Eastern District of Virginia
Press releases recorded for this federal judicial district.
Northern Virginia Resident Settles Allegations of Fraudulently Obtaining Paycheck Protection Program LoansRead the Press Release
ALEXANDRIA, Va. – Latifa Brooks, a resident of McLean, has agreed to pay $107,347 to settle a civil fraud case alleging that she fraudulently applied for and received two Paycheck Protection Program (PPP) loans and subsequently fraudulently obtained forgiveness on both loans.
On March 31, 2022, the United States filed a Complaint against Brooks under the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). According to the allegations in the Complaint, in April 2021, Brooks obtained two PPP loans, totaling $42,601, based on her asserted status as an independent contractor and the sole proprietor of Superb Movers, Inc. The United States alleged Brooks listed false gross income amounts and submitted fake tax returns in support of the PPP applications. In September 2021, Brooks obtained forgiveness for both PPP loans through allegedly falsely certifying compliance with all PPP rules and requirements.
As a part of this resolution, Brooks agreed to repay $47,772 for the loan forgiveness amounts and processing fees that the Government paid because of Brooks’ allegedly false claims and statements, and an additional $59,575 to settle the United States’ claims for treble damages under the FCA and civil penalties under the FCA and alternatively the FIRREA. The Complaint filed by the United States is a result of EDVA’s ongoing effort to use data analysis to proactively identify fraudulently obtained PPP loans.
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 Small Business Administration.
The matter was investigated by Assistant U.S. Attorneys William Hochul and Krista Anderson.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Related court documents and information from the civil lawsuit are available on PACER by searching for Case No. 1:22-cv-00359. 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.
Lorton Man Sentenced for Distributing Fentanyl Causing DeathRead the Press Release
ALEXANDRIA, Va. – A Lorton man was sentenced today to 22 years in prison for distributing fentanyl that resulted in the death of a young woman.
According to court documents, Julian Velasquez, 36, distributed counterfeit Xanax containing fentanyl to E.M., which caused E.M.’s death by accidental fentanyl intoxication. On August 8, 2020, E.M. flew from California to visit Velasquez and was staying with Velasquez at his residence. Sometime during the late evening hours of August 8, 2020, or the morning of August 9, 2020, E.M. took a pressed Xanax pill laced with fentanyl provided by Velasquez. On August 9, 2020, Velasquez found E.M. unresponsive but he did not call 911 or seek medical assistance for E.M. Velasquez instead called his friend and drug customer, Enoel Comsti, 27, of Vienna, to assist in removing evidence of drug use and drug distribution from the crime scene at Velasquez’s residence.
Prior to Comsti’s arrival, Velasquez sold heroin to another drug customer at his residence. Velasquez collected evidence of drug use and distribution, to include drug paraphernalia and narcotics, from his residence and Comsti drove him to a storage unit so that Velasquez could conceal the evidence from authorities prior to reporting the overdose death of E.M. Comsti’s vehicle became inoperable prior to arrival at the storage unit, and Velasquez continued on foot to the storage unit prior to returning to his residence without Comsti. Velasquez distributed heroin to Comsti in exchange for Comsti’s assistance in removing and concealing evidence of the drug overdose from the residence. After Velasquez returned to his residence, he called 911 to request medical assistance for E.M. During the 911 call, Velasquez made false statements to emergency medical services regarding E.M.’s current condition, what had transpired, and Velasquez denied the possibility of E.M. suffering from a drug overdose. Emergency medical services arrived at Velasquez’s residence and found E.M. deceased in Velasquez’s bedroom.
In addition to admitting to causing E.M.’s death, Velasquez also admitted to distributing narcotics to several other individuals who, after using the drugs distributed by Velasquez, suffered drug overdoses. Those additional overdoses included several non-fatal overdoses, as well as the fatal overdoses of M.S. in 2017 and K.M. in 2018. All of the other overdoses occurred prior to the distribution of fentanyl to E.M. that caused her fatal overdose.
Comsti pleaded guilty to aiding and abetting tampering with evidence and was sentenced to 21 months in prison.
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 Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston.
Assistant U.S. Attorneys Ryan Bredemeier and Bibeane Metsch 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. 1:21-cr-287 and Case No. 1:21-cr-243.
Virginia Beach Woman Sentenced for Lottery Scheme Defrauding Elderly VictimsRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to 57 months in prison for defrauding elderly victims across the United States of several hundred thousand dollars in a lottery and sweepstakes scheme.
According to court documents, Terry Lynn Miller, 62, signed a cease-and-desist order with the United States Postal Service in June 2019, in which she agreed to stop participating in fraudulent lottery and sweepstakes schemes. In those schemes, victims would be falsely told they had won millions of dollars but needed to first pay thousands of dollars in taxes and fees to receive their winnings. After signing the order, Miller immediately resumed her participation in the scheme and continued until she was arrested in May 2021. Miller would deposit the money the victims sent her into her personal bank accounts, and then convert it and funnel it to her co-conspirators. Miller also forged victim signatures on fraudulent checks and mailed locked briefcases to victims. The victims were told the briefcases contained their winnings and that they would receive the combination to the lock when they paid their taxes and fees. However, Miller had packed the briefcases with Hampton Roads newspapers and magazines. In sum, about ten victims were defrauded of over $220,000. Some victims lost their life savings.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Assistant U.S. Attorney Rebecca Gantt prosecuted the case.
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 think you or someone you know might be a victim of a lottery mailing scheme, you can file a report with the United States Postal Inspection Service at https://www.uspis.gov/report. Requests to transfer or accept funds from a private individual as a prerequisite to receiving winnings are indicators of a possible fraud scheme. For more information on how to identify a potential lottery scheme, visit https://consumer.ftc.gov/articles/fake-prize-sweepstakes-lottery-scams
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. 2:21-cr-56.
Government Contractor Agrees to Pay $425,000 for Alleged False Claims Related to Conflicts of InterestRead the Press Release
Cape Henry Associates (Cape Henry), located in Virginia Beach, Virginia, has agreed to pay $425,000 to resolve allegations that it violated the False Claims Act by failing to inform contracting officers of the company’s organizational conflicts of interest (OCI) in connection with the award and performance of task orders on government contracts. Cape Henry performs manpower analysis, personnel analysis and training services for the U.S. Armed Forces.
The Justice Department alleged that Cape Henry failed to disclose that one of the company’s officers had an ownership interest in KOVA Global, a company to which Cape Henry awarded subcontracts to provide warehouse services in connection with two sole source task orders issued by the Army and General Services Administration (GSA).
“It is critical that companies disclose potential conflicts of interest to protect the integrity of the federal procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who knowingly conceal relevant information that may affect the award or performance of a government contract.”
“The failure of government contractors to disclose organizational conflicts of interest harms government procurement, creates unfairness, and can cost the taxpayers money,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia.
The Justice Department also alleged that Cape Henry failed to disclose relevant information about a conflict of interest arising from advisory & assistance services (A&AS) performed in 2015 by Q.E.D. Systems Inc. (Q.E.D.), a Cape Henry subcontractor. In connection with a multi-year delivery order under a Navy SeaPort-e contract, Cape Henry would submit project-specific proposals to a Navy program management office that was responsible for determining the scope and funding for each project. At the same time that Cape Henry was submitting proposals to the Navy, Cape Henry was also funding the direct labor of a Q.E.D. employee through a subcontract. This Q.E.D. employee was providing A&AS services to the Navy program office and making recommendations that could potentially affect Cape Henry’s funding and treatment in connection with these project proposals. Cape Henry failed to disclose this conflict of interest to the contracting officer as required by the OCI clause in Cape Henry’s contract with the Navy.
“The Department of Defense requires its contractors to divulge any potential conflicts of interest to maintain the integrity of the military’s procurement process,” said Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by fully investigating all allegations of procurement fraud.”
“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions. The ability to protect and defend the assets of the United States Army is always our top priority,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's (Army CID) Major Procurement Fraud Field Office.
“GSA OIG special agents are committed to working with DOJ and investigative partners to ensure that taxpayer dollars are properly spent and protected," said Special Agent in Charge Eric D. Radwick of the GSA Office of Inspector General, Mid-Atlantic Division.
“This settlement agreement demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to vigorously pursue those who attempt to exert improper influence over the federal government contracting process and to protect American taxpayer dollars,” said Special Agent in Charge Christopher W. Dillard of the Department of Defense, Office of Inspector General, DCIS.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia with assistance from the DCIS, the Army CID, the GSA Office of Inspector General, the Defense Contract Audit Agency, and the Naval Criminal Investigative Service.
The matter was handled by Trial Attorney Jason M. Crawford of the Civil Division and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.
The claims resolved by the settlement agreement are allegations only; there has been no determination of liability.
Government Contractor Agrees to Pay $425,000 for Alleged False Claims Related to Conflicts of InterestRead the Press Release
ALEXANDRIA, Va. – Cape Henry Associates (Cape Henry), located in Virginia Beach, has agreed to pay $425,000 to resolve allegations that it violated the False Claims Act by failing to inform contracting officers of the company’s organizational conflicts of interest in connection with the award and performance of task orders on government contracts.
Cape Henry performs manpower analysis, personnel analysis, and training services for the United States Armed Forces. The allegations involved that Cape Henry failed to disclose that one of the company’s officers had an ownership interest in KOVA Global, a company to which Cape Henry awarded subcontracts to provide warehouse services in connection with two sole source task orders issued by the Army and General Services Administration (GSA).
The Justice Department also alleged that Cape Henry failed to disclose relevant information about a conflict of interest arising from advisory & assistance services (A&AS) performed in 2015 by Q.E.D. Systems, Inc. (Q.E.D.), a Cape Henry subcontractor. In connection with a multi-year delivery order under a Navy SeaPort-e contract, Cape Henry would submit project-specific proposals to a Navy program management office that was responsible for determining the scope and funding for each project. At the same time that Cape Henry was submitting proposals to the Navy, Cape Henry was also funding the direct labor of a Q.E.D. employee through a subcontract. This Q.E.D. employee was providing A&AS services to the Navy program office and making recommendations that could potentially affect Cape Henry’s funding and treatment in connection with these project proposals. Cape Henry failed to disclose this conflict of interest to the contracting officer as required by the OCI clause in Cape Henry’s contract with the Navy.
“The failure of government contractors to disclose organizational conflicts of interest harms government procurement, creates unfairness, and can cost the taxpayers money,” said U.S. Attorney Jessica D. Aber.
“It is critical that companies disclose potential conflicts of interest to protect the integrity of the federal procurement process,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who knowingly conceal relevant information that may affect the award or performance of a government contract.”
“The Department of Defense requires its contractors to divulge any potential conflicts of interest to maintain the integrity of the military’s procurement process,” said Acting Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our federal law enforcement partners remain committed to ensuring the good stewardship of taxpayer dollars by fully investigating all allegations of procurement fraud.”
“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions. The ability to protect and defend the assets of the United States Army is always our top priority,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's (Army CID) Major Procurement Fraud Field Office.
“GSA OIG special agents are committed to working with DOJ and investigative partners to ensure that taxpayer dollars are properly spent and protected," said Special Agent in Charge Eric D. Radwick of the GSA Office of Inspector General, Mid-Atlantic Division.
“This settlement agreement demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to vigorously pursue those who attempt to exert improper influence over the federal government contracting process and to protect American taxpayer dollars,” said Special Agent in Charge Christopher W. Dillard of the Department of Defense, Office of Inspector General, DCIS.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Virginia, the Justice Department’s Civil Division, Commercial Litigation Branch, and Fraud Section, and with assistance from the Defense Criminal Investigative Service, the Army Criminal Investigation Division, the General Services Administration Office of Inspector General, the Defense Contract Audit Agency, and the Naval Criminal Investigative Service.
The matter was handled by Assistant U.S. Attorney Clare Wuerker and Trial Attorney Jason M. Crawford of the Justice Department’s Civil Division.
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.
The claims resolved by the settlement agreement are allegations only; there has been no determination of liability.
Former Norfolk Sheriff Sentenced for Public CorruptionRead the Press Release
NORFOLK, Va. – A former elected Sheriff of the City of Norfolk was sentenced today to 12 years in prison for defrauding the citizens of Norfolk through bribery schemes. Last August, a jury convicted the former Sheriff of all 11 felonies charged against him.
According to court documents, Robert McCabe, 63, engaged in illicit quid pro quo relationships with vendors while he served as the Sheriff of the City of Norfolk. Evidence presented at trial showed that from 1994 through 2016, vendors provided McCabe with cash, travel, entertainment, gift cards, catering, personal gifts, and campaign contributions, in exchange for official actions that favored the vendors and their contracts with the Norfolk City Jail. These favorable actions included changing the terms of the contracts to favor certain companies, granting extensions and renewals, and providing inside bidding information.
