Eastern District of Virginia
Press releases recorded for this federal judicial district.
Former Richmond Postal Carrier Pleads Guilty to Stealing MailRead the Press Release
RICHMOND, Va. – A former postal carrier with the U.S. Postal Service (USPS) in Richmond pleaded guilty yesterday to theft of mail.
According to court documents, Wendy Lawrence, 40, stole mail, removing gift cards, checks, and other items of value for her own use. Law enforcement recovered stolen mail from Lawrence’s residence belonging to over 180 victims.
After stealing checks from the mail, Lawrence used the bank account and routing information on those checks to initiate electronic payments, which she used for such expenses as her tax bill, pest control bill, and rent. On at least one occasion, to prolong and conceal the fraud scheme, Lawrence initiated a fraudulent address change with the USPS on behalf of a victim, rerouting the victim’s mail to Lawrence’s address. Law enforcement also recovered checks from Lawrence’s residence that she forged for her own benefit, including checks in the name of at least 30 other individuals.
Lawrence faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jeff Krafels, Special Agent in Charge of the Mid Atlantic Area Field Office for the U.S. Postal Service Office of Inspector General; Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; and Bradford W. Nunnally, Sheriff for Powhatan County, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. The Powhatan County Commonwealth’s Attorney’s Office provided substantial assistance.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-17.
MS-13 Gang Member Sentenced in Connection with 2016 Fairfax MurderRead the Press Release
ALEXANDRIA, Va. – A Salvadoran member of the transnational street gang La Mara Salvatrucha, or MS-13, was sentenced today to 25 years in prison in connection with the kidnapping and murder of an adolescent boy in 2016.
According to court documents, Edwin Orellana Caballero, who was 16 years old and living in Alexandria at the time, was one of several members and associates of the Park View Locos Salvatrucha clique of MS-13 who kidnapped and killed a 14-year-old victim, S.A.A.T. On the night of September 26, 2016, the gang lured S.A.A.T. to Holmes Run Stream Valley Park in Fairfax County and murdered him in a wooded area there with knives, machetes, and a pickaxe. Orellana Caballero struck S.A.A.T. multiple times with the pickaxe. Once S.A.A.T. was dead, the gang buried him in a shallow grave.
Orellana Caballero, who was transferred for prosecution as an adult under the Juvenile Justice and Delinquency Prevention Act, pleaded guilty to one count of maiming in aid of racketeering activity. In so doing, he admitted to participating in S.A.A.T.’s murder for the purpose of maintaining and increasing his position in MS-13.
To date, a total of 17 defendants have been charged in this case. Of those, five defendants went to trial and were convicted of all charges. Ten defendants pleaded guilty prior to trial.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston Jr.
The U.S. Immigration and Customs Enforcement Washington Field Office, U.S. Marshals Service, Alexandria Police Department, Prince William County Police Department, Montgomery County (MD) Police Department, and Marin County (CA) Sheriff’s Office provided significant assistance in the investigation.
Assistant U.S. Attorneys Alexander E. Blanchard and Cristina C. Stam prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-153.
Felon Sentenced to 20 Years for Federal Drug and Weapons OffensesRead the Press Release
NEWPORT NEWS, Va. – A Richmond, Virginia, man was sentenced yesterday to 20 years in prison for possession with intent to distribute heroin and possessing a firearm as a convicted felon.
According to court documents, Newport News Police Department (NNPD) performed a traffic stop on Ladrale Antonio Putney, 44, shortly after midnight on February 8, 2021, for driving the wrong way down a one-way street without any headlights or taillights illuminated. Putney produced an invalid driver license during the stop. Due to the odor of marijuana and suspected marijuana “shake” – or loose marijuana leaves/particles – visibly scattered throughout the vehicle, NNPD temporarily detained Putney. NNPD discovered approximately 30 grams of cocaine base, three digital scales and narcotics packaging material in Putney’s car. Putney was also in possession of a stolen, loaded handgun, approximately 18 grams of heroin, approximately 10 grams of cocaine base, approximately 2.5 grams of powder cocaine, two small bags of marijuana and approximately $4,308. Forensic laboratory analysis confirmed the controlled substances and detected the presence of fentanyl mixed into the heroin. As a previously convicted federal felon, Putney was prohibited from possessing firearms or ammunition.
Putney pleaded guilty on October 13, 2023, to one count of possession with intent to distribute heroin and fentanyl and one count of being a felon in possession of a firearm.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorney Peter G. Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-56.
Maryland Man Pleads Guilty to Using Straw Purchaser to Illegally Buy 33 Firearms in VirginiaRead the Press Release
ALEXANDRIA, Va. – A Temple Hills, Maryland man pleaded guilty today to aiding and abetting the straw purchase of 33 guns from Virginia firearms dealers.
According to court documents, Melvin Plowden, 34, a convicted felon, arranged for a co-conspirator with no prior felony convictions to purchase firearms on Plowden’s behalf, which Plowden resold. Plowden instructed the co-conspirator on which firearms to purchase and gave him money to pay for the firearms.
Between October 2019 and June 2020, the co-conspirator purchased 33 firearms from federal firearms dealers in Virginia, all on Plowden’s behalf. Of the firearms straw-purchased by the co-conspirator, 17 have been recovered in connection with criminal activity or from individuals prohibited from possessing the firearms, including Plowden. In June 2020, Plowden was arrested following an incident in Oxon Hill, Maryland, and one of the straw-purchased firearms was found in his possession.
Plowden is scheduled to be sentenced on May 21. He faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Cristina C. Stam and Megan Braun are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-198.
Man Sentenced for Smuggling Machineguns and Silencers into the United States, Which He Then Sold on Facebook MarketplaceRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to four years in prison for smuggling machineguns and firearm silencers into the United States, which he then sold on Facebook Marketplace.
According to court documents, John Patrick Gordon Dane, 36, ordered firearm parts from black-market websites. These parts included Glock switches, also referred to as auto-sears, which are small devices that can be attached to handguns, converting semi-automatic pistols into machine pistols capable of fully automatic fire. Because a switch causes a firearm to expel more than one projectile with a single pull of the trigger, the part is classified as a machinegun under federal law. Dane also purchased firearm silencers from the black-market websites. The firearm parts were shipped to Dane’s residence with manifests that disguised the contents of the packages.
On January 10, 2023, law enforcement officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Virginia Beach Police Department executed a search warrant at Dane’s residence. During the search, investigators found Dane in a shed on his property that he used to assemble and modify firearms. Investigators seized 17 firearms from the shed. The recovered firearms included an AR-15 rifle that had been converted to fire as a machinegun. Investigators also located a Glock firearm with a large capacity magazine, pictured below, that had a switch affixed to it in an attempt to allow it to fire fully automatic. Other firearms recovered from the shed included “ghost guns,” or firearms manufactured without serial numbers.
Dane had been previously convicted of a felony offense in 2012 in Virginia.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Craig Kailimai, Special Agent in Charge of ATF’s Washington Field Division; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations Washington, D.C.; and Paul Neudigate, Chief of the Virginia Beach Police Department, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Special Assistant U.S. Attorney Graham M. Stolle prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-104.
Falls Church Man Charged with Online Posts Threatening Local ChurchRead the Press Release
ALEXANDRIA, Va. – A Falls Church man has been charged by criminal complaint with posting threatening messages online against the congregants of a Haymarket church.
According to the complaint affidavit, Rui Jiang, 35, posted various threatening messages on his Instagram account against Park Valley Church and its congregants. These posts allegedly began on September 23, 2023, and extended into the next day. An acquaintance of Jiang saw these posts and alerted law enforcement on September 24, 2023. A Prince William County Police officer, as well as the church’s private security team, located and detained Jiang on church premises. Jiang allegedly was found to be in possession of a firearm, ammunition, and a knife. The defendant had arrived at the church during a popular Sunday service time with a large congregation in attendance.
According to court documents, Fairfax County Police officers obtained a search warrant to enter Jiang’s residence and allegedly found a letter, dated September 24, 2023, that stated, among other things, “To the families of those men about to be slain – I am sorry for what I have done and about to do.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Amy Ashworth, Commonwealth’s Attorney for Prince William County; and Peter Newsham, Chief of Police for Prince William County, made the announcement.
Assistant U.S. Attorney Nicholas Durham is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-mj-64.
A complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Virginia Beach Man Sentenced to Seven Years for Credit Union Fraud and Counterfeit CurrencyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to seven years in prison for his role in a fraudulent scheme to defraud Navy Federal Credit Union and for passing counterfeit currency at Wal-Mart stores.
According to court documents, between April and July 2018, Malcolm McKinney, 32, engaged in an identity theft scheme to defraud the Navy Federal Credit Union (NFCU). McKinney provided stolen identities to a co-conspirator who would use the identities to create accounts at NFCU and apply for wholly fictitious auto loans. Once the loans were approved, other conspirators would collect the loan check, cash it, and distribute the money to members of the conspiracy. In this manner, the conspiracy caused over $300,000 in loss to NFCU.
After pleading guilty to his role in the NFCU conspiracy, and while released on bond awaiting sentencing, McKinney embarked on a counterfeit currency spree in the spring of 2023. McKinney passed approximately $25,000 in counterfeit U.S. currency to at least 10 different Wal-Mart stores located in Virginia, North Carolina, and South Carolina. McKinney used counterfeit fifty- and twenty-dollar bills to purchase items such as video game consoles, kitchen mixers, sewing machines, and breast pumps. McKinney was identified by Wal-Mart security camera footage and arrested in the Western District of Virginia.
Four co-conspirators from this case previously pleaded guilty and received sentences ranging from 45 to 81 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-78.
McLean Man Pleads Guilty in COVID-19 Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A McLean man pleaded guilty today to defrauding the Small Business Administration by fraudulently obtaining approximately $455,000 in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) funds.
According to court documents, Mehdi Pazouki, 65, was the owner and sole employee of Systems Integration Services Inc., an IT consulting company that Pazouki ran from his home in McLean. Between August 2020 and August 2021, Pazouki applied for and received approximately $455,000 in PPP loans and EIDL funds, which he falsely certified would be used for business-related purposes, but which he actually intended to, and did, use to fund his gambling at area casinos, pay down personal debt, and purchase real estate.
Within days of receiving his first EIDL disbursement, Pazouki spent over $27,000 in EIDL money at Hollywood Casino in Charles Town, West Virginia. Pazouki also used the PPP and EIDL money for down payments on two different real estate properties, to pay off his personal credit card debt, and to fund his personal investment account. Pazouki also falsely represented to the SBA in loan forgiveness applications that the PPP money had been used for legitimate business expenses, which resulted in the complete discharge of the loans.
Pazouki is scheduled to be sentenced on May 24. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorney Lauren Halper is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-29.
United States Charges Four Mariners from Arabian Sea Vessel Transporting Suspected Iranian-Made Advanced Conventional WeaponsRead the Press Release
RICHMOND, Va. – A criminal complaint was unsealed today charging four foreign nationals after U.S. naval forces interdicted a vessel in the Arabian Sea that was transporting suspected Iranian-made advanced conventional weaponry.
Two Navy SEALs lost their lives during the interdiction.
“The Justice Department extends our deepest condolences to the families and loved ones of the two Navy SEALs who lost their lives on January 11th while conducting an operation in the Arabian Sea,” said Attorney General Merrick B. Garland. “The charges resulting from that interdiction make clear that the Justice Department will use every legal authority to hold accountable those who facilitate the flow of weapons from Iran to Houthi rebel forces, Hamas, and other groups that endanger the security of the United States and our allies.”
“The flow of missiles and other advanced weaponry from Iran to Houthi rebel forces in Yemen threatens the people and interests of America and our partners in the region,” said Deputy Attorney General Lisa Monaco. “Two Navy SEALs tragically lost their lives in the operation that thwarted the defendants charged today from allegedly smuggling Iranian-made weapons that the Houthis could have used to target American forces and threaten freedom of navigation and a vital artery for commerce. Alongside our partners around the world, the Justice Department will continue to deploy every available tool to combat this grave threat.”
“The FBI will aggressively investigate and disrupt the Iranian Government’s attempts to provide Houthi rebels with missile components that are intended for use against U.S. military ships, merchant vessels, and Israel,” said FBI Director Christopher Wray. “The defendants in this case allegedly transported suspected Iranian-made missile components for the type of weaponry used by the Houthi rebels in recent attacks. The FBI is committed to using its global partnerships to stop the illegal flow of weaponry that endangers U.S. national security.”
“As charged, Mr. Pahlawan attempted to smuggle advanced missile components, including a warhead, to Houthi rebels for use against cargo ships and U.S. vessels sailing across the Horn of Africa,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department, together with U.S. agency partners, is working tirelessly to deny malign actors the means to threaten international shipping and imperil the lives of our men and women in uniform.”
“The complaint alleges that the defendants were transporting weapons consistent with those used by Houthi rebel forces and then lied to the U.S. Coast Guard during the boarding of the vessel,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “I want to thank the career prosecutors and our law enforcement partners for ensuring that the defendants now will face justice in an American court.”
