver stated, "Police corruption leaves a permanent stain on the good work of our law enforcement community. Make no mistake that defendants who violate the trust of this community, law enforcement or otherwise, will be prosecuted to the fullest extent of the law.”
“This defendant took an oath to uphold the law and protect the citizens of Pierce County,” said ATF Special Agent in Charge Christopher Shaefer. “Instead, he is alleged to have betrayed the community he swore to protect. Corrupt officers unfortunately tarnish the badge worn proudly by the committed men and women of law enforcement. The success of this investigation would not have been possible without the dynamic level of law enforcement cooperation.”
“The result of this arrest demonstrates the strong relationships HSI has established with our federal and local partners,” says HSI Special Agent in Charge Brock D. Nicholson, Atlanta, Georgia. “It is a disappointing day when we have to arrest a law enforcement officer in a position of public trust, but maintaining the integrity of our law enforcement system is of upmost importance.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Public corruption matters in general continue to be the FBI’s highest investigative priorities due to the potential it has to erode public trust. When those corrupt and illegal activities involve a law enforcement official operating within the color of law, the FBI will address them with a greater sense of urgency. While these cases constitute a serious breach of trust by the official or officer involved, the public should be reminded that the vast majority of those working within the criminal justice system are dedicated to their sworn oaths of office. Furthermore, the public should be reassured that the FBI remains committed to working vigorously with our federal, state and local partners to investigate such matters and hold these individuals committing such crimes accountable for their actions.”
Pierce County Sheriff Ramsey Bennett said, “This is a situation where there are no winners. This gives the Office of the Sheriff a black eye and erodes the confidence of the public in law enforcement. As Sheriff, I will not tolerate this type of conduct. I want to reassure the public that we will police ourselves as well as the general public.”
The present charge against Strickland carries a maximum prison sentence of 40 years, and a fine up to $5,000,000. Mr. Tarver emphasized that a criminal complaint 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 guilty beyond a reasonable doubt.This case was investigated by ATF, HSI, FBI and local law enforcement. Assistant United States Attorneys Greg Gilluly and Tania Groover 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.
Georgia Resident Indicted on Cross-Burning ChargesRead the Press Release
Savannah, GA - Gene Hoyt Vandiver, 34, of Richmond Hill, Georgia, was indicted earlier this month by a federal grand jury sitting in Savannah on charges related to the burning of a cross in his neighbor's yard. Vandiver was charged with one count of interfering with housing rights and with one count of arson. Vandiver had his initial appearance in federal court before United States Magistrate Judge G.R. Smith on October 10, 2013.
According to information presented in court, Vandiver, who is white, allegedly burned a cross in the yard of his neighbor, whom Vandiver believed to be African-American. Vandiver also left a sign in his neighbor’s yard with a racial slur and a hand-drawn picture of a person being lynched.
United States Attorney Edward Tarver stated, "Cross-burning remains a vicious symbol of hate and no one should have to suffer the fear and intimidation caused by such a cruel act. My office will work diligently with our law enforcement partners to prosecute criminal civil rights violations of any form."
The interfering with housing rights charge against Vandiver carries a 10-year maximum prison sentence; the arson charge carries a 10-year consecutive prison sentence. Mr. 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.
This case was investigated by the FBI and the Richmond Hill Police Department. Assistant United States Attorneys Tania Groover and Greg Gilluly 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.
14 Defendants Indicted in Meth Trafficking ConspiracyRead the Press Release
AUGUSTA, GA - A federal indictment, unsealed yesterday in federal court, has charged 14 defendants conspiring to traffic large amounts of methamphetamine from Mexico to Richmond, Columbia, and McDuffie Counties in Georgia, and to areas of South Carolina.
The charges result from a joint investigation by the FBI’s Safe Streets Task Force, the DEA, the Richmond County Sheriff’s Office, State of Georgia Pardons and Parole Office, and the Georgia Bureau of Investigation.
United States Attorney Edward Tarver said, ASuccessful investigations such as these are the result of great cooperation between federal and local law enforcement agencies. We are committed to bringing justice to those who profit from the scourge of illegal narcotics trafficking, and to seizing and forfeiting their ill-gotten gains.@
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “ This Mexico-based criminal enterprise is alleged to have established its methamphetamine distribution base of operations within the Central Savannah River area and, after an intensive investigation culminated in an extensive law enforcement action this week, those operations have come to a sudden end. The FBI’s Safe Streets Task Force (SSTF) operating out of the Augusta area brought in additional resources from the Richmond County Sheriff’s Office, the DEA, the Georgia Bureau of Investigation (GBI), as well as officers from the Georgia State Pardons and Parole Office in order to better neutralize this organized and structured international drug distribution enterprise.”