Gerard Boyle, 64, of Franklin, Tennessee was the Chief Executive Officer of Correct Care Solutions (CSS), a company that he founded and which contracted with the Norfolk Sheriff’s Office to provide medical services to the inmates at the Norfolk City Jail. Between about January 2004 and December 2016, Boyle provided McCabe with cash, travel, a loan, entertainment, gift cards, personal gifts and campaign contributions. In exchange, McCabe performed official acts in favor of CCS, which was able to obtain medical services contracts worth more than $3 million per year with the Norfolk Sheriff’s Office. In one instance, McCabe met with Boyle at a hotel in Philadelphia where Boyle gave McCabe $6,000 in cash. On October 7, 2021, Boyle pleaded guilty to conspiring to commit honest services mail fraud by paying bribes to secure medical services contracts for the Norfolk City Jail
McCabe engaged in a similar illicit quid pro quo relationship with the Chief Executive Officer of a Louisiana-based company that provided food services management to the Norfolk City Jail. In exchange, the company regularly provided free catering at McCabe’s home, for his annual golf tournaments, and for other political events. The company’s former CEO also gave McCabe free trips – including a trip to the 2004 BCS National Championship game in Louisiana – and a ride in a glass-bottomed helicopter in San Francisco.
Despite receiving a multitude of gifts from vendors, McCabe concealed these bribes by never disclosing any of these items in his required campaign disclosures.
On February 25, Boyle was sentenced to three years in prison, ordered to forfeit $2,700,000, and to pay a $35,000 fine.
McCabe was sentenced today to 12 years in prison. The advisory guideline range for the charges for which he was convicted was a term of life imprisonment capped at 220 years.
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 Darrell J. Waldon, Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Melissa E. O’Boyle, Randy C. Stoker, and 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. 2:19-cr-171.
Midlothian Woman Pleads Guilty to $1.2 M COVID-19 Fraud SchemeRead the Press Release
RICHMOND, Va. – A Midlothian woman pleaded guilty today to defrauding the Pandemic Unemployment Assistance (PUA) Program, the Paycheck Protection Program (PPP), and the Economic Injury Disaster Loan (EIDL) program, using victims’ personal identifying information that she obtained from her state government employment.
According to court documents, in the first of three fraud schemes, from May 2020 to August 2021, Sadie Mitchell, 30, with the assistance of her co-conspirator, executed a scheme to defraud the Virginia Employment Commission by filing at least 20 fraudulent unemployment applications using the personal identifying information of inmates. Among the false information included in these applications were false physical addresses, false last employers, and a false certification that the inmates were ready, willing, and able to work in the event employment became available. The conspirators further defrauded the Virginia Employment Commission by filing at least 30 fraudulent applications in the names of other individuals whose personal identifying information was obtained, in part, by Mitchell querying a government database she had access to as an employee of the Virginia Motor Vehicle Dealer Board. Through this fraud scheme, the conspirators obtained approximately $1 million in PUA and Unemployment Insurance benefits.
Additionally, from June 2020 to June 2021, Mitchell devised and executed a scheme to defraud the PPP and EIDL programs. The defendant submitted 5 PPP applications to a financial institution, each containing false statements, false representations, or false certifications. For instance, these applications contained false and fabricated gross figures and false certifications that the businesses were in operation on February 15, 2020. The defendant further executed a scheme to defraud the EIDL program, which was intended to give forgivable loans to small businesses. Mitchell submitted several fraudulent EIDL applications to the Small Business Administration for businesses that had no customers, employees, or business activity, and in those applications, she made false statements, representations, and false certifications.
Mitchell pleaded guilty to conspiracy to commit mail fraud and wire fraud and is scheduled to be sentenced on August 23. 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; Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division; Troy Springer, Acting Special Agent in Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Joseph V. Cuffari, Inspector General for the Department of Homeland Security, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Significant assistance was provided by the Virginia Department of Motor Vehicle, Virginia Employment Commission and the Virginia Department of Corrections.
Assistant U.S. Attorneys Kashan K. Pathan and Carla Jordan-Detamore 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. 3:22-cr-44.
Convicted Felon Pleads Guilty to Online Purchases of Firearms and Firearm ComponentsRead the Press Release
ALEXANDRIA, Va. – A Fairfax County man pleaded guilty today to being a felon in possession of a firearm.
According to court documents, throughout 2020, Babak Safavi, 59, used false names and the internet to acquire and assemble an armory of assault weapons, including at least one with no serial number, while being a convicted felon. Safavi acquired firearms, ammunition, silencers that could be affixed to firearms, suppressor tubes and adapters to manufacture his own firearms suppressors, AR-15 accessories, gun-building kits and other firearm components.
On March 15, during a court-authorized search at Safavi’s residence, law enforcement recovered an AM-15 rifle; an AR style rifle with no serial number; a Stag Arms Stag 15 rifle; a Smith and Wesson M&P 9 Pro; over 2000 rounds of ammunition; 3 silencers; and other firearm components. All four firearms had threaded barrels, meaning they were able to receive a silencer, and the handgun had an illegal silencer attached. The magazines for the weapons were loaded.
Safavi is scheduled to be sentenced on September 1. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; Kevin Davis, Fairfax County Chief of Police, made the announcement after U.S. District Judge Patricia T. Giles accepted the plea.
Assistant U.S. Attorney Ron Walutes 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. 1:22-cr-76.
New York Man Convicted of Threatening Government OfficialsRead the Press Release
RICHMOND, Va. – A federal jury convicted a New York man yesterday on three counts of mailing threatening letters to a federal law enforcement officer with the Naval Criminal Investigative Service and to a federal prosecutor.
According to court records and evidence presented at trial, in 2021, Brock Beeman, 29, sent at least four threatening letters from prison to governmental employees associated with a separate criminal prosecution of the defendant in Norfolk. These letters included detailed threats to kill, torture, and/or maim various individuals, including a United States District Judge, United States Probation Officer, Assistant United States Attorneys, Special Agents with the Naval Criminal Investigative Service, United States Marshals, and other individuals associated with the defendant’s Norfolk criminal prosecution, as well as their friends and family members. These letters further included bomb threats for various locations, including federal courthouses, a military installation, and law enforcement offices.
Beeman faces a maximum penalty of 10 years in prison on each of his three counts when sentenced on August 11. 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 Shannon Saylor, Acting United States Marshal for the Eastern District of Virginia, made the announcement after U.S. District Judge M. Hannah Lauck accepted the verdict.
Assistant U.S. Attorneys Angela Mastandrea-Miller and Avi Panth 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. 3:21-cr-095.
Man Pleads Guilty to Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and PPP Loan FraudRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to wire fraud and to conspiring with others in a scheme to prepare false tax returns seeking millions of dollars of tax refunds from the Internal Revenue Service (IRS) and to defraud the Paycheck Protection (PPP) loan program by filing over 80 PPP loan applications seeking over $100 million.
According to court documents, Quin Ngoc Rudin, 45, a convicted felon, was the Secretary, Director and Chief Financial Officer of Mana Tax Services, which purported to be a tax preparation business in the Los Angeles area. Rudin engaged in a conspiracy to commit two sets of fraud schemes using Mana Tax.
First, from May of 2019 through his arrest in December of 2021, Rudin and his co-conspirators prepared and filed with the IRS a series of false and fraudulent income tax returns on behalf of at least nine professional athletes that reported fabricated business and personal losses in order to get large refunds to which they were not entitled. Rudin and the co-conspirators represented to the professional athletes that Rudin was knowledgeable and experienced in the preparation of tax returns. Rudin represented that Mana Tax could obtain large refunds for the athletes and that he had specialized knowledge that their prior CPAs and tax professionals did not have. Not only did Rudin assist in the preparation of original tax returns for his professional athlete clients, but he also filed amended tax returns for past years to correct what he falsely characterized as “errors” made by the athletes’ previous accountants. Mana Tax then charged the athletes a fee of 30% of whatever amount of tax refunds the IRS issued. As a result of Rudin’s scheme to defraud the United States, the IRS paid refunds to the athletes totaling millions of dollars.
For his second scheme, from April of 2020 through December of 2021, Rudin and his co-conspirators assisted small businesses in applying for PPP loans, a federal loans initiative designed to help businesses pay their employees and meet their expenses during the COVID-19 pandemic, in exchange for a 30% fee. Additionally, Rudin and his co-conspirators prepared fraudulent PPP loans for business entities that the co-conspirators controlled. In order to obtain the fraudulent PPP loans, Rudin and his co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the applications. Some of the businesses were not eligible for any PPP loan funds at all because they did not have any payroll expenses. Rudin and his co-conspirators obtained millions of dollars in fraudulently obtained PPP loans.
The conspirators also submitted fabricated tax returns in support of the PPP loan applications. Some of the business owners never saw their loan applications before Mana Tax filed them. To conceal the 30% fee obtained from the business owners, Rudin and his co-conspirators directed the businesses to pay the fee with cashier’s checks and to note falsely on the memo lines of the checks that the funds were related to payroll.
The total actual losses for the tax fraud and PPP loan fraud are between $25 million and $65 million.
Rudin pleaded guilty to one count of conspiracy to defraud the United States and to commit wire fraud, as well as to one count of wire fraud. Rudin is scheduled to be sentenced on August 17. He faces a maximum penalty of 20 years in prison for wire fraud and 5 years in prison for conspiring to defraud the United States and to commit wire fraud. 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; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen, and Assistant Chief of the Justice Department’s Tax Division David Zisserson of the prosecuted the case.
The United States Attorney’s Office for the Central District of California provided assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-46.
Jury Convicts Midlothian Family Members of Conspiracy to Commit Forced LaborRead the Press Release
RICHMOND, Va. – A federal jury today convicted three members of a Midlothian, Virginia household on charges pertaining to forced labor. Zahida Aman, 80, was convicted of conspiracy to commit forced labor, forced labor, and document servitude. Mohammed Rehan Chaudhri, 48, was convicted of conspiracy to commit forced labor and forced labor. Mohammad Nauman Chaudhri, 54, was convicted of conspiracy to commit forced labor.
“The defendants exploited someone who should have been a loved family member to force her to work in their home for over 14 years,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Forced labor, the modern-day equivalent of slavery, has no place in our country or district, and we will stop at nothing to prosecute those that commit these or similar crimes. Let this conviction serve as a light to survivors impacted by labor trafficking and as a deterrent to those conspiring to commit heinous labor trafficking crimes.”
According to court records and evidence presented at trial, in 2002, the victim married Aman’s son and the brother of defendants Nauman and Rehan Chaudhri. Thereafter, she lived in the home of the defendants. Over the next 12 years, the three defendants forced her to perform domestic services. To coerce that labor, the defendants verbally assaulted and physically abused the victim over a period of 12 years. In addition, though the victim, a native of Pakistan, had temporary immigration status in the United States, defendant Aman took the victim’s immigration documents. Thereafter, defendants threatened the victim with deportation should she not obey their demands. The defendants also threatened to separate the victim from her children to coerce her labor.
“The defendants exploited the victim’s trust and inflicted cruel and inhumane physical and mental abuse on her, all so they could keep her working in their home as their domestic servant,” said Assistant Attorney General Kristen Clarke. “Human trafficking is a disgraceful and unacceptable crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“The FBI is committed to working with our partners to protect the civil rights of all persons, investigate and prosecute allegations of abuse, and assist the victims of these crimes throughout the process,” said Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office. “The strength and perseverance of this victim and the investigative team should be commended; and we encourage any community member who knows of or suspects this type of abuse is occurring to report it to authorities immediately.”
Aman and Mohammed Rehan Chaudhri face a maximum penalty of 20 years in prison. Mohammad Nauman Chaudhri 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 Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office, made the announcement after U.S. District Judge John A. Gibney accepted the verdict. Homeland Security Investigations also participated in the investigation.
Assistant U.S. Attorneys Shea Gibbons, Stephen Miller, and Heather H. Mansfield are prosecuting the case, along with Trial Attorney Leah L. Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.
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-85.
U.S. Attorney’s Office in EDVA Commemorates National Police WeekRead the Press Release
ALEXANDRIA, Va. – In honor of National Police Week, U.S. Attorney Jessica D. Aber will recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.