“Today’s complaint sends a message that allegedly acting as a proxy for the IRGC in an effort to bring harm to U.S. persons overseas will not be tolerated by the U.S. Government,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Transporting explosive materials intended to be used to threaten and cause harm is yet another example of the IRGC’s disruptive and hostile actions. The FBI and our U.S. Government partners will continue to disrupt efforts by hostile foreign governments seeking to intimidate and cause harm through violence.”
According to court records, on the night of Jan. 11, U.S. Central Command Navy forces operating from the USS LEWIS B. PULLER, including Navy SEALs and members of the U.S. Coast Guard Maritime Security Response Team East, boarded an unflagged dhow, a small vessel, in the Arabian Sea off the coast of Somalia. As alleged, the U.S. boarding team encountered 14 individual mariners on the vessel.
During a search of the dhow, the U.S. boarding team allegedly located and seized what is believed to be Iranian-made advanced conventional weaponry. According to court records, preliminary analysis of the advanced conventional weaponry indicates that it includes critical components for medium range ballistic missiles (MRBM) and anti-ship cruise missiles (ASCM), to include a warhead and propulsion and guidance components. The type of weaponry found aboard the dhow is allegedly consistent with the weaponry used by the Houthi rebel forces in recent attacks on merchant ships and U.S. military ships in the Red Sea and Gulf of Aden.
According to court records, the Navy brought the fourteen mariners aboard the USS LEWIS B. PULLER after determining the dhow was unsafe and unseaworthy. On Feb. 11, the United States obtained arrest warrants for four of the mariners who were aboard the dhow – specifically, defendants Muhammad Pahlawan, Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad. Pakistani identification cards allegedly were found on the dhow for each of the four defendants. The United States also obtained ten material witness warrants for the remaining individuals aboard the vessel.
The defendants and material witnesses were transferred from the USS LEWIS B. PULLER to the Eastern District of Virginia. The four defendants and eight of the ten material witnesses made their initial appearances before a U.S. Magistrate Judge in Richmond today.
Defendant Muhammad Pahlawan is charged with: (1) intentionally and unlawfully transporting on board the dhow a warhead, knowing the warhead would be used by the Houthi rebel forces against commercial and naval vessels in the Red Sea and surrounding waters; and (2) providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and cargo. Co-defendants Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad were also charged with providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and/or cargo.
Pahlawan faces a maximum of 20 years in prison if convicted of unlawfully transporting a warhead, and all four defendants face a maximum of five years in prison if convicted of the false statements offense. A federal district court judge will determine sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
Affidavit in support of criminal complaint
Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, FBI Director Christopher A. Wray, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office and Naval Criminal Investigative Service are investigating the case, with significant assistance provided by the Department of Defense, U.S. Central Command, U.S. Navy, Department of Justice Office of International Affairs, Department of State, and Department of Homeland Security, including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorneys Troy A. Edwards Jr., John T. Gibbs, and Gavin R. Tisdale for the Eastern District of Virginia and Trial Attorney Lesley Woods of the National Security Division’s Counterterrorism Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents for the four charged defendants are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:24-mj-16, 17, 18, and 19.
A criminal complaint is merely an accusation. The defendants are presumed innocent until proven guilty.
United States Charges Four Mariners from Arabian Sea Vessel Transporting Suspected Iranian-Made Advanced Conventional WeaponsRead the Press Release
A criminal complaint was unsealed today charging four foreign nationals after U.S. naval forces interdicted a vessel in the Arabian Sea that was transporting suspected Iranian-made advanced conventional weaponry.
Two Navy SEALs lost their lives during the interdiction.
“The Justice Department extends our deepest condolences to the families and loved ones of the two Navy SEALs who lost their lives on January 11th while conducting an operation in the Arabian Sea,” said Attorney General Merrick B. Garland. “The charges resulting from that interdiction make clear that the Justice Department will use every legal authority to hold accountable those who facilitate the flow of weapons from Iran to Houthi rebel forces, Hamas, and other groups that endanger the security of the United States and our allies.”
“The flow of missiles and other advanced weaponry from Iran to Houthi rebel forces in Yemen threatens the people and interests of America and our partners in the region,” said Deputy Attorney General Lisa Monaco. “Two Navy SEALs tragically lost their lives in the operation that thwarted the defendants charged today from allegedly smuggling Iranian-made weapons that the Houthis could have used to target American forces and threaten freedom of navigation and a vital artery for commerce. Alongside our partners around the world, the Justice Department will continue to deploy every available tool to combat this grave threat.”
“The FBI will aggressively investigate and disrupt the Iranian Government’s attempts to provide Houthi rebels with missile components that are intended for use against U.S. military ships, merchant vessels, and Israel,” said FBI Director Christopher Wray. “The defendants in this case allegedly transported suspected Iranian-made missile components for the type of weaponry used by the Houthi rebels in recent attacks. The FBI is committed to using its global partnerships to stop the illegal flow of weaponry that endangers U.S. national security.”
“As charged, Mr. Pahlawan attempted to smuggle advanced missile components, including a warhead, to Houthi rebels for use against cargo ships and U.S. vessels sailing across the Horn of Africa,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department, together with U.S. agency partners, is working tirelessly to deny malign actors the means to threaten international shipping and imperil the lives of our men and women in uniform.”
“The complaint alleges that the defendants were transporting weapons consistent with those used by Houthi rebel forces and then lied to the U.S. Coast Guard during the boarding of the vessel,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “I want to thank the career prosecutors and our law enforcement partners for ensuring that the defendants now will face justice in an American court.”
“Today’s complaint sends a message that acting as a proxy for the IRGC in an effort to bring harm to U.S. persons overseas will not be tolerated by the U.S. Government,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Transporting explosive materials intended to be used to threaten and cause harm is yet another example of the IRGC’s disruptive and hostile actions. The FBI and our U.S. Government partners will continue to disrupt efforts by hostile foreign governments seeking to intimidate and cause harm through violence.”
According to court records, on the night of Jan. 11, U.S. Central Command Navy forces operating from the USS LEWIS B. PULLER, including Navy SEALs and members of the U.S. Coast Guard Maritime Security Response Team East, boarded an unflagged dhow, a small vessel, in the Arabian Sea off the coast of Somalia. The U.S. boarding team encountered 14 individual mariners on the vessel.
During a search of the dhow, the U.S. boarding team allegedly located and seized what is believed to be Iranian-made advanced conventional weaponry. According to court records, preliminary analysis of the advanced conventional weaponry indicates that it includes critical components for medium range ballistic missiles (MRBM) and anti-ship cruise missiles (ASCM), to include a warhead and propulsion and guidance components. The type of weaponry found aboard the dhow is allegedly consistent with the weaponry used by the Houthi rebel forces in recent attacks on merchant ships and U.S. military ships in the Red Sea and Gulf of Aden.
According to court records, the Navy brought the fourteen mariners aboard the USS LEWIS B. PULLER after determining the dhow was unsafe and unseaworthy. On Feb. 11, the United States obtained arrest warrants for four of the mariners who were aboard the dhow — specifically, defendants Muhammad Pahlawan, Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad. Pakistani identification cards allegedly were found on the dhow for each of the four defendants. The United States also obtained ten material witness warrants for the remaining individuals aboard the vessel.
The defendants and material witnesses were transferred from the USS LEWIS B. PULLER to the Eastern District of Virginia. The four defendants and eight of the 10 material witnesses made their initial appearances before a U.S. Magistrate Judge in Richmond today.
Defendant Muhammad Pahlawan is charged with: (1) intentionally and unlawfully transporting on board the dhow a warhead, knowing the warhead would be used by the Houthi rebel forces against commercial and naval vessels in the Red Sea and surrounding waters; and (2) providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and cargo. Co-defendants Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad were also charged with providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and/or cargo.
Pahlawan faces a maximum penalty of 20 years in prison if convicted of unlawfully transporting a warhead, and all four defendants face a maximum penalty of five years in prison if convicted of the false statements offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, FBI Director Christopher A. Wray, Assistant Attorney General Matt Olsen of the Justice Department’s National Security Division, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
The FBI Washington Field Office and Naval Criminal Investigative Service are investigating the case, with significant assistance provided by the Department of Defense, U.S. Central Command, U.S. Navy, Justice Department’s Office of International Affairs, Department of State, and Department of Homeland Security, including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorneys Troy A. Edwards Jr., John T. Gibbs, and Gavin R. Tisdale for the Eastern District of Virginia and Trial Attorney Lesley Woods of the National Security Division’s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pahlawan complaintFormer Primis Bank Manager Pleads Guilty to $2.4 Million Embezzlement SchemeRead the Press Release
RICHMOND, Va. – A Weems man pleaded guilty yesterday to designing and executing a scheme to defraud his employer, a local financial institution, by issuing fraudulent loans to other individuals, and thereafter using the loan proceeds for his own purposes.
According to court documents, James Stevens, 46, was employed at Primis Bank (formerly known as Sonabank, Eastern VA Bank, and Southside Bank) from 2000 to June 2023 as a Commercial Lender, Branch Manager, and Assistant Branch Manager. In his capacity as a Commercial Lender for Primis, Stevens had the authority to issue loans to borrowers on behalf of the bank, and he also had the ability to access customer accounts, open customer accounts, and transfer funds in and out of bank customers’ accounts.
Beginning in 2008, and continuing through June 2023, Stevens exploited his position of trust at Primis Bank to issue numerous fraudulent loans—on behalf of his unwitting bank employer—in the names and using the identities of numerous other individuals. Stevens would often create fraudulent documentation to support these loan applications, using the personal identifying information of multiple Primis Bank customers in the process. Stevens would then use proceeds of these fraudulently issued loans to make payments on other (previously issued) fraudulent loans, to pay himself, or to pay others he associated with. Through this loan scheme, Stevens caused a loss to Primis Bank of more than $2.3 million.
Stevens also exploited his personal relationship with one Primis Bank customer to access the customer’s personal savings and checking accounts and to withdraw funds from the customer’s accounts. Stevens used his access to the customer’s accounts to change the mailing address on the accounts so that the bank customer remained unaware of the thefts, which eventually totaled more than $97,000. Altogether, the frauds and thefts perpetrated by Stevens resulted in a total loss to Primis Bank of $2,477,643.
Stevens is scheduled to be sentenced on May 30, 2024. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Robert Day are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-10.
North Carolina Man Sentenced for Role in 59 Kilo Cross-Border Cocaine DeliveryRead the Press Release
NEWPORT NEWS, Va. – A Durham, North Carolina man was sentenced yesterday to 123 months in prison for his role in the attempted delivery of 59 kilograms of cocaine that was transported across the U.S.-Mexico border en route to Providence Forge, Virginia.
According to court documents, on July 26, 2023, agents from the Drug Enforcement Administration and Homeland Security Investigations intercepted a load of cocaine as it crossed the U.S.-Mexico border. Agents then replaced the cocaine with an imitation substance and took the load to a truck stop in Providence Forge to make a controlled delivery to the intended recipient, Jose Daniel Arellano Rodriguez, 36.
Arellano Rodriguez arrived at the truck stop with $90,000 in cash to take delivery of the cocaine. He was arrested at the scene and charged with attempted possession with the intent to distribute more than five kilograms of cocaine.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-61.
Former Capital One Analyst Sentenced for Insider TradingRead the Press Release
ALEXANDRIA, Va. – A foreign national formerly of Henrico was sentenced today to two years in prison after engaging in a $3.1 million insider trading scheme.
According to court documents, Nan Huang, 45, conspired with his then-coworker to commit insider trading. From 2008 to 2015, Huang worked as a senior data analyst for a subsidiary of Capital One Financial Corporation. As a senior data analyst, Huang had access to a Capital One database that collected transaction data from Capital One credit card and debit card customers. In violation of his fiduciary duties to Capital One, Huang searched this database thousands of times and compiled on his work computer material, non-public information about publicly traded companies.
Because this information was highly correlated with the not-yet-public actual revenue of these companies, Huang was able to predict whether these companies would meet their revenue expectations. Huang then executed hundreds of trades using this non-public information and reaped extraordinary profits. Huang personally made over $1.4 million in profits, while the overall conspiracy made more than $3.1 million.
Capital One fired Huang in 2015 after it discovered his activity. Days later, Huang fled the country to China, where he remained until his arrest at San Francisco International Airport on April 23, 2023.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorneys Christopher Hood and Zachary Ray prosecuted the case. Former Assistant U.S. Attorney Matthew Burke provided significant assistance on the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-319.
Portsmouth Felon Sentenced for Possessing Multiple FirearmsRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to five years in prison for possessing multiple firearms and a machinegun conversion device as a convicted felon.
