Eastern District of Virginia
Press releases recorded for this federal judicial district.
Tax Preparer Sentenced to Prison for $1.4M Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 18 months in prison for defrauding the U.S. government of approximately $1.4 million in tax revenue by preparing false tax returns on behalf of his unsuspecting clients.
According to court documents, between 2016 and 2020, Lawrence Appiah-Osei, 58, ran a tax preparation business called New Look Enterprise out of his home in Alexandria. From at least 2017 through 2020, Appiah-Osei executed a scheme to fraudulently inflate the tax refunds of his clients. To do so, Appiah-Osei falsely claimed that his clients operated businesses that lost thousands of dollars each year. These fraudulent losses drove down the clients’ taxable income and increased the clients’ tax refunds. The Internal Revenue Service-Criminal Investigation (IRS-CI) estimates the Appiah-Osei’s actions resulted in a tax loss of approximately $1.4 million to the federal government.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation Acting Special Agent in Charge of the Washington D.C. Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III.
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 No. 1:23-cr-113.
Hampton Man Sentenced for Multi-State Firearms TraffickingRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 57 months in prison for making false statements during the purchase of firearms so that he could deal firearms, some with obliterated serial numbers, without a license to others.
According to court documents, in June 2022, John Magobet, 58, came to the attention of the Bureau of Alcohol, Tobacco, Firearms and Explosives as an individual who was purchasing firearms from a local Federal Firearms Licensee (FFL) to resell to individuals in different states with restricted gun laws, including the southern New Jersey area and Philadelphia, Pennsylvania. Magobet indicated on multiple ATF forms that he was the actual buyer of the firearms, when, in fact, the actual buyer of the firearms was an individual he knew as “E”, from New Jersey. For a $500 fee per firearm, Magobet purchased and delivered to “E” two AR-15-type rifles, and four Glock pistols, which were desired so that “E” could install Glock switch-style machinegun conversion devices and re-sell them as machineguns. Magobet showed one potential buyer how to deface the firearms by removing the serial numbers saying “erase, erase, erase.” Magobet also stated to a potential buyer that he wanted to be advised if someone did something "stupid" with the firearm he sold so that Magobet could report the firearm stolen to “cover” himself.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Devon Heath 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-20.
Florida Man Pleads Guilty to Making Violent Online ThreatsRead the Press Release
NORFOLK, Va. – A Parrish, Florida, man pleaded guilty today to sending threatening messages online.
According to court documents, in April and May 2023, John Muccio, 39, sent numerous online threats to a debt collection company located in Norfolk. The company had sent letters and attempted to call Muccio about money he owed. In response, Muccio sent several different threatening messages via the company’s Artificial Intelligence Chatbot. In the messages, Muccio used racial slurs and threatened to kill the employees of the company and sexually assault the co-founders’ family members.
The FBI was able to trace the threats to Muccio at his residence in Florida. A review of Muccio’s cell phone showed he had the company’s website bookmarked on his internet browser.
Muccio pleaded guilty to making threatening interstate communications and is scheduled to be sentenced on March 5, 2024. He faces a maximum penalty of 5 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 Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea.
Assistant U.S. Attorney Elizabeth Yusi 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. 2:23-cr-87.
Leader of Violent Armed Robbery Spree in Hampton Roads SentencedRead the Press Release
NORFOLK, Va. – A Bloods gang member was sentenced today to 507 months in prison for conspiracy to interfere with commerce by means of robbery, seven counts of interference and attempted interference with commerce by means of robbery, three counts of brandishing a firearm during a crime of violence, and one count of discharging a firearm during a crime of violence.
According to court documents, Harold Spencer, 33, of Virginia Beach, was the leader of a five-man armed robbery crew with Kareem Ross, 34, of Hampton, Roshaun Griffin, 36, of Virginia Beach, Jon Morgan, 32, of Portsmouth, and Marvin Lockhart, Jr. 32, of Virginia Beach.
On March 18, 2022, Spencer led Virginia Beach Police on a high-speed pursuit following an attempted robbery of a Tiger Mart gas station. A pursuing Virginia Beach police cruiser’s dash camera captured the men throwing several loaded weapons from their car. Only after spike strips were deployed multiple times did the car finally come to a stop. Spencer and the other men were apprehended, and police recovered ski masks and gloves from inside their vehicle. The clothing and shoes each of them was wearing matched what could be seen in video surveillance from six prior armed robberies.
During the second of six-armed robberies, Spencer shot multiple times at a fleeing customer, nearly killing the customer. Spencer took a “selfie” on his cell phone wearing a ski mask worn in all six robberies—a ski mask, which was recovered after the high-speed pursuit and later was shown to contain his DNA. His cell phone also contained photographs of Ross holding a handgun with a drum magazine, multiple Glock firearms consistent with those thrown from the fleeing vehicle, large sums of cash, and lottery tickets.
The armed robbery crew stole cash, cigarettes, and lottery tickets. Investigators from the Virginia Lottery received alerts from convenience stores where attempts were made by Spencer and Ross, to cash the stolen tickets. Investigators pulled the surveillance video from those attempts and identified both men. Additionally, through a shoe impression expert from the Virginia Department of Forensic Science, investigators were able to connect the shoes Spencer was arrested in with a lift of an impression made at the Arrowhead Food Mart he had robbed on March 5, 2022. Those shoes could be seen at all six armed robberies Spencer had committed.
Several months before this armed robbery spree, Morgan had recently completed a ten-year prison sentence for a previous armed robbery. Spencer was also previously convicted of an armed robbery. In 2012, Spencer robbed the Golden China restaurant in Norfolk where he struck a victim in the head. He was sentenced in Norfolk Circuit Court to 10 years incarceration with 8 of the years suspended.
Ross was sentenced to 27 years in prison for his role in the conspiracy. Griffin was sentenced to 15 years in prison for his role in the conspiracy. Morgan will be sentenced on November 17. Lockhart will be sentenced on February 2, 2024.
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 Paul W. Neudigate, Chief of Police, Virginia Beach Police Department, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Joe Depadilla and John F. Butler and prosecuted the case.
The Justice Department announced today several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement. Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded today by the Office of Community Oriented Policing Services (COPS Office).The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
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. 2:22-cr-106.
Virginia Business Owner Charged with Tax Evasion and Employment Tax OffensesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment, unsealed today, charging a Great Falls man with income tax evasion and failure to pay employment taxes.
According to the indictment, Rick Tariq Rahim, 55, owned and operated two businesses, BV Management, LLC, an Amazon reseller, and BusinessVentures.com, LLC, which was an umbrella company over other businesses including laser tag facilities. Starting in at least 2012, Rahim allegedly took steps to evade IRS efforts to collect more than $1 million in federal income taxes he allegedly owed for tax years 2004 and 2011. The indictment charges that in November 2016, Rahim submitted a false form to the IRS that omitted valuable assets he owned, including a helicopter, a 2006 Bentley, a 2008 Lamborghini, and real property, the ownership of which he allegedly transferred to his wife two weeks after submitting the form. The indictment further alleges that Rahim also withdrew a total of more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank and paid personal expenses from his businesses’ bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis.
In addition, the indictment charges that from 2015 to 2021, Rahim also did not pay to the IRS the taxes that his businesses withheld from employee paychecks or file quarterly tax returns reporting those withholdings.
If convicted, Rahim faces a maximum penalty of five years in prison for the tax evasion count and five years in prison for each count of failing to pay over employment tax withholdings. 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; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement.
Assistant U.S. Attorney Kimberly Shartar and Trial Attorney William Montague of the Department of Justice’s Tax Division 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. 1:23-CR-173.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Virginia Business Owner Charged with Tax Evasion and Employment Tax OffensesRead the Press Release
A federal grand jury in Alexandria, Virginia, returned an indictment, unsealed today, charging a Virginia man with income tax evasion and failure to pay employment taxes.
According to the indictment, Rick Tariq Rahim of Great Falls owned and operated two businesses, BV Management LLC, an Amazon reseller, and BusinessVentures.com LLC, an umbrella company over other businesses including laser tag facilities. Starting in at least 2012, Rahim allegedly took steps to evade IRS efforts to collect more than $1 million in federal income taxes he allegedly owed for tax years 2004 and 2011.
The indictment charges that in November 2016, Rahim submitted a false form to the IRS that omitted valuable assets he owned, including a helicopter, a 2006 Bentley, a 2008 Lamborghini and real property, the ownership of which he allegedly transferred to his wife two weeks after submitting the form. The indictment further alleges that Rahim also withdrew a total of more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank and paid personal expenses from his businesses’ bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis.
In addition, the indictment charges that from 2015 to 2021, Rahim also did not pay to the IRS the taxes that his businesses withheld from employee paychecks or file quarterly tax returns reporting those withholdings.
If convicted, Rahim faces a maximum penalty of five years in prison for the tax evasion count and five years in prison for each count of failing to pay over employment tax withholdings. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Air Force Contractor Pleads Guilty to Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – A former U.S. Air Force (USAF) contractor pleaded guilty today to engaging in a bribery scheme relating to a large technology contract awarded by the USAF.
According to court documents, from late 2013 to late 2019, Juan Carlos Arevalo III, 44, of Occoquan, served as the chief technologies officer and senior technical consultant for a USAF component that focuses on intelligence, surveillance, reconnaissance, and innovation. Arevalo worked closely with senior USAF officials in the Pentagon and helped them to design, develop, and deliver various military technologies.
Julio R. “Jace” Sotomayor was a retired USAF colonel who was the owner of two consulting firms – Eagle Market Group (EMG) and Federal Security Agency (FSA) – and the minority owner of a government contracting firm. As alleged, beginning in late 2013, Sotomayor and the contracting firm’s majority owner sought to provide services to the USAF to support various technology projects and initiatives. As part of this objective, Arevalo and Sotomayor agreed to engage in a corrupt, multi-year scheme in which Sotomayor, through EMG, paid $185,000 to Arevalo using his relative as a pass-through intermediary. In exchange for these payments, Arevalo agreed to perform and did perform official acts, and sought to influence other officials, to benefit Sotomayor, the firm, and the firm’s majority owner.
Beginning in late 2014, Sotomayor also engaged in a similar pass-through bribery scheme with a former federal contracting officer, Diane Sturgis, by using EMG to pay $150,000 to Sturgis’s relative in exchange for official assistance regarding the same USAF technology contract. Through early 2020, the firm had received approximately $51.6 million from the USAF of which at least $5.9 million was paid to Sotomayor.
Arevalo pleaded guilty to conspiracy to commit bribery and honest services wire fraud. He is scheduled to be sentenced on December 13 and 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.
