Eastern District of Virginia
Press releases recorded for this federal judicial district.
Cybercriminal Connected to Multimillion Dollar Ransomware Attacks Sentenced for Online Fraud SchemesRead the Press Release
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, of Estonia, 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.
“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.”
“Cybercrime has become increasingly more sophisticated, but so have our methods for combatting it,” said U.S. Attorney Jessica D. Aber 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.”
“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,” said Special Agent in Charge Matthew Stohler of the U.S. Secret Service. “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. 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.”
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, seven of which were against U.S. victims, and that approximately $11 million in ransom payments flowed into cryptocurrency wallets that he controlled. 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.
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 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.
Senior Trial Attorney Laura Fong and Trial Attorney Alison Zitron of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorneys Alexander P. Berrang, Jonathan Keim, and Zoe Bedell of the Eastern District of Virginia prosecuted the case.
The Justice Department’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.
Texas Man Sentenced for Selling Chinese-Made Military Helmets and Body Armor to Federal AgenciesRead the Press Release
ALEXANDRIA, Va. – A Celeste, Texas, man was sentenced yesterday to 33 months in prison for a wire fraud scheme involving the selling of Chinese-made military helmets, body armor, and other products to the United States Department of State and other federal agencies while falsely claiming that his company manufactured the goods in Texas.
According to court documents, from approximately June 2017 through approximately December 2020, Tanner Jackson, 32, operated Top Body Armor, LLC USA, and a related entity, Bullet Proof Armor LLC, from his residence in a rural part of Texas. Jackson was the lowest bidder on contracts to supply the Department of State with helmets and body armor, including to personnel guarding the United States Embassy in Baghdad, Iraq, and to foreign law enforcement partners in Latin America. The equipment was removed from service after concerns about its quality came to light.
As part of the scheme, Jackson altered or falsified ballistics laboratory test reports that he provided to the government. On one occasion, after his products failed testing at a legitimate laboratory, Jackson created his own fake ballistics laboratory— “Texas Ballistics LLC” —and simply produced fake reports giving himself passing scores. To conceal the Chinese origin of the products and associated delays in shipping the products to the government, Jackson created and controlled numerous email accounts in the names of supposed shipping company employees. Jackson would author email exchanges between himself and the bogus employees, while copying government contracting officers, to explain away shipping delays from China with cover stories such as truck accidents and COVID outbreaks at the warehouse. Jackson also won similar contracts with the Department of the Air Force. Court records also show that Jackson applied for a Paycheck Protection Program loan based on false documents and obtained HubZone status by falsely listing his business location.
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 Diana Shaw, Senior Official Performing the Duties of the Inspector General for the Department of State, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Russell L. Carlberg 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-238.
Gloucester Man Convicted of Trafficking Methamphetamine and Possessing an Illegal Machine GunRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Gloucester, Virginia man on Monday on charges of methamphetamine trafficking and related firearms charges.
According to court records and evidence presented at trial, Eric Lee Smith, 40, engaged in a methamphetamine trafficking conspiracy in Gloucester County and surrounding areas in 2019 and 2020. Smith and other conspirators obtained quantities of methamphetamine from Arizona and caused it to be transported to Virginia, where Smith stored it in various locations and distributed it for profit. Smith also possessed firearms in the course of the conspiracy. On November 25, 2020, Smith was in possession of an illegal machine gun and unregistered silencer. Smith used the machine gun to shoot another individual.
Smith was convicted of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, using and maintaining drug premises, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, illegal possession of a machine gun, and possession of an unregistered firearm. He faces a mandatory minimum sentence of at least 15 years and a maximum penalty of life imprisonment across the various convictions prison when sentenced on August 8. 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field Division, made the announcement after U.S. District Judge Raymond A. Jackson accepted the verdict.
Special thanks to Mathews County Sheriff’s Department for their assistance in this case.
Assistant U.S. Attorneys Lisa McKeel and Devon Heath 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. 4:21-cr-42.
Virginia Man Pleads Guilty to Attempted Production and Possession of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty last week to attempted production of child pornography and possession of child pornography.
According to court documents, Brian Scott McGalem, 24, repeatedly engaged in sexually explicit discussions with at least six minors where he attempted to persuade several of the victims to produce sexually explicit pictures of themselves and send them to him. At least three of the minor victims were under the age of 12 at the time of the offense. During these discussions, which took place on several social media platforms under the monikers “Random Hipster#2429” and “Sircoolbeans,” McGalem attempted to groom and entice the minors to record themselves engaging in sexually explicit activity and he sent some of the minors sexually explicit images of himself. Moreover, McGalem’s electronic devices contained several images and videos of child sexual abuse material.
McGalem is scheduled to be sentenced on August 17. He faces a mandatory minimum 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 Raymond Villanueva, Special Agent in Charge U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorney Jonathan S. Keim and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
The Department of Homeland Security, Homeland Security Investigations, continues to attempt to identify additional victims. Anyone with information regarding these crimes is encouraged to e-mail the HSI Tip Line: www.ice.gov/tips or by calling: 1-866-DHS-2-ICE.
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-48.