If convicted of the drug trafficking conspiracy charge, each defendant faces a maximum of life in prison and a potential fine of $10,000,000. Tarver noted that the United States is also seeking to forfeit various items of personal property involved in the offenses, including $2 million as the alleged proceeds of the defendants= drug trafficking.
Of the 14 defendants charged, 11 have been arrested :
- Florentino Binzha- Elisa, 46, of Warrenville, SC;
- Gilberto Fabona Gaona, 38, of Augusta, GA;
- Jesus Avala Lombera, 32, of Augusta, GA;
- Oscar Piedra, aka Oscar Hernandez, 39, of Augusta, GA;
- Fidel Sanchez Garcia, 32, of Augusta, GA;
- Henri Vertez Travis, 38, of Hephzibah, GA;
- Tyler James Barcenas, 21, of Augusta, GA;
- Naun Padilla, 34, of Augusta, GA;
- Huber Romero, 37, of Augusta, GA;
- Victor Eduardo Ovalle, Jr., 20, of Harlem, GA; and,
- Jose Ines Davila, 34, of North Augusta, SC.The 3 remaining defendants still at large are:
- Eduardo Juarez Gallegos, 44, of Ridgeland, SC;
- Jorge Perez Rodriguez, 31, of Harlem, GA; and,
- Maximo Moreno, aka Maximo Castillo, 70, Harlem, GA.Anyone with information as to the whereabouts of these 3 defendants are asked to call the FBI at: (706) 722-3702.
Mr. Tarver emphasized that the 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.Assistant United States Attorney Patricia Green Rhodes is prosecuting the case for the Government. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Leader of International Sex Trafficking Organization Plead GuiltyRead the Press Release
All 23 defendants in custody have now pled guilty arising out of
Human/Sex Trafficking Investigation Dark NightSAVANNAH, GA - Joaquin Mendez-Hernandez, a/k/a, El Flaco, 35, formerly of Mexico, pled guilty last week before Senior United States District Court Judge B. Avant Edenfield for his role in a sex trafficking organization which operated in Savannah, Georgia, parts of Florida, South Carolina and North Carolina, and in Mexico. El Flaco faces a possible life sentence for his role in the sex trafficking organization.
Each of the 23 defendants that were charged earlier this year in an operation dubbed “Dark Night” have pled guilty. 2 additional defendants, Eugenio Prieto-Hernandez and Daniel Ribon-Gonzalez, remain fugitives. Operation Dark Night represents the largest sex-trafficking investigation ever prosecuted in the Southern District of Georgia.
According to evidence presented during numerous guilty pleas, local and federal law enforcement agencies identified and dismantled an international sex trafficking enterprise that spread from Mexico to Savannah, Georgia. Members of the organization enticed women from Mexico, Nicaragua and elsewhere to travel to the United States with false promises of the American dream. Once inside the United States, these women were threatened and forced to commit acts of prostitution at numerous locations in Savannah and throughout the southeast. Women were forced to engage in sexual activity with as many as 30-50 people a day. To make sure the women complied, members of the organization threatened the women; used violence against the women; and held children hostage in Mexico. Members of the organization would also trade their victims to other members who operated in other states.United States Attorney Edward Tarver states, “It is with great pride that I announce the convictions of all of the defendants who were indicted and arrested in connection with ‘Operation Dark Night.’ This case serves as an example of how local and federal law enforcement can work together to rescue women, save lives, and prosecute criminals. In this case, justice was swift; and we expect the punishment to be severe.”
“The conviction of the monsters arrested in this heinous sex trafficking scheme marks the end of a life of misery inflicted on these innocent victims of human trafficking. The perpetrators, ranging from street-level customers to international sex traffickers, will be held accountable for their repeated victimization and exploitation of these vulnerable women,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations (HSI) Atlanta. “We are deeply gratified by the significant support we received from our law enforcement partners, non-governmental service organizations and the U.S. Attorney’s Office for the Southern District Georgia for bringing Operation Dark Night to a successful conclusion.”