According to court documents, on June 9, 2022, after a lengthy investigation into several individuals suspected of being involved in the distribution of narcotics, law enforcement officers executed a court-authorized search warrant at the Portsmouth residence of Michael Jerrod Scott, 40. During the search, officers recovered three firearms, multiple firearm magazines and ammunition, approximately six ounces of marijuana and related edible products, items associated with the manufacturing and distribution of drugs, and $2,920 in cash.
One of the firearms had a machinegun conversion device installed at the rear of the slide, which made it a “machinegun” as defined by federal law. Scott had previously been convicted of several felony offenses, to include robbery, use of a firearm in the commission of robbery, statutory burglary of a dwelling while armed, use of a firearm in the commission of armed burglary, and possession of a schedule I or II drug.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Stephen Jenkins, Chief of Portsmouth Police; and Mark G. Solesky, Chief of Chesapeake Police, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorney Kevin Comstock and Special Assistant U.S. Attorney Marc West prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-74.
Two Maryland Men Charged with Stealing over 50 Firearms from Virginia Firearms StoreRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment yesterday charging two Maryland residents with the burglary of a federal firearms licensee (FFL), conspiracy to steal firearms from FFLs, and interstate transportation of stolen firearms and stolen vehicles.
According to allegations in the indictment, Cedric Minger, 21, and Victor Jones, 22, stole more than 50 firearms—including pistols, rifles, short-barreled rifles, and silencers—from Dominion Defense, an FFL in Springfield, Virginia, on April 29, 2023. According to the indictment, Minger, Jones, and two co-conspirators traveled from Washington, D.C. to Dominion Defense in a stolen Acura ILX. After breaking the business’s exterior glass door, the defendants and their co-conspirators allegedly struggled to gain entry through the interior door, with Minger at one point resorting to shooting at the door with a firearm. Ultimately, Minger allegedly shimmied his way through an opening at the top of the interior door. Once inside, Minger allegedly grabbed more than 50 firearms, passing them along to his co-conspirators, including Jones, who then loaded them into the stolen Acura, which they used to flee back to Washington, D.C.
According to the indictment, as part of the conspiracy to steal firearms from FFLs, Minger and Jones attempted to burglarize Engage Armament in Rockville, Maryland, on April 30, 2023, and Minger and at least two co-conspirators attempted to burglarize Top Gun Firearms in Fallston, Maryland, on May 10, 2023.
The indictment also charges Minger and Jones with multiple counts relating to the possession and interstate transportation of stolen vehicles, including the above-mentioned Acura and a Nissan Sentra used to travel to and from the attempted burglary of Top Gun Firearms.
If convicted, Minger and Jones face a maximum of five years in prison for the conspiracy to steal firearms from FFLs, and up to 10 years in prison for each additional count charged in the indictment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Steve T. Descano, Commonwealth’s Attorney for Fairfax County; Craig B. Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement.
Significant assistance on this investigation was provided by the City of Fairfax Police Department, Metropolitan Police Department, Alexandria Police Department, Montgomery County Police Department, Maryland State Police, Prince George’s County Police Department, Howard County Police Department, and Prince William County Police Department.
Assistant U.S. Attorneys Meredith Edwards and Cristina C. Stam are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-39.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Richmond Man Pleads Guilty to Mail Theft and Bank Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to conspiring to carry out a bank fraud scheme that targeted victims whose personal and financial information the defendant and his co-conspirators had obtained by stealing mail from United States Postal Service (USPS) mailboxes.
According to court documents, Olden Ellerbe III, 24, conspired with other individuals to steal or otherwise unlawfully obtain U.S. mail, sometimes using stolen or otherwise misappropriated USPS “arrow” keys, which unlock all Postal Service blue collection boxes within a given geographic area. Ellerbe and his co-conspirators obtained the personal and financial information of numerous victims through these mail thefts and misappropriations, and utilized that stolen information to fraudulently withdraw funds from those victims’ accounts at local banking institutions.
Ellerbe and his co-conspirators targeted the victims’ financial accounts through a variety of means, to include creating fictitious checks drafted on the victims’ bank accounts; utilizing the victims’ stolen debit and/or credit cards to withdraw funds from the victims’ bank accounts; and applying for loans in the names of these victims (and then withdrawing the fraudulently obtained loan proceeds with the victims’ stolen debit cards).
At the time of his arrest on November 15, 2023, Ellerbe and another conspirator had just completed the final transaction in a series of fraudulent withdrawals—amounting to a total of $85,000—from a victim’s bank account. Ellerbe possessed both a Glock handgun and numerous items stolen from the U.S. mail, including 83 stolen checks, $59,940 in U.S. currency, nine stolen credit or debit cards, and six stolen U.S. savings bonds.
Ellerbe is scheduled to be sentenced on August 19. He faces a maximum penalty of 35 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Robert Day are prosecuting the case.
U.S. Attorney Aber thanked Colette Wallace McEachin and the City of Richmond Office of the Commonwealth’s Attorney for their assistance in this matter.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-9.
Detroit Man Sentenced for $650,000 Real Estate Loan FraudRead the Press Release
RICHMOND, Va. – A Detroit man was sentenced yesterday to six years in prison for fraudulently conspiring to obtain over $650,000 in advance fees from borrowers seeking real estate loans.
According to court documents, Roscoe Copeland, 49, was the founder and CEO of Alexis Realty Solutions LLC (ARS), which purported to be an alternative funding source for prospective borrowers seeking loans for real estate purchases. ARS catered to customers who had poor credit ratings or were otherwise unable to qualify for a loan from retail banks or other traditional funding sources. ARS offered unrealistically competitive interest rates to their customers, including as low as 1% for a traditional 30-year fixed mortgage.
Copeland and his co-defendant, Dawnn Long, ARS’s chief operating officer, claimed that ARS was a private lender with no “middleman,” and that the company had access to specialized bond funding at discounted rates. As part of the fraudulent scheme, prospective borrowers paid ARS an upfront fee, typically 3% of the loan amount, to purportedly secure a bond necessary to obtain the loan. Copeland and Long also recruited individuals known as “consultants,” many of whom were real estate brokers or agents, to find prospective borrowers and direct them to ARS. Consultants were told that ARS would pay them a percentage of ARS’s proceeds after the loans were funded.
During the conspiracy, which lasted from approximately January 2017 to January 2018, Copeland and Long knowingly made repeated false statements to both prospective borrowers and consultants. These misrepresentations included that: (1) the advance fees paid by customers would be held in escrow; (2) the customers’ advance fees would be repaid in full if their loans did not fund within a set period; and (3) ARS was a private lender with no middleman.
In fact, not a single customer of ARS received a loan. Twenty-six prospective borrowers sent Copeland and Long over $650,000 in advance fees, the vast majority of which Copeland and Long spent on lavish personal expenses. Many of the victims suffered substantial financial hardship, including filing for bankruptcy, periods of homelessness, or delaying retirement, as a result of Copeland’s fraud scheme.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Brian Hood and Kenneth R. Simon, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-152.
Richmond Felon Sentenced for Possessing FirearmRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 77 months in prison for possessing a firearm as a convicted felon.
According to court documents, Jon Terry, 38, was arrested in the Six Points area of Richmond on May 24, 2023. Richmond Police Department officers were on foot patrol and encountered three males, including Terry, trying to put air in a mini-bike. During this encounter, one of the officers observed a bulge in the shape of a firearm in Terry’s pocket. When an officer attempted to speak to him, Terry ran. After a foot pursuit, the officers detained Terry and recovered a loaded SCCY 9mm handgun.
Terry has prior convictions for distribution of cocaine, possession with intent to distribute cocaine, possession of a firearm by a convicted felon, and grand larceny.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Special Assistant U.S. Attorney Ellen V. Hubbard and Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-108.
Portsmouth Man Pleads Guilty to Assaulting Passenger on Cruise ShipRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty today to assaulting a fellow passenger with a dangerous weapon, resulting in serious bodily injury, on a cruise ship last year.
According to court documents, Michael Truman, 39, assaulted a passenger aboard the Carnival “Magic” Cruise Ship on October 20, 2023. The cruise ship was off the coast of Nantucket in open waters. Truman was loudly disrupting a theater show aboard the cruise ship when he was asked twice by a fellow passenger to quiet down. After Truman refused, the passenger began to leave the area to request assistance from a cruise ship employee. Truman then smashed a cocktail glass into the victim’s face, got on top of the victim, and began striking him further. The broken glass caused significant lacerations to the victim’s face, requiring more than a dozen stitches.
Truman is scheduled to be sentenced on August 29. He faces a maximum penalty of ten years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorneys Anthony Mozzi and Clayton LaForge are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-144.
Shooter During Marijuana Robbery Sentenced to Ten YearsRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to ten years and one day in prison for shooting another man in broad daylight while robbing his victim of approximately 6.5 ounces of marijuana.
According to court documents, Brycen Scott Beal, 19, arranged a meeting to purchase a small amount of marijuana from D.M. When D.M. arrived at the agreed location in the residential parking lot of the Patriots Crossing Apartment Complex in Newport News, at midday on February 21, 2023, Beal did not purchase any marijuana. Instead, Beal reached into the vehicle D.M. was driving and grabbed a backpack containing approximately 6.5 ounces of marijuana. As Beal ran off, he fired three gunshots at D.M. using a Glock 23 .40 caliber semiautomatic handgun. Two of Beal’s shots penetrated the windshield and one hit D.M. in the leg, seriously injuring him.
D.M. drove off and reported the incident. Medical services were deployed to aid D.M., and the Newport News Police (NNPD) reported to the scene. Through the course of the investigation, NNPD confirmed Beal was the shooter with security camera footage of the apartment complex that captured the incident, as well as forensically matching the firearm seized from Beal’s residence, pursuant to a lawful search warrant, with the three shell casings recovered from the scene.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Peter G. Osyf and Special Assistant U.S. Attorney Alyssa Levey-Weinstein prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-64.
Alexandria Fentanyl and Gun Trafficker Sentenced to 15 YearsRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 15 years in prison for conspiring to distribute fentanyl and possessing a firearm in furtherance of drug trafficking.
According to court documents, Carrington Hammond, 29, worked with Arizona-based suppliers and local redistributors to sell kilogram-level quantities of fentanyl in the Eastern District of Virginia. Hammond’s co-conspirators mailed packages across the country to Hammond containing tens of thousands of counterfeit pills. The pills had the appearance of pharmaceutical oxycodone but instead were laced with fentanyl. Law enforcement identified one such package containing 50,000 fentanyl-laced pills. Hammond also trafficked fentanyl in powder form, as well as cocaine.
In addition to drug trafficking, Hammond sold multiple firearms during the conspiracy. Law enforcement recovered three firearms that Hammond sold to a local drug redistributor, including a “ghost” gun. A ghost gun is a firearm that is not marked with a serial number and is often made using a 3-D printer, so there is no way to track its origins or owners.
On August 10, 2023, law enforcement searched an Alexandria apartment unit of Hammond and several of his co-conspirators, from which they sold their drugs and firearms. During the search of the two-bedroom apartment, law enforcement seized over five kilograms of counterfeit pills laced with fentanyl, over two kilograms of fentanyl powder, over one kilogram of cocaine, 2.5 kilograms of marijuana, and two firearms. One firearm was hidden under a couch cushion, and the other was a semi-automatic weapon kept loaded next to a safe containing a kilogram of fentanyl.
Hammond had been prosecuted multiple times at the state level for drug and firearm-related offenses, as well as violent crimes. Three of his charged co-conspirators are scheduled to be sentenced on February 20.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; Don Hayes, Alexandria Chief of Police; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Heather D. Call and Kristin S. Starr prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistance was provided by the Washington/Baltimore High Intensity Drug Trafficking Area (HIDTA) task force.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-166.
Felon Sentenced for Possessing Stolen Gun After Domestic DisputeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to seven years in prison for possessing a firearm as a convicted felon.
According to court documents, Joseph Bush, 31, was arrested in Gilpin Court on July 28, 2022. On that date, Richmond Police Department officers responded to a report of a domestic assault. Bush’s girlfriend called 911 to report that Bush had hit her in the face and neck and scratched her wrist. He also took her phone and smashed it. The victim further reported that, earlier in July, Bush had pointed a firearm at her face.
While responding to the 911 call, the officers found Bush walking from the victim’s apartment. When an officer attempted to speak to him, Bush ran. After a foot pursuit, the officers detained Bush and recovered a loaded Glock 9mm handgun with an extended magazine from his pants leg. The firearm had been reported stolen three months earlier. In Bush’s pants pocket, officers found suboxone strips and cocaine. Officers found additional rounds of 9mm ammunition, rounds of .22 caliber ammunition, and a scale inside Bush’s bag.
Bush has prior convictions for robbery, use of a firearm in the commission of a felony, and being a violent felon in possession of a firearm. He committed the current offense within six months of his release from state prison and while he was on supervised probation.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Jessica L. Wright prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-163.
Four Members of Bank Fraud Ring SentencedRead the Press Release
ALEXANDRIA, Va. – Four members of a multi-year bank fraud conspiracy, including a former bank teller who stole customer information, have been sentenced for fraudulently obtaining over $650,000 using the stolen identities of at least 25 victims.