Maryland Man Sentenced for Lying to Buy FirearmsRead the Press Release
ALEXANDRIA, Va. – A Hanover, Maryland, man was sentenced today to 15 months in prison for making false statements in an attempt to acquire 11 firearms.
According to court documents, between December 2018 and July 2021, Rakeim T. Richardson, 27, knowingly made false statements with respect to the purchase of 11 firearms from Federal Firearms Licensees. On each Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form, Richardson falsely stated that he resided in Virginia when, in fact, he resided in Maryland and had done so since at least August 2018. Several firearms purchased by Richardson were recovered by law enforcement in connection with other crimes, including a robbery resulting in homicide.
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.
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 after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Natasha Smalky and Cristina Stam 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-284.
Justice Department Honors Fifth Annual Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
ALEXANDRIA, Va. – The Justice Department last Thursday announced the recipients of the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing. This year’s awards recognize the exceptional work of 18 law enforcement officers and deputies from 12 jurisdictions across the country, including two from the Eastern District of Virginia.
This year’s awardees included Norfolk Police Department Detective Jonathan Smith and the late Detective Victor Powell, who was awarded posthumously.
Attorney General Garland announced the award recipients in Atlanta, Georgia. Later, he attended a ceremony for three award recipients from the DeKalb County Police Department.
“The work of law enforcement has always been difficult—but perhaps no more so than in the recent past, as officers have faced a host of significant challenges. The officers and deputies receiving this year’s awards demonstrate how so many go above and beyond, even in the midst of trying circumstances,” he said. “Every day, thousands of people who work in law enforcement forge and maintain strong community ties that are essential for ensuring public safety. The recipients of this award represent quintessential examples of such critical efforts. It is an honor to recognize them.”
“Detectives Jonathan Smith and Victor Powell showed exemplary passion and dedication to the people of EDVA for their work to identify the perpetrator of an unsolved murder from 1980,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Thanks to their efforts, this killer was brought to justice and the victims’ family found some measure of peace. It is an honor to work alongside the Norfolk Police Department, and all of our police department partners.”
The Attorney General’s Award recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: innovations in community policing, criminal investigations, or field operations. This year, the Department received 185 nominations from 145 agencies, recognizing a total of 347 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
The work being honored this year reflects numerous examples of law enforcement officers working closely with the community to build trust, solve problems, reduce crime, and improve public safety.
The Department of Justice works closely with national law enforcement stakeholder groups during the award review period, taking advantage of their expertise and experience to determine the recipients in a competitive nomination process. The Department also works closely with its components, utilizing the breadth of knowledge within the Department to ensure a successful program that honors the exceptional service of our nation’s law enforcement officers and deputies.
Complete information on the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing can be found at https://www.justice.gov/ag/policing-award.
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.
Four MS-13 Gang Members Convicted of Racketeering, Violent Crimes, and Drug DistributionRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted four Northern Virginia MS-13 gang members yesterday for drug distribution, racketeering, and their roles in two attempted murders in Prince William County in 2019.
According to court records and evidence presented during a three-week trial, Roberto Cruz Moreno, 22, of Woodbridge, and Marvin Torres, 21, of Manassas, were “chequeos,” which are soldiers, in the Guanacos Lil Cycos (GLCS) clique of MS-13; Kevin Perez Sandoval, 24, of Warrenton, was an “observacion,” which is a lower level soldier in the GLCS clique; and Jose Rosales Juarez, 27, of Manassas, was a “paro,” which is an entry level member of the GLCS clique.
In March 2019, Cruz Moreno picked up three other GLCS gang members and a victim identified as E.P.A. and drove them to an isolated wooded area in Bristow, where one GLCS gang member shot E.P.A. multiple times and another stabbed E.P.A. in the neck. They did this because GLCS gang members believed E.P.A. was disrespecting MS-13 and associating with a rival gang. Following the attempted murder, Cruz Moreno fled the scene with the three other GLCS participants and drove them to his residence. In April 2019, local law enforcement officers in Fairfax County found Cruz Moreno in possession of the same firearm used to shoot E.P.A and several grams of packaged cocaine in his vehicle, along with three other GLCS gang members traveling with him in the vehicle. Cruz Moreno had earlier that day been selling the cocaine on behalf of the clique.
In July 2019, Torres identified a victim, known as N.M.S., as a rival gang member in GLCS-controlled territory and provided photographs of N.M.S. to fellow gang members. On August 3 and 4, 2019, Rosales Juarez surveilled N.M.S. at a restaurant in Manassas, and discussed plans to kill N.M.S. with GLCS’ First Word, or leader, Andy Tovar, 32, of White Post. Tovar is considered to be one of the highest-ranking MS-13 members in the United States. On Aug. 12, 2019, Tovar granted permission to conduct the killing of N.M.S. That day, Perez Sandoval drove two members or associates of MS-13 to retrieve a firearm, then back to N.M.S.’s location where they shot him. Perez Sandoval then drove the associates from the scene of the shooting to Rosales Juarez’s residence. Rosales Juarez provided Perez Sandoval a different car to drive and rented a hotel room for the two other GLCS gang members involved in the attempted murder of N.M.S., in order to hinder law enforcement detection of those involved.