Sotomayor and Sturgis have pleaded guilty and were sentenced for their various schemes.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Assistant Director in Charge David Sundberg of the FBI Washington Field Office; and Special Agent in Charge Elisabeth Kaminsky of the Department of State Office of Inspector General (State OIG), made the announcement after U.S District Judge Rossie D. Alston, Jr., accepted the plea.
Special Assistant U.S. Attorney Edward P. Sullivan 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. 1:23-cr-162.
Former Air Force Contractor Pleads Guilty to Bribery SchemeRead the Press Release
A former U.S. Air Force (USAF) contractor pleaded guilty today to engaging in a bribery scheme relating to a large technology contract awarded by the USAF.
According to court documents, from late 2013 to late 2019, Juan Carlos Arevalo III, 44, of Occoquan, Virginia, served as the chief technologies officer and senior technical consultant for a USAF component that focuses on intelligence, surveillance, reconnaissance, and innovation. Arevalo worked closely with senior USAF officials in the Pentagon and helped them to design, develop, and deliver various military technologies.
Julio R. “Jace” Sotomayor was a retired USAF colonel who was the owner of two consulting firms – Eagle Market Group (EMG) and Federal Security Agency (FSA) – and the minority owner of a government contracting firm. As alleged, beginning in late 2013, Sotomayor and the contracting firm’s majority owner sought to provide services to the USAF to support various technology projects and initiatives. As part of this objective, Arevalo and Sotomayor agreed to engage in a corrupt, multi-year scheme in which Sotomayor, through EMG, paid $185,000 to Arevalo using his relative as a pass-through intermediary. In exchange for these payments, Arevalo agreed to perform and did perform official acts, and sought to influence other officials, to benefit Sotomayor, the firm, and the firm’s majority owner.
Beginning in late 2014, Sotomayor also engaged in a similar pass-through bribery scheme with a former federal contracting officer, Diane Sturgis, by using EMG to pay $150,000 to Sturgis’s relative in exchange for official assistance regarding the same USAF technology contract. Through early 2020, the firm had received approximately $51.6 million from the USAF of which at least $5.9 million was paid to Sotomayor.
Arevalo pleaded guilty to conspiracy to commit bribery and honest services wire fraud. He is scheduled to be sentenced on Dec. 13 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Sotomayor and Sturgis have pleaded guilty and were sentenced for their various schemes.
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 in Charge David Sundberg of the FBI Washington Field Office, and Special Agent in Charge Elisabeth Kaminsky of the Department of State Office of Inspector General (State OIG) made the announcement.
The FBI and State OIG investigated the case.
Senior Litigation Counsel Edward P. Sullivan of the Criminal Division’s Public Integrity Section is prosecuting the case.
Alexandria Man Pleads Guilty to $1.2M COVID Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to conspiring to fraudulently obtain Paycheck Protection Program (PPP) loans, unemployment insurance, and other pandemic benefits.
According to court documents, from approximately October 2020 through September 2021, George Mensah, Jr., 32, conspired with others to prepare fraudulent PPP loans and unemployment insurance claims under the CARES Act. Mensah admitted that he and his coconspirators prepared and submitted over 47 applications for PPP loans for fake businesses. At least 21 of these applications were funded by lenders, which caused an actual loss of at least $583,172. In addition, Mensah admitted that he and his co-conspirators obtained the personally identifiable information of others, including identity theft victims, in order to make claims for pandemic unemployment benefits in Virginia and elsewhere. Mensah admitted that he and his co-conspirators obtained at least $658,952 in fraudulently obtained unemployment insurance and pandemic benefits.
Mensah is scheduled to be sentenced on February 14, 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 taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Javan Wilson, Special Agent in Charge of the U.S. Department of Treasury, Office of Inspector General; and Troy W. Springer, Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
The Fairfax County Police Department also provided significant assistance in the investigation.
Assistant U.S. Attorneys Kimberly Shartar and Kathleen Robeson and Special Assistant U.S. Attorney Ezra Spiro 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. 1:23-cr-168.
Suffolk Man Pleads Guilty to $2M Medicare FraudRead the Press Release
NORFOLK, Va. – A Suffolk man pleaded guilty today to conspiring to defraud health insurance programs of more than $2 million through fraudulent claims for braces and other medical equipment.
According to court documents, in 2017, Julian Latty, 40, and his co-conspirator Jordan Thomas Broome, 37, of Texas, formed a Virginia Beach company called Beach Medical Suppliers LLC (Beach Medical). They registered Beach Medical to receive Medicare reimbursements in 2018. For the next two years, Latty and Broome used Beach Medical to fraudulently bill Medicare for over $4 million in reimbursements for durable medical equipment, which included back braces and knee braces. They obtained the personally identifiable information of Medicare beneficiaries then paid doctors to sign prescriptions for braces that the beneficiaries did not need. Between December 4, 2018, and October 7, 2020, Beach Medical billed Medicare for durable medical equipment reimbursement for approximately 2,025 beneficiaries who had no prior relationship with the doctor who signed the prescription. Beach Medical also billed other health care benefit programs, such as Medicaid and Tricare, for fraudulent claims. The investigation started when beneficiaries complained to Medicare that they were receiving braces in the mail that they had never requested.
In December 2019, Latty and Broome met with an attorney Beach Medical had retained who advised them that its operations were likely illegal. However, they continued to submit fraudulent reimbursements until federal authorities executed a search warrant at Beach Medical’s offices in September 2020.
In March 2023, Broome was sentenced to 66 months of imprisonment for his role in the conspiracy.
Latty is scheduled to be sentenced on February 29, 2024. He faces a maximum penalty of 5 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea.
Assistant U.S. Attorney Rebecca Gantt 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. 2:23-cr-121.
Recidivist Fraudster Sentenced for Scheming Victims out of Almost $90,000Read the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 2 years in prison for defrauding nearly 20 victims across the United States of almost $90,000 in several mail fraud schemes.
According to court documents, between 2020 and 2022, Richard Edward Hardy, 55, conspired with others to use the U.S. postal service and other mail carriers to defraud victims in romance, real estate, and other fraud schemes. In the real estate scheme, victims responded to a property that was listed for rent online. The victims were instructed to send a security deposit and first month’s rent to Hardy at his home in Portsmouth. Unbeknownst to the victims, the properties were not actually for rent, and Hardy cashed the money orders and shared the proceeds with his coconspirators.
Hardy defrauded nearly all the victims after being convicted in Portsmouth General District Court of similar conduct in December 2020. Further, after federal law enforcement executed a search warrant at his home in September 2022, Hardy continued to defraud additional victims in a change-of-address scheme.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Rebecca Gantt 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-54.
Maryland Woman Pleads Guilty to Real Estate Bank FraudRead the Press Release
ALEXANDRIA, Va. – A Ft. Washington, Maryland, woman pleaded guilty today to bank fraud.
According to court documents, from at least August of 2012 through April 2019, Maria Esperansa Salgado, 64, devised a scheme to defraud a mortgage lender into agreeing to a short sale, or pre-foreclosure sale, of a residential property in Alexandria that was pending foreclosure for non-payment of the mortgage. The defendant and her brother had purchased and lived in the property for about ten years.
After filing a Chapter 7 petition for bankruptcy to discharge her debts in 2013, Salgado used the identity of an unsuspecting victim to obtain a home mortgage from a lender. Salgado then entered into fraudulent sales contracts with straw purchasers and the victim to make it appear as if she was selling the property to third parties as part of an arms-length transaction. A straw purchaser is someone who buys a property on behalf of another person when the real buyer cannot complete the transaction. The fraudulent sales contracts made it appear as if the straw purchasers and the victim were buying the house on behalf of themselves. In truth, Salgado’s intention was to retain ownership of the property and the proceeds from the fraudulent short sale.
In 2015, Salgado executed a fraudulent refinance of the property using the name of straw purchasers and kept the proceeds. The victim was unaware of the re-finance. In 2019, Salgado used a nominee owner to sell the property to a third-party buyer. Salgado and the nominee owner received the proceeds of the fraudulent sale and paid off the remaining loan balance and used a portion to purchase a new property in Ft. Washington, Maryland.
To date, the victim has been unable to qualify for a loan to purchase her own home because of the fraudulent mortgage taken out in her name. The scheme also resulted in $146,188 of loss to the mortgage lender. As part of her plea agreement, Salgado agreed to pay restitution to the victim and to forfeit the proceeds of the bank fraud.
Salgado is scheduled to be sentenced on February 21, 2024. She 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 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 Javan Wilson, Special Agent in Charge of the U.S. Department of Treasury, Office of Inspector General, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
The Fairfax County Police Department, the Arlington County Police Department, the Prince William County Police Department, the City of Hyattsville (MD) Police Department - Criminal Investigations Section, and the U.S. Department of Homeland Security, Homeland Security Investigations also provided significant assistance in this investigation.
Assistant U.S. Attorney Kimberly Riley Pedersen is prosecuting the case. Former Assistant U.S. Attorney Carina Cuellar provided significant assistance to the investigation and prosecution of this 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. 1:23-cr-154.
Convicted Felon Sentenced for Pandemic Fraud and Firearm OffensesRead the Press Release
NEWPORT NEWS, Va. – A man who formerly resided in Hampton was sentenced today to 2 years in prison for his role in a fraud conspiracy as well as illegally possessing firearms as a convicted felon.
According to court documents, from about May 2020 through September 2021, Jovaughn E. Turner, 21, joined others to submit fraudulent claims for pandemic-related benefits and counterfeit checks stolen from the mail. Turner and his coconspirators ran the fraud operation from an apartment they rented in Hampton. The apartment – filled with proceeds of the fraud – was burglarized multiple times by a local gang. On September 26, 2021, a would-be robber approached Turner outside the apartment and brandished a firearm. Turner shot and killed the man in self-defense.
Following the shooting, police executed a search warrant at Turner’s apartment and located $28,500 in cash, a laptop computer, a special printer for counterfeiting checks, a money-counting machine, check stock paper, and a magnetic reader/writer/encoder for making credit and debit cards. Police also located approximately 20 counterfeit and stolen checks drawn against the bank accounts of businesses across the country.
In addition to check fraud, the defendant and his coconspirators submitted fraudulent claims for pandemic-related unemployment benefits during the COVID-19 public health crisis. Turner claimed to have worked at Wendy’s and Prime Now LLC and falsely represented that he lost his employment because of the pandemic. In fact, he only worked briefly for these employers and voluntarily abandoned both jobs.
In addition to illegally possessing a firearm on September 26, 2021, when he shot and killed the would-be robber, he was again found in possession of a firearm during a traffic stop in Chesapeake on December 30, 2021. Police recovered a loaded Glock .40 caliber handgun under the driver seat during a search of the vehicle Turner was driving.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Damon E. Wood, Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division; and Jimmie Wideman, Chief of Hampton Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Mack Coleman prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-10.