According to court documents, Brianna Mills, 28, of Loganville, Georgia, abused her position as a bank teller to steal the personal identifying information (PII) of bank customers. Mills passed the information to her then-boyfriend, Stanley Desirade, 36, of Lanham, Maryland. Desirade used that PII to order fake identification documents from Desmond Nkwenya, 37, of Brookhaven, Georgia. These fake identification documents, which Nkwenya made according to Desirade’s specifications, usually included a victim’s PII but the face of a co-conspirator.
Once Nkwenya sent the fake identification documents to Desirade, Desirade provided them to Terrell Hale, 33, of Rockville, Maryland. At times, Hale supervised other co-conspirators as they went into the bank, impersonated the identity theft victim, and withdrew money from the victim’s account. During the conspiracy, the conspirators stole the PII of at least 25 customers and used that information to create at least 100 fake identification documents. Using these fake identification documents, the conspirators successfully stole approximately $660,082, and they attempted to steal an additional $1,008,134.
Desirade and Mills pleaded guilty to conspiracy to commit identity fraud. Desirade was sentenced on September 29, 2023, to six years in prison, and Mills was sentenced on August 25, 2023, to 18 months in prison. Hale and Nkwenya pleaded guilty to conspiracy to commit bank fraud. Hale was sentenced on July 21, 2023, to four years in prison, and Nkwenya was sentenced today to 30 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Damon E. Wood, Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorney Christopher Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:23-cr-40 and 1:23-cr-60.
Fairfax Man Sentenced for Downloading Child Sexual Abuse Videos and Images, Including Computer-Generated MaterialRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was sentenced yesterday to seven years in prison for downloading millions of images and videos of child exploitation, including child sexual abuse material (CSAM) and computer-generated videos depicting the violent rape of children.
According to court documents, James Andrew Whitney, 62, sought out and downloaded video and image files depicting minors engaged in sexually explicit conduct, including material depicting prepubescent minors and minors under the age of 12. Using technology to conceal his identity, Whitney collected millions of images and videos depicting the sexual exploitation of children. Whitney also downloaded thousands of computer-generated images depicting the same. Among the downloaded computer‑generated materials was a video featuring the abduction of a child from a playground, followed by the sadomasochistic rape of the child.
As early as April 2010, Whitney also used the CSAM he downloaded to create projects in which he photoshopped prepubescent, naked minor females into photographs around his residence and narrated sexual encounters between himself and the minor victims.
Whitney pleaded guilty on September 11, 2023, to charges that he possessed and received CSAM and that he received obscene visual representations of the sexual abuse of children. The investigation showed that Whitney downloaded CSAM for at least 15 years, and investigators ultimately recovered more than five terabytes (TB) of CSAM from his electronic devices.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Patricia Tolliver Giles announced the sentence.
Special Assistant U.S. Attorney Rachel L. Rothberg and Assistant U.S. Attorney Vanessa Strobbe prosecuted the case. The forensic examiners of the High Technology Investigative Unit of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) provided significant assistance in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-124.
New York Man Sentenced for $600,000 COVID Fraud Using Stolen IdentitiesRead the Press Release
NEWPORT NEWS, Va. – A New York man was sentenced yesterday to 42 months in prison for his role in a fraudulent scheme to obtain pandemic benefits using the stolen identities of at least 20 other people.
According to court documents, Obinna Nwafor, 50, engaged in a scheme to obtain various pandemic loans using the identities of others who were unaware of this activity. In September 2020, L.H., a resident of Norfolk who also serves as a judge on the Norfolk Juvenile and Domestic Relations District Court, received a statement from the U.S. Small Business Administration (SBA) at her home address, indicating that she owed a payment on a loan received under the Economic Injury Disaster Loan Program (EIDL). L.H. reported this information to law enforcement, which led to the investigation in this case.
Further investigation revealed that an application for an EIDL loan in the amount of $150,000 had been submitted to the SBA in August 2020, using L.H.’s name and other confidential personal identifiers, including her Social Security number, date of birth, address, and phone number. Loan documents were electronically signed in L.H.’s name, and loan proceeds in the amount of $149,900 were disbursed to an account that did not belong to L.H and was controlled by Nwafor.
After this information came to light, further investigation revealed several related EIDL loans fraudulently obtained by Nwafor, including a $150,000 loan obtained in Virginia resident K.G.’s name. Like L.H., K.G.’s Social Security number, date of birth, address, and phone number had been used on the loan application. Similarly, K.G. had not applied for an EIDL loan or authorized anyone to apply for a loan on her behalf. Within days of the loan proceeds disbursement, Nwafor moved the funds to other accounts he controlled, including an account held jointly with his spouse, a bank account held in the name of a Nigerian entity in which Nwafor held an interest, and nearly $75,000 to an account belonging to a romance fraud victim, who had been misled as to the origin of the funds.
Further investigation also revealed that Nwafor had received approximately $300,000 in pandemic-related unemployment benefits in the names of at least eighteen other people. Those funds had been deposited into approximately six different bank accounts owned and controlled by Nwafor. When Nwafor was told by Wells Fargo that these funds were being returned to the originating state unemployment offices, Nwafor frantically worked with other individuals in an attempt to convince the bank not to return the funds.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Damon E. Wood, Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; and Troy W. Springer, Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Special Assistant U.S. Attorney Alyson C. Yates and Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-21.
Hampton Man Pleads Guilty to Armed Bank RobberyRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today to robbing the Old Point National Bank in Hampton while holding a bank customer at knifepoint.
According to court documents, Delonta Wilson, 36, entered the Old Point National Bank located in downtown Hampton on the morning of October 16, 2023, armed with a knife. Wilson then approached an elderly customer from behind and held her at knifepoint while forcing her towards the teller’s counter. Wilson demanded currency from the bank tellers, while threatening to cut the customer’s throat if they did not comply. The tellers, in fear for the customer’s safety, provided the defendant with around $6,550 in United States currency.
Wilson is scheduled to be sentenced on June 6, and he faces a maximum penalty of 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Jimmie Wideman, Chief of Hampton Police, made the announcement after U.S. District Judge Jamar K. Walker accepted the plea.
Special Assistant U.S. Attorney Alyson C. Yates and Assistant U.S. Attorney Eric M. Hurt are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-82.
Richmond Man Sentenced for Possessing Firearm with Machinegun Conversion DeviceRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 21 months in prison for unlawfully possessing a firearm affixed with a machinegun conversion device.
According to court documents, Ke’Rell Mileak Boone, 20, was arrested in the Whitcomb Court area on May 11, 2022. Boone and others were seen by Richmond Police detectives displaying firearms on a social media platform. Officers discovered two firearms on Boone—a standard semiautomatic pistol and a handgun with a machinegun conversion device affixed where the backplate should go. Boone had what appeared to be the legal backplate for the converted machinegun in his pocket and had further outfitted the machinegun with an extended magazine.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Special Assistant U.S. Attorney Devon E. Schulz and Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-109.
Leader of Methamphetamine Distribution Ring Sentenced to 30 YearsRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 30 years in prison for his role in leading a multi-year, multi-state methamphetamine distribution conspiracy.
According to court documents, Malik Dillard, a/k/a “Mayo,” 47, used out-of-state methamphetamine suppliers to import bulk packages of nearly pure methamphetamine (98.6% purity) to Virginia through the U.S. Postal Service. Dillard employed a network of sub-dealers to scale and expand his methamphetamine operation across the Hampton Roads region over multiple years.
Methamphetamine is a powerful, highly addictive stimulant that affects the central nervous system. As cited in court documents and according to the Virginia Department of Health’s Chief Medical Examiner, overdose deaths caused by methamphetamine skyrocketed 9,500% in Virginia from 2007 to 2022 and continue to rise. Unlike other drugs, like heroin or fentanyl, there are no approved medications effective at treating methamphetamine addiction—there is no methadone equivalent for methamphetamine.
This is the defendant’s 15th criminal conviction and third federal conviction. In 2009, he was sentenced in Richmond for his role in leading a conspiracy involving 16 bank robberies across seven states in 75 days—which started just one week after he was released from prison. In 2003, he was sentenced in the Northern District of Georgia for his role in leading a conspiracy to commit bank fraud.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Damon E. Wood, Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; Colonel Gary T. Settle, Virginia State Police Superintendent; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys John F. Butler and Anthony Mozzi prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-65.
Active-Duty Airman Sentenced for Production of Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Goldsboro, North Carolina man was sentenced today to 27 years in prison after he used social media accounts to target underage girls in the Hampton Roads area and caused at least 29 victims to produce sexually explicit videos and images.
According to court documents, Brandon Tyler Lindsey, 27, an active-duty servicemember attached to Seymour Johnson Air Force Base in Goldsboro, North Carolina, routinely traveled to his hometown of Chesapeake, Virginia and met minor females to engage in sexual acts with them. His youngest victim was 12 years old. Lindsey used multiple social media accounts to target minor females in the Hampton Roads area. For example, using Instagram, he direct messaged multiple minor girls with the same boilerplate message and “liked” their photos. After gaining their trust, he would then request child pornography from the minors and attempt to meet in person for sexual acts. Lindsey sometimes met with the same minors on multiple occasions over a period of years. Lindsey caused at least 29 victims to produce child pornography for his sexual gratification.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Douglas Edens, Special Agent in Charge, Air Force Office of Special Investigations, Seymour Johnson Air Force Base, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Special Assistant U.S. Attorney Victoria Liu prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-95.
Hopewell Man Sentenced to over 10 Years for Possessing Methamphetamine and AR-Style FirearmsRead the Press Release
RICHMOND, Va. – A Hopewell man was sentenced today to 124 months in prison for possessing with the intent to distribute over fifty grams of methamphetamine in Chesterfield County, while also possessing fentanyl, cocaine, and two AR-style semiautomatic pistols.
According to court documents, Shaone Lovett, 27, was the subject of a January 2023 search warrant executed by the Drug Enforcement Administration and the Chesterfield County Police Department at his residence. When law enforcement encountered Lovett, he possessed various substances containing fentanyl, methamphetamine, and cocaine, as well as an AR-style semiautomatic pistol loaded with a high-capacity magazine containing 40 rounds of ammunition. When law enforcement searched his apartment, they found another AR-style semiautomatic pistol and dozens of rounds of ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Colonel W. Keith Early, Prince George County Police Department; and Colonel Jeffrey S. Katz, Chesterfield County Police Department, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Shea Gibbons and Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-102.
Government Contractors Agree to Pay $3.9 Million to Resolve Claims of Misrepresenting Women-Owned Small Business StatusRead the Press Release
ALEXANDRIA, Va. – QuarterLine Consulting Services, LLC, and its parent company, Planned Systems International, Inc. (PSI), both located in Arlington, agreed to pay $3.9 million to resolve allegations that QuarterLine made false statements about its women-owned small business (WOSB) status to obtain a Defense Health Agency (DHA) task order that was set aside for WOSBs to provide physicians to an Air Force military treatment facility.
“This settlement demonstrates my office’s commitment to ensuring a fair and honest playing field for companies who are called on to support the Department of Defense, and in this case, provide medical care to those serving our country,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia.
“The Defense Criminal Investigative Service is committed to rooting out fraud and corrupt schemes, which undermine the integrity of the Department of Defense procurement process,” said Christopher Dillard, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS working together with its law enforcement partners will continue to ensure the DoD contracting process remains fair and competitive.”
“Government contractors are expected to be honest in their dealings with the government,” said Floyd Martinez, Special Agent in Charge, General Services Administration (GSA) Office of Inspector General. “GSA OIG special agents and our investigative partners are committed to holding accountable those who misrepresent themselves in order to obtain federal contracts.”
“This is the latest example of the dedication and relentless focus of Criminal Investigation Division Special Agents coupled with the wide network of partnerships with military investigation organizations and federal law enforcement partners,” said Special Agent in Charge Keith K. Kelly, of Department of the Army Criminal Investigation Command’s Fraud Field Office.
In July 2017, QuarterLine was awarded an indefinite delivery/indefinite quantity (IDIQ), multiple-award contract through the DHA. The DHA IDIQ allowed small businesses to compete for task orders to provide physician, nursing, and ancillary services to supplement the medical staff at military treatment facilities throughout the country. Federal agencies could further set aside task orders for participants in the SBA’s WOSB Federal Contract program or other socioeconomic programs to help the agency meet its small business contracting goals.
At the time of the DHA IDIQ award, QuarterLine was a WOSB and eligible to compete for set-aside task orders. In December 2018, QuarterLine was acquired by PSI, which caused QuarterLine to forfeit its WOSB status. QuarterLine was required to update its size certifications in GSA’s System for Award Management (SAM) within 30 days of the acquisition.