Prior to this trial, on February 4, Tovar pleaded guilty to each of the crimes with which he was charged in an indictment, including engaging in conspiracies to murder a victim identified as M.R.G. Tovar authorized GLCS gang members to kill M.R.G., and, on July 3, 2017, GLCS gang members traveled from Prince William County to Charlottesville to murder M.R.G because the GLCS clique believed M.R.G was a rival gang member. Following Tovar’s authorization, four GLCS gang members stabbed M.R.G to death over 140 times using knives and a machete before they dumped the victim’s body in a creek, burned his car, and fled back to Prince William County.
Tovar, Cruz Moreno, and Perez Sandoval each face a mandatory minimum sentence of 10 years and a maximum penalty of life in prison. Torres and Rosales Juarez each face a maximum sentence of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. Tovar will be sentenced on July 13, and Cruz Moreno, Perez Sandoval, Torres, and Rosales Juarez will be sentenced on August 31. 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; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Tim Foley, Acting Special Agent in Charge of the Drug Enforcement Administration, New York Division; Colonel Sean Reeves, Chief of Albemarle County Police; Douglas W. Keen, Chief of Manassas City Police; Peter Newsham, Chief of Prince William County Police; Amy Ashworth, Commonwealth Attorney for Prince William County; and Kevin Davis, Chief of Fairfax County Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys Nicholas Murphy, Nicholas J. Patterson, and Amanda Lowe 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-18.
Drug Trafficker Sentenced for Role in 2011 Reston MurderRead the Press Release
ALEXANDRIA, Va. – A Honduran national, formerly of Reston, Virginia, was sentenced today to 20 years in prison for aiding and abetting a drug-related murder over a decade ago.
According to court documents, Saul Pacheco Mejia, 55, arranged to sell cocaine to individuals in Reston on December 12, 2011. On that date, Mejia and two associates arrived at an apartment in Reston in anticipation of the cocaine transaction. Instead of purchasing the cocaine, the intended customer attempted to steal the cocaine and flee. Mejia’s associates chased, shot, and killed the man. Mejia did not have a firearm, but knew the two other individuals did have firearms. Mejia and the others fled to Honduras shortly after the crime. In late 2019, Mejia was located in the United States and arrested in Texas.
Mejia pleaded guilty on July 15, 2021, to aiding and abetting the use of a firearm in furtherance of a drug trafficking conspiracy, causing death, and abetting the use of a firearm in connection with a drug conspiracy resulting in death.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorney Michael P. Ben’Ary 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. 1:15-cr-2.
Man Sentenced to Prison for Leading Counterfeiting ConspiracyRead the Press Release
A New Jersey man was sentenced today to 5 years in prison for manufacturing counterfeit currency.
According to court documents, Hollis Forteau, 38, was the leader of a multi-defendant counterfeiting conspiracy. The members of the conspiracy profited by using $100 counterfeit bills to purchase items at a retail store, and then returning those items at another branch of the same store in exchange for genuine currency. Forteau made the counterfeit notes by printing images of $100 bills onto bleached $1 bills. He distributed them to the rest of the group in exchange for a substantial cut of their proceeds.
The United States Secret Service’s counterfeit tracking application revealed that since 2019, over $235,000 in $100 counterfeit bills with similar characteristics have been used across the country.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorneys Rebecca Gantt and Andrew Bosse 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-28.
Woodbridge Money Launderer Sentenced for his Role in a Romance Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 21 months in prison for engaging in financial transactions with illegal proceeds as part of a romance fraud scheme against mostly elderly victims.
According to court documents, beginning in February 2016, Abdul Rasak Garuba, 41, received large wire transfers from a number of senior citizens living throughout the United States who were duped into believing that they were sending money at the request of and for the benefit of romantic partners they met through online dating sites. In fact, the victims had been directed to send money to Garuba by individuals in Nigeria who were operating a “romance fraud” scheme.
To receive the funds, Garuba opened a number of bank accounts at local bank branches in Virginia. A victim of the scheme called his bank to report that the money he wired to Garuba was induced through fraud. In the ensuing investigation, Garuba lied and told his bank that he was engaged in business with the victims, had purchased cars for them, and had the paperwork to prove it. Garuba’s bank closed his account for fraud when he failed to produce any records. However, he continued to perpetrate the fraud scheme by accepting shipments of cash and wire transfers from victims.
In total, Garuba transferred approximately 15% of the nearly $2.9 million that the fraudsters obtained from the victims. During this period, Garuba was aware that much of this money was obtained through fraudulent means and that he was furthering the fraud. Garuba used the illegal proceeds to purchase vehicles at auction in the United States and then shipped the vehicles to Nigeria for the benefit of the leaders of the “romance fraud” scheme.
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, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Carina A. Cuellar and Kimberly Riley Pedersen 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.
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-201.