“I am grateful for the dedication of our law enforcement officers, who serve under increasingly challenging and dangerous conditions,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “National Police Week is a time to express our gratitude while honoring their sacrifice. I hope that this week is a chance for everyone to reflect on the many positive contributions of law enforcement agencies to our communities and seek out a partnership of trust and collaboration with them.”
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19.
Here in the Eastern District of Virginia, Frederick Henry “Butch” Cameron Jr. of the Fairfax County Sheriff’s Office died on January 12, 2021, from complications as the result of contracting COVID-19 while on duty at the Fairfax County Judicial Center. EDVA also remembers Police Officer George Gonzalez of the Pentagon Force Protection Agency, who was killed in the line of duty on August 3, 2021.
Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
Former Labor Union Secretary-Treasurer Pleads Guilty to EmbezzlementRead the Press Release
RICHMOND, Va. – An Emporia man pleaded guilty today to embezzlement and theft of labor union assets.
According to court documents, from April 2013 through April 2019, Anthony Jordan, 55, worked as the Secretary-Treasurer of the Brotherhood of Locomotive Engineers and Trainmen, Division 26. Throughout the scheme, Jordan used his position and employment at Division 26 in order to steal money at the expense of the labor union. While serving as Division 26’s Secretary-Treasurer, a salaried position, Jordan embezzled funds from the union by writing unauthorized checks to himself from Division 26’s checking account, and by making unauthorized direct debits, ATM withdrawals, and cash back transactions from Division 26’s checking account.
In total, Jordan embezzled $30,519.76 from the union. He used the union’s funds to pay for personal expenses, such as for veterinary services, utilities, cell phone service, internet and cable, groceries, personal tax returns, convenience store transactions, and more.
Jordan is scheduled to be sentenced on September 8. He faces a maximum penalty of 5 years in prison and potential financial penalties. 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 made the announcement after U.S. District Judge Henry E. Hudson accepted the plea.
The Department of Labor, Office of Labor Management, investigated 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. 3:22-cr-049.
Jury Convicts Men for Gang-Related Multistate Drug Trafficking Ring and MurderRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted four defendants on numerous charges relating to a murder, a violent gang enterprise, and a drug trafficking conspiracy operating in Virginia, California, and several other states.
According to court records and evidence presented at trial, Peter Le, 24, of Dunn Loring, Young Yoo, 26, of Centreville, Joseph Lamborn, 28, of California, and Tony Le, 28, also of California, were members of a violent Northern Virginia Street gang called the Reccless Tigers, which was affiliated with a California gang called the West Side Asian Boyz. The gang, which originated in Centerville in 2011, distributed thousands of pounds of marijuana as well as other THC products, cocaine, ecstasy, and prescription drugs. Many of the gang’s customers were middle and high school students in Northern Virginia and college students at a number of Virginia universities.
According to court records, victim Brandon White, owed Yoo approximately $10,000 for marijuana he had obtained from Yoo. In August 2018, White was severely beaten by a Reccless Tigers gang member, David Nguyen, because of this debt. Nguyen was arrested by Fairfax County Police and charged with robbery and malicious wounding. The gang was aware that White had been subpoenaed to testify against Nguyen at a preliminary hearing and attempted to pay him if he would refuse to testify. White was threatened that he would be killed if he testified. White refused the gang's offer, and he testified against Nguyen on Nov. 19, 2018.
On Jan. 31, 2019, and continuing into the early morning hours of February 1, 2019, White was abducted at a shopping mall in Fairfax County and then killed two hours later in a wooded area of Richmond by Peter Le, Yoo, and Lamborn.
The evidence at trial indicated that the gang also engaged in persistent pattern of intimidation and retaliation against individuals who did not pay their drug debts and anyone who were believed to have cooperated with law enforcement. Homes in Fairfax, Stafford, and Prince William counties were attacked with Molotov cocktails and vandalized on numerous occasions, forcing homeowners in some instances to move.
Peter Le was convicted of conspiracy to engage in racketeering, narcotics trafficking and related narcotics offenses, kidnapping, murder, and money laundering. Lamborn was convicted of conspiracy to engage in racketeering, narcotics trafficking, kidnapping, and murder. Yoo was convicted of conspiracy to engage in racketeering, narcotics trafficking, kidnapping, and murder. Tony Le was convicted of conspiracy to engage in racketeering and narcotics trafficking.
Peter Le, Young Yoo, and Joseph Lamborn face mandatory life sentences when sentenced on September 9. Tony Le faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment when he is sentenced of September 9.
As demonstrated in the table below, 24 other persons have been charged in connection with the investigation of the Reccless Tigers. Sixteen defendants have pleaded guilty to federal charges and have been sentenced. Nine defendants, five who pleaded guilty earlier in addition to the four convicted today, are pending sentencing. Three defendants are fugitives.
Name
Conviction(s)
Result
Peter Le*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances; Killing while engaged in drug trafficking; Maintaining a drug-involved premises; Distribution of marijuana and cocaine; Use, carry, and possession of a firearm during a drug trafficking crime; Money laundering.
Faces mandatory life imprisonment on September 9, 2022
Young Yoo*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances, Killing while engaged in drug trafficking.
Faces mandatory life imprisonment on September 9, 2022
Joseph Duk-Hyun Lamborn*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Violent crimes in aid of racketeering murder; Conspiracy to engage in kidnapping; Kidnapping resulting in death; Conspiracy to distribute controlled substances; Killing while engaged in drug trafficking; Firearms murder.
Faces mandatory life imprisonment on September 9, 2022
Tony Minh Le*
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Conspiracy to distribute controlled substances.
Faces a mandatory minimum of 10 years and a maximum of life on September 9, 2022
Kevin Aagesen
Conspiracy to distribute controlled substances; Conspiracy to commit kidnapping in aid of racketeering activity.
Sentenced to 188 months
Sascha Amadeus Carlisle
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Conspiracy to engage in kidnapping; Conspiracy to distribute controlled substances.
Faces a mandatory minimum of 10 years on July 29, 2022
Abdullah Abdow Sayf
Conspiracy to commit kidnapping in aid of racketeering activity; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 180 months
Fahad Abdulkadir
Conspiracy to commit kidnapping in aid of racketeering activity; Possession with the intent to distribute 50 kilograms or less of marijuana; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 192 months
David Thai Hoang Nguyen
Conspiracy to distribute controlled substances
Sentenced to 171 months
Kyu Wa Hong
Conspiracy to distribute controlled substances
Sentenced to 216 months
Sang Thanh Huynh
Conspiracy to participate in the affairs of an
enterprise engaged in a pattern of racketeering activity; Conspiracy to distribute controlled substances; Money laundering; Felon in possession of a firearm.
Scheduled to be sentenced on July 22, 2022
Soung Park
Conspiracy to distribute controlled substances
Sentenced to 132 months
Tasneef Amhed Chowdhury
Conspiracy to distribute controlled substances
Sentenced to 121 months
Joshua Andrew Miliaresis
Conspiracy to distribute controlled substances
Faces a mandatory minimum of 10 years at a future sentencing hearing
Tyler Thang Le
Conspiracy to distribute controlled substances
Sentenced to 135 months
Dane Nicholas Hughes
Conspiracy to distribute controlled substances
Faces a mandatory minimum of 5 years at a future sentencing hearing
Bradley Sullivan
Conspiracy to distribute controlled substances
Faces a mandatory minimum of 5 years at a future sentencing hearing
Richard Pak
Conspiracy to distribute controlled substances; Distribution of cocaine; Use and carry of a firearm during and in relation to a drug trafficking crime.
Faces a mandatory minimum of 10 years at a future sentencing hearing
Spencer Pak
Conspiracy to distribute controlled substances; Distribution of cocaine; Use and carry of a firearm during and in relation to a drug trafficking crime.
Sentenced to 120 months
Tyler Pranompi Sonesamay
Conspiracy to distribute controlled substances
Sentenced to 120 months
Khalil Yasin
Conspiracy to distribute controlled substances
Sentenced to 97 months
Anthony Nguyen Thanh Le
Conspiracy to distribute controlled substances and distribution of cocaine
Sentenced to 92 months
Angel Hoang Le
Maintaining a drug-involved premises
Sentenced to 42 months
Zu Hun Chang
Possession with the intent to distribute cocaine
Sentenced to 42 months
Brandon Sobotta
Distribution of cocaine
Sentenced to time served (about 7 months)
* convicted today
This was a multi-jurisdictional OCDETF case involving the FBI Washington Field Office, ATF, HSI, IRS, U.S. Postal Service, U.S. Marshals Service, Fairfax County Police Department, Prince William County Police Department, City of Richmond Police, Montgomery County (MD) Police, Loudoun County Sheriff’s Office, Falls Church Police, City of Alexandria Sheriff’s Office, Richmond County Sheriff’s Office, Fairfax County Sheriff’s Office, Fairfax County Fire Marshal, Prince William County Fire Marshal, Stafford County Fire Marshal, City of Monterey Park (CA) Police, Garden Grove (CA) Police, Anaheim (CA) Police; Trinity County (CA) Sheriff’s Office, California Highway Patrol, DEA San Francisco Division – Reading Office, California Department of Forestry and Fire Protection, California Department of Food & Agriculture, California Department of Consumer Affairs Bureau of Cannabis Control, U.S. Attorney’s Office Eastern District of California – Sacramento Office, U.S. Attorney’s Office Central District of California – Santa Ana and Riverside Offices, and the FBI’s Field Offices in Richmond, Los Angeles, and Sacramento.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict.
Assistant U.S. Attorneys James L. Trump, Carina A. Cuellar, and Ryan Bredemeier 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. 1:19-cr-57.
Virginia Beach Man and Woman Sentenced for Fentanyl Trafficking and Firearm ChargesRead the Press Release
NORFOLK, Va. – A Virginia Beach man and woman were sentenced to more than 23 years in prison combined for possessing with intent to distribute 14,000 tablets of fentanyl and possession of a firearm during a drug trafficking crime.
According to court documents, Marcus Hughes, 32, along with his co-conspirator Deshowna Corprew, 30, were pulled over for a traffic stop after exiting the Chesapeake Bay Bridge Tunnel. The police discovered in their vehicle 14,000 tablets of fentanyl, one kilogram of cocaine, and a loaded .40 caliber handgun. They were returning from Rhode Island where they had picked up the drugs from the source of supply. There were also two small children in the vehicle, ages 4 and 7.
Hughes was sentenced to 20 years in prison on April 29. Corprew was sentenced today to 44 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Virginia Beach Police Department provided significant contributions to this case.
Assistant U.S. Attorney Bill Muhr 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. 2:21-cr-90.
Virginia Beach Man Charged with Dealing Illegal MachinegunsRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging a Virginia Beach man with possessing and selling unregistered machineguns.
According to the indictment, between approximately October 2021 and April 2022, Patrick Tate Adamiak, 28, was obtaining illegal machine guns that were not registered and he was selling these machine guns online. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) purchased eight machine guns from him through a confidential source. They then executed a search warrant at Adamiak’s residence and recovered 25 additional unregistered machineguns.
Adamiak is charged with receiving, possessing, and transferring unregistered machineguns, and for selling firearms without a federal firearms license. If convicted of these charges, Adamiak faces a maximum sentence of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division made the announcement.
Assistant U.S. Attorney Bill Muhr 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. 2:22-cr-47.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Virginia Beach Woman Pleads Guilty to $2.7M Tax FraudRead the Press Release
NORFOLK, Va. – A Virginia Beach woman pleaded guilty yesterday to failing to pay over to the Internal Revenue Service (IRS) payroll taxes that were deducted from her employees’ paychecks.
According to court documents, from at least 2011 to 2019, Wendy Brockenbrough, 53, failed to pay over to the IRS pay roll taxes from the three different companies she owned. As the principal owner, Brockenbrough was responsible for withholding the required employment taxes and paying that amount over to the IRS. She also had an obligation to file Form 941, Employer’s Quarterly Federal Tax Return but failed to do so for years with respect to each of these businesses.
The court records indicate that Brockenbrough issued her employees weekly paystubs and annual Form W-2s indicating that the appropriate payroll taxes were being withheld from her employees’ paychecks. While Brockenbrough withheld the taxes, she failed to pay over the amounts to the IRS. Instead, Brockenbrough lived a lavish lifestyle by purchasing a Regulator center console boat for approximately $126,000, a Hatteras 60-foot yacht for approximately $820,000, and a Jeep Wrangler for approximately $41,000. Brockenbrough attempted to conceal her actions by lying to her accountants and stating that she made the payments. To support her claims, she forged IRS records and Quickbook entries showing the taxes had been paid. Brockenbrough’s actions caused an approximate $2,721,268 loss in unpaid payroll taxes to the IRS.