Richmond Man Who Led Officers on High-Speed Car Chase Pleads Guilty to Southside Plaza CarjackingRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to a carjacking.
According to court documents, on August 6, 2022, Keith Travers, 37, and an accomplice met with the victim at Southside Plaza in Richmond, purportedly to sell the victim a catalytic converter. However, Travers and his accomplice had driven to the meeting with no catalytic converters to sell. When the victim realized this and turned to leave, Travers’s accomplice stated, “you know what this is, give me your wallet, keys and your phone.” In response, the victim reached for the gun he was carrying on his right hip. As the victim was doing so, Travers pointed a gun at the victim’s head and exclaimed, “don’t lose your life over this.”
Fearing that Travers was about to shoot him, the victim turned his gun over to Travers’s accomplice, who then pointed it at the victim. The victim also handed over his business wallet, car keys, and work cell phone. There was between $5,000 and $6,000 in the wallet when he handed it to Travers’s accomplice. Travers’s accomplice then drove off in the victim’s car and Travers left in the car he had driven to the carjacking.
On August 19, 2022, officers of the Richmond Police Department attempted to arrest Travers for the carjacking. He was in the same car he had driven to the Southside Plaza robbery. When Travers saw the officers, he accelerated suddenly, leading the officers on a pursuit for nearly an hour. Eventually, Travers abandoned his car and fled on foot. As the officers were closing in on him, Travers threw a Taurus 9mm semi-automatic pistol under a nearby vehicle. The gun was the same firearm Travers used during the carjacking on August 6, 2022.
Travers is scheduled to be sentenced on March 20, 2024. He faces a maximum penalty of 15 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; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Rick Edwards, Chief of Richmond Police, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorney Stephen Miller 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. 3:23-cr-38.
Virginia Beach Man Pleads Guilty to Possessing Firearms, Silencers and ExplosivesRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today in federal court to possessing unregistered silencers and explosives while being an unlawful drug user.
According to court documents, on July 14, 2022, Daniel Burky, 33, was being evicted from an apartment in Virginia Beach when law enforcement discovered explosives, silencers, firearms, and drugs in the apartment. During the search, law enforcement found, among other firearms, an AK-47 style firearm. Additional items found in the apartment include boxes of firearm suppressors, a ballistic helmet, a ballistic vest, a gas mask, and multiple rifle magazines. The Virginia Beach Fire Department, Fire Marshal, and Bomb Squad were called to the scene. Located throughout the apartment were chemicals that, when combined, become homemade explosives that are known to be extremely unstable and hazardous.
A subsequent review of the seized electronic devices showed numerous videos of Burky shooting both handguns and rifles outfitted with the silencers. Burky did not possess, and has never possessed, either a Federal Explosives License (FEL) or a Federal Firearms License (FFL).
Burky also pleaded guilty and was sentenced for drug and firearms charges in the Virginia Beach Circuit Court this past summer.
Burky is scheduled to be sentenced on April 11, 2024. 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; Jason Miyares, Attorney General of the Commonwealth of Virginia; Colin Stolle, Virginia Beach Commonwealth Attorney; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after U.S. Magistrate Judge Doulas E. Miller accepted the plea.
Significant assistance was provided by the Virginia Beach Fire Department and Fire Marshals and the Virginia Beach Sheriff’s Office.
Assistant U.S. Attorney Kevin M. Comstock and Special Assistant U.S. Attorney Marc W. West are prosecuting the case.
The Office of the Attorney General prosecuted the case in conjunction with the U.S. Attorney’s Office.
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-116.
Virginia Beach Man Sentenced for Multiple Armed Carjackings After High-Speed Police ChasesRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 250 months in prison for multiple carjackings and for using a firearm while committing the carjackings.
According to court documents, on November 3, 2020, in Chesapeake, Bryant Marcus Wilkerson, 30, approached an individual who was sitting in the driver seat of their vehicle after having just left their work. Wilkerson told the driver of the vehicle to get out of the car or he would shoot the driver. Before the driver could close the door, Wilkerson stood in between the door and the driver’s seat and once again told the driver that he would shoot the driver if he did not get out of the vehicle. Wilkerson then produced a firearm and hit the driver in the face with it. The driver then got out of the vehicle and Wilkerson drove it away. The vehicle was found abandoned the next day.
On November 9, 2020, Wilkerson approached another individual who was sitting in the driver seat of their vehicle in Currituck, North Carolina. Wilkerson opened the passenger side door, pointed a firearm at the driver, and ordered the driver to get out of the vehicle. The driver exited the vehicle, but Wilkerson was unable to start the car because the driver still had the key fob. Wilkerson then got into another vehicle that was unoccupied with the engine running and fled the scene. Deputies from the Currituck County Police Department attempted to stop Wilkerson, but he led them on a high-speed chase where Wilkerson drove into oncoming traffic at a high rate of speed and ran other vehicles off the road.
Wilkerson later exited that vehicle and, after a foot pursuit, jumped on the hood of another vehicle, pointed a firearm at the driver, and told the driver to get out. Wilkerson then fired a shot into the dash and pointed the firearm at the driver again. The driver got out of the vehicle and Wilkerson drove it away. Wilkerson led law enforcement officers on another high-speed chase, this time traveling at speeds in excess of 100 miles per hour while driving in the wrong direction on an expressway. Law enforcement officers were able to flatten Wilkerson’s tires using spike strips, which forced him to finally stop. Wilkerson fled on foot again, robbed another citizen, and ultimately broke into yet another locked vehicle. Officers found Wilkerson hiding in the vehicle with a firearm and took him into custody.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Jason Miyares, Virginia Attorney General; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Mark G. Solesky, Chief of Chesapeake Police; and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Significant assistance was provided by the Currituck County Police Department.
Assistant U.S. Attorney Amanda Cheney and Special Assistant U.S. Attorney Marc West 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. 2:22-cr-152.
Guilty Plea Reached After over 50 Kilograms of Cocaine Interdicted in New Kent CountyRead the Press Release
NEWPORT NEWS, Va. – A Durham, North Carolina, man pleaded guilty today to attempted possession of more than 50 kilograms of cocaine.
According to court documents, on August 2, Jose Arellano-Rodriguez, 26, was arrested by Drug Enforcement Administration (DEA) agents when he brought $90,000 to a rest stop in New Kent County to pay for what he believed was a load of more than 50 kilograms of cocaine. The load had been intercepted one week prior by law enforcement from within a vehicle believed to have crossed the Mexican border into the United States. The individuals Arellano-Rodriguez provided the money to were members of law enforcement. Once the money was provided by Arellano-Rodriguez, he was arrested and taken into custody. Following his arrest, law enforcement discovered a firearm in Arellano-Rodriguez’s possession.
Arellano-Rodriguez pleaded guilty to attempted possession of more than five kilograms of cocaine and is scheduled to be sentenced on February 20, 2024. He faces a mandatory minimum sentence of ten years and a maximum of life 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; Jarod Forget, Special Agent in Charge for DEA’s Washington Division; and Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Jamar K. Walker accepted the plea.
Assistant U.S. Attorney Eric M. Hurt is 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-61.
Repeat Federal Fraudster Sentenced for Wire Fraud and Identity TheftRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 57 months in prison for a wire fraud and identity theft scheme.
According to court documents, in March 2021, Dominique M. Avery, 29, assumed the identity of another person and secured incorporation documents for a business that claimed to provide technology services, Home Technology Innovations, LLC (HTI). Avery used those fraudulently obtained documents, as well as a forged check and the personal identifying information (PII) of several other individuals, to cause an out-of-state payroll services company to make more than $150,000 in direct deposits into various bank accounts. These fraudulently obtained funds were purportedly for the salaries of HTI’s employees. In reality, HTI had no employees, and Avery was able to access and spend a substantial portion of the funds deposited into each account before the scheme was discovered.
Avery was previously convicted of similar federal fraud offenses. Avery’s recent offense occurred only months after he completed his prior federal sentence. Avery used the PII of several of the victims in the prior case to commit these new crimes.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.
Assistant U.S. Attorney Anthony Mozzi 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-017.
Northern Neck Convicted Felon Sentenced for Possession of an AR-Style Firearm After Police ChaseRead the Press Release
RICHMOND, Va. – A Lancaster County man was sentenced yesterday to 9 years in prison for possessing a firearm after having been previously convicted of a felony.
According to court documents, on August 8, 2022, Kendrick Lamar Diggs, 32, was in possession of a high-capacity firearm and thirty rounds of ammunition. Law enforcement responded to a call for assistance after Diggs was reportedly brandishing a firearm. When Diggs was located, he was in a vehicle and initially pulled over. However, as law enforcement officers approached, Diggs put the car in drive and fled, driving at speeds in excess of 80 mph for approximately two miles on Beanes Road, a two-lane roadway in the Browns Store area. As Diggs rounded a bend in the road, he nearly collided with a law enforcement vehicle. His car then spun out of control, and he hit a culvert, flipping the car several times.
An Anderson Manufacturing high-capacity AR-style firearm, as well as 30 rounds of ammunition, were ejected from the car and scattered throughout the debris field. Diggs fled from the car, running on foot into a wooded area. He was apprehended by law enforcement shortly thereafter. Diggs had previously been convicted of attempted murder in the second degree and use of a firearm in the commission of a felony.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Virginia Attorney General; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.
Significant assistance was provided by the Chesapeake Bay Narcotics and Gang Task Force, the Northumberland County Sheriff’s Office, and the Lancaster County Sheriff’s office.
Assistant U.S. Attorney Angela Mastandrea-Miller and Special Assistant United States Attorney Devon Schulz 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-180.
Active-Duty Navy Psychologist Pleads Guilty to Child Exploitation ChargeRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty yesterday to attempted coercion and enticement of a minor.
According to court documents, on May 25, Lieutenant Michael Andrew Widroff, 34, a Naval Officer previously assigned as the psychologist for the USS GERALD R. FORD (CVN-78) in Norfolk, initiated sexual conversation with who he believed to be a 14-year-old girl over Snapchat. He later expressed that he thought the girl was “hot” and that he wished to meet her in person. Widroff instructed the girl on how to masturbate and explained that he wished to engage in numerous sexual acts when they met. On June 7, Widroff drove from work to meet with the girl for sex and deleted the incriminating Snapchat application off his phone prior to his arrest.
Widroff is scheduled to be sentenced on February 23, 2024. He faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life 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 Mack Hickman, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea.
Special Assistant U.S. Attorney Victoria Liu is 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. 2:23-cr-78.