United States Attorney’s Office Resolves Lawsuit Against BayPort Credit Union for Violations of the Servicemembers Civil Relief ActRead the Press Release
ALEXANDRIA, Va. – BayPort Credit Union (“BayPort”), located in Newport News, has agreed to pay nearly $110,000 to settle allegations that it violated the Servicemembers Civil Relief Act (SCRA) by charging excessive interest on servicemembers’ loans and other credit products and repossessing servicemembers’ vehicles without court orders.
The SCRA requires creditors to reduce the interest rate on servicemembers’ financial obligations, including retail installment sales contracts, to 6% in certain circumstances. The SCRA also prohibits repossessing a motor vehicle from a servicemember during military service without a court order, as long as the servicemember made a deposit or installment payment on the loan before entering military service.
The settlement, which must be approved by the U.S. District Court for the Eastern District of Virginia, resolves a lawsuit filed today by the Department of Justice. The lawsuit alleges that BayPort unlawfully charged interest in excess of 6% to 21 servicemembers who qualified for and sought SCRA interest rate benefits. In at least one instance, BayPort told a servicemember that reducing the interest rate would increase her monthly payment. The lawsuit also alleges that BayPort unlawfully repossessed three servicemembers’ motor vehicles without court orders. In at least one of those cases, BayPort knew about the borrower’s military service and repossessed the vehicle from a military base.
Under the terms of today’s settlement, BayPort must pay nearly $70,000 to the affected servicemembers. Additionally, BayPort must pay $40,000 to the United States as a civil penalty. The agreement also requires BayPort to revise its policies and procedures to prevent future SCRA violations and provide SCRA training to its employees.
“Entering military service can create financial hardships for our servicemembers who make incredible sacrifices for our nation’s security,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “This consent order helps ensure that these men and women are not disadvantaged by their military service and that servicemembers’ rights are protected going forward.”
“This case is just the latest example of the Justice Department’s steadfast commitment to safeguarding the rights of servicemembers, who make so many sacrifices in defending our country,” said Assistant Attorney General Kristen Clarke of the Department’s Civil Rights Division. “We will continue to vigorously enforce the protections to which servicemembers are entitled under federal law, including their right to a 6% interest rate cap on loans and a right not to have their car repossessed without a court order.”
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 United States Department of Justice Civil Rights Division’s Housing and Civil Enforcement Section. The matter was investigated by Assistant U.S. Attorney Deirdre G. Brou and Trial Attorney Alan Martinson. The civil claims settled by this SCRA agreement are allegations only; there has been no determination of civil liability.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at http://legalassistance.law.af.mil/.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. Additional information on the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
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.
Member of Cuban Credit Card Skimming Crew Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A Cuban man was sentenced today to 37 months in prison for conspiracy to commit bank fraud.
According to court documents, Denis Monsibaez Diaz, 38, and other co-conspirators, all of whom are Cuban nationals, placed skimming devices on gas pumps located in Northampton County. The skimming devices were capable of recording the credit and debit bank card numbers, along with the PINs, of the customers that used their cards at the gas pumps. In April and May 2018, using the stolen card information, Diaz and his co-conspirators traveled between Harris Teeter store locations, among other destinations, to withdraw money from the victims’ bank accounts and purchase prepaid debit gift cards. They were attributed with attempting to steal over $200,000 in a matter of days as a result of those gas pump skimmers.
Diaz is the seventh defendant sentenced for this conspiracy. The crew was attributed with aggregate losses of over $5 million over several years. In addition, many of the defendants had significant criminal histories involving the same conduct and were known to travel the country perpetrating this scheme. The leader of the crew, Yasmani Granja Quijada, 33, was found to be trading over 9,800 additional stolen credit card numbers using his email account over the past few years. On January 4, 2021, he was sentenced to 10 years in prison for his role in the conspiracy.
The FBI and U.S. Marshals Service seized numerous vehicles and other items that were purchased by the defendants with funds stolen through credit cards, including a boat and luxury vehicles. Several other conspirators remain at large.
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 David L. Doughty, Jr., Northampton County Sheriff, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorney Elizabeth Yusi prosecuted the case.
This case is an example of EDVA’s commitment to protecting Virginians against fraud and unlawful business practices. Alongside law enforcement agencies, non-profit and private organizations, this week EDVA recognizes National Consumer Protection Week by raising awareness about widespread and emerging scams.
If you are the victim of a scam or think you have been contacted by a scammer, report the fraud to your local law enforcement, and file a complaint with the Federal Trade Commission and the FBI’s Internet Crime Complaint Center at ic3.gov.
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-109.
Suffolk Man Sentenced for Straw-Purchasing Firearms ConspiracyRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 156 months in prison in connection with aiding and abetting the making of a materially false statement during the purchase of a firearm and being a felon in possession of a firearm.
According to court documents, from approximately August 2018 to July 2020, Darren Walker, 34, and co-conspirators were members of a straw-purchasing conspiracy in which the co-conspirators straw-purchased multiple firearms for Walker, who would then transport the firearms from Hampton Roads to Baltimore, Maryland, among other locations, and resell them for a profit. Walker was attributed with being involved in the trafficking of at least 28 firearms. Four of the straw-purchased firearms were recovered in Baltimore from individuals who were involved in either drug-related arrests, were persons prohibited from possessing firearms, or both, including the recovery of a firearm loaded with an extended magazine containing 27 rounds of ammunition.