The 23 defendants who pled guilty in Operation Dark Night are:
Joaquin Mendez-Hernandez, a/k/a, “El Flaco,” 35, Savannah, Georgia
Juan Carlos Pena, 55, Bonaire, Georgia
Luisa Capilla-Lancho, a/k/a “Marisol” 32, Savannah, Georgia
Jorge Lira-Xochicale, a/k/a “Roger,” a/k/a “Juan De Dios,” a/k/a “Juan Diablo,” 35,
Atlanta, GeorgiaMayer Sanchez-Calderon, a/k/a “Maye,” 22, Charlotte, North Carolina
Claudio Sanchez-Calderon, a/k/a “Borrego,” 43, Charlotte, North Carolina
Omar Peralta-Rodriguez, a/k/a “Erick Peralta,” a/k/a “El Negro,” 42, Baxley, Georgia
Neurby Celenia Diaz, a/k/a “Dona Rosa,” 48, Baxley, Georgia
Antonio Ubaldo Mendez-Lopez, 46, Naples, Florida
Cesar Aguilar-Rebollar, a/k/a “Cesar Nicholas Jaime,” 44, Tampa, Florida
Sylvia Barrera, 30, Warner Robbins, Georgia
David Reyes, 29, Savannah, Georgia
Antonio Ramirez-Catalan, a/k/a “Joel,” 30, Monroe, North Carolina
Jose Ricardo Vazquez-Garcia, 39, W. Columbia, South Carolina
Marisol Ferreriras, 38, Marietta, Georgia
Paresh Patel, 55, Savannah, Georgia
Sergio Valazquez Martinez, 35, Savannah, Georgia
Fernando Pelayo Silverio, 27, Savannah, Georgia
Arturo Salquil- Gomez, 41, Savannah, Georgia
Jose Hernandez-Trujillo, 29, Savannah, Georgia
Silvstre Aguilar Sayago, a/k/a “Chucky,” 27, Savannah, Georgia
Rodolfo Hernandez Guiterrez, 44, Savannah, Georgia
Alex Martinez Monzon, 36, Savannah, Georgia
Many of these defendants are awaiting sentencing.
12 victims were rescued as a part of Operation Dark Night. HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions. Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Operation Dark Night was led by HSI, with assistance from the FBI; the ATF; U.S. Customs and Border Protection (CBP); CBP Air and Marine Operations; IRS-Criminal Investigations; the Savannah-Chatham Metropolitan Police Department; the Chatham County Sheriffs Office; the Garden City Police Department; and, the Chatham County Counter Narcotics Team. Assistant United States Attorney Tania D. Groover and E. Greg Gilluly, Jr. 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.
11 Defendants Charged with Federal Crimes Related to Stolen Identity Tax Fraud SchemeRead the Press Release
STATESBORO, GA - Two federal indictments, unsealed today in federal court, have charged 11 defendants with conspiracy to commit theft of public money and access device fraud in connection with fraudulent tax returns. Both of these indictments allege that the defendants illicitly obtained and possessed debit cards and tax refund checks stemming from the preparation and submission of fraudulent tax returns. The initial court appearances were held today at 10:00 a.m. in the Federal Courthouse in Statesboro, Georgia.
United States Attorney Edward J. Tarver said, “These indictments demonstrate the continued commitment of the United States Attorney’s Office to protecting the hard-earned money of honest taxpayers. Our law enforcement partners will continue to investigate and prosecute those who seek to profit from the preparation and filing of fraudulent tax returns.”
IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, "Today's announcement exemplifies the intense focus on the rigorous pursuit of identity theft by IRS and our law enforcement partners. IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will continue to vigorously pursue those who undermine the integrity of the U.S. tax system."
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, "The FBI will continue to work with our local, state, and other federal law enforcement partners to aggressively pursue criminals who defraud the U.S. government by stealing the identities of unwitting and innocent victims.”
Joshua Waites, Chief, Office of Special Investigations, Georgia Department of Revenue, stated, “Today’s arrests show how serious the State of Georgia is at finding and arresting individuals committing identity theft fraud. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat this growing trend.”
Statesboro Director of Public Safety Wendell Turner said, “The Statesboro Police Department has been working with our local and federal counterparts to apprehend the persons responsible for defrauding the government and individuals through a variety of criminal schemes. We are very proud of these partnerships and the results they yield for our citizens. This investigation is just another example of everyone working together, sharing resources, information and expertise for the common good of our community.”