Brockenbrough is scheduled to be sentenced on September 8. She 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, and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after U.S. Magistrate Judge Robert J. Krask took the plea.
Assistant U.S. Attorney Joseph Kosky 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. 2:22-cr-46.
Prince George Man Pleads Guilty to Multimillion Dollar Fraud SchemeRead the Press Release
RICHMOND, Va. – A Prince George man pleaded guilty yesterday to tax fraud and executing a conspiracy to defraud individual lenders, financial institutions, and his employer out of almost $9 million.
According to court documents, from 2012 to 2020, Robert W. Guidry, 54, conspired with Christopher W. Elko, 51, Petersburg, to enrich themselves by, among other methods, falsely purporting to sell ownership interests in businesses where the conspirators worked, obtaining fraudulent loans and other forms of credit from individual lenders and financial institutions, and embezzling money from their employer. As part of the conspiracy, Guidry solicited and induced individuals to lend him money under false pretenses, claiming that the loans would be used for investment purposes—when, in fact, Guidry actually used the money to pay for personal expenses or to repay other lenders.
The conspirators also obtained loans and lines of credit from various financial institutions, relying on misrepresentations and deliberate omissions about Guidry’s personal financial status, such as the value of his assets and the amount of his liabilities. To repay the individual lenders and financial institutions they had fraudulently borrowed money from, and to pay their own personal expenses, the conspirators concocted a scheme to defraud their employer by misappropriating money through various frauds. For instance, the conspirators diverted customer payments owed to their employer to a bank account controlled by the conspirators, and fabricated payables to their employers’ vendors and others, depositing the payments into bank accounts they controlled.
In total, the conspirators' actions caused a total loss of more than $8.8 million to investors, banks, and their former employer.
Guidry is scheduled to be sentenced on September 7, 2022. 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; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Kashan K. Pathan and Thomas A. Garnett and former Assistant U.S. Attorney Katherine Lee Martin 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-42.
Jury Convicts Dutch National for Participation in Terror Financing RingRead the Press Release
ALEXANDRIA, Va. – Today a federal jury convicted a Dutch woman on charges for her participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to court records and evidence presented at trial, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women coordinated the payments using online chatrooms.
Hassan, in particular, was involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12 and 11 years imprisonment, respectively.
Hassan was convicted of conspiracy to provide material support to a designated foreign terrorist organization. She faces a maximum penalty of 15 years in prison when sentenced on July 22. 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 Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh 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. 1:14-cr-230.
Jury Convicts Dutch National for Participation in Terror Financing RingRead the Press Release
Today, a federal jury convicted a Dutch woman on charges stemming from her participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to court records and evidence presented at trial, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women coordinated the payments using online chatrooms.
Hassan, in particular, was involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, Virginia, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12- and 11-years’ imprisonment, respectively.
Hassan was convicted of conspiracy to provide material support to a designated foreign terrorist organization. She faces a maximum penalty of 15 years in prison when sentenced on July 22. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Assistant Director Timothy Langan of the FBI’s Counterterrorism Division, and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh for the Eastern District of Virginia are prosecuting the case, with valuable assistance provided by Trial Attorney Kathleen Campbell of the National Security Division’s Counterterrorism Section.
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition from the Netherlands.
Rewards Offered for Capture and Conviction of Leaders of Honduran Drug Trafficking OperationRead the Press Release
ALEXANDRIA, Va. – Today the U.S. Department of State announced a reward of up to $5 million each for information leading to the arrest and conviction of three Honduran nationals indicted in the Eastern District of Virginia on charges stemming from their roles as leading figures in a drug-trafficking operation.
On October 8, 2015, a federal grand jury returned an indictment charging Tito Montes-Bobadilla, aka Alejandro Montes-Bobadilla or Pimpi, 32; Herlinda Bobadilla, aka Erlinda Ramos-Bobadilla or Chinda, 61; Juan Carlos Montes-Bobadilla, aka Mono, 35; Noe Montes-Bobadilla aka Ton, 38; and two others with conspiracy to distribute five kilograms or more of cocaine. The Department of State is offering $5 million for information leading to the arrest and/or conviction of Tito Montes-Bobadilla, Herlinda Bobadilla, or Juan Carlos Montes Bobadilla. The three Bobadillas are currently fugitives and are believed to be armed and dangerous.
According to court documents and allegations in the indictment, from 2006 until the date of the indictment, Juan Carlos Montes-Bobadilla, his mother Herlinda Bobadilla, and his brother Tito Montes-Bobadilla allegedly were leaders in the Montes-Bobadilla drug-trafficking organization (DTO), or “Los Montes,” one of the largest drug cartels in Honduras. Noe Montes-Bobadilla led the Montes DTO prior to his arrest and extradition to the United States in 2017. Noe Montes-Bobadilla’s brothers, Tito Montes-Bobadilla and Juan Carlos Montes-Bobadilla, allegedly led cells within the DTO with their own supply and distribution networks. Their mother, Herlinda Bobadilla, allegedly assisted her sons in the importation, transportation, and distribution of cocaine. Through these efforts, the Montes DTO allegedly distributed thousands of kilograms of cocaine destined for the United States.
The Montes DTO allegedly had its base of operations around Francia, Honduras, in the Department of Colón. The Montes DTO allegedly received shipments of cocaine via boats, clandestine aircraft, and even submarines by South American suppliers. Individual shipments allegedly carried hundreds of, and sometimes more than a thousand kilograms of cocaine. The Montes DTO allegedly worked closely with other drug-trafficking organizations to import the cocaine in Honduras and transport it north through Central America and Mexico to the United States.
After his extradition, Noe Montes-Bobadilla was convicted, and, in April 2019, sentenced to 37 years’ imprisonment on the drug-trafficking charge.
If you have information regarding this case, please contact the U.S. Drug Enforcement Administration (DEA) at +504-9452 4032 or +504-9430 7106, which can accept messages from the social messaging applications WhatsApp and Signal, or by email at [email protected]. If you are located outside of the United States, please contact the nearest U.S. Embassy or Consulate. If in the United States, please contact the local DEA office in your city.
Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler, and Anthony Aminoff of the Eastern District of Virginia and Trial Attorneys Teresita Mutton and Douglas Meisel of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Noe Montes-Bobadilla.
This case is being investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Harpoon. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-290.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Reaches Settlement Agreement with Prince George County, Virginia, and the Virginia Retirement System to Enforce Servicemember’s Employment RightsRead the Press Release
ALEXANDRIA, Va. – The Justice Department announced today that it has settled a civil complaint filed in the U.S. District Court for the Eastern District of Virginia against Prince George County, Virginia, and the Virginia Retirement System (VRS) to enforce employment rights guaranteed to a member of the Virginia Army National Guard, Major Mark Gunn, under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
“Members of our military Reserves who put their civilian careers and lives on hold to serve our country should not suffer adverse employment effects,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “The United States Attorney’s Office will continue to use all legal remedies to enforce the rights of servicemembers to the correct reemployment positions upon their return from honorably serving our nation.”
“The Department of Justice is committed to enforcing the laws that protect the civilian careers of the brave men and women who serve our country,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Members of the Reserves are often called away from their civilian jobs to provide the security upon which our nation depends. They should not have to fear losing their jobs and, as here, their pension benefits, when they answer that call.”
In its complaint, the United States alleged that Gunn had been a detective with the Prince George County Police Department for 14 years when, in January 2016, he was called to active duty by the Virginia Army National Guard. The United States further alleged that when Gunn returned from his active-duty service, the County refused to allow Gunn to return to his detective position. Instead, the County assigned him back to a Patrol Unit officer position. The United States also alleged that the County denied Gunn employment benefits that he would have accrued during his period of active-duty service, including a bonus awarded to County employees. Finally, the United States alleged that the County’s unlawful actions caused Gunn to leave his employment with the Prince George County Police Department and return to active duty in the Virginia Army National Guard.
As relief, Gunn will receive VRS retirement credit for the period of time from when he departed the Prince George County Police Department to when he began drawing VRS retirement benefits. He will also receive the differential in retirement benefits owed to him for this time period. Prince George County will also pay Gunn $1,500 in damages for benefits he should have received from the County and $1,500 in liquidated damages. The County will give Gunn a Retired Law Enforcement Act identification card, a Virginia law enforcement officer identification card, and a retired Prince George County Police Department detective badge, and the County will permit Gunn to purchase his service weapon.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. USERRA also requires employers to provide pension benefits when their employees are called to active duty. The United States Attorney’s Office for the Eastern District of Virginia and Justice Department give high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the U.S. Department of Labor, at Gunn’s request, after an investigation by that agency’s Veterans’ Employment and Training Service.
The case is being handled by Assistant U.S. Attorneys Deirdre Brou, Lauren Oberheim, and Robert McIntosh, and as a part of the Servicemember and Veterans’ Initiative within the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Shan Shah in the Employment Litigation Section of the Justice Department’s Civil Rights Division.
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 from the civil lawsuit are on PACER by searching for Case No. 3:21-cv-631.
The civil claims asserted in the complaint are allegations only; there has been no determination of civil liability.
Convicted Felon Pleads Guilty to Fraud, Identity Theft, and Firearm OffensesRead the Press Release
NEWPORT NEWS, Va. – A six-time convicted felon from Richmond pleaded guilty today to conspiring to commit bank fraud, aggravated identity theft, and illegally possessing a firearm.
According to court documents, from around October 2020 through January 2021, Wilbert Bouldin, 25, joined together with at least two other men to defraud banks out of money and property under their custody and control. Bouldin and his coconspirators used the stolen driver’s license and social security card of an identity theft victim to negotiate thousands of dollars in counterfeit and stolen checks at banks in Williamsburg, Gloucester, Newport News, Hampton, and Richmond.
Bouldin has six prior felony convictions for fraud, firearm, and drug offenses. He and one of his codefendants are aspiring musicians who have released music under the moniker,
“Rich Felons.” When police went to arrest Bouldin, he fled from the law enforcement, but was ultimately apprehended in possession of a Smith & Wesson, SD9VE semi-automatic handgun – a firearm he is not allowed to possess as a convicted felon.Bouldin pleaded guilty to conspiring to commit bank fraud, aggravated identity theft, and possession of a firearm by a prohibited person. He faces a mandatory minimum sentence of two years and a maximum sentence of 42 years in prison when sentenced on August 26. 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 Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney Mack Coleman 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. 4:22-cr-13.
Colorado Man Sentenced for Multiple RobberiesRead the Press Release
RICHMOND, Va. – A Denver, Colorado, man was sentenced today to 40 years in prison for committing at least two armed robberies of commercial businesses.
According to court documents, Lloyd E. Rhodes, II, 59, committed robberies at establishments both in Richmond and in Colorado Springs, Colorado. On August 3, 2019, Rhodes entered the Old Chicago restaurant, located in Colorado Springs and asked to speak with the restaurant manager. Rhodes was armed with a Taurus handgun and pointed the firearm at the manager and demanded money from the safe. The manager attempted to run out of the office and close and lock the door, but a struggle between Rhodes and the manager ensued, during which Rhodes discharged the firearm at the manager, striking him in the hand. After shooting the manager, Rhodes fled the scene.
On March 13, 2020, after traveling to Richmond, Rhodes entered the Virginia Horseplay, an off-track betting facility, and was seen interacting with other customers for several hours. Once the employees took the cash proceeds into an adjacent room to count the money from the evening business, Rhodes entered the room, displayed what appeared to be a firearm, and ordered the two employees onto the floor. In fear for their lives, the employees relinquished the money they had been counting. Rhodes then proceeded to empty the nearby safe, which contained additional cash proceeds from Virginia Horseplay. In all, Rhodes took over $40,000 in U.S. currency. As part of the plea agreement, the Colorado authorities agreed not to pursue four additional robberies in their jurisdiction.
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, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Peter Duffey 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-139.
New York Man and Woman Sentenced for Sex Trafficking of MinorsRead the Press Release
NORFOLK, Va. – A New York woman was sentenced today to 76 months in prison for sex trafficking of a minor. Her co-defendant, also from New York, was previously sentenced to 30 years in prison for sex trafficking by force, fraud, and coercion.
According to court documents, for at least a decade beginning around 2010, Omel McLean, 54, maintained a group of women and minors based in New York City whom he forced to engage in commercial sex. He controlled them with physical abuse, using a baseball bat and paddles to discipline them, and by providing and restricting their access to illegal controlled substances. McLean commonly required minors he recruited to have sex with him first. He impregnated several of his victims and then further manipulated them by restricting access to their children.