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; and Al Chandler, Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney William Jackson and Amanda Turner prosecuted 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. 2:21-cr-89.
EDVA Announces Grant Funding for Project Safe Neighborhood InitiativesRead the Press Release
ALEXANDRIA, Va. – Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the availability of $535,653 in grant funding for Project Safe Neighborhood (PSN) initiatives.
“Addressing violent crime is among my top priorities, and it is where EDVA is focusing significant effort. We are collaborating closely with our local, state, and federal partners on violence prevention and working to build trust and a stronger feeling of safety in the communities we serve,” said U.S. Attorney Jessica Aber. “We recognize that to make a dent in violent crime we need an all-hands effort from the community. Law enforcement cannot solve this problem alone. It is with this in mind that I am pleased to announce the availability of grant funding for organizations and local and state agencies.”
EDVA has focused additional resources on its PSN program in the last year. On August 31, 2021, the Acting U.S. Attorney for EDVA announced the assignment of two federal prosecutors specifically assigned to coordinate PSN efforts in each of the district’s four geographic Divisions. In addition to the efforts of over 40 experienced prosecutors throughout the district, these coordinators are focused on chronic offenders, gangs, and firearms traffickers, as well as on engaging with community partners to seek prevention and intervention opportunities.
This change is part of the reassessment and retooling of EDVA’s strategy to address the most pressing violent crime problems with three principles in mind: fostering trust and legitimacy through increased community engagement; a heightened focus and attention on prevention and intervention; and strategic enforcement through enhanced multi-agency, multi-jurisdiction, proactive investigations.
Guided by those principles, EDVA’s new PSN strategy sets a number of goals to reduce violent crime:
- Engage, collaborate, and invite community stakeholders to share responsibility in efforts to reduce violent crime.
- Build trust between law enforcement and the community through effective communication, regular interaction, and the support and protection of crime victims.
- Reduce accessibility and possession of handguns among minors.
- Reduce re-offending and break the cycle of re-victimization.
- Disrupt and dismantle the region’s most organized and violent gangs.
- Identify chronic violent offenders responsible for a disproportionate level of violent crime.
- Work with citizens in neighborhoods most impacted by violent crime on harm reduction strategies.
Last fall, in an effort to enhance EDVA’s collaboration with local, state, and community partners, the U.S. Attorney’s office formed a Grant Committee to help identify and allocate grant funds to programs and initiatives that support EDVA’s PSN violence reduction strategy. The PSN Grant Committee had its inaugural meeting on December 7, 2021, met again on January 28, 2022, and consistent with EDVA’s strategic emphasis, the Committee is currently focused on three regions—Richmond, Newport News, and Norfolk—but will evaluate grant applications from across the Eastern District.
The U.S. Attorney and the PSN Grant Committee encourage organizations and local and state agencies whose programs support our PSN goals within the district to apply for grant assistance by visiting the Virginia Department of Criminal Justice Services website at https://www.dcjs.virginia.gov/grants/programs/fy-2022-project-safe-neighborhoods-psn-grant-solicitation. Please submit proposals and budgets by April 15, 2022.
On December 9, 2021, as part of a nationwide effort to expand PSN, the U.S. Department of Justice announced $17.5 million in additional grant funding to support PSN efforts nationwide, including $247,745 for EDVA.
“We look forward to putting this grant money to good use in the new year and remain optimistic that with the help of the community we can reduce violent crime. Everyone deserves to feel safe in their towns and cities—as Virginians and Americans, we owe that to each other,” said U.S. Attorney Jessica Aber.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Felon Sentenced for Sex Trafficking, Drug, and Firearm ChargesRead the Press Release
A Norfolk man was sentenced today to 460 months in prison for sex trafficking, fraud, conspiracy to distribute methamphetamine and other drugs, and being a felon in possession of a firearm.
According to court documents, LeAnthony Winston, 34, is a six-time convicted felon. Shortly after he was released from state prison in December 2019 for firearm and drug convictions, Winston obtained another firearm and began to traffic methamphetamine, marijuana, cocaine, and cocaine base.
From March through May 2020, Winston trafficked two homeless women in Norfolk and coerced them into engaging in commercial sex. He used a combination of false promises of love and protection, threats, and violence, including beatings and pointing a firearm at the women to gain compliance. Winston’s co-conspirator, Tonya Hardesty, 37, of Norfolk, trained the women, created advertisements, and set up commercial sex “dates” with clients, while Winston set the prices and kept all of the proceeds from commercial sex. He also distributed drugs to the women, including methamphetamine and crack, to keep them awake so that they could have as many “dates” as possible and so that they would be indebted to him for the cost of the drugs.
On April 15, 2020, Norfolk Police Department patrol officers responded to the Ocean View Inn Motel in Norfolk after Winston beat, choked, and threatened to kill one of the women in a dispute about money. The female victim stated that she was assaulted by her “pimp,” so the patrol officers referred the case to Norfolk vice and narcotics detectives for further investigation.