Michigan Man Pleads Guilty to Investment Fraud Scheme Involving Fake NASA ContractsRead the Press Release
RICHMOND, Va. – A Marne, Michigan, man pleaded guilty today to a wire fraud charge arising from his participation in an investment fraud scheme.
According to court documents, beginning in at least February 2014, Steven Vernon Cross, 52, along with co-defendant Pranit Patil, 34, an Indian national, engaged in a years-long scheme to defraud victims who lent funds to or invested in Cross’s company, Commonwealth Applied Silica Technologies, LLC (CAST). Cross falsely represented to victims that CAST had valuable contracts with the National Aeronautics and Space Administration (NASA) for silica processing. As part of the scheme, Cross provided victims with fake NASA contracts, assisted by Patel, who falsely presented himself as a NASA employee in charge of contracting. Cross led victims to believe that their funds were being invested in profit-making endeavors, when in fact many of the funds were being used to pay Cross’s personal expenses and also being paid out to Patil.
Cross is scheduled to be sentenced on February 16, 2024. 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 taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Adelle K. Harris, Special Agent in Charge of the National Aeronautics and Space Administration (NASA) Office of Inspector General’s Eastern Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorneys Michael C. Moore and Thomas A. Garnett 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. 3:19-cr-158.
Richmond Man Sentenced for Two Armed Carjackings in Central VirginiaRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 14 years in prison for brandishing firearms during two separate carjackings.
According to court documents, on April 13, 2021, Treon Jackson, 37, had a Ruger 9mm firearm in hand when he approached the first victim in Richmond. The car that Jackson had been using had run out of gas and he wanted to travel to Petersburg. Approximately five minutes prior to committing the first carjacking, Jackson texted an individual telling them that he was looking for a car. Just minutes later, Jackson approached the victim with his gun drawn while they were parked outside a residence where the victim was working. Jackson pointed the firearm at the victim and demanded that they get out of their work truck. The victim complied with Jackson’s demand and Jackson entered the victim’s truck and drove away from the area. Jackson then traveled to Chesterfield, arriving at a restaurant parking lot about 30 minutes after the first carjacking. He parked the work truck and waited next to an SUV. When the second victim exited the restaurant a few minutes later, Jackson got out of the truck and pointed the firearm at the second victim, demanding the keys to the SUV. The second victim also complied and Jackson drove away in the SUV.
Chesterfield police were able to determine the SUV that Jackson had carjacked was in Petersburg. There, a Petersburg Police Officer noticed the SUV fitting the description of the carjacked vehicle. As the officer attempted to stop the SUV, Jackson fled at a high rate of speed, running through multiple stop lights in an effort to get away. As he was about to get onto Interstate 95 North, the SUV was remotely disabled by a stolen-vehicle tracking system installed in the SUV and Jackson was taken into custody.
Investigators located the keys to both stolen vehicles insidethe SUV, along with the high-capacity Ruger 9mm firearm, which was loaded with 16 rounds of ammunition with a round in the chamber. As part of his plea, Jackson admitted that he had committed the two car jackings by force, violence, and intimidation with the intent to cause death or serious bodily injury.
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; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Colonel Jeffrey S. Katz, Chesterfield County Police Department; and Travis C. Christian, Chief of Petersburg Bureau of Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Angela Mastandrea-Miller and Avi Panth prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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. 3:21-cr-81.
Owner of the Sportsmans Grille in Williamsburg Pleads Guilty to Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg man pleaded guilty yesterday to tax fraud.
According to court documents, from 2016 to at least 2020, Stephen G. Genakos, 62, was the sole owner and managing director of Sarantos, Inc., a Virginia corporation, having made a Subchapter S election, doing business as a restaurant, Sportsmans Grille, in York County. Since 2016, Genakos skimmed U.S. currency from the Sportsmans Grille.
In 2020, Genakos listed the Sportsmans Grille for sale for $795,000. In 2021, undercover agents from the Internal Revenue Service (IRS) made contact with Genakos. During this operation, Genakos provided IRS agents the chance to view the true books and records of the Sportsmans Grille. For tax years 2016 through 2020, Genakos filed materially false tax returns for himself and his business, Sarantos Inc.
Genakos pleaded guilty to aiding and assisting in the preparation of a materially false tax return and is scheduled to be sentenced on March 21, 2024. He faces a maximum penalty of three 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 Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Assistant U.S. Attorneys Mack Coleman and Brian 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. 4:23-cr-37.
Richmond Man Pleads Guilty to Possessing a Firearm at the Scene of an Active ShootingRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to possession of a firearm by a convicted felon.
According to court documents, on March 29, 2023, officers of the Richmond Police Department responded to a call of an active shooting near the intersection of Williamsburg Road and Government Road. Units arrived at that location within minutes of receiving the report and went to the parking lot of the Krispie’s Chicken restaurant, which was near the intersection where the shooting reportedly occurred. When they arrived, they saw Devon Martin, 30, wearing a hoodie which appeared to have a heavy, L-shaped object in the right pocket of the hoodie. As the officers approached Martin, he got into the passenger side of a vehicle. The officers ordered Martin to exit the vehicle and then conducted a pat down of his person. They found in Martin’s possession a Taurus, 9mm firearm in the pocket of his hoodie.
Martin was previously convicted in 2019 in the Eastern District of Virginia for bank fraud and aggravated identity theft.
Martin is scheduled to be sentenced on January 11, 2024. He faces a maximum penalty of 15 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; 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 U.S. Magistrate Judge Summer L. Speight accepted the plea.
Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-96.
Convicted Felon Who Led Officers on Foot Chase Pleads Guilty to Possession of a FirearmRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today to being a felon in possession of a firearm.
According to court documents, on February 7, 2022, individuals called 911 to report a shooting by a male in a silver vehicle in Newport News. Approximately 15 minutes later, Iziaha Tisdale, 25, was observed in a silver vehicle at the scene of the shooting being investigated. Witnesses there identified Tisdale’s vehicle as the shooter’s, but when officers attempted to stop him, he fled on foot. During his flight, he threw a loaded firearm, which officers quickly recovered.
Tisdale was previously convicted in Newport News Circuit Court of attempted unlawful wounding and of maliciously shooting at a car in connection with the February shooting.
Tisdale pleaded guilty to prohibited possession of a firearm and is scheduled to be sentenced on March 1, 2024. He faces a maximum penalty of 15 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; 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 U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney Julie Podlesni 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. 4:21-cr-85.
Chesterfield Woman Sentenced for Defrauding Medicaid of More than $200,000Read the Press Release
RICHMOND, Va. – A Chesterfield woman was sentenced today to 84 months in prison for defrauding Virginia Medicaid of $211,176.96 in a home health care fraud scheme that lasted over seven years.
According to court documents, from 2013 to 2021, Virginia Jackson-Wallace, 65, fraudulently billed Medicaid when she claimed two family members were providing home health care to her and two other Medicaid recipients when, in fact, they were not providing home health care. The defendant knowingly submitted over 200 fraudulent timesheets to Medicaid that falsely claimed an aggregate 22,938 hours of home health care that was not provided. To facilitate her scheme, the defendant opened joint bank accounts with the two purported aides but maintained exclusive control over these bank accounts, and thus exclusive control over the funds of her fraudulent scheme. The defendant had over 50 prior felony convictions, most of them related to a variety of fraud schemes.
After Jackson-Wallace pleaded guilty to this scheme and while on pretrial release, she deposited two fraudulent checks and withdrew funds the bank credited to her account as a result. The Court subsequently found the defendant in violation of the terms of her pretrial release, and revoked the defendant’s bond, ordering her held in prison pending sentencing.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); and Jason Miyares, Attorney General of Virginia, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
The Medicaid Fraud Control Unit provided significant assistance in this case.
Assistant U.S. Attorney Shea Gibbons 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. 3:21-cr-73.
Former Journalist Sentenced for Possessing Child Sexual Abuse MaterialRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to 72 months in prison for transportation and possession of child sexual abuse material.
According to court documents, while visiting South Carolina in February 2020, James Gordon Meek, 53, used an online messaging platform on his iPhone to send and receive images and videos depicting minors engaged in sexually explicit conduct, and to discuss his sexual interest in children. Some of the images and videos depicted prepubescent minors and minors under the age of 12, including an infant being raped. Meek brought the iPhone containing the child sexual abuse material back with him when he returned to Virginia. Additionally, Meek possessed multiple electronic devices containing images and videos of minors engaged in sexually explicit conduct.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorney Zoe Bedell and Trial Attorney Whitney Kramer for the Department of Justice’s Child Exploitation and Obscenity Section prosecuted the case.
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. Valuable assistance was provided by the Arlington County Police Department.
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-65.
Behavioral Services Healthcare Provider and its Owner Settle False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Connex Family Services, LLC (Connex), located in Warrenton, and Bianca Riddle, 33, a resident of Gloucester, have agreed to pay $918,000 to settle a civil fraud case that claimed Connex and Riddle submitted or caused false claims to be submitted to Medicaid and TRICARE.
The government alleged that Connex and Riddle submitted claims to TRICARE and Medicaid for applied behavioral analysis services that were not provided during the period from March 1, 2019, through November 13, 2021. Connex’s behavioral analysis services are provided to children who have been diagnosed with Autism Spectrum Disorder and other related disorders.
Connex and Riddle will pay additional amounts, up to $2,053,387, if the company is sold within five years.
As part of the settlement, Connex entered into a three-year Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). This Integrity Agreement is designed to promote compliance with the statutes, regulations, program requirements, and written directives of Medicaid and all other federal health care programs.
The settlement arises in connection with two lawsuits filed by former employees under the whistleblower provision of the False Claims Act. United States ex rel. Schwartz v. Connex Family Services, LLC, et al., and United States ex rel. Liguori v. Connex Family Services, LLC, et al. The matters were consolidated in the Newport News Division.
A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other 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 resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; Health and Human Services Office of Inspector General; Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the Federal Bureau of Investigation; and the Commonwealth of Virginia’s Office of the Attorney General.
The matter was investigated by Assistant U.S. Attorney Clare P. Wuerker and former Assistant U.S. Attorney Ilene Albala. Assistant Attorneys General Ray F. Bowman and Jordan E. Sturgis of the Office of the Attorney General for the Commonwealth of Virginia Medicaid Fraud Control Unit handled the matter for Virginia Medicaid claims.
A copy of this press release may be found at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 4:21-cv-52.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Insider Trader Who Abused His Position at Capital One Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A foreign national formerly of Henrico pleaded guilty today to conspiracy and insider trading.
According to court documents, Nan Huang, 44, 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, nonpublic 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 and the conspiracy made over $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 earlier this year.