McLean recruited his co-defendant, Antoinette Finklea, 26, when she was herself a minor. Eventually, she supervised the group of women and minors for McLean. She posted advertisements and arranged the commercial sex acts. When she was old enough to travel out of state, she would bring women and minors to the Hampton Roads area, where McLean had a substantial client base.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; Mike Goldsmith, Interim Chief of Norfolk Police; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorneys Megan Montoya and 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. 2:21-cr-50.
Glen Allen Man Pleads Guilty to $400,000 Bankruptcy Fraud SchemeRead the Press Release
RICHMOND, Va. – A Glen Allen man pleaded guilty today to executing a mail fraud scheme during the course of his bankruptcy proceeding in order to conceal the true extent of his financial assets from the Bankruptcy Trustee and his numerous creditors.
According to court documents, in January 2019, William Henry Romm, III, 44, filed a Voluntary Petition for Bankruptcy in the United States Bankruptcy Court for the Eastern District of Virginia. In filing that petition, Romm deliberately concealed his recent receipt of both a sizeable life insurance policy payout and a parcel of real estate, both of which he had received following his father’s death. Romm shortly thereafter sold that real estate and spent the bulk of those concealed proceeds on, among other things, a boat for his personal use.
Over the course of the next two years, Romm continued to conceal his receipt and dissipation of additional funds, including more than $268,000 that he received from the sale of his late father’s residence. Romm’s efforts to conceal also included concealing his marital status from the Court and Trustees by representing himself as single in his court filings; opening bank and brokerage accounts in his wife’s name, but over which he maintained control; using those accounts to hide the real estate sale proceeds; drafting checks on the bank account by forging his wife’s signature; and using the brokerage account to trade stocks he purchased with those real estate sale proceeds.
To ensure the Bankruptcy Court and Trustee remained unaware of his financial activities, Romm also filed knowingly false paperwork with the Bankruptcy Court and made numerous false statements under oath. In total, Romm concealed more than $400,000 in assets from the Bankruptcy Court before the Court dismissed his bankruptcy case in August of 2021.
Romm is scheduled to be sentenced on August 19. 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, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorney Thomas A. Garnett 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. 3:22-cr-41.
EDVA Commemorates National Crime Victims’ Rights WeekRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia joins communities nationwide in commemorating National Crime Victims’ Rights Week (NCVRW) from April 24–30, 2022. The Justice Department’s Office for Victims of Crime’s (OVC) theme this year, “Rights, access, equity, for all victims,” emphasizes the importance of helping crime survivors find their justice by enforcing victims’ rights, expanding access to services for victims and ensuring equity and inclusion for all.
“This week we reflect on our responsibilities to the victims of crime in our communities,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “We express gratitude for the ones who come forward, often having to revisit traumatic events in order to report or testify. We are also conscious that many victims, out of fear, shame, or distrust in the legal system, do not report crimes to law enforcement. It is our responsibility to those victims to reach out, to listen, and to accommodate their needs so that we can accord their rights and hopefully prevent future crimes.”
According to OVC, NCVRW is a time to renew our commitment to serving victims of crime, acknowledge achievements made in the victim services field, and remember crime victims and survivors. Crime victims are our family, friends, neighbors, and community members. While we can never truly understand the depth of their trauma and the impact on their lives, we can ensure that equitable, inclusive, culturally appropriate, and gender responsive services are available to help them. By enforcing victims’ rights, expanding access to services, and upholding principles of equity and inclusivity for all, we can enable crime victims to find the justice they seek, in whatever form that might take.
OVC leads communities throughout the country in their annual observances of NCVRW, during which victim advocacy organizations, community groups, and state, local, and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. For more information about this year’s NCVRW and how to assist victims in your own community, please visit the National Crime Victims’ Rights Week website.
The following events will be held in the local area to commemorate NCVRW 2022:
- NCVRW Candlelight Vigil on Thursday April 28, 2022, from 6:30 p.m. – 7:30 p.m. on the National Mall, Washington D.C.
- NCRVW Service Awards Ceremony on Friday April 29, 2022, from 3 p.m. – 5 p.m. at the Constitution Gardens on the National Mall, Washington D.C.
- The 2022 “Unsung Heroes” awards ceremony, hosted by the Virginia Office of the Attorney General on Tuesday, April 26 in Richmond to recognize outstanding service and support to victims of crime in the Commonwealth. For more information about the event, please visit here.
To commemorate NCVRW this year, the U.S. Attorney’s Office for the Eastern District of Virginia is holding a clothing drive to donate garments and toiletries to a local non-profit organization that assists victims in crisis.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Richmond Man Pleads Guilty to Producing Child Pornography Under Threats and BlackmailRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to production of child sexual abuse material.
According to court documents, in or around February of 2019, Joshua Hitchener, 34, began exchanging messages on the Kik Messenger application with a 15-year-old girl. Despite knowing that he was corresponding with a minor, Hitchener convinced the girl to send him nude photos of herself. Hitchener then used his possession of those pornographic images to threaten and blackmail his victim into creating and sending additional pornographic images and video to him. The defendant’s threats included his assurances to the girl that he would kidnap her, kill her family, and “rape and beat [the victim] several times a day.” Hitchener also instructed his victim to “brand” herself by drawing his screenname on various parts of her body, and to record herself performing sexual acts—and to send the images and videos of those actions to the defendant.
Hitchener is scheduled to be sentenced on July 21. He faces a mandatory minimum penalty of 15 years and 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 Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Assistant U.S. Attorneys Heather H. Mansfield, Peter S. Duffey, and Thomas A. Garnett are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
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-122.
Henrico Man Charged in $1.1 Million COVID-19 Fraud SchemeRead the Press Release
RICHMOND, Va. – A Henrico man was arrested yesterday after a federal grand jury returned an indictment charging him with fraudulently obtaining over $1.1 Million in Paycheck Protection Program (PPP) loans on behalf of two defunct companies he owned, and improperly using those fraudulently-obtained PPP loan proceeds for his own personal benefit.
According to the indictment, from on or about at least April 8, 2020, to at least on or about August 31, 2021, Kortney T. Kelley, 44, submitted at least four fraudulent applications for loans under the PPP, a Small Business Administration (SBA) program designed to help businesses affected by the COVID-19 pandemic continue to pay wages to their employees. As part of these applications, Kelley made numerous false statements. For instance, Kelley represented that his defunct companies (which in fact generated no revenue and had no employees) together employed more than 140 workers and paid-out over $220,000 in monthly payroll expenses. Furthermore, as part of his applications, Kelley submitted forged tax returns and other documentation purporting to substantiate Kelley’s false claims that his companies paid substantial payroll expenses.
According to the indictment, Kelley’s fraudulent loan applications caused the SBA to disburse over $1.1 million in loans to Kelley’s business accounts. Kelley spent the loan proceeds on purposes unrelated to those authorized by the SBA, including spending at least $142,711 in loan proceeds at various casinos and on gaming, and transferring at least $834,077 in loan proceeds to Kelley’s personal brokerage accounts. Kelley made further false statements to the SBA in a loan forgiveness application, which resulted in the complete discharge of the loans.
Kelley is charged with wire fraud and engaging in monetary transactions in criminally derived property. If convicted, 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, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Virginia Coronavirus Fraud Task Force is a federal and state partnership led by the Eastern and Western Districts of Virginia along with fraud investigators from the FBI and Virginia State Police. The task force’s mission is to identify, investigate, and prosecute fraud related to the ongoing pandemic. The task force reviews and investigates all credible leads of fraud associated with COVID-19, focusing on schemes to exploit vulnerable populations, including the elderly and concerned citizens.
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-35.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Twice-Convicted Felon Sentenced for Possession of Firearms and NarcoticsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 5 years in prison for illegally possessing a firearm after being convicted of a felony.
According to court documents, on October 4, 2019, an officer with the Henrico Police department conducted a traffic stop of a vehicle driven by Quan Nguyen, 29, at a motel known as a hotspot for narcotics trafficking. After a trained narcotics K-9 alerted to the odor of narcotics on Nguyen’s vehicle, officers searched the car and found a loaded semi-automatic pistol and cocaine. Officers also obtained a search warrant for Nguyen’s room at the motel. A search of Nguyen’s hotel room turned up cocaine, a digital scale, packaging materials, marijuana, and another loaded semi-automatic pistol. Nguyen’s fingerprint matched a fingerprint recovered from the loaded pistol in the hotel room.
Nguyen was previously sentenced in 2016 to 28 months’ imprisonment by the same Court following his conviction for possession of a firearm by a convicted felon.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Stephen W. Miller 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. 3:20-cr-124.
Heroin and Fentanyl Dealer Held Responsible for Overdose DeathRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Newport News man on charges of conspiring to distribute fentanyl more than a kilogram of heroin, distributing fentanyl resulting in two overdoses, possessing firearms in furtherance of drug trafficking, and possessing those firearms as a convicted felon.
According to court records and evidence presented at trial, As-Samad Haynes, 41, of Newport News, conspired with others to distribute heroin and fentanyl from 2017 until his arrest in November of 2020. During the course of this conspiracy, Haynes distributed a quantity of fentanyl to two individuals that resulted in the death of one and substantial bodily injury to another. At the time of his arrest, Haynes was found in possession of an assault rifle, tactical shotgun, and semi-automatic handgun, which he used in furtherance of his drug trafficking.
Haynes was convicted of conspiring to distribute and possess with intent to distribute heroin and fentanyl; distribution of fentanyl and acetyl fentanyl, resulting in death; distribution of fentanyl and acetyl fentanyl resulting in substantial bodily injury; possession of firearms in furtherance of drug trafficking; and possession of a firearm by a convicted felon. Haynes faces a sentence between 25 years and life imprisonment when sentenced on September 7, 2022. 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; Steve R. Drew, Chief of Newport News Police; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after U.S. District Judge Raymond A. Jackson accepted the verdict.
DEA's Hampton Post of Duty, in partnership with the Newport News Police Department, participated in this investigation.
Assistant U.S. Attorneys Mack Coleman and Eric Hurt are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-71.
Government Contractor Pleads Guilty to Bribing a Government OfficialRead the Press Release
NORFOLK, Va. – A Chesapeake woman pleaded guilty today to bribing a government official.
According to court documents, Jennifer A. Strickland 47, agreed to bribe a General Services Administration (GSA) Contracting Official in return for said official to award federal construction contacts to Strickland’s company, SDC Contracting LLC.
Jennifer Strickland is the President of SDC Contracting LLC, a company that contracted with the federal government to provide construction and renovation services at federal buildings throughout the Eastern District of Virginia, including the Lewis F. Powell, Jr. United States Courthouse in downtown Richmond. From July 2018 until December 2019, Strickland made cash payments to a GSA contracting official totaling $43,500, in return for the award of a contract valued at approximately $1,369,501.00.
Strickland is scheduled to be sentenced on August 12. She 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Chris Dillard, Special Agent in Charge for the Department of Defense Office of Inspector General; Eric Maddox, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office; and Eric Radwick, Special Agent in Charge for the General Services GSA Office of Inspector General Mid-Atlantic Division., made the announcement after United States Magistrate Judge Lawrence R. Leonard., accepted the plea.
Assistant U.S. Attorneys Matthew Heck and Randy Stoker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-33.
Jury Convicts ISIS ‘Beatle’ for Role in Hostage-Taking Scheme that Resulted in the Deaths of American, British, and Japanese CitizensRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, on all eight charges that were brought against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to evidence presented during trial through the testimony of 35 witnesses, from November 2012 through February 7, 2015, former British citizen El Shafee Elsheikh, 33, served as a high-ranking ISIS fighter and was an integral member of a wide-ranging conspiracy involving the captivity of 26 hostages in Syria. Elsheikh personally participated in the detention of and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Elsheikh personally participated in the detention of and hostage negotiations for British, French, Italian, Danish, German, Spanish, Swedish, Belgian, Swiss, and New Zealand nationals.
According to evidence presented during trial, Elsheikh and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held. Elsheikh and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to subdue the hostages. These actions were also intended to compel the victims’ family members and their governments to pay large monetary ransoms for their release, in addition to compelling the U.S. government and other governments to agree to other terms and conditions for the victims’ return.
According to evidence presented during trial, in addition to physically and psychologically abusing the hostages, Elsheikh and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed in or about April 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Elsheikh and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff, and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about February 7, 2015, Kayla Mueller’s family received an email from ISIS confirming Mueller’s death in Syria.