After an investigation, Winston was arrested in Norfolk on May 27, 2020. At the time of his arrest, Winston had approximately 16.8 grams of crack cocaine in his pocket. Within the hotel room, law enforcement found the second female victim and Winston’s loaded firearm. After Winston was taken into custody, he continued to coerce the second female to engage in commercial sex, claiming that he would be out on a bond soon. He also threatened her over a jail call.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C. Field Office; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorneys Amanda Turner and Megan Montoya are prosecuting the case.
This investigation was conducted by the Hampton Roads Human Trafficking Task Force, a collaboration between federal, state, and local law enforcement and prosecutors, as well as non-governmental organizations, working together to combat human trafficking in the Hampton Roads Region. The Virginia Army National Guard Counterdrug Task Force provided significant assistance in 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. 2:20-cr-108.
Alexandria Man Sentenced for Armed Fentanyl TraffickingRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 14 years in prison for conspiracy, possession, and distribution of fentanyl and Eutylone, and being a felon in possession of a firearm during drug trafficking.
According to court documents, from in or around June 2020, through at least December 2020, Kibruysday Degefa, 29, conspired with others to distribute counterfeit, pressed pills containing fentanyl, as well as Eutylone, which is a designer drug similar in character to MDMA. Pills distributed by the conspiracy twice on December 20, 2020, contributed to the mixed drug overdose death of a 20-year-old female in Arlington, whose blood was later determined to contain fentanyl. A search warrant on the hotel room where Degefa was staying at the time revealed additional narcotics for distribution, including Eutylone, along with multiple firearms concealed in the bathroom ceiling tiles. Degefa was previously convicted of robbery in Alexandria in 2015.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Andy Penn, Arlington County Chief of Police; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Virginia Attorney General Jason Miyares; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Special Assistant U.S. Attorney Rachel M. Roberts and Assistant U.S. Attorneys Jim Trump, Ryan Bredemeier, and Michael P. Ben’Ary prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). 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.
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-104.
North Carolina Man Sentenced for Multi-State Sex Trafficking of a ChildRead the Press Release
NEWPORT NEWS, Va. – A Charlotte, North Carolina, man was sentenced today to 18 years in prison for sex trafficking an Ohio child in numerous states, including Virginia.
According to court documents, in November 2020, Anthony Jermaine Foman, 26, persuaded a 14-year old minor from Ohio on social media to join him and travel to various states to engage in prostitution with promises that he would take care of her. Instead, he used drugs and violence to force her to continue prostituting herself in North Carolina, Florida, South Carolina, Delaware, Georgia, and Virginia. Foman also filmed his sexual encounters with the minor victim and transported this child pornography from South Carolina to Virginia. In December 2020, the child was found in Hampton with Foman and he was arrested shortly thereafter.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Mark Talbot, Chief of Hampton Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Lisa McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-28.
Norfolk Man Sentenced for Firearms, Fraud, and Identity TheftRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 124 months in prison for possessing at least nine illegal firearms, committing credit union fraud in an attempt to gain more than $120,000, and causing financial harm to approximately 34 identity theft victims.
According to court documents, Damarco Antonio Smith, 24, is a documented gang member. From in or around 2018 through March 2020, he conspired with at least three fellow gang members to commit bank fraud in Norfolk and on the Peninsula by negotiating stolen and counterfeit checks. He and his co-conspirators recruited people with bank accounts, stole and deposited checks into those accounts, and quickly withdrew or transferred the funds before the accounts were frozen. Smith also stole credit cards and other personal information, which he used to clone fraudulent debit and credit cards. While executing search warrants at two residences, investigators recovered dozens of stolen, fraudulent, and blank credit, debit, and gift cards, along with access device-making equipment like credit card readers, encoders, printers, and laptops.
During roughly the same period as Smith’s fraud offenses, he was caught with at least nine illegal handguns, including weapons with large-capacity magazines. Of these handguns, he purchased at least four from federally licensed gun stores by lying about not being an unlawful user of controlled substances. Smith similarly lied on his application for a concealed weapons permit.
On March 29, 2020, Smith participated in a gunfight where one of his associates was shot in the back and paralyzed. He and his fellow gang members drove the injured party to the hospital, dropped him at the emergency room, and tried to speed off. They were stopped by police who recovered two firearms from the vehicle, including one belonging to Smith.
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; Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division; Larry D. Boone, Chief of Norfolk Police; Paul Neudigate, Chief of Virginia Beach Police; and Stephen R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Assistant U.S. Attorneys William Jackson and D. Mack Coleman 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-83.
Member of International Drug Trafficking Conspiracy SentencedRead the Press Release
NORFOLK, Va. – A Kennewick, Washington, man was sentenced today to 145 months in prison for conspiracy to distribute and possession with intent to distribute cocaine, and distribution of cocaine.
According to court documents, Juan Gabriel Rodriguez-Preciado, 44, facilitated the trafficking of kilogram quantities of cocaine between a Mexican cartel and a regional drug trafficking organization (DTO) run by Adian Barth, 37, of Chesterfield. During July and August 2019, Rodriguez-Preciado stayed at a Richmond residence owned by Barth to assist him in a cocaine drug trafficking conspiracy. From that residence, Rodriguez-Preciado distributed approximately 10 kilograms of cocaine every other week to members of Barth’s DTO over a two-month period. In return, Rodriguez-Preciado collected approximately $30,000 per kilogram, which he funneled back to Mexico.