Huang is scheduled to be sentenced on February 2, 2024. 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 taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Senior U.S. District Judge T. S. Ellis, III accepted the plea.
Assistant U.S. Attorneys Christopher Hood and Zachary Ray 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. 1:18-cr-319.
EDVA Honors Federal, State, and Local Law Enforcement for Exceptional Service to the CommunityRead the Press Release
ALEXANDRIA, Va. – Today U.S. Attorney Jessica D. Aber recognized over 300 officers and agents from federal, state, and local law enforcement agencies with Public Service Awards.
The Eastern District of Virginia (EDVA) typically holds annual awards ceremonies to recognize the law enforcement officials for their service and contribution to various criminal and civil cases investigated and prosecuted here in EDVA. Award ceremonies took place September 6 in Newport News, September 7 in Norfolk, September 26 in Richmond, and today in Alexandria.
“Here in EDVA, as part of the Department of Justice, our mission is to uphold the rule of law, keep our country safe, and protect civil rights.” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “But we do not – and we cannot – do this work alone. Every day, federal, state, and local law enforcement officers from across the country work to protect their communities. These awardees were critical teammates on federal cases that represent the very best of this noble work.”
The awards highlighted federal cases, operations, and initiatives from 2022. The federal, state, and local law enforcement agencies listed below had officers and/or agents who were recognized for their bravery, outstanding collaboration, investigative achievement, investigative excellence, and victim assistance. Members of the following agencies were recognized at each of the ceremonies:
Alexandria
Newport News
Norfolk
Richmond
Alexandria Police
ATF Washington Field Division
ATF Washington Field Division
ATF Washington Field Division
Arlington County Police
Department of Labor OIG
Chesapeake Police Department
Department of Education – OIG
ATF Washington Division
FBI Cincinnati
Department of Homeland Security – OIG
Department of Homeland Security - OIG
Child Exploitation and Obscenity Section – HTIU
FBI Norfolk Field Office
Department of Labor – OIG
Department of Labor – OIG
Defense Contract Audit Agency
Gloucester County Sheriff’s Office
Drug Enforcement Administration
Drug Enforcement Administration Washington
Defense Criminal Investigative Services
Hampton Police
FBI-Norfolk Field Office
FBI-Richmond Field Office
Defense Intelligence Agency-Office of Inspector General
Homeland Security Investigations
General Services Administration– OIG
FDIC- OIG
Department of Homeland Security
Mathews County Sheriff’s Office
Homeland Security Investigations
Henrico County Police
Drug Enforcement Administration Memphis
Naval Criminal Investigative Service
Naval Criminal Investigative Service
Homeland Security Investigations
Drug Enforcement Administration Washington
Newport News Police
Norfolk Police
IRS-Criminal Investigation
FBI Washington Field Office
U.S. Marshals Service
U.S. Marshals Service
Richmond Police
Homeland Security Investigations
U.S. Postal Inspection Service
U.S. Postal Inspection Service
Small Business Administration – OIG
IRS-Criminal Investigations
Virginia Beach Police
Virginia Attorney General’s Office
Social Security Administration- OIG
Loudoun County Sheriff’s Office
Virginia State Police
Virginia Beach Police
U.S. Postal Inspection Service
Manassas City Police Department
Virginia Dept. of Forensic Science
VCU Police
Metropolitan Washington Airport Authority Police
Virginia Medicaid Fraud Control Unit
Virginia Office of Attorney General
Montgomery County Police Department
Virginia State Corporation Commission
Virginia Office of the State Inspector General
Naval Criminal Investigative Service
Virginia State Police
Virginia State Corporation Commission
Small Business Administration - OIG
TSA Federal Air Marshal Service
U.S. Air Force – Office of Special Investigations
U.S. Citizenship and Immigration Service
U.S. Department of State's Diplomatic Security Service (DSS)
U.S. Marine Corps
U.S. Park Police
U.S. Postal Inspection Service
U.S. Secret Service
Virginia State Police
In addition to awards presented for investigative efforts, the peer recovery specialists of Project Recover and their law enforcement and emergency medical partners were also recognized with an award at the Richmond ceremony. Project Recover funds certified peer recovery specialists (CPRS) assigned to Richmond City PD, Richmond Ambulance Authority, Chesterfield County PD, Hanover County Sheriff’s Office, eleven Bon Secours hospitals, and the Bon Secours’ Partial Hospitalization Program. These CPRSs assist overdose victims in getting into treatment and recovery programs immediately following drug overdose resuscitation and provide follow-up services and support. These individuals and their medical and law enforcement counterparts were awarded for their significant impact on public health and safety through trainings, Naloxone distribution, engagements with individuals suffering from substance use disorder, and increasing public awareness of treatment and recovery services.
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.
Chesapeake Man Sentenced for Five-Hour Armed Robbery SpreeRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced yesterday to 29 years in prison for his role in a series of armed robberies of 7-Eleven establishments in the cities of Newport News, Norfolk, and Virginia Beach.
According to court documents, starting just before midnight on July 24, 2019, and into the early morning hours of July 25, 2019, Deric Simons, 23; his co-conspirator Ronald Lee Brookins, Jr., 22, of Suffolk; and a third individual conducted a series of armed robberies at 7-Eleven convenience stores. Beginning at a store in Newport News, the three men entered the stores armed with a firearm, a knife, and a BB gun that resembled a real firearm. While brandishing their weapons, they demanded U.S. currency and commercial products from frightened employees. After leaving Newport News, the three conspirators committed four additional robberies, moving between locations in Norfolk and Virginia Beach. During the fifth and final robbery, Brookins and the third co-conspirator entered the convenience store while Simons remained in the getaway vehicle. In addition to the store employee, there were three customers inside the store at the time of the robbery. Brookins and the third co-conspirator brandished the BB gun and the loaded firearm at the employee and customers. As Brookins began to empty the register, an armed customer, fearing for everyone’s safety, discharged his personal weapon, injuring Brookins and killing the third co-conspirator.
In June, Brookins was sentenced to 25 years in prison for his role in the robberies.
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; Steve R. Drew, Chief of Newport News Police; Mark Talbot, Chief of Norfolk Police; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorneys Kristin Bird and Megan Montoya prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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. 2:19-cr-168.
Violent Recidivist Pleads Guilty to Being a Felon in Possession of a Firearm After Car ChaseRead the Press Release
RICHMOND, Va. – A Richmond City man pleaded guilty yesterday to being a felon in possession of a firearm.
According to court documents, on November 17, 2022, Shalik Mitchell, 30, was pulled over by Richmond Police officers during a traffic stop. Officers on routine patrol on Hull Street noticed a vehicle speeding and swerving around other motorists while failing to use a turn signal. Officers tried to catch up to the vehicle, which was still gaining separation at nearly 80 mph. The vehicle nearly veered off the roadway as it came to a stop, and officers noticed the front seat passenger making stuffing movements.
A loaded Stoeger STR-9, 9mm, semi-automatic pistol was stuffed in between the driver’s seat and center console, where Mitchell sat. At the time he possessed the pistol, Mitchell was a multiple time convicted felon and was approximately seven months into a term of supervised release for a 2019 conviction of being a felon in possession of a firearm. Mitchell was also previously convicted in 2015 by the City of Richmond Circuit Court of malicious wounding and use of a firearm in commission of a felony.
Mitchell is scheduled to be sentenced on December 21. He faces a maximum penalty of fifteen 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; 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 U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Special Assistant U.S. Attorney Devon Schulz and Assistant U.S. Attorney Stephen Anthony are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-39.
North Carolina Man Sentenced for Role in $5.8 M Fraud SchemeRead the Press Release
RICHMOND, Va. – A Huntersville, North Carolina, man was sentenced today to 87 months in prison for his role in a fraud scheme that caused over $5.8 million in losses to victims.
According to court documents and testimony at hearings, from 2016 through 2021, Jayson Ryman Colavalla, 51, along with Carl Anthony McNeill, 59, of Mechanicsburg, Pennsylvania; Richard Thornhill Crock, 75, of Mableton, Georgia; and Ksyntolious Miller, 60, of Woodbridge, were involved in an advance fee scheme targeting individuals, small businesses, churches, and other entities that could not obtain conventional lines of credit through banks. The co-conspirators promised these victims that, using their relationships with major investment banks, the co-conspirators could obtain lines of credit for the victims. The scheme required that the victims advance a deposit consisting of 10-14% of the line of credit sought, representing that the deposit would be held in escrow and returned if they did not obtain the line of credit. In fact, the co-conspirators did not have any relationships with the investment banks mentioned in their dealings with the victims and did not safeguard the victims' funds in escrow.
The fraudulently obtained funds from victims were misapplied to pay co-conspirators, cover the payroll and operating expenses of C&D Corporate Services, the company McNeill used to commit the fraud, and pay frustrated victims seeking the return of deposited money. Crock also falsely represented to victims that their advanced funds would be insured via policies issued through a Georgia-based insurance company. These policies were also fraudulent, as the insurance company did not have sufficient assets on hand to compensate victims under such policies.
Colavalla was also ordered to pay over $2.4 million in restitution to victims with which he was involved.
In May, McNeill and Crock were both sentenced to 46 months in prison. In July, Miller was sentenced to 20 months in prison.
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 sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Michael C. Moore and Avi Panth 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. 3:21-cr-132.
Gainesville Business Owner Settles PPP Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – Joe Slaiby, of Gainesville, agreed to pay $350,000 to settle a civil fraud case that alleged he falsified payroll and income documents to obtain loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) for four businesses where he is the owner and President.
The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to provide their income and supporting documents to qualify for the loan amount.
Slaiby obtained seven PPP loans for his four businesses, Black Hat Transportation LLC, Green Team Limousine d.b.a. Choice Limousine & Sedan Services LLC, Health N Wealth World LLC, and Slaiby7 Investments LLC, by submitting loan applications with inflated income and fabricated payroll documents to SBA-authorized lenders. Based on these fraudulent applications, Slaiby and his corporations, with the help of co-conspirator Bennie E. Magee, obtained PPP funds.
The settlement arises in connection with a lawsuit filed under the whistleblower provision of the FCA, United States ex rel. Salman v. Bull Run Capital Investments, Inc., et al. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” 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 relator here will receive a share of this settlement.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Special Inspector General for Pandemic Recovery, the Pandemic Response Accountability Committee Fraud Task Force, and the FBI’s Washington Field Office Criminal and Cyber Division.
The matter was investigated by Assistant U.S. Attorney Kristin Starr. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
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 from the civil lawsuit can be accessed on PACER by searching for No. 1:21-cv-852. The criminal case against Bennie E. Magee can be accessed on PACER by searching for No. 1:23-cr-91.