In January 2019, the Air Force issued a task order proposal request through the DHA IDIQ for physician-anesthesiologists to support the military treatment facility at Joint Base San Antonio. The task order was set aside for women-owned small businesses. The United States alleged that QuarterLine submitted a proposal for the task order in which QuarterLine falsely represented that it was a WOSB and that its SAM representations were current, complete, and accurate. The United States also alleged that QuarterLine submitted false representations about its size status in response to requests from the task order’s contracting official. Based on QuarterLine’s representations, the Air Force awarded the task order to QuarterLine.
PSI and QuarterLine agreed to pay $3.9 million to resolve the United States’ claims that they misrepresented QuarterLine’s WOSB status to obtain the task order. The civil claims are allegations only; there has been no admission of liability. PSI and QuarterLine provided substantial cooperation during the investigation.
The settlement arises in connection with a lawsuit filed under the whistleblower provision of the False Claims Act. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual filing a complaint under seal in the U.S. District Court and providing a copy of the complaint and evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery.
The outcome in the case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the U.S. Department of Defense Office of Inspector General, DCIS, the U.S. Air Force Office of Special Investigations, Army CID, and GSA’s Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney William Hochul III and assisted by Forensic Auditor Peter Melaragni.
The case caption is United States ex rel. The Arora Group, Inc. v. Planned Systems International, Inc., No. 1:21-cv-657 (E.D. Va.). A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Newport News Man Convicted of Receiving Cocaine Parcel in MailRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Newport News man yesterday of possession of two kilograms of cocaine that he received in the mail.
According to court records and evidence presented at trial, James Arthur Scott, 33, waited in a parking lot in Hampton for more than an hour and a half to take personal delivery of a parcel from California to be delivered to “Lit Wick.” Prior to delivery, law enforcement agents had intercepted the parcel at a UPS facility in Newport News. Further inspection of the parcel revealed two shoeboxes inside several layers of packaging. The shoeboxes were filled with wax. Inside the wax was a kilogram of cocaine, one in each shoebox, totaling two kilograms of cocaine.
A controlled delivery of the two shoeboxes was conducted, and Scott was identified in a rental car waiting for the delivery. Scott accepted delivery of the parcel and placed it in his vehicle. A vehicle takedown was conducted and the parcel containing two kilograms of cocaine was found on Scott’s front seat. UPS identified Scott as receiving at least four other deliveries in the same parking lot for packages to be delivered to “Lit Wick.”
Scott was convicted of possession with the intent to distribute 500 grams or more of cocaine. He faces a mandatory minimum of five years and a maximum of forty years in prison when sentenced on June 4. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; Colonel Gary T. Settle, Virginia State Police Superintendent; Steve R. Drew, Chief of Newport News Police; and Jimmie Wideman, Chief of Hampton Police, made the announcement after Senior U.S. District Judge Raymond A. Jackson accepted the verdict.
Assistant U.S. Attorneys Devon Heath and Eric M. Hurt are prosecuting the case.
Assistance was provided by the Washington/Baltimore High Intensity Drug Trafficking Area (HIDTA) task force.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-79.
Baltimore Man Sentenced for Possessing Fentanyl for Distribution in ChesapeakeRead the Press Release
NORFOLK, Va. – A Baltimore, Maryland man was sentenced today to ten years in prison for possessing fentanyl and para-fluorofentanyl, a synthetic fentanyl analog, which he intended to deliver to a co-conspirator in Chesapeake, Virginia.
According to court documents, on November 30, 2022, the Chesapeake Police Department executed a search warrant at the residence of Dorman Winston Mewborn, 36, of Chesapeake, and recovered various substances containing fentanyl, para-fluorofentanyl, heroin, and cocaine. Through further investigation, law enforcement determined that Clyde Desmond Ringgold, Jr., 37, of Baltimore, had been supplying Mewborn with narcotics since early 2022.
On December 21, 2022, law enforcement agents conducted surveillance on Ringgold after he arrived on a flight from Baltimore to Norfolk International Airport. Ringgold later drove to Mewborn’s residence, intending to collect on a prior drug debt owed by Mewborn to Ringgold, as well as to deliver two ounces of heroin to Mewborn for $4,000. Once Ringgold arrived outside Mewborn’s residence, officers arrested and searched Ringgold, who was found to possess approximately 40 grams of fentanyl and para-flurofentanyl, along with $2,000 and a cell phone containing multiple pictures of kilograms of controlled substances.
Ringgold previously was convicted in federal court in Baltimore for distribution of heroin, and he was sentenced to serve five years in prison in January 2014. As a result of Ringgold’s criminal record, he qualifies as a career offender under the federal sentencing guidelines.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Mark G. Solesky, Chief of Chesapeake Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Assistant U.S. Attorney Kevin M. Comstock prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-58.
Richmond Felon Sentenced for Possessing Machine Gun for SaleRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to two years in prison for possessing ammunition as a convicted felon and possessing a machine gun.
According to court documents, on February 1, 2023, detectives with the Richmond Police Department saw Dai’Quan Jarrvel Lane, 23, displaying a firearm in a live social media video feed. The detectives knew Lane was a convicted felon and, based on past encounters, believed him to be in the Whitcomb Court area. Officers arrived at Whitcomb Court within minutes of the live video ending and encountered Lane outside. When officers tried to stop Lane, he led them on a foot chase. During the chase, he tossed a firearm. That firearm turned out to be a privately made firearm with a machine-gun conversion device affixed to the back. It was loaded and outfitted with a 30-round extended magazine.
Lane admitted that not only did he possess the firearm, but that he had been on his way to sell it for $750 when officers located him.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Special Assistant U.S. Attorney Devon Schulz and Assistant U.S. Attorney Olivia Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-62.
Federal Attorney Pleads Guilty to Conspiring to Sexually Exploit Numerous ChildrenRead the Press Release
A former Federal Deposit Insurance Corporation (FDIC) attorney pleaded guilty today to conspiring to sexually exploit numerous children.
According to court documents, between January 2018 and October 2021, Mark Black, 50, of Arlington, Virginia, was a member of two online groups dedicated to exploiting children. The goal of the two groups was to locate prepubescent girls online and convince them to livestream themselves engaging in sexually explicit conduct. Black and his co-conspirators would covertly record this conduct and share the videos with each other.
In July 2019, Black induced a prepubescent minor to engage in sexually explicit conduct on a live-streaming application while screen-recording that activity. That same month, Black and a co-conspirator also groomed another prepubescent minor to engage in sexually explicit acts on a photo and video-sharing application. The co-conspirator surreptitiously hacked into that girl’s live-video feed and recorded the sexual acts before sending them to Black.
Black was formerly the Arlington Aquatic Club (AAC) board president.
Black pleaded guilty to one count of conspiracy to produce child pornography and one count of coercion and enticement. He is scheduled to be sentenced on April 30 and faces a mandatory minimum of 15 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, and Assistant Inspector General for Investigations Shimon Richmond of the FDIC Office of Inspector General (FDIC-OIG) made the announcement.
The FBI and FDIC-OIG investigated the case.
Trial Attorneys McKenzie Hightower, Kaylynn Foulon, and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Lauren Halper for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Any individuals who believe they or someone they know may have been victimized by Black are encouraged to contact the FBI at 202-278-2000 and ask to speak to the Child Exploitation and Human Trafficking Task Force.
FDIC Attorney Pleads Guilty to Conspiring to Sexually Exploit Numerous ChildrenRead the Press Release
ALEXANDRIA, Va. – A Federal Deposit Insurance Corporation (FDIC) attorney pleaded guilty today to conspiring to sexually exploit numerous children.
According to court documents, between January 2018 and October 2021, Mark Black, 50, of Arlington, was a member of two online groups dedicated to exploiting children. The goal of the two groups was to locate prepubescent girls online and convince them to livestream themselves engaging in sexually explicit conduct. Black and his co-conspirators would covertly record this conduct and share the videos with each other.
In July 2019, Black induced a prepubescent minor to engage in sexually explicit conduct on a live-streaming application while screen-recording that activity. That same month, Black and a co-conspirator also groomed another prepubescent minor to engage in sexually explicit acts on a photo and video-sharing application. The co-conspirator surreptitiously hacked into this girl’s live-video feed and recorded the sexual acts before sending them to Black.
Black was formerly the Arlington Aquatic Club (AAC) board president.
Black pleaded guilty to one count of conspiracy to produce child pornography and one count of coercion and enticement. He is scheduled to be sentenced on April 30 and faces a mandatory minimum term of 15 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Michael D. Nordwall, Assistant Director of the FBI’s Criminal Investigative Division; and Shimon Richmond, Assistant Inspector General for Investigations of the FDIC Office of Inspector General (FDIC-OIG), made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Lauren Halper and Trial Attorneys McKenzie Hightower, Kaylynn Foulon, and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-146.
Any individuals who believe they or someone they know may have been victimized by Black are encouraged to contact the FBI at 202-278-2000 and ask to speak to the Child Exploitation and Human Trafficking Task Force.
Virginia Man and Woman Convicted of Forced Labor at Gas Station and Convenience Store for Multiple YearsRead the Press Release
RICHMOND, Va. – Following a two-week trial, a federal jury on Friday convicted a Richmond-area couple with conspiracy to commit forced labor, forced labor, harboring for financial gain, and document servitude in connection with their operation of a gas station and convenience store in North Chesterfield.
The evidence presented at trial demonstrated that, between March 2018 and May 2021, Harmanpreet Singh, 30, and Kulbir Kaur, 43, forced the victim, Singh’s cousin, to provide labor and services at Singh’s store, including working as the cashier, preparing food, cleaning, and managing store records. Singh and Kaur used various coercive means, including confiscating the victim’s immigration documents and subjecting the victim to physical abuse, threats of force and other serious harm and, at times, degrading living conditions, to compel him to work extensive hours for minimal pay.
“These defendants engaged in an egregious bait-and-switch, luring the victim with false promises of an education in the United States and instead subjecting him to grueling hours, degrading living conditions, and a litany of mental and physical abuse,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents, and support staff for ensuring that justice was done in this case.”
In 2018, the defendants enticed the victim, then a minor, to travel to the United States with false promises of helping enroll him in school. After arriving in the United States, the defendants took his immigration documents and immediately put him to work. They also left the victim at the store to sleep in a back office for days at a time on multiple occasions, limited his access to food, refused to provide medical care or education, used surveillance equipment to monitor the victim both at the store and in their home, refused his requests to return to India, and made him overstay his visa. The evidence further showed that Singh pulled the victim’s hair, slapped and kicked him when he requested his immigration documents back and tried to leave, and on three different occasions threatened the victim with a revolver for trying to take a day off and for trying to leave.
“The defendants exploited the victim’s trust and his desire to attend school in the United States, and then inflicted physical and mental abuse against him, all so they could keep him working for their profit,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Human trafficking is a disgraceful and unacceptable crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“These convictions demonstrate the FBI’s commitment to seeking justice for victims of human trafficking and should also serve as a reminder to those who seek to engage in this illegal activity,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office. “We will continue working with our local, state and federal partners to aggressively identify, investigate and bring those responsible to justice.”
A sentencing hearing is scheduled for May 8. Singh and Kaur face a maximum penalty of 20 years in prison, up to five years of supervised release, a fine of up to $250,000, and mandatory restitution for the forced labor charge. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Field Office made the announcement.
Assistant U.S. Attorneys Avi Panth and Peter S. Duffey for the Eastern District of Virginia and Trial Attorney Matthew Thiman of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org/. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-92.
Virginia Man and Woman Convicted of Forced Labor at Gas Station and Convenience Store for Multiple YearsRead the Press Release
Following a two-week trial, a federal jury on Friday in the Eastern District of Virginia convicted a Richmond-area couple of conspiracy to commit forced labor, forced labor, harboring for financial gain and document servitude in connection with their operation of a gas station and convenience store in North Chesterfield, Virginia.
The evidence presented at trial demonstrated that, between March 2018 and May 2021, Harmanpreet Singh, 30, and Kulbir Kaur, 43, forced the victim, Singh’s cousin, to provide labor and services at Singh’s store, including working as the cashier, preparing food, cleaning and managing store records. Singh and Kaur used various coercive means, including confiscating the victim’s immigration documents and subjecting the victim to physical abuse, threats of force and other serious harm and, at times, degrading living conditions to compel him to work extensive hours for minimal pay.
“The defendants exploited the victim’s trust and his desire to attend school in the United States, and then inflicted physical and mental abuse against him, all so they could keep him working for their profit,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Human trafficking is a disgraceful and unacceptable crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“These defendants engaged in an egregious bait-and-switch, luring the victim with false promises of an education in the United States and instead subjecting him to grueling hours, degrading living conditions and a litany of mental and physical abuse,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents and support staff for ensuring that justice was done in this case.”
“Today’s convictions demonstrate the FBI’s commitment to seeking justice for victims of human trafficking and should also serve as a reminder to those who seek to engage in this illegal activity,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office. “We will continue working with our local, state and federal partners to aggressively identify, investigate and bring those responsible to justice.”