On May 11, 2021, Barth was sentenced to 225 months in prison for charges of conspiracy to distribute, possession with intent to distribute, and distribution of cocaine.
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; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Megan Montoya and Special Assistant U.S. Attorney Kristin Bird 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. No. 2:19-cr-164.
Leader of Wholesale Drug Distribution Network SentencedRead the Press Release
ALEXANDRIA, Va. – A Los Angeles man was sentenced today to 14 years in prison for leading a conspiracy involving the distribution of wholesale quantities of synthetic cannabinoids—commonly known as “spice” or “K2”—and laundering millions of dollars in the proceeds of the sale of that spice.
According to court documents, from 2017 through November 2019, Joseph Ruis, 56, was the leader of a Southern California-based wholesale spice manufacturing and distribution operation, along with co-defendants and sisters Kimberly Drumm, 52, and Bonnie Turner, 50, of Olive Branch, Mississippi. The illicit business presented as Aroma Superstore, and maintained a professional-looking website through which buyers around the country, including in the Eastern District of Virginia, could order packages of different varieties and flavors of spice.
The spice that Aroma Superstore sold almost uniformly contained chemicals listed as Schedule I controlled substances. The spice was sold in packages bearing the label “Not For Human Consumption” in an attempt to avoid regulatory or law enforcement scrutiny. The products were, in reality, intended to be consumed and induce a “high” similar to other controlled substances. The spice connected to this conspiracy was used by an individual from New Hampshire to fatally overdose.
Ruis controlled the operation and employed several individuals, including Drumm and Turner, who helped run the business. Ruis ran Aroma Superstore like a legitimate business in many ways, such as maintaining an office, hiring a financial manager, and issuing regular paychecks to employees. Ruis dictated the prices of the different sizes of the packages of spice and employed at least two individuals to answer phone calls and take orders for spice.
Ruis, Drumm, and Turner concealed the proceeds of their spice distribution by moving the profits through a network of shell corporations. Ruis directed Turner, who had no criminal record, to open bank accounts and register businesses in her name to avoid detection by law enforcement or by financial institutions.
In May 2019, law enforcement searched locations in Southern California used by Ruis, Drumm, and Turner for their business. In one warehouse location, agents seized approximately 30 kilograms of spice as well as a large volume of packaging material and equipment used in the distribution of the spice. At another warehouse location, law enforcement seized approximately 4,500 pounds of marijuana, approximately 300 kilograms of butane honey oil, lab equipment for the extraction of Tetrahydrocannabinol (THC), and approximately $45,000. Law enforcement also searched the storage locker that Drumm had rented on behalf of Aroma Superstore and recovered approximately one kilogram of 5F-MDMB-PICA, a Schedule I chemical used to manufacture the spice. At the residence shared by Ruis, Drumm, Turner, and some of their employees, law enforcement seized three Rolex watches and one Philippe Patek watch that had belonged to Ruis; the total value of the four watches was appraised at approximately $137,200. Luxury vehicles, including a Ferrari belonging to Ruis, were also seized.
As part of his plea agreement, Ruis agreed to forfeit more than $2.9 million to the United States. Drumm and Turner each pleaded guilty to one count of conspiracy to commit money laundering and one count of distribution of Schedule I controlled substances. Drumm and Turner were sentenced to 6 years and 5 years of imprisonment respectively for their role in the conspiracy.
Three additional defendants pleaded guilty to their roles in the conspiracy and were sentenced to over 6 years in prison combined.
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; Raymond Villanueva, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C. Field Office; Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division; and Jeremy A. Falls, Fauquier County Sheriff, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorneys Katherine Rumbaugh and Bibeane Metsch prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation Scary Spice. 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. 1:20-cr-76.
CEO Sentenced for Bribing Former Norfolk SheriffRead the Press Release
NORFOLK, Va. – A Franklin, Tennessee man was sentenced today to three years in prison and a $35,000 fine for conspiring to commit honest services mail fraud by paying bribes to secure medical services contracts for the Norfolk City Jail.
According to court documents, Gerard Boyle, 67, admitted to engaging in a 12-year bribery scheme with former Norfolk Sheriff Robert McCabe. Boyle was the founder and chief executive officer of Correct Care Solutions (CCS), a company that provided medical services to people in jail. Over the course of the conspiracy, Boyle provided McCabe things of value, including gifts, cash, entertainment, travel, 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. Such official acts included, but were not limited to, signing contracts, granting extensions without putting the contracts out to bid, the release of a letter of credit, and awarding other adjustments that increased the value of the contracts. On August 24, 2021, a federal jury convicted McCabe of all eleven charged counts related in part to this scheme.
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 L. 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.