Virginia Medical Equipment Provider Ordered to Pay $12 M in Medicare Fraud Scheme as Civil PenaltyRead the Press Release
ALEXANDRIA, Va. – AZ Diabetic Supply, Inc. (AZD), a durable medical equipment (DME) provider located in Vienna, was ordered to pay $12 million for its submission of nearly 1,000 false and fraudulent claims to Medicare for reimbursement.
AZD is owned and operated by Hisham Zaghal, a resident of Vienna. In its complaint filed in district court, the United States alleged that from January 2016 through December 2021, Medicare paid AZD over $600,000 in reimbursement claims for medical braces provided to Medicare-enrolled patients related to DME prescriptions that AZD illegally purchased from marketing companies. AZD, through Zaghal, paid a fee for each prescription that it purchased. AZD used the DME prescriptions and personal and medical data provided by the marketing companies to submit 923 fraudulent Medicare claims for reimbursement. The District Court for the Eastern District of Virginia held AZD liable for its actions and entered a judgment against the company for damages and penalties under the False Claims Act for $12,036,554.48.
Zaghal reached a separate settlement agreement with the United States for his alleged role in the scheme. As part of that agreement, Zaghal agreed to pay $10,000 and accept a three-year voluntary exclusion from federally funded healthcare programs. He also agreed to forgo $57,690.12 funds in escrow held by the Department of Health & Human Services (HHS) from the nationwide suspension of payments to AZD and Zaghal. The claims against Zaghal resolved by the settlement are allegations only and there has been no determination of lability.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the U.S. Department of Health & Human Services Office of Inspector General.
The matter was handled by Assistant U.S. Attorney Kristin Starr and former Assistant U.S. Attorney Krista Anderson.
A copy of this press release may be found on the website at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 1:22-cv-965.
Three Individuals Plead Guilty to Straw Purchasing Conspiracy to Buy Illegal GunsRead the Press Release
ALEXANDRIA, Va. – Three individuals pleaded guilty yesterday to engaging in a straw purchasing conspiracy.
According to court documents, from at least March 19, 2020, through May 5, 2021, Stanley Davis, 24, of Petersburg, Mantriel Reaves, 25, of Chandler, Arizona, and Jasiri Wynn, 23, of Mount Holly, New Jersey, conspired to make false statements to federal firearms licensees in Virginia and elsewhere in order to obtain illegal firearms. During the conspiracy, Davis acted as a straw purchaser of firearms in Virginia on behalf of Reaves and Wynn.
Davis purchased at least eight firearms for Reaves and Wynn, who directed Davis as to which firearms to purchase. Several of these firearms were later recovered from individuals alleged to be involved in criminal activity. For example, one firearm was recovered from a juvenile in Baltimore, a second firearm was recovered from an individual in New Jersey who was prohibited from possessing firearms, and a third firearm was recovered by law enforcement during the execution of a search warrant in Frostburg, Maryland, as part of an armed robbery investigation.
Davis and Reaves are scheduled to be sentenced on January 19, 2024. Wynn is scheduled to be sentenced on January 26, 2024 They face a maximum penalty of 5 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 T. S. Ellis III accepted the plea.
Assistant U.S. Attorneys Natasha Smalky and Lauren Halper are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-111.
Man and Woman Sentenced for Armed Robberies of Richmond Discount StoresRead the Press Release
RICHMOND, Va. – A Richmond man and woman were sentenced yesterday to a combined 24.5 years in prison for their role in two armed robberies.
According to court documents, Michael Brown, 41, and Rashanda Booker, 38, as well as co-defendant Ricardo Horne, 41, robbed a Family Dollar, located at 7 East 16th Street, Richmond, Virginia,on April 17, 2022. They also robbed a Dollar General, located at 3903 Walmsley Boulevard, Richmond, Virginia, on April 28, 2022.
On April 17, 2022, Horne and Brown forcefully grabbed a Family Dollar employee as he sought to empty trash prior to the store opening. Brown, holding a semiautomatic pistol that belonged to his sister, guided the employee to a safe inside the store and held him at gunpoint near the safe while emptying it. Horne stood watch and maintained control over a customer as well as another terrified Family Dollar employee. Altogether, they obtained approximately $10,000 from Family Dollar—money they used to buy high-end shoes at a boutique shoe store.
Between the two robberies in this case, Horne and Brown directed Booker to purchase new pistol for the second robbery. She did so on April 22, 2022. Six days later, Horne and Brown committed another armed robbery of a Dollar General. Brown entered the store carrying the semiautomatic pistol purchased by Booker alongside Horne. After Horne grabbed control of one of the employees, the two men took her to find the Dollar General manager who could open the safe. Brown held the manager at gunpoint near the safe while Horne maintained control of the other employee. Notably, several customers, including a woman and her young son, were shopping in the store at the time of the robbery.
A GPS tracker was installed inside some of the money taken from the Dollar General. Brown and Horne exited the store with the United States currency, entered Booker’s car, and then drove off. As Booker drove, Brown and Horne changed their clothing. Law enforcement began to follow the GPS tracker and discovered Booker, Brown, and Horne in Booker’s Blue Toyota sedan. Among the items recovered by law enforcement were the clothing worn during the armed robbery of the Dollar General by Brown and Horne, the Taurus, Model G3C, 9mm, semi-automatic pistol used during that robbery, and a Family Dollar bag.
Brown was sentenced to 19.5 years in prison and Booker was sentenced to 5 years in prison for their roles. Horne was previously sentenced on April 13 to 12 years in prison.
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; Craig Kailimai, Special Agent in Charge of the ATF’s Washington Field Division, and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney.
Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Jessica Wright 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-122.
Woodbridge Man Sentenced for Defrauding the Elderly in Romance Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 15 months in prison for conspiring to launder money in relation to romance and investment frauds.
According to court documents, from 2014 to March 2019, Ishmael Kayede, 40, conspired and agreed with multiple co-conspirators to launder funds derived from mail or wire fraud schemes, including romance fraud, gold and diamond investment fraud, and other fraud scams. During his participation in this money laundering conspiracy, Kayede received funds in his bank accounts from victims of those romance and other fraud schemes while working with and at the direction of associates located in foreign jurisdictions, including Ghana.
Kayede’s co-conspirators largely targeted elderly victims in the United States, primarily using online dating websites such as match.com. They would befriend potential victims on the dating websites using false pretenses and would then exploit that trust to convince the victims to send money to Kayede’s bank accounts. Kayede would then transmit the funds to Ghana. If he had trouble moving the money, he would lie to bank officials about the source and nature of the funds. Some victims targeted by the scheme lost thousands of dollars; others lost more than a hundred thousand dollars to the defendant’s activities. In total, Kayede received and laundering approximately $1.3 million over the course of his involvement with the scheme.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by U.S. District Judge Michael S. Nachmanoff.
Assistant U.S. Attorney Jonathan Keim and former Assistant U.S. Attorney Carina Cuellar 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. 1:23-cr-94.
Former Lieutenant for the Newport News Fire Department Sentenced for Coercion and Enticement of a Child and Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to over 33 years in prison for coercion and enticement of a child and receipt of child sexual abuse material (CSAM).
According to court documents, in February 2022, Christopher Scott Jones, 43, used the internet to entice and coerce a minor to engage in sexual activity. During the investigation of this offense, the FBI discovered several children who may have been victims of Jones’ conduct. The minors were forensically interviewed and three made disclosures of sexually explicit contact with Jones. One minor disclosed Jones engaging with them over the course of nine months in physical and sexual conduct, to include inappropriate sexual contact and the mutual exchange of sexually explicit images to one another. Forensic examinations of his devices and lawful searches of his accounts confirmed the illicit relationships. In addition, in July 2022, Jones traveled to meet an undercover individual posing as a 12-year-old for sex.
On May 18, Jones pleaded guilty to using a communication facility to knowingly persuade, induce, entice, and coerce a minor to engage in sexual activity. Jones also pleaded guilty to receiving child pornography of his victim.Jones was formerly a lieutenant with the Newport News Fire Department.
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 sentencing by U.S. District Judge Jamar K. Walker.
James City County Police Department assisted in this investigation.
Assistant U.S. Attorney Peter Osyf prosecuted 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. 4:23-cr-32.
Woodbridge Residents Ordered to Pay $336,356 for Defrauding the Paycheck Protection ProgramRead the Press Release
ALEXANDRIA, Va. – On September 7, the U.S. District Court for the Eastern District of Virginia entered a judgment that ordered Bernice Suppey, 40, and Kwaku Adubofour, 42, of Woodbridge, to pay $336,356 based on their fraudulent applications for multiple loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
“The Paycheck Protection Program has been a critical lifeline to small businesses and workers during the COVID-19 crisis,” said U.S. Attorney Jessica D. Aber. “EDVA is committed to using all enforcement tools – both civil and criminal – to hold accountable anyone who took advantage of the program for personal gain.”
“This recovery is a direct result of the concerted efforts of SBA and the United States Attorney’s Office for the Eastern District of Virginia to investigate claims of fraud in SBA’s COVID-relief programs and to recover funds lost through fraud from individuals and companies that engage in such activities,” said SBA’s General Counsel, Therese Meers.
The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to provide their income and supporting documents to calculate and confirm the loan amount.
Suppey and Adubofour obtained four PPP loans by submitting applications with inflated income and fabricated tax documents to SBA-authorized lenders. Based on these fraudulent applications, the Court found Suppey and Adubofour liable for violating the False Claims Act, conspiring to violate the False Claims Act, and for violating the Financial Institutions Reform, Recover, and Enforcement Act (FIRREA).
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 and the Small Business Administration’s Office of Litigation.
The case was prosecuted by Assistant U.S. Attorneys William Hochul III and Kristin Starr.
The case caption is United States v. Suppey, No. 1:22-cv-00279-CMH-IDD. 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.
Leader of International Gift Card Fraud Scheme ConvictedRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Chinese national residing in Washington, D.C. yesterday on charges of conspiracy, access device fraud, money laundering, and aggravated identity theft.
According to court records and evidence presented at trial, Qinbin Chen, 29, masterminded a criminal conspiracy that obtained, trafficked, used, and laundered gift cards and debit cards purchased by victims, who were mostly elderly, from across the United States. The victims were manipulated into buying Walmart gift cards by fraudsters who told the victims a range of lies, such as their social security numbers had been compromised, their bank accounts had been hacked, or there was an issue with their computer software. The victims sent the gift cards to fraudsters who soon transferred them to Chen. Chen employed conspirators to use the Walmart gift cards to buy other gift cards. Chen then sold those “clean” gift cards to overseas buyers. Though Chen reported little legitimate income, his bank accounts showed hundreds of thousands of dollars in incoming international wires. Evidence at trial suggested that Chen trafficked about $7 million in fraudulently obtained gift cards.