In 2018, the defendants enticed the victim, then a minor, to travel to the United States with false promises of helping enroll him in school. After arriving in the United States, the defendants took his immigration documents and immediately put him to work. They also left the victim at the store to sleep in a back office for days at a time on multiple occasions, limited his access to food, refused to provide medical care or education, used surveillance equipment to monitor the victim both at the store and in their home, refused his requests to return to India and made him overstay his visa. The evidence further showed that Singh pulled the victim’s hair, slapped and kicked him when he requested his immigration documents back and tried to leave, and on three different occasions threatened the victim with a revolver for trying to take a day off and for trying to leave.
A sentencing hearing is scheduled for May 8. Singh and Kaur face a maximum penalty of 20 years in prison, up to five years of supervised release, a fine of up to $250,000 and mandatory restitution for the forced labor charge. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
The FBI Richmond Field Office investigated the case.
Assistant U.S. Attorneys Avi Panth and Peter S. Duffey for the Eastern District of Virginia and Trial Attorney Matthew Thiman of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Foreign National Sentenced for Human Smuggling and Money Laundering SchemeRead the Press Release
ALEXANDRIA, Va. – An Israeli national was sentenced today to two years in prison for his leadership role in a conspiracy to launder money and facilitate the illegal entry, harboring, and transporting of noncitizens in the United States for the purpose of their employment.
According to court documents, Shai Cohen, 39, organized and worked with others to recruit and facilitate the illegal entry of Israeli citizens into the United States under false pretenses. From approximately 2011 through December 2013, Cohen and his co-conspirators assisted noncitizens in fraudulently obtaining B-1/B-2 tourist/visitor visas by misrepresenting the true purpose of their travel to the United States, which was illegal employment. Cohen and his co-conspirators then assisted the noncitizens in traveling to the United States.
Upon arrival, the noncitizens were employed at various kiosks owned and operated by Cohen and his co-conspirators at malls in Virginia and Maryland, despite entering the United States in a visa status that did not allow them to work. The noncitizens who engaged in illegal employment were primarily compensated for their work by under-the-table cash payments or the transfer of money to stored value payment cards, rather than through a legitimate payroll system. Cohen also provided the noncitizens housing and transportation to and from work in the United States. The conspiracy involved the smuggling, transporting, or harboring of at least 25 unlawful foreign nationals. Cohen and his co-conspirators also made foreign and domestic financial transactions in furtherance of and to promote the criminal scheme.
Cohen pleaded guilty on November 7, 2023, to one count of conspiracy to commit offenses against the United States and one count of conspiracy to launder money. Cohen was arrested in Israel pursuant to a U.S. request for his extradition. In August 2023, he was extradited to the Eastern District of Virginia.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Derek W. Gordon, Special Agent in Charge of the Homeland Security Investigations (HSI) Washington Field Office; and Troy W. Springer, Special Agent in Charge of the Department of Labor Office of Inspector General (DOL-OIG), National Capitol Region, made the announcement after Senior U.S. District Judge Claude M. Hilton announced the sentence.
Assistant U.S. Attorney Raizza K. Ty and Trial Attorney Clayton O’Connor of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
The Justice Department’s Office of International Affairs worked with the government of Israel to secure the arrest and extradition of Cohen.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-114.
Fairfax Man Pleads Guilty to Unlawful Possession of Multiple Machine GunsRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to one count of unlawful possession of a machine gun.
According to court documents, Timothy Lawrence Carll, 67, possessed four fully automatic machine guns, including an AK-style rifle, a Thompson M1 submachine gun, a Sterling submachine gun, and a PPSh-41 submachine gun. Carll also possessed four metal tubes that he knew were designed and intended for use in converting a weapon into a machine gun, specifically for use as part of Sten submachine guns of various models. Carll did not have a valid Federal Firearms License or a Special Occupational Tax when he possessed these machine guns.
Carll is scheduled to be sentenced on April 19. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorney Amanda St. Cyr is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-5.
Hampton Landlord Charged with Fraud, Threats, and Civil Rights ViolationsRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment yesterday against a Hampton-based landlord for using force and threats of force against African American victims, including a businessman, a city official in Newport News, and four tenants. The indictment further charged the landlord with defrauding tenants and the government to obtain rent relief benefits, housing assistance payments for public housing, and other funds to which he was not entitled.
According to the indictment, David L. Merryman, 58, owns more than 60 rental properties in Hampton and Newport News. As alleged, Merryman repeatedly harassed his tenants with racist slurs, threats to kill or injure, and retaliatory eviction actions. The alleged threats and racial harassment were often highly graphic and included references to slavery and mocking comments about the Black Lives Matter movement. In addition, Merryman allegedly engaged in physical assaults and other threatening behavior towards tenants, including on one occasion striking a tenant in the face with a shovel and on another occasion attacking a tenant with the blade of a chainsaw while it was off.
According to the indictment, Merryman also orchestrated a scheme to defraud the government and his tenants. For example, the indictment alleges that, to obtain housing-assistance payments from the Department of Housing and Urban Development (HUD), Merryman repeatedly made false representations about the condition of his rental properties and whether he was receiving other payments that would be duplicative of federally funded rental assistance. Merryman also submitted fraudulent applications for rent-relief benefits made available during the COVID-19 pandemic by allegedly stealing the identities of his tenants and forging their signatures without their consent. In many cases, Merryman obtained significant sums of rent relief without telling the tenants, all the while evicting, or seeking to evict, the tenants for unpaid rent.
As alleged, Merryman also defrauded tenants by obtaining money and property from them under false pretenses—primarily false representations that he would repair his properties or repay tenants for repairs they made, which served to induce tenants to pay him significant upfront fees for neglected, even uninhabitable, properties that Merryman never intended to improve. The indictment further alleges that Merryman’s conduct was part of a pattern in which he would demand significant initial fees or deposits from prospective renters and then subject those same tenants to racist and discriminatory practices, in part so they would leave the property, which would allow Merryman to start the cycle again with new tenants.
Merryman is charged with ten counts of wire fraud, four counts of interfering with housing rights, two counts of interstate communications with threats to injure, six counts of theft of government money, four counts of making false statements to HUD, and four counts of aggravated identity theft. If convicted, Merryman faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, and maximum terms ranging between one year and twenty years in prison on each of the remaining counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Rae Oliver Davis, Inspector General of the Department of Housing and Urban Development, made the announcement.
Assistant U.S. Attorneys D. Mack Coleman, Julie D. Podlesni, and Brian J. Samuels are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-4.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
david_merryman_indictment.pdfTexas Man Sentenced for Trafficking Cocaine in Central Virginia for Mexican Drug Trafficking OrganizationRead the Press Release
RICHMOND, Va. – A Brownsville, Texas man was sentenced yesterday to 150 months in prison for participating in a conspiracy to possess and distribute nearly 40 kilograms of cocaine.
According to court documents, in and around April 2023, Carlos Alfonso Gonzalez, 31, agreed with a Mexico-based source of supply to transport a load of cocaine from Houston, Texas, to Richmond, Virginia. On or about April 29, 2023, Gonzalez picked up a load of cocaine in Houston and traveled in a commercial semi-tractor trailer truck to Virginia in order to distribute the cocaine to two traffickers connected to a Mexican drug trafficking organization (his co-conspirators). On May 1, 2023, Gonzalez arrived at a truck stop in Disputanta, Virginia to meet with two co-conspirators. At this meeting location, Gonzalez distributed to his co-conspirators three duffel bags containing 39.9 kilograms of cocaine.
After the co-conspirators departed the area with the cocaine, law enforcement conducted a traffic stop on the co-conspirators’ vehicle and recovered 39.9 kilograms of cocaine. Following the cocaine seizure, law enforcement stopped Gonzalez and placed him under arrest. At the time of the offense, Gonzalez was on federal supervised release for a prior federal drug trafficking crime in the Southern District of Texas.
Gonzalez was sentenced to 120 months’ imprisonment for charges of conspiracy to possess with the intent to distribute cocaine and possession with the intent to distribute cocaine. Gonzalez was sentenced to an additional term of 30 months in prison for violating his federal supervised release stemming from his prior conviction.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Colonel Jeffrey S. Katz, Chesterfield County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorneys Erik S. Siebert and Shea Gibbons and Special Assistant U.S. Attorney Ellen Hubbard prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-70.
Leaders of North Carolina Drug-Trafficking Organization, Bloods Gang Member, and Triggerman Sentenced to Life in Prison for Norfolk Murder-for-HireRead the Press Release
NORFOLK, Va. – Four Greensboro, North Carolina men were sentenced today to life in prison for their role in a murder-for-hire conspiracy that resulted in the death of 59-year-old Norfolk resident, Lillian Bond, on April 19, 2016.
According to court records and evidence presented at trial, Jaquate Simpson, 39, and Landis Jackson, 39, were the leaders of a long-running criminal enterprise responsible for distributing hundreds of kilograms of cocaine worth millions of dollars into central North Carolina and Virginia’s Hampton Roads region.
On April 13, 2016, a Norfolk-based drug dealer failed to pay over $81,000 for a multi-kilogram delivery of cocaine. Simpson and Jackson’s organization retaliated by hiring a Nine Trey gang member, Kalub Shipman, 36, to kill the next person to exit a house associated with where the Norfolk dealer had been known to frequent. Shipman initially traveled to Virginia within hours of being offered the murder-for-hire contract with a fellow gang member. They conducted surveillance on the residence and then returned to Greensboro. Shipman then recruited Nelson Evans, 33, to assist in the murder-for-hire, offering him a portion of the $10,000 Shipman would receive upon completion.
Shipman and Evans traveled to Virginia on April 18, 2016. The following morning, at approximately 11:30 a.m., Shipman and Evans entered the Ingleside neighborhood of Norfolk and shot Lillian Bond multiple times as she was taking out the trash on Trice Terrace. Ms. Bond had been an employee of the Children’s Hospital for King’s Daughters for approximately 20 years and was described as a pillar in her community.
After a three-week trial in early 2023, the jury found each defendant guilty of the following charges on March 20, 2023:
Name
Charges
Jaquate Simpson, a/k/a
“Quay,” “J,” “Stacks,” “Predator”Continuing criminal enterprise; murder while engaged in continuing criminal enterprise; narcotics conspiracy; murder while engaged in a drug-trafficking offense; distribution of cocaine; use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire
Landis Jackson, a/k/a “Juve,” “Juvie”
Continuing criminal enterprise; murder while engaged in continuing criminal enterprise; narcotics conspiracy; murder while engaged in a drug-trafficking offense; distribution of cocaine; use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire
Kalub Shipman, a/k/a “Kato,” “Baydo”
Murder while engaged in a drug-trafficking offense; use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire; felon in possession of a firearm
Nelson Evans
Use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mark Talbot, Chief of Norfolk Police, made the announcement after Senior U.S. District Judge John A. Gibney sentenced the defendants.
The case was investigated by the FBI Norfolk Field Office, Department of Homeland Security, DEA, U.S. Postal Inspection Service, the North Carolina State Bureau of Investigation, and the Police Departments of Norfolk, Greensboro, Thomasville, Winston-Salem, and the Chesapeake Bay Bridge Tunnel, the Sheriff’s Departments of Guilford and Davidson County, and the U.S. Marshals Service.
Assistant U.S. Attorneys Joe DePadilla, John F. Butler, and Kristin G. Bird are prosecuting the case.
This case was investigated as part of four Organized Crime Drug Enforcement Task Forces (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-90.
Five Defendants Plead Guilty to Illegally Hunting Protected Migratory BirdsRead the Press Release
ALEXANDRIA, Va. – Three Virginia residents and one Maryland resident pleaded guilty this week to illegally hunting dozens of migratory wood ducks over a baited pond in Middleburg, after the owner of the property previously pleaded guilty to baiting the pond in violation of the Migratory Bird Treaty Act.
According to court documents, beginning in August 2022 and continuing through the end of November 2022, Clint Burlett, 41, placed significant amounts of corn into a nearly quarter-acre pond located on his farm property in Middleburg, with the intention of baiting and hunting wood ducks with friends and family. Beginning in September 2022, Burlett began messaging friends, all of whom were experienced hunters, including defendants Michael Scott, 36, of Purcellville, Eric Scott, 29, of Hillsboro, Christian Hoyt, 39, of Lovettsville, and taxidermist Timothy Young, 48, of Frederick, Maryland. Burlett told friends that he had seen approximately 90–100 ducks fall for the bait. Burlett also told friends it was his “favorite time of the year” and encouraged the hunters to get ready to “smash em” when it was “go time.” As part of these messages, Eric Scott expressed his hopes of beating the previous year’s pond record, which Burlett shared was 43 wood ducks killed.
In October 2022, at the start of early duck-hunting season, Burlett hosted two group hunts at the pond he had baited, inviting friends and family to hunt waterfowl together. On October 7, 2022, a group of hunters—which included Burlett and defendants Michael Scott, Eric Scott, Christian Hoyt, and Timothy Young—killed 26 wood ducks over bait. Two days later, that number had risen to 91 wood ducks killed. On October 10, 2022, another group of hunters—which included Burlett and defendants Michael Scott, Eric Scott, and Timothy Young—killed 16 wood ducks over bait.