According to evidence presented during trial, Elsheikh was part of a group of ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” He and his convicted co-conspirator, Alexanda Amon Kotey, 38, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohammed Emwazi, who conducted the above-referenced videotaped beheadings, was killed in November 2015 in a U.S. military airstrike in Syria.
On September 2, 2021, Kotey pleaded guilty to all of the offenses charged by the U.S. Attorney’s Office for the Eastern District of Virginia in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Foley, Kayla Mueller, Steven Sotloff, and Peter Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British, and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British, and Japanese nationals. Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on April 29, 2022. Valuable assistance was provided by the Justice Department’s Office of International Affairs and the United Kingdom Home Office.
Elsheikh faces a mandatory sentence of life in prison and is scheduled to be sentenced on August 12, 2022.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its profound appreciation to the Federal Bureau of Investigation, the Counter Terrorism Command of the United Kingdom’s Metropolitan Police Service, the Syrian Democratic Forces, and our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
First Assistant United States Attorney Raj Parekh, Assistant U.S. Attorneys Dennis M. Fitzpatrick, John T. Gibbs, and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department’s National Security 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. 1:20-cr-239.
Jury Convicts ISIS ‘Beatle’ for Role in Hostage-Taking Scheme that Resulted in the Deaths of American, British and Japanese CitizensRead the Press Release
A federal jury convicted a militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, on all eight charges that were brought against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to evidence presented during trial through the testimony of 35 witnesses, from November 2012 through Feb. 7, 2015, former British citizen El Shafee Elsheikh, 33, served as a high-ranking ISIS fighter and was an integral member of a wide-ranging conspiracy involving the captivity of 26 hostages in Syria. Elsheikh personally participated in the detention of and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Elsheikh personally participated in the detention of and hostage negotiations for British, French, Italian, Danish, German, Spanish, Swedish, Belgian, Swiss and New Zealand nationals.
According to evidence presented during trial, Elsheikh and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held. Elsheikh and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to subdue the hostages. These actions were also intended to compel the victims’ family members and their governments to pay large monetary ransoms for their release, in addition to compelling the U.S. government and other governments to agree to other terms and conditions for the victims’ return.
According to evidence presented during trial, in addition to physically and psychologically abusing the hostages, Elsheikh and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed in or about April 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Elsheikh and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about Feb. 7, 2015, Kayla Mueller’s family received an email from ISIS confirming Mueller’s death in Syria.
According to evidence presented during trial, Elsheikh was part of a group of ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” He and his convicted co-conspirator, Alexanda Amon Kotey, 38, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohammed Emwazi, who conducted the above-referenced videotaped beheadings, was killed in November 2015 in a U.S. military airstrike in Syria.
On Sept. 2, 2021, Kotey pleaded guilty to all of the offenses charged by the U.S. Attorney’s Office for the Eastern District of Virginia in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Foley, Kayla Mueller, Steven Sotloff and Peter Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British, and Japanese nationals. Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on April 29.
Elsheikh faces a mandatory sentence of life in prison and is scheduled to be sentenced on Aug. 12.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its profound appreciation to the FBI, the Counter Terrorism Command of the United Kingdom’s Metropolitan Police Service, the Syrian Democratic Forces, and our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
First Assistant U.S. Attorney Raj Parekh, Assistant U.S. Attorneys Dennis M. Fitzpatrick, John T. Gibbs and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the National Security Division’s Counterterrorism Section are prosecuting the case.
Six Co-Conspirators Plead Guilty to Hacking and Retail Financing FraudRead the Press Release
RICHMOND, Va. – Six individuals pleaded guilty today to taking part in a conspiracy to defraud several retail financing providers in various ways, including computer hacking.
According to court documents, Mahmoud Aljibawi, 39, of Oak Forest, Illinois; Alaelddin Aljibawi, 36, of Orland Park, Illinois; Mohammad Jibawi, 27, of Tinley Park, Illinois; Wael Jibawi, 27, of Palos Heights, Illinois; Jamel Eljebawe, 48, of Tinley Park, Illinois; and Yanal Khrisat, 27, of Burbank, Illinois, conspired to defraud at least five retail financing providers of at least $1.6 million between April 2017 and January 2022. During that period, the defendants opened and maintained several retail furniture stores in and around the Chicago area, which they used to establish merchant relationships with the targeted financing providers. These relationships enabled defendants to submit financing applications in the names of customers. Instead, the defendants submitted applications in the names of identity theft victims then used the approved accounts to charge the financing providers for purchases that did not actually occur. Additionally, in February 2018, the defendants used social engineering to gain access to merchant accounts belonging to other businesses and change the bank accounts designated to receive payments owed those businesses by one retail financing provider. The defendants then submitted the affected businesses’ customer accounts for funding, causing the financing provider to deposit money that the defendants were not actually owed into accounts that they had opened and controlled. The defendants pleaded guilty today to the following offenses.
Defendant
Offenses
Sentencing Date
Mahmoud Aljibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 18, 2022
Alaelddin Aljibawi
Conspiracy to Commit Wire and Bank Fraud
Wire Fraud
October 18, 2022
Mohammad Jibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 18, 2022
Wael Jibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 19, 2022
Jamel Eljebawe
Conspiracy to Commit Wire and Bank Fraud
Wire Fraud
October 18, 2022
Yanal Khrisat
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
October 19, 2022
When sentenced, each defendant 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 Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Kaitlin G. Cooke and Carla Jordan-Detamore 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. 3:21-cr-141.
Ohio Woman Convicted for Production and Distribution of Child Sexual Abuse MaterialRead the Press Release
ALEXANDRIA, Va. – A federal court convicted a Port Clinton, Ohio, woman yesterday on charges of production and distribution of child sexual abuse material.
According to court records and evidence presented at trial, during in 2020, Ashley Kolhoff, 22, produced sexually explicit images of the minor victim and posted them to a website dedicated to facilitating child exploitation. Over the course of multiple days, Kolhoff distributed the images of the victim to nine other members of the website while she engaged in a series of graphic conversations discussing the users’ desire to sexually abuse the victim.
Kolhoff faces a mandatory minimum of 15 years in prison when sentenced on July 12, 2022. 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; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Leonie M. Brinkema announced the verdict.
Special Assistant U.S. Attorney Whitney Kramer and Assistant U.S. Attorney Seth Schlessinger are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
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. 1:21-cr-158.
United States Leads Seizure of One of the World’s Largest Hacker Forums and Arrests AdministratorRead the Press Release
The Department of Justice today announced the seizure of the RaidForums website, a popular marketplace for cybercriminals to buy and sell hacked data, and unsealed criminal charges against RaidForums’ founder and chief administrator, Diogo Santos Coelho, 21, of Portugal. Coelho was arrested in the United Kingdom on Jan. 31, at the United States’ request and remains in custody pending the resolution of his extradition proceedings.
Court records unsealed today indicate that the United States recently obtained judicial authorization to seize three domains that long hosted the RaidForums website. These domains were “raidforums.com,” “Rf.ws,” and “Raid.lol.” According to the affidavit filed in support of these seizures, from in or around 2016 through February 2022, RaidForums served as a major online marketplace for individuals to buy and sell hacked or stolen databases containing the sensitive personal and financial information of victims in the United States and elsewhere, including stolen bank routing and account numbers, credit card information, login credentials and social security numbers.
“The takedown of this online market for the resale of hacked or stolen data disrupts one of the major ways cybercriminals profit from the large-scale theft of sensitive personal and financial information,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This is another example of how working with our international law enforcement partners has resulted in the shutdown of a criminal marketplace and the arrest of its administrator.”
“Our interagency efforts to dismantle this sophisticated online platform – which facilitated a wide range of criminal activity – should come as a relief to the millions victimized by it, and as a warning to those cybercriminals who participated in these types of nefarious activities,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Online anonymity was not able to protect the defendant in this case from prosecution, and it will not protect other online criminals either.”
“The seizure of the RaidForums website – which facilitated the sale of stolen data from millions of people throughout the world – and the charges against the marketplace's administrator are a testament to the strength of the FBI's international partnerships,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office said. “Cybercrime transcends borders, which is why the FBI is committed to working with our partners to bring cybercriminals to justice – no matter where in the world they live or behind what device they try to hide.”
“This global investigation signifies the remarkable dedication of the U.S. Secret Service and highlights our partnerships with our foreign law enforcement counterparts essential to disrupting sophisticated networks of cyber criminals,” said Special Agent in Charge Jason D. Kane of the U.S. Secret Service’s Criminal Investigative Division. “This case exemplifies teamwork at all levels of law enforcement to stop these cyber criminals from defrauding citizens of the United States and in our partner countries.”
Prior to its seizure, RaidForums members used the platform to offer for sale hundreds of databases of stolen data containing more than 10 billion unique records for individuals residing in the United States and internationally. At the time of its founding in 2015, RaidForums also operated as an online venue for organizing and supporting forms of electronic harassment, including by “raiding” – posting or sending an overwhelming volume of contact to a victim’s online communications medium – or “swatting” – the practice of making false reports to public safety agencies of situations that would necessitate a significant, and immediate armed law enforcement response.
The seizure of these domains by the government will prevent RaidForums members from using the platform to traffic in data stolen from corporations, universities and governmental entities in the United States and elsewhere, including databases containing the sensitive, private data of millions of individuals around the world.
In addition, a six-count indictment against Coelho was unsealed in the Eastern District of Virginia charging him with conspiracy, access device fraud and aggravated identify theft in connection with his role as the chief administrator of RaidForums. According to the indictment, between Jan. 1, 2015, and on or about Jan. 31, 2022, Coelho allegedly controlled and served as the chief administrator of RaidForums, which he operated with the help of other website administrators. As administrators, Coelho and his co-conspirators are alleged to have designed and administered the platform’s software and computer infrastructure, established and enforced rules for its users, and created and managed sections of the website dedicated to promoting the buying and selling of contraband, including a subforum titled “Leaks Market” that described itself as “[a] place to buy/sell/trade databases and leaks.”
To profit from the illicit activity on the platform, RaidForums charged escalating prices for membership tiers that offered greater access and features, including a top-tier “God” membership status. RaidForums also sold “credits” that provided members access to privileged areas of the website and enabled members to “unlock,” and download stolen financial information, means of identification, and data from compromised databases, among other items. Members could also earn credits through other means, such as by posting instructions on how to commit certain illegal acts.
According to the indictment, Coelho also personally sold stolen data on the platform, and directly facilitated illicit transactions by operating a fee-based “Official Middleman” service. For the Official Middleman service, Coelho allegedly acted as a trusted intermediary between RaidForums members seeking to buy and sell contraband on the platform, including hacked data. Notably, to create confidence amongst transacting parties, the Official Middleman service enabled purchasers and sellers to verify the means of payment and contraband files being sold prior to executing the transaction.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Special Agent in Charge Jason D. Kane of the U.S. Secret Service’s Criminal Investigative Division; and Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Senior Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Carina A. Cuellar for the Eastern District of Virginia are prosecuting the case against Coelho. The Justice Department’s Office of International Affairs provided significant assistance throughout the criminal investigation.
The law enforcement actions against RaidForums and Coelho are the result of an ongoing criminal investigation by the FBI’s Washington Field Office and the U.S. Secret Service. The department also thanks the support provided by Joint Cybercrime Action Taskforce (Europol), National Crime Agency (UK), Swedish Police Authority (Sweden), Romanian National Police (Romania), Judicial Police (Portugal), Internal Revenue Service Criminal Investigation, Federal Criminal Police Office (Germany) and other law enforcement partners.
Anyone that has any information regarding Coelho or RaidForums should file a complaint at ic3.gov with #RaidForums in the description.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Leads Seizure of One of the World’s Largest Hacker Forums and Arrests AdministratorRead the Press Release
ALEXANDRIA, Va. – The U.S. Department of Justice today announced the seizure of the RaidForums website, a popular marketplace for cybercriminals to buy and sell hacked data, and unsealed criminal charges against RaidForums’ founder and chief administrator, Diogo Santos Coelho, 21, of Portugal. Coelho was arrested in the United Kingdom on January 31, at the United States’ request, and remains in custody pending the resolution of his extradition proceedings.
“Our interagency efforts to dismantle this sophisticated online platform – which facilitated a wide range of criminal activity – should come as a relief to the millions victimized by it, and as a warning to those cybercriminals who participated in these types of nefarious activities,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Online anonymity was not able to protect the defendant in this case from prosecution, and it will not protect other online criminals either.”
“The takedown of this online market for the resale of hacked or stolen data disrupts one of the major ways cybercriminals profit from the large-scale theft of sensitive personal and financial information,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This is another example of how working with our international law enforcement partners has resulted in the shutdown of a criminal marketplace and the arrest of its administrator.”