Chen faces a mandatory minimum of two years in prison and a maximum penalty of 20 years in prison when sentenced on December 18. 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.
Chen is the seventh defendant convicted as part of this investigation. Co-conspirators He Li, 45; Shouming Sun, 44; Jin Hong, 40; Yuchen Zhang, 26; Mouluan Wu, 47; and Zhizhan Chen, 26, have pleaded guilty to related charges.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Javan S Wilson, Special Agent in Charge of the U.S. Department of Treasury Office of the Inspector General, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
The Loudoun County Sherriff’s Office also assisted in the prosecution of Chen.
Assistant U.S. Attorneys Christopher Hood and Kenneth R. Simon, Jr. 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. 1:22-cr-216.
26 Defendants Charged for Drug Trafficking in Multi-State OperationRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office announced today that an indictment was unsealed charging 26 defendants of drug trafficking, possessing a firearm during drug trafficking, money laundering, and other charges.
These charges were brought as the result of Operation Lights Out, an FBI-led investigation in partnership with federal, state, and local law enforcement agencies. The defendants have been indicted for the following charges:
Name
Age
Hometown
Charges
Cortez Dayshawn Bumphus, aka “Co”
34
Newport News
Continuing Criminal Enterprise
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Felon in possession of Firearm
Distribution of Fentanyl and Marijuana
Possession of Firearm During Drug Trafficking
Maintaining a Drug Involved Premises
Use of a Communication Facility in Furtherance of Drug Trafficking
Dontae Lamont Dozier, aka “2 Chains”
35
Chesapeake
Continuing Criminal Enterprise
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money;
Distribution of Fentanyl and Marijuana
Possession of Firearm During Drug Trafficking
Maintaining Drug Involved Premise
Use of a Communications Facility in Furtherance of Drug Trafficking
Zuri Anthony Dre-Oliver Reeves, aka “Zu” or “ZuWaap”
26
Spotsylvania
Continuing Criminal Enterprise
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Possession of Firearm During Drug Trafficking
Use of a Communication Facility in Furtherance of Drug Trafficking
Amanda Bell
22
Chesapeake
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Possession of Firearm During Drug Trafficking
Use of a Communication Facility in Furtherance of Drug Trafficking
Dilquon Best, aka “Quon” or “DQ”
31
Atlanta, GA
Continuing Criminal Enterprise
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Stephon Lamount Bumphus, aka “Fon”
34
Newport News
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Damian Deshawn Gay, aka “Hatch”
25
Hampton
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Possession of Firearm During Drug Trafficking
Interstate Travel in Aid of Racketeering
Andrea Hunt
28
Hampton
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Use of a Communication Facility in Furtherance of Drug Trafficking
Obstruction of Justice
Ervin Orlando Linares, aka “Ery”
23
Los Angeles, CA
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Interstate Travel in Aid of Racketeering
Use of a Communication Facility in Furtherance of Drug Trafficking
Brandon Lamar Martin, aka “Lil B”
37
Hampton
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Interstate Travel in Aid of Racketeering
Possession of Firearm During Drug Trafficking
Carl Eugene Mitchell, Jr., aka “Lil Man”
27
Newport News
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Interstate Travel in Aid of Racketeering
Earvin Jerome Moore, aka “Gooch”
43
Newport News
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Maintaining a Drug Involved Premises
Freddie Jamaul Moore, aka “Goons”
37
Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Possession of Firearm During Drug Trafficking
Use of a Communication Facility in Furtherance of Drug Trafficking
Dominique McKenzie Osborne
24
Hampton
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Rahkim O’Neil Perry, aka “Rahk”
25
Newport News
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Distribution of Fentanyl and Marijuana
Interstate Travel in Aid of Racketeering
Graciela Ruiz-Bernabe, aka “Grace”
33
Los Angeles, CA
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Interstate Travel in Aid of Racketeering
Nathan Caleb Schlosser-Goodson, aka “Nasty”
25
Yorktown
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Distribution of Fentanyl and Marijuana
Possession of Firearm During Drug Trafficking
Camille Lache Smith
30
Los Angeles, CA
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Anastasia Suyas
25
Newport News
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Nyra Taylor
23
Hampton
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Interstate Travel in Aid of Racketeering
Christina Michele Thompson
26
Spotsylvania
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Terrance Leonard Vick, aka “V”
36
Rio Linda, CA
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Interstate Travel in Aid of Racketeering
Use of a Communication Facility in Furtherance of Drug Trafficking
Thaddeus Williams IV, aka “Thad”
31
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Interstate Travel in Aid of Racketeering
Korea Woods
26
Irvine, CA
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Distribution of Fentanyl and Marijuana
Guang Yang, aka “Ryan”
26
Rosemead, CA
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Use of a Communication Facility in Furtherance of Drug Trafficking
Distribution of Fentanyl and Marijuana
Alicia Zamora
22
Chesapeake, VA
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, Cocaine, Fentanyl, Oxycodone and Cocaine Base
Conspiracy to Launder Money
Distribution of Fentanyl and Marijuana
Use of a Communication Facility in Furtherance of Drug Trafficking
Interstate Travel in Aid of Racketeering
If convicted, the defendants each face a mandatory minimum of 10 years in prison and a maximum of life 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; Colonel Gary T. Settle, Superintendent of Virginia State Police; Jimmie Wideman, Chief of Hampton Police; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Steve R. Drew, Chief of Newport News Police; Mark G. Solesky, Chief of Chesapeake Police; Stephen Jenkins, Chief of Portsmouth Police; Craig Kailimai, Special Agent in Charge of the ATF’s Washington Field Division; and Shannon Saylor, U.S. Marshal for the Eastern District of Virginia, made the announcement.
“The unsealing of this indictment reflects months of incredible efforts by law enforcement. We are able to bring these charges because of the effective cooperation and collaborative effort of our local, state and federal partners on this case,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “I am grateful to all our attorneys, agents and officers who work diligently every day to take massive amounts of illegal guns and drugs off of our streets.”
“The arrests made in this operation is the culmination of years of investigative work between the FBI and our law enforcement partners,” said Brian Dugan, Special Agent in Charge of the FBI Norfolk Field Office. “Today, I want to sincerely thank those partners for their teamwork and patience as we gathered the evidence needed for this investigation to come to a logical conclusion, as our law enforcement partners have been dealing with some of these offenders for over a decade. I hope that this operation gives them a return on investment for all the officers and resources they dedicated to assisting the investigation. This operation is a testament to the strong partnership the FBI has with local and state police, as well as sheriff’s offices, and how that partnership better protects our communities.”
“These arrests are just one of the many successful operations achieved over the years through the collaborative agency partnerships within the FBI Peninsula Safe Streets Task Force,” said Colonel Gary T. Settle, Virginia State Police Superintendent. “The Virginia State Police Bureau of Criminal Investigation's Chesapeake Field Office is proud to have played a role in dismantling what had become a very violent, multi-tiered, drug trafficking organization spanning much of the Hampton Roads region.”
“Combating violent crime, illegal firearm possession and narcotics distribution within our communities remains at the forefront of the ATF mission,” said Craig Kailimai, Special Agent in Charge of the ATF’s Washington Field Division. “I am proud that our agents and partner agencies worked to bring some peace of mind back to the affected communities. ATF will continue leveraging its expertise to ensure that illegal firearms and deadly narcotics are removed from our streets.”
“Our community and surrounding jurisdictions are not immune to the violence stemming from illegal drug trafficking,” said Steve R. Drew, Chief of Newport News Police. “It has become a top priority to take illegal drugs and guns off our streets and holding those accountable for endangering our communities. We are proud to have been part of this proactive approach and are honored to have served with the U.S. Attorney’s office, and other federal and local agencies to combat this issue. We believe that together we can make a difference and create a safer environment for our community.”
“Today's arrest is a clear demonstration of the exceptional cooperative effort among law enforcement in the Hampton Roads area,” said Stephen Jenkins, Chief of Portsmouth Police. “It exemplifies the effectiveness of collaboration between federal, state, and local agencies who have united to combat a suspected violent drug trafficking organization. This operation not only underscores the commitment of both federal and local law enforcement but also highlights their unwavering dedication to ensuring the safety of our community.”
Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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-54.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Norfolk Man Convicted of Drug, Firearm, and COVID Fraud ChargesRead the Press Release
NORFOLK, Va. – A federal judge convicted a Norfolk man yesterday on charges involving the simultaneous sale of cocaine and firearms, distribution of cocaine, use of a firearm in the commission of narcotics trafficking, being a felon in possession of a firearm, and fraudulently receiving $83,330 in Paycheck Protection Program (PPP) loans in 2021.
According to court records and evidence presented at trial, between 2021 and 2022, Bonas was apprehended by Bureau of Alcohol, Tobacco and Firearms (ATF) agents after he participated in a scheme involving a group of co-conspirators who distributed approximately one kilogram of cocaine and 15 firearms. Bonas participated in four controlled purchases in the summer of 2021 which involved three firearms, two of which were stolen, and approximately 3.5 ounces of cocaine. He was also identified as a prolific distributor of crack cocaine in Norfolk and Virginia Beach during the same period.
As part of their investigation, ATF agents discovered through bank records that Bonas received four Small Business Administration-guaranteed PPP loans of $20,833 each and spent the money on various personal expenses, including the purchase of a luxury vehicle, restaurant and bar tabs, clothing, jewelry, sports gambling, and over $16,800 on rental cars. Bonas also sought and obtained forgiveness of the $83,330 in loans using the same fraudulent data.
Bonas faces a mandatory minimum penalty of 10 years and a maximum penalty of life in prison when sentenced on January 16, 2024. 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 ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge Raymond A. Jackson returned the verdict.
Assistant U.S. Attorney Sherrie S. Capotosto is prosecuting the case.
Congress authorized PPP loans under the CARES Act as a source of funds to allow small businesses to continue making payroll and other business-related expenses during the COVID-19 pandemic. On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-25.
Portsmouth Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty yesterday to possession of a firearm by a convicted felon.
According to court documents, Michael Drake, 22, and others were dealing drugs out of a residence located in Portsmouth. Over a period of three weeks in January and February, law enforcement observed at least 10 different individuals, including Drake, conduct over 500 suspected narcotics transactions. On February 23, law enforcement observed Drake with a firearm, despite being a convicted felon. He and two others, Samuel Swinney, 37, and Keith Johnson, Jr., 35, were arrested and charged.
Swinney pleaded guilty to distribution of cocaine and Johnson pleaded guilty to possession of a firearm by a convicted felon. Both are scheduled to be sentenced in December.