As part of his guilty plea and sentencing, Burlett was ordered to pay a fine of $2,700 and is prohibited from hunting or being physically present at any hunts in North America for a period of 24 months, including attending, hosting, or supervising any hunts. The four additional defendants identified above are prohibited from hunting or being physically present at any hunts in North America for a period of 18 months, and they each were ordered to pay fines of either $500 or $1,000.
Raj Parekh, First Assistant U.S. Attorney for the Eastern District of Virginia, and Edward Grace, Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service (USFWS), made the announcement after the Court accepted the above-referenced guilty pleas and imposed sentences.
This investigation was worked jointly by special agents with the USFWS–Office of Law Enforcement and the Virginia Department of Wildlife Resources–Conservation Police.
Assistant U.S. Attorney Sehar Sabir prosecuted the cases. Assistant U.S. Attorney Gordon Kromberg and former Special Assistant U.S. Attorney Austin Lin provided valuable assistance with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:23-mj-189, 245, 246, 247, and 258.
Brazilian National Charged with Defrauding Immigrant InvestorsRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment, which was unsealed today, charging a Brazilian woman with falsely posing as an immigration lawyer and defrauding her clients of approximately $700,000.
According to the indictment, Patricia De Oliveira Souza Lelis Bolin, 29, a resident of Arlington, posed as an immigration lawyer able to help foreign clients obtain E-2 and EB-5 visas to the United States. The EB-5 program provides lawful permanent residency, and possible citizenship, if a foreign national invests substantial funds—typically, a minimum of $1 million—in qualifying job-creating enterprises in the United States.
According to the indictment, on September 22, 2021, Lelis Bolin sent a legal retainer agreement to a victim for help in obtaining EB-5 visas for the victim’s parents. The victim made two initial payments totaling over $135,000 based on Lelis Bolin’s representation that the money was going into a Texas real estate development project that qualified for the EB-5 program. Instead, the victim’s money is alleged to have gone into Lelis Bolin’s personal bank account. Rather than investing the money as promised, Lelis Bolin allegedly used it for a downpayment on her Arlington townhouse, bathroom renovations, and paying other personal expenses, such as credit card debt.
According to the indictment, to cover up the scheme and to obtain more money, Lelis Bolin allegedly provided a victim with a fabricated U.S. District Court pleading with a false case number showing her as the litigating attorney. Lelis Bolin is not a licensed attorney. She is also alleged to have falsified U.S. immigration forms, forged multiple signatures, and created fake receipts from the Texas investment project, all of which she emailed to a victim. Lelis Bolin also allegedly created false personas associated with the Texas investment fund and sent emails from those individuals to try to obtain even more money. The indictment alleges she talked friends into posing as employees of the Texas investment fund in phone calls and video calls with a victim. When a victim finally refused to send her any more money, Lelis Bolin allegedly threatened the victim’s parents with removal from the United States and then referred them to a collections agency.
Lelis Bolin is charged with wire fraud, unlawful monetary transactions, and aggravated identity theft. Lelis Bolin faces a maximum penalty of 20 years in prison if she is convicted of engaging in wire fraud, a maximum 10 years if convicted of unlawful monetary transactions, and a mandatory minimum of two additional years in prison if she is convicted of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
At the time of publication of this press release, Lelis Bolin is not in law enforcement custody. If any members of the public have information regarding the whereabouts of Lelis Bolin, they are encouraged to contact the FBI’s Washington Field Office at (202) 278-2000 or the FBI’s tip line at 1-800-CALL-FBI (1-800-225-5324). Information may also be submitted online using FBI’s electronic tips form at https://tips.fbi.gov.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David Geist, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement.
Assistant U.S. Attorneys Russell Carlberg and Drew Bradylyons are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-2.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
unsealed_indictment_patricia_lelis_bolin.pdfSAP to Pay over $220M to Resolve Foreign Bribery InvestigationsRead the Press Release
ALEXANDRIA, Va. – SAP SE (SAP), a publicly traded global software company based in Germany, will pay over $220 million to resolve investigations by the U.S. Justice Department and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA).
SAP’s resolution with the department stems from schemes to pay bribes to government officials in South Africa and Indonesia. The department’s resolution is coordinated with prosecutorial authorities in South Africa, as well as with the SEC.
According to court documents, SAP entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Eastern District of Virginia charging the company with two counts: conspiracy to violate the anti-bribery and books and records provisions of the FCPA relating to its scheme to pay bribes to South African officials, and conspiracy to violate the anti-bribery provision of the FCPA for its scheme to pay bribes to Indonesian officials.
“SAP has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “We will continue to vigorously prosecute bribery cases to protect domestic companies that follow the law while participating in the international marketplace.”
“SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Today’s resolution—our second coordinated resolution with South African authorities in just over a year—marks an important moment in our ongoing fight against foreign bribery and corruption. We look forward to continuing to strengthen our relationship with South African authorities and others around the world. This case demonstrates not only the critical importance of coordinated international efforts to combat corruption, but also how our corporate enforcement policies incentivize companies to be good corporate citizens, by cooperating with our investigations and appropriately remediating, so that we can take strong action to address misconduct.”
According to court documents, SAP and its co-conspirators made bribe payments and provided other things of value intended for the benefit of South African and Indonesian foreign officials, delivering money in the form of cash payments, political contributions, and wire and other electronic transfers, along with luxury goods purchased during shopping trips. Specifically, with respect to South Africa, between approximately 2013 and 2017, SAP, through certain of its agents, engaged in a scheme to bribe South African officials and to falsify SAP’s books, records, and accounts, all with the goal of obtaining improper advantages for SAP in connection with various contracts with South African departments, agencies, and instrumentalities, including the City of Johannesburg, the City of Tshwane, the Department of Water and Sanitation (a South African state-owned and state-controlled custodian of water services), and Eskom Holdings Limited (a South African state-owned and state-controlled energy company).
“This successful resolution against SAP is another example of the power of relationships and persistence,” said Assistant Director in Charge Donald Always of the FBI’s Los Angeles Field Office. “The sustained diligence by the prosecution team and continuous collaboration with South African law enforcement, regulators, and prosecutors identified corrupt activity in multiple countries. The FBI will continue our nonstop efforts to identify, investigate, and prosecute companies willfully engaging in corrupt activities around the world.”
In addition, between approximately 2015 and 2018, SAP, through certain of its agents, engaged in a scheme to bribe Indonesian officials to obtain improper business advantages for SAP in connection with various contracts between and among SAP and Indonesian departments, agencies, and instrumentalities, including the Kementerian Kelautan dan Perikanan (the Indonesian Ministry of Maritime Affairs and Fisheries) and Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika (an Indonesian state-owned and state-controlled Telecommunications and Information Accessibility Agency).
“When the mails are used in furtherance of a fraud or corruption scheme, borders are not an obstacle for U.S. Postal Inspectors,” said Postal Inspector in Charge of Criminal Investigations Eric Shen. “Postal inspectors, with our FBI law enforcement partners and Justice Department prosecutors, followed the wide-spread trail of bribes and corruption from South Africa to Indonesia. This joint effort resulted in the defendant company paying a significant criminal penalty and agreeing to long-term remedial measures.”
Pursuant to the DPA, SAP will pay a criminal penalty of $118.8 million and administrative forfeiture of $103,396,765. SAP will also continue cooperating with the department in any ongoing or future criminal investigation arising during the term of the DPA. In addition, the department will credit up to $55.1 million of the criminal penalty against amounts that SAP pays to resolve an investigation by law enforcement authorities in South Africa for related conduct. The department will credit up to the full forfeiture amount against disgorgement that SAP pays to the SEC or South African authorities.
Under Part I of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program, SAP’s compliance obligations include a commitment to implementing criteria relating to compliance in the company’s compensation and bonus system, subject to local labor laws. Under Part II of the Pilot Program, the department reduced the criminal penalty by $109,141 for compensation that SAP withheld from qualifying employees, which action the company defended in substantial litigation.
The department reached this resolution with SAP based on a number of factors, including, among others, the nature and seriousness of the offense. SAP received credit for its cooperation with the department’s investigation, which included (i) immediately beginning to cooperate after South African investigative reports made public allegations of the South Africa-related misconduct in 2017 and providing regular, prompt, and detailed updates to the department regarding factual information obtained through its own internal investigation, which allowed the government to preserve and obtain evidence as part of its independent investigation; (ii) expeditiously producing relevant documents and other information to the department from multiple foreign countries, while navigating foreign data privacy and related laws; (iii) at the request of the department, voluntarily making company officers and employees available for interviews; (iv) taking significant affirmative steps to facilitate interviews while addressing witness security concerns; (v) raising and resolving potential deconfliction issues between SAP’s internal investigation and the investigation being conducted by the department; (vi) promptly collecting, analyzing, and organizing voluminous information, including complex financial information, at the request of the department; (vii) translating voluminous foreign language documents to facilitate and expedite review by the department; and (viii) imaging the phones of relevant custodians at the beginning of SAP’s internal investigation, thus preserving relevant and highly probative business communications sent on mobile messaging applications.
SAP also engaged in timely remedial measures, including: (i) conducting an analysis of the root causes of the underlying conduct and gap analysis, and undertaking appropriate remediation to address those root causes and enhance its compliance program; (ii) undertaking a comprehensive risk assessment focusing on high risk areas and controls around payment processes and enhancing its regular compliance risk assessment process, including by incorporating comprehensive operational and compliance data into its risk assessments; (iii) eliminating its third-party sales commission model globally, and prohibiting all sales commissions for public sector contracts in high-risk markets; (iv) significantly increasing the budget, resources, and expertise devoted to compliance and restructuring its Offices of Ethics and Compliance to ensure adequate stature, independence, autonomy, and access to executive leadership; (v) enhancing its code of conduct and policies and procedures regarding gifts, hospitality, and the use of third parties; (vi) enhancing its reporting, investigations, and consequence management processes; (vii) adjusting compensation incentives to align with compliance objectives and reduce corruption risk; (viii) enhancing and expanding compliance monitoring and audit programs, planning, and resources, including developing a well-resourced team devoted to audits of third-party partners and suppliers; (ix) expanding its data analytics capabilities to cover over 150 countries, including all high-risk countries globally; and (x) promptly disciplining any and all employees involved in the misconduct.
In light of these considerations as well as SAP’s prior history, which include a non-prosecution agreement from 2021 with the department’s National Security Division, as well as administrative agreements with the Departments of Commerce and the Treasury relating to export law violations, and a resolution in 2016 with the SEC concerning alleged FCPA violations in Panama, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 40% reduction off the tenth percentile above the low end of the otherwise applicable guidelines fine range.
The FBI’s International Corruption Unit and the U.S. Postal Inspection Service are investigating the case.
Assistant U.S. Attorney Heidi B. Gesch for the Eastern District of Virginia and Trial Attorneys William E. Schurmann, Anthony Scarpelli, and Gwendolyn A. Stamper and Assistant Chief Jonathan P. Robell of the Criminal Division’s Fraud Section and are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in South Africa provided assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
SAP to Pay over $220M to Resolve Foreign Bribery InvestigationsRead the Press Release
SAP SE (SAP), a publicly traded global software company based in Germany, will pay over $220 million to resolve investigations by the U.S. Justice Department and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA).
SAP’s resolution with the department stems from schemes to pay bribes to government officials in South Africa and Indonesia. The department’s resolution is coordinated with prosecutorial authorities in South Africa, as well as with the SEC.
According to court documents, SAP entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Eastern District of Virginia charging the company with two counts: conspiracy to violate the anti-bribery and books and records provisions of the FCPA relating to its scheme to pay bribes to South African officials, and conspiracy to violate the anti-bribery provision of the FCPA for its scheme to pay bribes to Indonesian officials.
“SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Today’s resolution—our second coordinated resolution with South African authorities in just over a year—marks an important moment in our ongoing fight against foreign bribery and corruption. We look forward to continuing to strengthen our relationship with South African authorities and others around the world. This case demonstrates not only the critical importance of coordinated international efforts to combat corruption, but also how our corporate enforcement policies incentivize companies to be good corporate citizens, by cooperating with our investigations and appropriately remediating, so that we can take strong action to address misconduct.”
“SAP has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “We will continue to vigorously prosecute bribery cases to protect domestic companies that follow the law while participating in the international marketplace.”
According to court documents, SAP and its co-conspirators made bribe payments and provided other things of value intended for the benefit of South African and Indonesian foreign officials, delivering money in the form of cash payments, political contributions, and wire and other electronic transfers, along with luxury goods purchased during shopping trips. Specifically, with respect to South Africa, between approximately 2013 and 2017, SAP, through certain of its agents, engaged in a scheme to bribe South African officials and to falsify SAP’s books, records, and accounts, all with the goal of obtaining improper advantages for SAP in connection with various contracts with South African departments, agencies, and instrumentalities, including the City of Johannesburg, the City of Tshwane, the Department of Water and Sanitation (a South African state-owned and state-controlled custodian of water services), and Eskom Holdings Limited (a South African state-owned and state-controlled energy company).