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.
FBI Special Agent Marcus Kirkland, IRS Special Agent Gwen Weston and SPD Sgt. James Winskey, assisted by their agencies’ colleagues, conducted the investigation which led to the indictments. The United States Marshals Service, Georgia State Patrol, Georgia State Probation Office, Sylvania Police Department and the sheriff’s offices for Bulloch and Screven counties assisted in the arrests of numerous defendants.
Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting 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.
List of 11 Federal Defendants
RICHARD PARKER, 60, of Sylvania, Georgia
EULA MAE RODRIGUEZ, 47, of Sylvania, Georgia
TACARRO MORGAN, 25, of Sylvania, Georgia
SIRBRINA BANGS, 26, of Statesboro, Georgia
DEQUILLIA HILL, 43, of Sylvania, Georgia
KANDICE WHITE, 25, of Sylvania, Georgia
ALECEIA LOVETT, 29, of Statesboro, Georgia
CIERRA JOHNSON, 22, of Statesboro, Georgia
DANIELLE CLARK, 26, of Statesboro, Georgia
DEVANG SHAH, 32, of Sylvania, Georgia
TAMEIKA CLARK, 24, of Statesboro, Georgia
Federal Prosecutions Focusing on Gun, Drug and Violent Crime in Brunswick, GA Area Six Guilty PleasRead the Press Release
BRUNSWICK, GA Cortez Arbery, 25, of Brunswick, pled guilty earlier this month before Chief United States District Court Judge Lisa Godbey Wood to being a felon in possession of a firearm. If Arbery is determined to be an “armed career criminal,” he faces a minimum of 15 years in federal prison. During the guilty plea hearing, the evidence showed that Arbery possessed a stolen .38 caliber pistol after having been previously convicted of three felony drug offenses.
Arbery’s guilty plea was the latest in a series of federal prosecutions focusing on gun, drug and violent crime in the Brunswick, Georgia area. Five others previously pled guilty in federal court for their role in weapons and drug offenses: Gromyko Green, 33, pled guilty to possessing a sawed-off shotgun and cocaine; John Wesley Boone, 27, pled guilty to being a felon in possession of a firearm; Calvin Grovener, 24, pled guilty to being a felon in possession of a firearm; Patrick Tenney, 23, pled guilty to receiving a firearms while under indictment; and, Reginald Beckham, 19, pled guilty to trafficking crack cocaine. The sentencings of each of the six defendants will take place after the United States Probation Office conducts pre-sentence investigations.
United States Attorney Edward J. Tarver said, “The number one priority of the United States Attorney’s Office is the protection of the citizens of the Southern District. Those who commit violent offenses in the Brunswick area by trafficking in guns, drugs and the fear of others can expect to have their operations relocated to a federal prison cell.”
All six cases were investigated by the Glynn/Brunswick Violent Crime Task Force, which consists of agents and officers from the ATF, the FBI, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff’s Office, and the Georgia State Probation Office. The Task Force was formed in December 2012 to combat growing gun violence in Glynn County. Thus far, over 53 guns have been seized. Investigations are ongoing and further federal prosecutions are expected.
Assistant U.S. Attorneys Charlie Bourne and Shane Mayes prosecuted the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James Durham at (912) 201-2547.
Federal Jury Convicts Martinez Man for Attempting Online Enticement of A Minor and Destruction of EvidenceRead the Press Release
AUGUSTA, GA – Fawad Shah Syed, 47, of Martinez, Georgia, was convicted on Wednesday by a federal jury after a 2-day trial before U.S. District Court Judge J. Randal Hall for the Attempted Online Enticement of a Minor to Engage in Sexual Activity, Destruction of Records in a Federal Investigation, and Attempted Destruction of Records in a Federal Investigation.
United States Attorney Edward Tarver said, “This defendant was convicted of engaging in inappropriate communications with a girl whom he believed to be 14 years old in order to engage in illicit sexual conduct, and destroying evidence related to that charge. 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. Syed’s conviction will help protect our children from such future predatory acts.”
Evidence presented during the trial revealed that Syed, posing as a man in his twenties named “Daniel,” engaged in online communications with a person he believed to be a 14-year-old girl who he initiated contact with online. After four days of text messaging and several attempts to meet the girl, Syed showed up at what he believed to be the girl’s residence with condoms and alcohol. He was immediately arrested by law enforcement officers. Shortly thereafter, he contacted his wife from jail, and before telling her what charges he faced, instructed her to delete his email account and remotely wipe his phone. He also asked her to wipe his computer. Mrs. Syed cooperated with law enforcement thereafter, providing an investigator with Defendant’s computer and testifying at trial. Syed’s computer was searched, and revealed online texts that the Defendant had last summer with a 13-year-old girl.