"The seizure of the RaidForums website — which facilitated the sale of stolen data from millions of people throughout the world — and the charges against the marketplace's administrator are a testament to the strength of the FBI's international partnerships," Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office said. "Cybercrime transcends borders, which is why the FBI is committed to working with our partners to bring cybercriminals to justice — no matter where in the world they live or behind what device they try to hide."
“This global investigation signifies the remarkable dedication of the U.S. Secret Service and highlights our partnerships with our foreign law enforcement counterparts essential to disrupting sophisticated networks of cyber criminals,” said Jason D. Kane, Special Agent In Charge, Criminal Investigative Division of the U.S. Secret Service; “This case exemplifies teamwork at all levels of law enforcement to stop these cyber criminals from defrauding citizens of the United States and in our partner countries.”
Court records unsealed yesterday indicate that the United States recently obtained judicial authorization to seize three domains that long hosted the RaidForums website. These domains were “Raidforums.com,” “Rf.ws,” and “Raid.lol.” According to the affidavit filed in support of these seizures, from in or around 2016 through February, RaidForums served as a major online marketplace for individuals to buy and sell hacked or stolen databases containing the sensitive personal and financial information of victims in the United States and elsewhere, including stolen bank routing and account numbers, credit card information, login credentials, and social security numbers. Prior to its seizure, RaidForums members used the platform to offer for sale hundreds of databases of stolen data containing more than 10 billion unique records for individuals residing in the United States and internationally. At the time of its founding in 2015, RaidForums also operated as an online venue for organizing and supporting forms of electronic harassment, including by “raiding”—posting or sending an overwhelming volume of contact to a victim’s online communications medium—or “swatting”—the practice of making false reports to public safety agencies of situations that would necessitate a significant, and immediate armed law enforcement response.
The seizure of these domains by the government will prevent RaidForums members from using the platform to traffic in data stolen from corporations, universities, and governmental entities in the United States and elsewhere, including databases containing the sensitive, private data of millions of individuals around the world.
In addition, a six-count indictment against Coelho was unsealed in the Eastern District of Virginia charging him with conspiracy, access device fraud, and aggravated identify theft in connection with his role as the chief administrator of RaidForums. According to the indictment, between January 1, 2015, and on or about January 31, 2022, Coelho allegedly controlled and served as the chief administrator of RaidForums, which he operated with the help of other website administrators. As administrators, Coelho and his co-conspirators are alleged to have designed and administered the platform’s software and computer infrastructure, established and enforced rules for its users, and created and managed sections of the website dedicated to promoting the buying and selling of contraband, including a subforum titled “Leaks Market” that described itself as “[a] place to buy/sell/trade databases and leaks.”
To profit from the illicit activity on the platform, RaidForums charged escalating prices for membership tiers that offered greater access and features, including a top-tier “God” membership status. RaidForums also sold “credits” that provided members access to privileged areas of the website and enabled members to “unlock” and download stolen financial information, means of identification, and data from compromised databases, among other items. Members could also earn credits through other means, such as by posting instructions on how to commit certain illegal acts.
According to the indictment, Coelho also personally sold stolen data on the platform, and directly facilitated illicit transactions by operating a fee-based “Official Middleman” service. For the Official Middleman service, Coelho allegedly acted as a trusted intermediary between RaidForums members seeking to buy and sell contraband on the platform, including hacked data. Notably, to create confidence amongst transacting parties, the Official Middleman service enabled purchasers and sellers to verify the means of payment and contraband files being sold prior to executing the transaction.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Jason D. Kane, Special Agent In Charge, Criminal Investigative Division of the U.S. Secret Service; and Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office, made the announcement.
Assistant U.S. Attorney Carina A. Cuellar and Senior Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) of the Justice Department are prosecuting the case against Coelho. The Justice Department’s Office of International Affairs has also provided significant assistance throughout the criminal investigation.
The law enforcement actions against RaidForums and Coelho are the result of an ongoing criminal investigation by the FBI’s Washington Field Office and the U.S. Secret Service. The Department also thanks the support provided by Joint Cybercrime Action Taskforce (Europol), National Crime Agency (UK), Swedish Police Authority (Sweden), Romanian National Police (Romania), Judicial Police (Portugal), Internal Revenue Service Criminal Investigation, Federal Criminal Police Office (Germany), and other law enforcement partners.
Anyone that has any information regarding Coelho, RaidForums or other RaidForums administrators should file a complaint at ic3.gov with #raidforums in the description.
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. 1:21-cr-114.
coelho_indictment.pdfAn indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Men Plead Guilty to Brandishing FirearmRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty yesterday and a Henrico man pleaded guilty last week to possession of a firearm by a convicted felon in cases where each brandished their firearms in a residential area.
According to court documents, on July 23, 2021, police officers observed on social media Anthony Cornelius Brown Jr., 24, of Richmond, Dequane McCullers, 24, of Henrico, and several other individuals brandishing firearms in the Belt Atlantic apartment complex in South Richmond. When the officers responded to the area, they again observed Brown, McCullers and two others still in the area. As the officers attempted to stop Brown, McCullers, and two other individuals, the suspects dispersed in an attempt to avoid the officers. Ultimately, the officers detained all four and found Brown in possession of a Glock 35, .40 caliber firearm and McCullers in possession of a Glock 23, .40 caliber firearm
Brown pleaded guilty yesterday to possessing a firearm after having been convicted of a felony. McCullers pleaded guilty on April 6 to the same charge.
Brown and McCullers are both scheduled to be sentenced on August 15, 2022. They each face a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Gerald M. Smith, Chief of Richmond Police, made the announcement after Senior U.S. District Judge John A. Gibney, Jr., accepted the plea.
Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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-131.
Third Man in Multi-Kilogram Fentanyl Trafficking Conspiracy SentencedRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to 10 years in prison for participating in a conspiracy to distribute over seven kilograms of fentanyl.
According to court documents, Taurean Venable, 37, and others would obtain kilogram quantities of fentanyl from various sources of supply. The group would then use a pill press to manufacture thousands of counterfeit prescription pills resembling legitimate pain medications, such as Oxycodone. In actuality, the pills contained fentanyl and other cutting agents, and the group would then distribute the pills to redistributors and users in the Washington, D.C. metropolitan area for profit.
During a court-authorized search of a coconspirator’s residence in Arlington in June of 2020, law enforcement seized pill manufacturing materials along with over seven kilograms of fentanyl in both pill and raw form, along with a loaded AK-47 semi-automatic firearm and $34,828 in U.S. currency. Upon his arrest, law enforcement also obtained court authorization to search Venable’s residence, where they located an additional $23,193 in drug proceeds. Venable is the third member of the conspiracy to be sentenced. Cornelius Frazier, 33, of Arlington received a sentence of 151 months’ imprisonment and Kyle Bouldin, 31, of Woodbridge, received a sentence of 72 months’ imprisonment for their respective roles.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Andy Penn, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; and David Huchler, Chief of Police, Metropolitan Washington Airports Authority Police Department, made the announcement after sentencing by U.S. District Judge Michael S. Nachmanoff.
Assistant U.S. Attorney Bibeane Metsch and Special Assistant United States Attorney Rachel Roberts 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. 1:21-cr-39.
Philadelphia-Based Fentanyl Distributor SentencedRead the Press Release
ALEXANDRIA, Va. – A Philadelphia, Pennsylvania man was sentenced today to 148 months in prison for supplying over 1.2 kilograms of fentanyl to multiple redistributors in Prince William County.
According to court documents, Eronus Blay, 45, served as the source of supply for tens of thousands of counterfeit, pressed pills containing fentanyl that were distributed to users in and around Manassas. The blue pills bore the markings of Oxycodone, and local distributors including Cameron Jackson, 23, Lander Milla, 23, and Nicole Oliphant, 36, all of Manassas, would travel to Philadelphia or New Jersey to meet with Blay and purchase the pills, which became known locally to users as “Phillies.”
Once the pills were acquired, the local distributors would return to the Eastern District of Virginia and sell them at a mark-up. Between June and October of 2020, law enforcement utilized an undercover officer and purchased hundreds of the fentanyl pills from the local members of the distribution network. In December of 2020, during court-authorized searches of residences tied to Jackson, Milla, and Blay, law enforcement recovered two firearms along with over $100,000 in drug proceeds.
The other three members of the conspiracy have already been sentenced for their respective roles in the conspiracy. On February 25, Jackson was sentenced to 130 months in prison. On August 17, 2021, Milla was sentenced to 84 months in prison. On September 3, 2021, Nicole Oliphant, was sentenced to 37 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Peter Newsham, Chief of Prince William County Police; and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Special Assistant U.S. Attorney Rachel M. Roberts 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. 1:21-cr-126.
Norfolk Man Sentenced to Prison for Fentanyl Distribution Resulting in Death of Chesapeake WomanRead the Press Release
NORFOLK, Va. – A federal judge yesterday sentenced a Norfolk man to 45 years in prison for his role in a conspiracy to manufacture and distribute fentanyl, acetyl-fentanyl, and heroin in the Hampton Roads region. He was convicted by a jury in May 2021 of all five counts related to the drug conspiracy, including distribution of fentanyl resulting in a young woman’s death.
According to court records and evidence presented at trial, between early 2017 and May 2020, Daniel Carrington, a.k.a. “Eastside,” a.k.a. “E,” 28, traveled to Baltimore, Maryland, and purchased heroin, fentanyl, and acetyl-fentanyl to resell in Chesapeake and throughout the Hampton Roads region. The drugs distributed by Carrington resulted in the overdose death of a Chesapeake woman, identified in Court documents as D.J., on December 27, 2019. Although Carrington was aware D.J.’s death, he continued to sell fentanyl until his arrest in May 2020.
Evidence presented at trial included a video of the defendant laughing at his “tester” while he was falling out of consciousness and proudly declaring how strong his fentanyl was. Other videos introduced to the jury included large quantities of cash, a firearm, and illegal narcotics. Text messages introduced at trial showed the defendant’s knowledge that he was distributing pure fentanyl and that he knew of its lethal effects. A medical examiner testified that the levels of fentanyl in the victim’s body were five times the minimum level considered to be lethal by forensic pathologists.
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 Kelvin L. Wright, Chief of the Chesapeake Police Department made the announcement after sentencing by U.S. District Judge John A. Gibney.
Assistant U.S. Attorneys John F. Butler and Joseph E. DePadilla are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-106.
Virginia Beach Man Pleads Guilty to Possessing a Machine Gun Used in a ShootoutRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty last week to illegal possession of a machine gun.
According to court documents, Shy’Quan Dodson, 25, possessed a machine gun on July 18, 2021. That day, Norfolk Police (NPD) officers were in the vicinity of the 900 block of Tunstall Avenue in Norfolk, where they observed multiple individuals shooting at each other. The individuals fled in three separate vehicles, and during the ensuing pursuit a firearm was tossed from the rear of the vehicle. After a 15-minute pursuit that ended in a crash in Portsmouth, Dodson was detained while attempting to flee on foot from the vehicle. The firearm tossed from the vehicle was a Glock with an attached component that converted the handgun into a fully automatic machine gun.
A search of Dodson’s cell phone showed photos of him holding the weapon, and a primer residue test revealed that Dodson had primer particles on his hands from the discharge of a firearm. Dodson’s phone also contained communications with another individual related to the buying and selling of machine gun conversion kits.
Dodson is scheduled to be sentenced on August 12. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after U.S. District Judge John A. Gibney accepted the plea.
Special Assistant U.S. Attorney Graham M. Stolle and Assistant U.S. Attorneys Joseph DePadilla and William B. Jackson are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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-1.
Mclean Man Sentenced for Sexually Exploiting Multiple MinorsRead the Press Release
ALEXANDRIA, Va. – A Mclean man was sentenced today to 18 years in prison and a lifetime of supervised release for producing, receiving, and possessing child sexual abuse material.
According to court documents, Zackary Ellis Sanders, 27, was convicted on October 27, 2021, by a federal jury of five counts of production of child pornography, six counts of receipt of child pornography, and one count of possession of child pornography, after law enforcement found that he engaged in sexually explicit online conversations with at least six different minors between 2017 and 2020.
The evidence presented at trial established that Sanders, who ran a concessions business that provided food and beverage services for local schools, met these minors on various mobile applications and an online forum. Sanders exchanged hundreds of messages with the minors, in which he instructed and induced them to engage in sexually explicit and self-harming conduct, record themselves doing so, and send the resulting videos to him. He also received videos of a sixth minor engaged in sexually explicit conduct. Sanders also discussed meeting some of these minors in person and engaging in sexual acts with them and threatened to distribute a video depicting one of these minors to others at the minor’s high school if the minor did not comply with his instructions.