“This successful resolution against SAP is another example of the power of relationships and persistence,” said Assistant Director in Charge Donald Always of the FBI’s Los Angeles Field Office. “The sustained diligence by the prosecution team and continuous collaboration with South African law enforcement, regulators, and prosecutors identified corrupt activity in multiple countries. The FBI will continue our nonstop efforts to identify, investigate, and prosecute companies willfully engaging in corrupt activities around the world.”
In addition, between approximately 2015 and 2018, SAP, through certain of its agents, engaged in a scheme to bribe Indonesian officials to obtain improper business advantages for SAP in connection with various contracts between and among SAP and Indonesian departments, agencies, and instrumentalities, including the Kementerian Kelautan dan Perikanan (the Indonesian Ministry of Maritime Affairs and Fisheries) and Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika (an Indonesian state-owned and state-controlled Telecommunications and Information Accessibility Agency).
“When the mails are used in furtherance of a fraud or corruption scheme, borders are not an obstacle for U.S. Postal Inspectors,” said Postal Inspector in Charge of Criminal Investigations Eric Shen. “Postal inspectors, with our FBI law enforcement partners and Justice Department prosecutors, followed the wide-spread trail of bribes and corruption from South Africa to Indonesia. This joint effort resulted in the defendant company paying a significant criminal penalty and agreeing to long-term remedial measures.”
Pursuant to the DPA, SAP will pay a criminal penalty of $118.8 million and administrative forfeiture of $103,396,765. SAP will also continue cooperating with the department in any ongoing or future criminal investigation arising during the term of the DPA. In addition, the department will credit up to $55.1 million of the criminal penalty against amounts that SAP pays to resolve an investigation by law enforcement authorities in South Africa for related conduct. The department will credit up to the full forfeiture amount against disgorgement that SAP pays to the SEC or South African authorities.
Under Part I of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program, SAP’s compliance obligations include a commitment to implementing criteria relating to compliance in the company’s compensation and bonus system, subject to local labor laws. Under Part II of the Pilot Program, the department reduced the criminal penalty by $109,141 for compensation that SAP withheld from qualifying employees, which action the company defended in substantial litigation.
The department reached this resolution with SAP based on a number of factors, including, among others, the nature and seriousness of the offense. SAP received credit for its cooperation with the department’s investigation, which included (i) immediately beginning to cooperate after South African investigative reports made public allegations of the South Africa-related misconduct in 2017 and providing regular, prompt, and detailed updates to the department regarding factual information obtained through its own internal investigation, which allowed the government to preserve and obtain evidence as part of its independent investigation; (ii) expeditiously producing relevant documents and other information to the department from multiple foreign countries, while navigating foreign data privacy and related laws; (iii) at the request of the department, voluntarily making company officers and employees available for interviews; (iv) taking significant affirmative steps to facilitate interviews while addressing witness security concerns; (v) raising and resolving potential deconfliction issues between SAP’s internal investigation and the investigation being conducted by the department; (vi) promptly collecting, analyzing, and organizing voluminous information, including complex financial information, at the request of the department; (vii) translating voluminous foreign language documents to facilitate and expedite review by the department; and (viii) imaging the phones of relevant custodians at the beginning of SAP’s internal investigation, thus preserving relevant and highly probative business communications sent on mobile messaging applications.
SAP also engaged in timely remedial measures, including: (i) conducting an analysis of the root causes of the underlying conduct and gap analysis, and undertaking appropriate remediation to address those root causes and enhance its compliance program; (ii) undertaking a comprehensive risk assessment focusing on high risk areas and controls around payment processes and enhancing its regular compliance risk assessment process, including by incorporating comprehensive operational and compliance data into its risk assessments; (iii) eliminating its third-party sales commission model globally, and prohibiting all sales commissions for public sector contracts in high-risk markets; (iv) significantly increasing the budget, resources, and expertise devoted to compliance and restructuring its Offices of Ethics and Compliance to ensure adequate stature, independence, autonomy, and access to executive leadership; (v) enhancing its code of conduct and policies and procedures regarding gifts, hospitality, and the use of third parties; (vi) enhancing its reporting, investigations, and consequence management processes; (vii) adjusting compensation incentives to align with compliance objectives and reduce corruption risk; (viii) enhancing and expanding compliance monitoring and audit programs, planning, and resources, including developing a well-resourced team devoted to audits of third-party partners and suppliers; (ix) expanding its data analytics capabilities to cover over 150 countries, including all high-risk countries globally; and (x) promptly disciplining any and all employees involved in the misconduct.
In light of these considerations as well as SAP’s prior history, which include a non-prosecution agreement from 2021 with the department’s National Security Division, as well as administrative agreements with the Departments of Commerce and the Treasury relating to export law violations, and a resolution in 2016 with the SEC concerning alleged FCPA violations in Panama, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 40% reduction off the tenth percentile above the low end of the otherwise applicable guidelines fine range.
The FBI’s International Corruption Unit and the U.S. Postal Inspection Service are investigating the case.
Trial Attorneys William E. Schurmann, Anthony Scarpelli, and Gwendolyn A. Stamper and Assistant Chief Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Heidi B. Gesch for the Eastern District of Virginia are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in South Africa provided assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Information DPAPortsmouth Man Sentenced to 50 Months for Firearms and Drug OffensesRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 50 months in prison after illegally possessing two firearms, narcotics, and narcotics paraphernalia in a highly residential area close to downtown Portsmouth.
According to court documents, on March 16, 2023, federal agents from the Drug Enforcement Administration began surveillance on Danny Marcus Collins, 35, to assist the Portsmouth Police Department in arresting Collins as a result of two state summonses. While conducting surveillance, the investigative team observed Collins meet with multiple individuals and conduct hand-to-hand transactions from his vehicle. After noticing police, Collins rolled up the window of his vehicle and fled on foot. Collins was taken into custody.
Shortly thereafter, a Portsmouth police narcotics K9 conducted a narcotics sweep of Collins’ vehicle, which resulted in a positive alert. The vehicle was searched and approximately 27 grams of cocaine, 8.3 grams of crack cocaine, 2 grams of cocaine, and 7.5 grams of suspected marijuana were recovered. Two firearms (one loaded), $1,183, packaging material, ammunition, and a digital scale were also recovered.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Stephen Jenkins, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
Special Assistant U.S. Attorney Alyssa Miller and Assistant U.S. Attorney Amanda Cheney prosecuted the case.
This case was part of the DEA’s Operation Overdrive, an initiative aimed at combatting the rising rates of drug-related violent crime and overdose deaths plaguing American communities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-38.
EDVA Settles Lawsuit Against Property Management Company and Landlord for Violating Servicemembers’ RightsRead the Press Release
ALEXANDRIA, Va. – A property management company operating throughout Hampton Roads has agreed to pay $13,225.65 to settle a complaint alleging that the company and one of its landlord-homeowners violated the Servicemembers Civil Relief Act (SCRA).
According to court documents, McGowan Realty LLC, doing business as RedSail Property Management (RedSail), agreed to settle a complaint that it and one of its landlord-homeowners violated the SCRA by imposing early lease termination charges and additional rent on a servicemember. The United States alleged that the company had a policy of refusing to honor servicemembers’ lease terminations when the servicemember received permanent change of station (PCS) orders to a new duty station that was less than 35 miles (radius) from the dwelling unit.
“Our servicemembers sacrifice greatly, moving and deploying often in support of our nation’s defense. Such moves should never create financial hardship for our servicemembers,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia.
“This case should put all housing providers on notice that if a servicemember meets the requirements of the federal Servicemembers Civil Relief Act, they are entitled to all its benefits, regardless of what any state law may provide,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to protecting the rights of our servicemembers and their families to ensure they do not face any unlawful treatment by housing companies or any other entities.”
The SCRA allows a servicemember to terminate a residential lease early if the servicemember receives permanent change of station orders or enters military service during the term of the lease. If the tenant terminates a lease pursuant to the SCRA, the landlord may not impose any early termination fee or rent beyond the effective termination date. The SCRA places no mileage restrictions on a servicemember’s residential lease termination rights. State statutes cannot deprive servicemembers of the full scope of their rights under federal law.
EDVA launched its investigation after a Navy legal assistance attorney reported that RedSail and the landlord had refused to honor the SCRA residential lease termination of a U.S. Navy Petty Officer First Class and were assessing early lease termination charges and additional rent against him. RedSail allegedly erroneously insisted that the Virginia Residential Landlord and Tenant Act (VRLTA) placed a 35-mile limitation on a servicemember’s SCRA residential lease termination rights. The complaint alleges that the Petty Officer paid $3,408.55 in early termination charges and additional rent to RedSail, which placed a considerable financial burden on him.
Under the proposed consent order, RedSail will pay $10,225.65 to the Petty Officer referenced in the United States’ complaint and a $3,000 civil penalty. The consent order also requires that RedSail provide SCRA training to its employees and develop new policies and procedures consistent with the SCRA. In the proposed consent order, RedSail and the landlord have agreed to refrain from imposing or attempting to impose the VRLTA’s 35-mile limitation on servicemembers who lawfully terminate a lease under the SCRA, imposing or seeking to collect any early termination charges from servicemembers or their dependents who lawfully terminate a lease pursuant to the SCRA, and denying SCRA lease terminations from servicemembers who qualify for lease termination under the SCRA. The proposed consent order is subject to approval by the court.
This case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Rights Division’s Housing and Civil Enforcement Section.
The matter was investigated by Assistant U.S. Attorney Deirdre G. Brou.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at https://legalassistance.law.af.mil/. The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at https://www.justice.gov/servicemembers.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER.
The civil claims settled by this Servicemembers Civil Relief Act agreement are allegations only; there has been no determination of civil liability.
Justice Department Secures Agreement from Property Management Company and Landlord for Violating Servicemembers’ RightsRead the Press Release
The Justice Department announced today that it has secured a settlement with McGowan Realty LLC, doing business as RedSail Property Management (RedSail), a property management company operating throughout Hampton Roads, Virginia, to resolve allegations that the company and one of its landlords violated the Servicemembers Civil Relief Act (SCRA) by imposing early lease termination charges and additional rent on a servicemember.
In the complaint filed today, the United States alleged that the company had a policy of refusing to honor servicemembers’ lease terminations when servicemembers received permanent change of station (PCS) orders to a new duty station that was fewer than 35 miles (radius) from the dwelling unit.
“This case should put all housing providers on notice that if a servicemember meets the requirements of the federal Servicemembers Civil Relief Act, they are entitled to all its benefits, regardless of what any state law may provide,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to protecting the rights of our servicemembers and their families to ensure they do not face any unlawful treatment by housing companies or any other entities.”
“Our servicemembers sacrifice greatly, moving and deploying often in support of our nation’s defense,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Such moves should never create financial hardship for our servicemembers.”
The SCRA allows servicemembers to terminate a residential lease early if they receive permanent change of station orders or enter military service during the term of the lease. If the tenant terminates a lease pursuant to the SCRA, the landlord may not impose any early termination fee or rent beyond the effective termination date. The SCRA places no mileage restrictions on servicemembers’ residential lease termination rights. State statutes cannot deprive servicemembers of the full scope of their rights under federal law.
The U.S. Attorney’s Office launched the investigation after a Navy legal assistance attorney reported that RedSail and a landlord had refused to honor a U.S. Navy Petty Officer First Class’ (Petty Officer) SCRA residential lease termination and were assessing early lease termination charges and additional rent against him. RedSail allegedly erroneously insisted that the Virginia Residential Landlord and Tenant Act (VRLTA) placed a 35-mile (radius) limitation on a servicemember’s SCRA residential lease termination rights. The complaint alleges that the Petty Officer paid $3,408.55 in early termination charges and additional rent to RedSail, which placed a considerable financial burden on him.
Under the proposed consent order, RedSail will pay $10,225.65 to the Petty Officer referenced in the United States’ complaint and a civil penalty. The consent order also requires that RedSail provide SCRA training to its employees and develop new policies and procedures consistent with the SCRA. RedSail and the landlord have also agreed to refrain from imposing or attempting to impose the state law’s 35-mile (radius) limitation on servicemembers who lawfully terminate a lease under the SCRA, imposing or seeking to collect any early termination charges from servicemembers or their dependents who lawfully terminate a lease pursuant to the SCRA, and denying SCRA lease terminations from servicemembers who qualify for lease termination under the SCRA. The proposed consent order is subject to approval by the court.
This case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Rights Division’s Housing and Civil Enforcement Section.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
The civil claims settled by this Servicemembers Civil Relief Act agreement are allegations only; there has been no determination of civil liability.
View the complaint here.
View the consent order here.