Syed faces up to life in prison, a fine of up to $250,000, and between 5 years and life of supervised release for the enticement charge. He also faces up to 10 years in prison for each destruction of evidence charge. Syed remains in custody pending his sentencing hearing. A sentencing date will be scheduled following completion of a presentence investigation and report.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. 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 Nancy Greenwood, Deputy Criminal Chief in the Augusta U.S. Attorney’s Branch Office and Project Safe Childhood Coordinator, 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.
Last Defendants Sentenced in Meth Trafficking ConspiracyRead the Press Release
WAYCROSS, GA – Charles W. Johns, 60, of Hoboken, Georgia was sentenced last month by United States Chief District Court Judge Lisa Godbey Wood to 78 months in prison for his role in a methamphetamine conspiracy operating in the Waycross, Georgia area. Judge Wood previously sentenced 4 others from the Waycross area for their roles in the drug trafficking conspiracy. Stephen Miles, 30, was sentenced to 124 months in prison; Pamela Moore, 45 and the wife of defendant Johns, was sentenced to 48 months in prison; Corey B. Perkins, 33, was sentenced to 37 months in prison; and, Anna Hambrick, 28, was sentenced to 20 months in prison.
Evidence presented during the sentencing hearings showed that defendant Miles was the leader and organizer of a methamphetamine trafficking ring operating out of the Ware and Brantley County areas. In January 2012, several undercover purchases of methamphetamine were made from members of the conspiracy. Eventually, investigating agents executed search warrants where a weapon and a significant amount of methamphetamine were seized.
The investigation of the case was led by the DEA and the Brantley County Sheriff’s Office. The GBI and the Charlton County Sheriff’s Office also assisted in the investigation. Assistant United States Attorney Carlton Bourne prosecuted the case on behalf of the United States. For additional information, contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Final 3 Defendants Convicted in Stolen Identity and Tax Fraud SchemeRead the Press Release
STATESBORO, GA - Three federal defendants – PORSCHE S. PINKNEY, TIDAESHA V. TAYLOR, and GREGORY F. SMITH, JR. – pled guilty last week before United States District Court Judge B. Avant Edenfield for their involvement in a stolen identity and tax fraud scheme that was centered in Statesboro, Georgia.
Earlier this year, these 3 defendants, along with 10 others who were also involved in the scheme, were charged with federal crimes ranging from conspiracy to defraud the IRS to identity theft from medical records. According to evidence presented during hearings in these cases, the participants in the scheme illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, which they then used to prepare and submit fraudulent tax returns in order to unlawfully obtain tax refunds.
The 3 defendants who pled guilty last week were the last to be convicted of the 13 defendants originally charged in this identity theft and tax fraud scheme. Each of the defendants are listed as follows:ERICA BALDWIN, 31, of Statesboro, Georgia, pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
TRACY DENSON, 44, of Statesboro, Georgia, pled guilty on July 30, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
SHAKITA EASON, 30, of Statesboro, Georgia, pled guilty on June 18, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
YOLANDA EDMOND, 36, of Statesboro, Georgia, pled guilty on July 11, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
GLORIA EVANS, 44, of Statesboro, Georgia, pled guilty on July 11, 2013 to wire fraud conspiracy and aggravated identity theft.
JOSHUA MINCEY, 20, of Statesboro, Georgia, pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
PORSCHE S. PINKNEY, 19, of Augusta, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
DWAN SCOTT, 32, of Statesboro, Georgia, pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft.
JENNA SCOTT, 28, of Jacksonville, Florida, pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft.
GREGORY F. SMITH, JR., 21, of Stone Mountain, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft.
ASHA K. SPAULDING, 37, of Claxton, Georgia, pled guilty on March 12, 2013 to wire fraud conspiracy, aggravated identity theft, and assisting in the preparation of false tax returns.
TIDAESHA V. TAYLOR, 27, of College Park, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft.
ANDREA WEBB, 31, of Register, Georgia, pled guilty on June 5, 2013 to wire fraud conspiracy and aggravated identity theft.