Additional forensic evidence recovered from multiple laptops and thumb drives found in Sanders’s bedroom pursuant to a court-authorized search established that he possessed different images and videos depicting the sexual abuse of other children, including videos depicting the sexual abuse of a toddler and prepubescent children being sexually abused and subjected to sadistic acts. Sanders told law enforcement that he obtained such images from Darkweb websites, the sole purpose of which were to share and facilitate the viewing of such material.
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’s Criminal Division, made the announcement after sentencing by U.S. District Judge T.S. Ellis III.
Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorneys Jay V. Prabhu and Seth M. Schlessinger prosecuted the case.
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:20-cr-143.
Defendant Sentenced for Dog-Fighting Conspiracy and Illegal Possession of a FirearmsRead the Press Release
RICHMOND, Va. – A Henrico resident was sentenced today to 37 months in prison to be followed by 3 years of supervised release after pleading guilty to federal charges resulting from a lengthy investigation into a significant multi-state dog fighting conspiracy.
According to court documents, Raymond L. Johnson, 41, pleaded guilty to conspiracy to participate in an animal fighting venture and illegal possession of a firearm and ammunition. Beginning in November 2019, law enforcement investigated a criminal organization involved in dog fighting based out of Richmond, and extending into Baltimore, Maryland. In late 2020, law enforcement agents executed three residential search warrants in Virginia and one residential search warrant in Maryland, and seized numerous dogs that were being used for organized dogfighting, together with dog-fighting paraphernalia, firearms and ammunition.
During the investigation, Johnson communicated with his co-conspirators about breeding and fighting dogs, past dog fights, coordination of upcoming dog fights, and other topics detailing the business and the brutality of dogfighting. Johnson hosted two dog fights at his residence, videos of which were recovered by law enforcement. Agents executed a search warrant at Johnson’s Henrico residence on November 19, 2020, and recovered 9 pit bull terrier-type dogs with scarring consistent with dog-fighting. Agents also seized other evidence of dog fighting activities at Johnson’s residence, including dog collars, medications, supplies and supplements, and a treadmill used to train dogs for fighting.
Agents also recovered firearms and ammunition from Johnson’s residence, including an AK47 style rifle. As a convicted felon, it was illegal for Johnson to possess those firearms and ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; made the announcement after sentencing by Senior United States District Judge Robert E. Payne.
Special assistance was provided by the Virginia Animal Fighting Task Force and the United States Marshals Service.
Assistant U.S. Attorney Stephen E. Anthony and Trial Attorneys Banu Rangarajan and William Shapiro with the Department of Justice, Environmental Crimes Section, are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents 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 -108
Chesapeake Man Pleads Guilty to Unlawful Possession of Firearms and Child PornographyRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty yesterday to possessing firearms as a prohibited person and possession of child pornography.
According to court documents, Kim Joseph Habit, 48, as a person who had been committed to a mental institution, violated federal law by subsequently possessing an AM-15 rifle and other firearms. During the course of the investigation, the FBI determined that Habit had been purchasing significant quantities of chemicals and other laboratory equipment that could be used to create a destructive device. Agents also obtained evidence that a computer user at the Habit residence was participating in a peer-to-peer file-sharing network through which images of child pornography were downloaded.
On December 14, 2021, FBI agents executed a search warrant at Habit’s residence and found numerous firearms, a box containing components that could be used in combination to create an improvised explosive device, and electronic devices containing images of child pornography.
Habit is scheduled to be sentenced on August 17. 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorneys Randy Stoker and Megan Montoya are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-009.
Man Pleads Guilty to Distributing Fentanyl in PetersburgRead the Press Release
RICHMOND, Va. – A Sterling man pleaded guilty today to distribution of fentanyl.
According to court documents, on July 21, 2021, Salahudin Mitchell, 39, distributed more than 56 grams of a mixture and substance containing fentanyl. According to court documents, beginning in late 2020, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Virginia State Police, and Petersburg Bureau of Police became aware of the drug trafficking activities of Mitchell and others. This drug trafficking was taking place in Petersburg and elsewhere. A series of nine controlled purchases of fentanyl were made from Mitchell between April 2021 and October 2021.
Mitchell is scheduled to be sentenced on July 29. He faces a mandatory minimum of 5 years in prison, and a maximum term of 40 years. 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; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police; Jarod Forget, Special Agent in Charge for DEA’s Washington Division; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Special assistance was provided by the Petersburg Bureau of Police.
Assistant U.S. Attorney Angela Mastandrea-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. 3:22-cr-007.
Six Individuals Sentenced for Cross-Country, Multi-Kilogram, Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – Four individuals were sentenced today, along with two others on February 4 and 25, to a combined 33 years in prison for their roles in a conspiracy to distribute controlled substances including fentanyl, methamphetamine, cocaine, and heroin.
According to court documents, the following individuals were sentenced for the following offenses:
- Fredrick Sutherland, 56, of Los Angeles, California, was sentenced today to 33 months in prison for conspiring to distribute fentanyl, methamphetamine, cocaine, and heroin;
- Rico Gerrod Spinner, 45, of Washington, D.C., was sentenced today 140 months in prison for conspiring to distribute fentanyl and methamphetamine;
- Andre Emelio Hamilton, 37, of Washington, D.C., was sentenced today to 60 months in prison for conspiring to distribute cocaine;
- Martique Henry, 28, of Washington, D.C., was sentenced today to 66 months in prison for conspiring to distribute heroin;
- Jason Rose, 36, of Inglewood, California, was sentenced on February 25 to 36 months in prison for conspiring to distribute fentanyl, methamphetamine, cocaine and heroin; and
- Ola L’Chelle Clark, 36, of District Heights, Maryland, was sentenced on February 4 to 60 months in prison for conspiring to distribute fentanyl, methamphetamine, cocaine, and heroin.
According to court documents, from October 2020 through January 2021, Sutherland was a California-based tractor-trailer driver who delivered narcotics to several sub-distributors operating in various locations across the United States, including the Ohio, New York, Connecticut, Missouri and the Washington, D.C. metropolitan areas. Sub-distributors supplied by Sutherland included Spinner, Henry, Clark, and Hamilton. Sutherland would work with Rose, who would fly from California to cities in advance of Sutherland’s tractor-trailer arriving and meet with Sutherland to receive the narcotics. Rose would then transport the narcotics to customers, collect the narcotics proceeds from the customers, and take the proceeds back to Sutherland to transport to California.
On October 9, 2020, Sutherland and Rose delivered narcotics to Spinner, Henry, and Clark. Following the transactions, a pursuit by law enforcement after an attempted traffic stop of Spinner’s vehicle resulted in Spinner being apprehended and law enforcement locating a duffle bag used by Spinner containing approximately eight kilograms of methamphetamine and over five kilograms of fentanyl. A separate traffic stop of the vehicle used by Henry and Clark resulted in the recovery of approximately one kilogram of heroin. Also on October 9, 2020, law enforcement searched locations associated with Spinner where approximately $161,159, a loaded Taurus .44 Magnum Revolver, a stolen loaded CZ75 .40 caliber pistol, and 320 grams of heroin were seized.
Sutherland also transported narcotics to Hamilton, who was found on December 26, 2020 in possession of approximately one kilogram of cocaine, approximately $55,000 in U.S. currency, and high-end jewelry appraised at approximately $115,445 in U.S. currency. At his arrest, Sutherland was found in possession of approximately $225,330 hidden in a cabinet in his tractor trailer. All of these funds will be forfeited to the United States.
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 Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Bibeane Metsch and Michael BenAry prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Angels Envy. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to the federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principle mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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 Numbers 1:21-cr-42 and 1:21-cr-40.
Dominican Republic National Pleads Guilty to Trafficking Kilograms of Cocaine by BoatRead the Press Release
ALEXANDRIA, Va. – A man from the Dominican Republic pleaded guilty today to transporting over 300 kilograms of cocaine in a “go-fast” boat traveling from Colombia to the Dominican Republic.
According to court documents, on or about November 20, 2021, Algelis Acosta Felix, 26, was one of three men apprehended by the U.S. Coast Guard (USCG) on board an unflagged “go-fast” boat in the ocean south of the Dominican Republic. In an attempt to evade capture, Acosta Felix and the other individuals tried to flee, causing their boat to strike the USCG cutter. As the “go-fast” boat sank, USCG personnel recovered the defendant and the two other individuals from the water, as well as approximately 360 kilograms of cocaine on board the boat. USCG also located 36 pounds of marijuana aboard the boat.
Acosta Felix is scheduled to be sentenced on July 22. He faces a mandatory minimum of 10 years in prison, with the possibility 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; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and William P. Hicks II, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region, made the announcement after U.S. District Judge Liam O’Grady accepted the plea.
Assistant U.S. Attorney Michael Ben’Ary and Special Assistant U.S. Attorney Sarah Brown 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-43.
Cybercriminal Connected to Multimillion Dollar Ransomware Attacks Sentenced for Online Fraud SchemesRead the Press Release
ALEXANDRIA, Va. – An Estonian man was sentenced today to 66 months in prison for his years-long role in furthering and facilitating computer intrusions, the movement of fraudulently obtained goods and funds, and the monetization of stolen financial account information. He also participated in ransomware attacks causing over $53 million in losses and was ordered to pay over $36 million in restitution.
According to court documents, Maksim Berezan, 37, who was apprehended in Latvia and extradited to the United States, pleaded guilty in April 2021 to conspiracy to commit wire fraud affecting a financial institution and conspiracy to commit access device fraud and computer intrusions. Berezan was an active member of an exclusive online forum designed for Russian-speaking cybercriminals to gather safely and exchange their criminal knowledge, tools, and services. From 2009 through 2015, Berezan not only furthered the criminal aims of the forum, but he also worked closely with forum members and other cybercriminals for purposes of obtaining and exploiting stolen financial account information.
According to court documents, following Berezan’s arrest, investigators uncovered within his electronic devices evidence of his involvement in ransomware activities. The post-extradition investigation determined that Berezan had participated in at least 13 ransomware attacks, 7 of which were against U.S. victims, and that approximately $11 million in ransom payments flowed into cryptocurrency wallets that he controlled.
As reflected in court documents, Berezan used his ill-gotten gains to purchase two Porsches, a Ducati motorcycle, and an assortment of jewelry. In addition, authorities recovered from Berezan’s residence currency worth more than $200,000 and electronic devices storing passphrases to bitcoin wallets that contained bitcoin worth approximately $1.7 million, which has been forfeited.
“Cybercrime has become increasingly more sophisticated, but so have our methods for combatting it,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Ransomware attacks are devastating to people and organizations alike, and we have honed our strategies and techniques to target both the individual actors who perpetrate these attacks and the networks that support them. This case is just one example of how EDVA and the Justice Department are tackling this threat.”
“This case is a prime example of how the Department of Justice can leverage its traditional tools – criminal investigations and prosecutions – to combat ransomware,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Many of the world’s ransomware players began as fraudsters engaged in other types of online crimes, and this case demonstrates that their crimes will catch up to them. The United States is committed to working with its international partners to hold cybercriminals accountable.”
“The Secret Service remains committed to ensuring that modern conveniences of today that facilitate our lawful transactions and economic health are not leveraged by criminals for illicit activity and personal gain. While we have long been in the business of protecting money, from the earliest days of coins and paper, to plastic, and today’s more accessible and commonplace digital currencies, we also remain in parallel footprint to the evolution of criminal behavior into cyberspace,” said U.S. Secret Service Special Agent in Charge Matthew Stohler. “Ransomware thieves are not safe in any dark corner of the internet in which they may think they can hide from our highly trained investigators and law enforcement partners worldwide. Together with our critical partners we are dedicated to protecting the public, and securing every iteration of our money and every part of our national financial infrastructure.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General for the Justice Department’s Criminal Division; Special Agent in Charge Matthew Stohler of the Washington Field Office of the U.S. Secret Service; and Special Agent in Charge Jason Kane of the Criminal Investigative Division of the U.S. Secret Service, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Alexander P. Berrang, Jonathan Keim, and Zoe Bedell and Senior Trial Attorney Laura Fong and Trial Attorney Alison Zitron of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. The Department of Justice’s Office of International Affairs provided vital assistance.
The Department of Justice extends its gratitude to authorities in Estonia and Latvia for their significant cooperation and assistance, in particular, the Latvian State Police and Estonian Police Border Guard.
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. 1:20-cr-145.