Drake is scheduled to be sentenced on January 16, 2024. He faces a maximum of 15 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; Jarod 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 U.S. District Judge Jamar K. Walker accepted the plea.
Assistant U.S. Attorney Amanda Cheney is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-83.
Leader of International Money Laundering Network Sentenced for Laundering Millions of Dollars in Drug ProceedsRead the Press Release
ALEXANDRIA, Va. – A foreign national was sentenced today to 10 years in prison and ordered to forfeit $6 million for conspiracy to commit money laundering after laundering millions of dollars of drug proceeds on behalf of international drug trafficking organizations.
According to court documents, from at least 2014 to 2020, Jianxing Chen, 42, of Belize City, Belize, led and controlled a network of couriers who transported cash generated by the sale of cocaine throughout the United States – including Chicago, Houston, Los Angeles, New York, and Atlanta – from those locations to New York City. From there, the cash was laundered through a variety of methods until it, or its equivalent value, was remitted to drug trafficking organizations in Latin America, including Mexico. Chen received “contracts” to transport and launder this money through co-conspirators who were prosecuted and convicted based on the same superseding indictment.
Chen coordinated the laundering of multimillion dollar quantities of drug proceeds from Latin American drug trafficking organizations, including organizations based in Mexico, into the hands of Chinese nationals, who subsequently engaged in a sophisticated scheme to covertly launder the drug money into mainland China, largely circumventing the U.S. financial system.
Chen pleaded guilty on May 23. In October 2021, co-defendant, Xizhi Li, was sentenced to 15 years in prison for leading the conspiracy to launder tens of millions of dollars for foreign drug trafficking organizations. Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Drug Enforcement Administration Administrator Anne Milgram made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema
The DEA Louisville Division and the DEA’s Special Operations Division, Bilateral Investigations Unit investigated the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland (Oregon), Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta, Manila, Tokyo, Seoul, Bangkok, Lima, and Canberra. The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection’s National Targeting Center were partners in the case’s investigation.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of Chen from Peru. The United States also thanks Peruvian law enforcement authorities for their assistance and collaboration.
Assistant U.S. Attorney Anthony Aminoff, former Assistant U.S. Attorneys David A. Peters and Rachael C. Tucker, and Deputy Chief Mary K. Daly and Chief Stephen Sola of the Justice Department’s Money Laundering and Asset Recovery Section, Money Laundering and Forfeiture Unit 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. 1:19-cr-334.
Leader of International Money Laundering Network Sentenced for Laundering Millions of Dollars in Drug ProceedsRead the Press Release
A foreign national was sentenced today to 10 years in prison and ordered to forfeit $6 million for conspiracy to commit money laundering after laundering millions of dollars of drug proceeds on behalf of international drug trafficking organizations.
According to court documents, from at least 2014 to 2020, Jianxing Chen, 42, of Belize City, Belize, led and controlled a network of couriers who transported cash generated by the sale of cocaine throughout the United States – including Chicago, Houston, Los Angeles, New York, and Atlanta – from those locations to New York City. From there, the cash was laundered through a variety of methods until it, or its equivalent value, was remitted to drug trafficking organizations in Latin America, including Mexico. Chen received “contracts” to transport and launder this money through co-conspirators who were prosecuted and convicted based on the same superseding indictment.
Chen coordinated the laundering of multimillion dollar quantities of drug proceeds from Latin American drug trafficking organizations, including organizations based in Mexico, into the hands of Chinese nationals, who subsequently engaged in a sophisticated scheme to covertly launder the drug money into mainland China, largely circumventing the U.S. financial system.
Chen pleaded guilty on May 23. In October 2021, co-defendant Xizhi Li was sentenced to 15 years in prison for leading the conspiracy to launder tens of millions of dollars for foreign drug trafficking organizations. Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
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, and DEA Administrator Anne Milgram made the announcement.
The DEA Louisville Division and the DEA’s Special Operations Division, Bilateral Investigations Unit investigated the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland (Oregon), Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta, Manila, Tokyo, Seoul, Bangkok, Lima, and Canberra. The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection’s National Targeting Center were partners in the investigation.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of Chen from Peru. The United States also thanks Peruvian law enforcement authorities for their assistance and collaboration.
Deputy Chief Mary K. Daly and Chief Stephen Sola of the Justice Department’s Money Laundering and Asset Recovery Section, Money Laundering and Forfeiture Unit, former Assistant U.S. Attorneys David A. Peters and Rachael C. Tucker and Assistant U.S. Attorney Anthony Aminoff for the Eastern District of Virginia 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 www.justice.gov/OCDETF.
Convicted Felon Sentenced for Possessing Narcotics and Firearm in Furtherance of Drug TraffickingRead the Press Release
ALEXANDRIA, Va. – A Baltimore man was sentenced today to 10 years in prison for possession of a firearm in furtherance of a drug trafficking offense and possession with the intent to distribute cocaine.
According to court documents, in December 2022, Rodney Burgess, 29, unlawfully purchased a firearm, extended magazine, and 9mm ammunition from a Federal Firearms Licensee in Woodbridge through a straw purchaser. On March 2, 2023, investigators with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) arrested Burgess pursuant to a federal warrant. During a search incident to his arrest, investigators recovered from Burgess’s person at least 40 grams of cocaine base, a Schedule II substance; pills containing Fentanyl; and $1,453 in cash. Investigators also recovered a loaded 9mm handgun with extended magazine, a scale, two cell phones, and empty drug packaging material in his hotel room.
Burgess was ordered to forfeit the firearm and all accompanying magazines and ammunition that were seized at the time of his arrest.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Toni M. Crosby, Special Agent in Charge of the ATF’s Baltimore Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Baltimore City Police Department provided significant assistance in this case.
Special Assistant U.S. Attorneys Colleen McCarthy and Brittney Dimond, and Assistant U.S. Attorney Ronald L. Walutes, 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. 1:23-cr-93.
Fairfax Man Pleads Guilty to Child Sexual Abuse Material ChargesRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to receipt of child sexual abuse material (CSAM), receipt of obscene visual representations of the sexual abuse of children, and possession of CSAM.
According to court documents, since at least April 2018, James Andrew Whitney, 62, used an Internet‑based peer‑to‑peer file‑sharing service to seek out and download video and image files depicting minors engaged in sexually explicit conduct. Some of the images and videos depicted prepubescent minors and minors under the age of 12. Moreover, as early as April 2010, Whitney used the CSAM he downloaded to create projects in which he photoshopped prepubescent, naked minor females into photographs around his residence and narrated a sexual encounter between himself and the minor victims. Whitney also used the file‑sharing service to seek out and download obscene, computer‑generated material depicting, among other scenes, the abduction of a child from a playground and subsequent rape of that minor.
Whitney is scheduled to be sentenced on January 12, 2024. He faces a mandatory minimum of 5 years in prison and a maximum penalty of 20 years imprisonment for each charge. 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 Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the plea.
Special Assistant U.S. Attorney Rachel L. Rothberg and Assistant U.S. Attorney Vanessa Strobbe are prosecuting the case.
The forensic examiners of the Child Exploitation and Obscenity Section’s High Technology Investigative Unit 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 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.
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.
Two Men Sentenced for $7.6 Million COVID Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Manassas man and a Bealeton man were sentenced today to a combined 6 years in prison for engaging in a joint scheme to defraud banks and the Small Business Administration of over $7 million in COVID relief funds.
According to court documents, from approximately April 2020 to March 2021, Bennie Earl Magee, 55, falsified payroll records, created fake IRS business tax returns, and submitted to lenders and the SBA falsified revenue reports of multiple companies to obtain over $7 million in PPP and EIDL loans for himself and others. Michael Gilcher, 46, obtained $1.4 million of the total, but wrote checks back to Magee’s company, Bull Run Capital, totaling approximately $620,000. Magee also involved another individual in the scheme and proposed the fraud to yet others. Magee used over $5 million of the PPP fraud proceeds to invest in crypto currency, to purchase vehicles, and to pay other personal and business expenses.
“PPP and EIDL loans were created to assist those financially effected by the COVID-19 pandemic. Mr. Magee and Mr. Glicher not only lied to the IRS and stole millions of taxpayer funds, but frivolously spent it on items such as vehicles and cryptocurrency,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to work with the SIGPR and other law enforcement partners to prosecute those who take advantage of all of us.”
Magee was sentenced to 5 years and Gilcher was sentenced to 1 year in prison for their roles in the conspiracy.
“This prosecution and investigation resulted in the sentencing of two individuals responsible for defrauding the taxpayers of millions of dollars by abusing federal programs designed to bring relief to struggling small businesses that were hit hard by the pandemic,” said Brian Miller, the Special Inspector General for Pandemic Recovery. “SIGPR is glad to have played a significant role teaming with the FBI and the United States Attorney’s Office to hold these individuals accountable.”
"At a time when many small businesses were trying to keep their doors open and support their employees, these fraudsters chose to lie and steal from small business relief programs to line their own pockets," said Inspector General Michael E. Horowitz, Chair of the PRAC. "Today's sentencing demonstrates the commitment of the Inspector General community and federal prosecutors to bring to justice those who brazenly stole money from taxpayers. We appreciate the partnership with the investigating agents, the FBI, and U.S. Attorney Aber to protect COVID-19 relief funds for the public."
“Today’s sentencings are an example of the continued commitment of the FBI to identify and hold to account those who engaged in COVID relief fraud,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “Magee and Glicher engaged in a joint scheme to defraud banks and the Small Business Administration of over $7 million in COVID relief funds. Even years after COVID relief funds were distributed, the FBI and our partners continue to investigate these schemes which defrauded the government and stole from taxpayers.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Miller, Special Inspector General for Pandemic Recovery (SIGPR); and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
This case was investigated by a SIGPR agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 16 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
Assistant U.S. Attorneys Russell L. Carlberg and Kathleen Robeson 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-86 and 1:23-cr-91.
Convicted Felon Sentenced for Selling Illegal Machine Gun Conversion KitsRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 6 years in prison for selling machine gun conversion devices.
According to court documents, Marcus Bushnell, 37, was illegally selling cocaine, firearms and machine gun conversion devices. These devises are classified as machine guns and allow for the conversion of Glock handguns into fully automatic firearms. In November 2021, law enforcement purchased these machine gun conversion devices from the defendant on more than one occasion. Bushnell is a convicted felon and was previously a member of the Bloods gang.
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 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 Elizabeth Wilson Hanes.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
This case is part of a larger Organized Crime and Drug Task Force (OCDETF) investigation occurring on the Virginia Peninsula. 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. 4:23-cr-4.