These defendants face a maximum penalty of twenty years imprisonment for the conspiracy charges, ten years imprisonment for the charge of misusing medical records, and a two-year mandatory, consecutive prison sentence for aggravated identity theft. Each of these charges also carries a fine of up to $250,000. Sentencing dates for these defendants have not yet been scheduled.
United States Attorney Edward J. Tarver said, “These convictions demonstrate the continuing commitment of the Department of Justice to protecting the identities and the privacy of medical records of American citizens. This investigation is ongoing. Our law enforcement partners will continue to track down identity thieves and bring them to justice.”FBI Special Agent Marcus Kirkland and IRS Special Agent Gwen Weston are the federal law enforcement officers who have been leading the investigation in these cases, in connection with the Statesboro Police Department and other state and local agencies. Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 341-7842.
17 Defendants Convicted on Federal Charges Marks Successful Conclusion of Savannah Anti-Gang InitiativeRead the Press Release
Operation Ruffian targeted drug and gun crimes committed in
Savannah high-crime areasSAVANNAH, GA - United States Attorney Edward J. Tarver today announced the successful completion of a joint federal and state anti-gang/violent crime initiative dubbed “Operation Ruffian,” which targeted offenders in the Cuyler-Brownsville and Carver Heights neighborhoods of Savannah. The investigation was spearheaded by the Savannah Area Regional Gun Enforcement Task Force (SARGE) which was jointly led by the ATF and the Savannah Chatham Metropolitan Police Department (SCMPD).
A total of 40 individuals were targeted for prosecution in the operation. 23 of these defendants are being prosecuted by the Chatham County District Attorney’s Office. The following 17 individuals were convicted and sentenced in the United States District Court for the Southern District of Georgia:Samuel A. Graham, 36, of Savannah, Georgia was convicted of drug trafficking. Graham was sentenced on October 12, 2011 to 151 months imprisonment.
Antwan L. Cross, 35, of Savannah, Georgia was convicted of possessing a firearm in furtherance of drug trafficking. Cross was sentenced on July 27, 2011 to 60 months imprisonment.
Brian R. Fallon, Jr., 25, of Savannah, Georgia was convicted of possessing an unregistered firearm. Fallon was sentenced on November 18, 2011 to 20 months imprisonment.
Johnny J. Early, 34, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Early was sentenced on May 9, 2012 to 50 months imprisonment.
Kewan G. Roberson, 23, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Roberson was sentenced on May 23, 2012 to 49 months imprisonment.
Randy M. Lewis, 25, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Lewis was sentenced on May 7, 2012 to 54 months imprisonment.
Marco O. Washington, 34, of Savannah, Georgia was convicted of drug trafficking. Washington was sentenced on March 22, 2013 to 60 months imprisonment.
Leearnell J. White, Jr., a.k.a. “Scrootney,” 31, of Savannah, Georgia was convicted of drug trafficking. White was sentenced on November 7, 2012 to 48 months imprisonment.
Edward B. Cone, 33, of Savannah, Georgia was convicted of possessing a firearm as a felon. Cone was sentenced on October 17, 2012 to 66 months imprisonment.
Linwood A. Brown, 53, of Savannah, Georgia was convicted of drug trafficking. Brown was sentenced on November 28, 2012 to 114 months imprisonment.
Eric L. McPherson, 41, of Savannah, Georgia was convicted of drug trafficking. McPherson was sentenced on October 31, 2012 to 160 months imprisonment.
Dominique A. Bostic, 19, of Savannah, Georgia was convicted of drug trafficking and a related firearm offense. Bostic was sentenced on October 12, 2011 to 151 months imprisonment.
Willie L. Smith, 30, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Smith was sentenced on April 11, 2013 to 72 months imprisonment.
Edward D. Singleton, 31, of Savannah, Georgia was convicted of drug trafficking. Singleton was sentenced on May 13, 2013 to 151 months imprisonment.
Michael P. Griffin, 23, of Savannah, Georgia was convicted of two separate federal firearm offenses. Griffin was sentenced on July 24, 2013 to 154 months imprisonment.
Travis L. Young, 19, of Savannah, Georgia was convicted of two separate federal firearm offenses. Young was sentenced on July 25, 2013 to 180 months imprisonment.
Cedric Reynolds, 24, of Savannah, Georgia for possessing a firearm as a prohibited person. Reynolds was sentenced on June 21, 2013 to 188 months imprisonment.
According to statistics kept by the SCMPD and evidence presented during numerous guilty plea and sentencing hearings, the individuals charged in the course of this operation were responsible for distributing cocaine and other street drugs valued at over $188,000. During the operation, investigators executed 14 search warrants and recovered 43 firearms, including 11 stolen firearms, which were used in the commission of crimes.
United States Attorney Tarver made several observations about the significance of the operation: “The persons indicted in this operation were responsible for a consistent pattern of drug dealing and firearms violations in these Savannah neighborhoods. The criminal acts which they engaged in made it difficult and dangerous for law-abiding residents to go about their daily routines. As a result of this investigation, 40 offenders have been removed from the two neighborhoods, including 17 convicted of federal offenses in the United States District Court. The disruption of two local gangs and the incarceration of numerous dangerous criminals should send a firm message to those who would plague our neighborhoods that federal, state, and local authorities are committed to keeping our streets safe from violent drug dealers and gun traffickers.”
The investigative agencies which took part in Operation Ruffian included SCMPD’s Central Precinct Crime Suppression Unit, the Savannah Area Regional Intelligence Center, the Georgia Bureau of Investigation, K9 units of the Chatham County Sheriff’s Office and SCMPD, the SCMPD S.W.A.T. team, the United States Marshal’s Service, the FBI, and the Chatham County District Attorney’s Office. The operation was led by ATF Special Agent Toby Taylor and SCMPD Detective Kevin Grogan.
The cases presented in United States District Court were prosecuted by Assistant United States Attorneys Karl Knoche, Shane Mayes, Jennifer Solari, and Greg Gilluly. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Victims of Largest Fraud Case Prosecuted in Southern District of Georgia Receive over $27 Million in RestitutionRead the Press Release
AUGUSTA, GA – Carl Lamont Brandon, 39, of Augusta, Georgia, was convicted yesterday by a federal jury after a 1-day trial before U.S. District Court Judge J. Randal Hall for possessing a firearm as a felon on October 8, 2012.
United States Attorney Edward Tarver said, “Through Project CeaseFire, the United States Attorney’s Office will continue to vigorously enforce federal firearms laws to rid the streets of violent felons who carry guns. Felons who possess firearms can expect to be returned to prison, and serve federal time without the possibility of parole.”
Evidence presented during the trial revealed that Brandon led police on a high speed chase down Bobby Jones Expressway and through parking lots after Columbia County deputies were dispatched to respond to a possible shoplifting offense committed by Brandon at a nearby Wal-Mart. Upon being cornered by the deputies, Brandon surrendered to authorities and officers found a loaded firearm concealed in a CD case in Brandon’s car. Brandon was on parole at the time of the incident.
Brandon’s prior felonies include an Aggravated Battery and a Possession of a Firearm During the Commission of a Crime, which resulted after Brandon shot a Richmond County deputy in 1990. His other violent felony convictions include Criminal Attempt to Commit Armed Robbery, Armed Robbery, and Aggravated Assault.
If deemed to be an Armed Career Criminal, Brandon faces a mandatory minimum sentenced of 15 years to Life, a fine of up to $250,000, and 5 years of supervised release. Brandon remains in custody pending his sentence. A sentencing date will be scheduled following completion of a presentence investigation and report.
The case was investigated by Columbia County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted under Project Ceasefire, a joint federal, state and local firearms initiative involving the U.S. Attorney’s Office, ATF and various local police departments.
Assistant U.S. 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 Residents Arrested in Connection with Two Seperate Bomb ThreatsRead the Press Release
SAVANNAH, GA – HAROLD CHILDERS, 36, and LAVONTAY GATSON, 20, both of Savannah, were arrested on federal charges last week on charges arising from two separate bomb threats. CHILDERS was charged with making a false statement to FBI agents in connection with a September 18, 2012 bomb threat at Southern States Phosphates on East President Street in Savannah. GATSON was charged with telephoning a Wal-Mart in Savannah and making a bomb threat on March 2, 2013.
The charge against CHILDERS carries a maximum sentence of 5 years in prison and a $250,000 fine. GATSON’S charge carries a maximum penalty of 10 years in prison and a $250,000 fine. U.S. Attorney Ed Tarver emphasized that a criminal complaint 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.
Both arrests arose out of investigations by the FBI. Assistant United States Attorney Charlie Bourne 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.