Jury Convicts Arizona and California Men for $20 Million Dollar Investment FraudRead the Press Release
NORFOLK, Va. – A federal jury convicted an Arizona man and a California man yesterday on charges of conspiracy to commit mail and wire fraud, wire fraud, and money laundering, in connection with a nationwide investment scheme involving fraudulent wireless spectrum and dental franchise investments.
According to court records and evidence presented at trial, from approximately 2011 through 2017, David Alcorn, 78, of Scottsdale, Arizona, and Aghee William Smith II, 70, of Roseville, California, were part of an investment fraud conspiracy that operated out of California, Arizona, Florida, Idaho, and Hampton Roads, among other locations across the country. Alcorn, Smith, and their co-conspirators—including Kent Maerki, 78, and his wife Norma Jean Coffin, 60, of Arizona, Daryl Bank, 51, of Florida, insurance salesman Tony Sellers, 62, of Idaho, insurance salesman Tom Barnett, 69, of California, attorney Billy Seabolt, 56,, of Williamsburg, Raeann Gibson, 49, of Florida, and Roger Hudspeth, 51, of Suffolk – deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by convincing them to invest in or send money to companies owned and controlled by Alcorn, Bank, and Maerki. Alcorn and others then misappropriated significant portions of the investment funds to pay for their criminal enterprise and lavish lifestyles, as well as to pay exorbitant commissions to Smith and other salesmen.
Smith began selling these fraudulent investments in 2011 for Alcorn, Maerki, and Bank. The conspirators used material misrepresentations to sell illiquid, highly speculative investment vehicles that were then used as vehicles for fraud. Based on these fraudulent misrepresentations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest without knowing that Alcorn, Bank, and Maerki were immediately transferring 20%–70% of the funds to other companies that they controlled in the form of purported “fees.” As a result of this investment fraud scheme, the victims suffered losses in excess of $20 million.
Alcorn was convicted of conspiracy, wire fraud, and money laundering. He faces a maximum penalty of over 200 years in prison when sentenced on June 23. Smith was convicted of conspiracy and wire fraud, and he faces a maximum penalty of over 90 years in prison when sentenced on June 23. 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.
Bank was convicted after trial of conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering, and was sentenced in September 2021 to 35 years in prison. Maerki pleaded guilty to conspiracy and was sentenced in March 2021 to 16 years in prison. Seabolt was convicted after trial of conspiracy and mail fraud and sentenced in September 2021 to 10 years in prison. Gibson pleaded guilty to conspiracy and was sentenced in February 2020 to 10 years in prison. Hudspeth pleaded guilty to investment advisor fraud and money laundering and was sentenced in May 2018 to over 12 years in prison. Sellers pleaded guilty to conspiracy and was sentenced in January 2022 to 5 years in prison. Coffin and Barnett each pleaded guilty to conspiracy and will be sentenced in March and May 2022, respectively.
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; Darrell J. Waldon, Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service; and Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after Senior U.S. District Judge Raymond A. Jackson accepted the verdict.
The Virginia State Corporation Commission provided significant assistance with this investigation.
Assistant U.S. Attorneys Melissa O’Boyle, Elizabeth Yusi and Andrew Bosse are prosecuting 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.
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-47.
Former Virginia Beach Business Owner Sentenced for Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
NORFOLK, Va. – A former Virginia Beach business owner was sentenced today to 51 months in prison for his role in operating a durable medical equipment supply company that defrauded federal health care programs of millions of dollars.
According to court documents, in 2018 and 2019, Frank Alosa, 49, of Kentucky, and a co-conspirator operated Merchant Card Solutions, LLC d/b/a Med Brace Shop, a durable medical equipment supply company based in Virginia Beach, for the purpose of submitting false and fraudulent claims for reimbursement to Medicare, Tricare, and Virginia Medicaid. As part of the conspiracy, Alosa and the co-conspirator purchased illegal orders for unwanted and medically unnecessary durable medical equipment, such as orthotic braces, and then used those orders to fraudulently bill Medicare and the other health care programs for over $8 million in total. The orders for the medical equipment were fabricated through a third party reaching out to beneficiaries and illegally soliciting unnecessary equipment to them. The orders were then endorsed by health care practitioners who, in exchange, received illegal bribes. As a result, the equipment was issued to beneficiaries without regard for actual medical necessity and the orders were billed to their insurance programs, profiting Alosa and his co-conspirator’s company.
In connection with the scheme, Alosa concealed the co-conspirator’s role in Med Brace Shop from Medicare and others due to the co-conspirator’s criminal background, which prohibited him from serving as an owner or managing employees of the company. The methods of concealment included, among other things, creating a shell company for the purpose of making illegal payments to other entities and individuals involved in the scheme. As a result of the conspiracy, Alosa and his co-conspirator defrauded Medicare of at least $3,843,922.89, defrauded Tricare of at least $43,370.42, and defrauded Virginia Medicaid of at least $5,121.42. Alosa and his co-conspirator diverted the proceeds of the fraud for their personal use and benefit.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Chris Dillard, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Daniel Shean 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-52.
Man Sentenced for Sale of Fentanyl and Illegal Possession of FirearmsRead the Press Release
ALEXANDRIA, Va. – A Manassas man was sentenced today to 142 months in prison for selling counterfeit prescription pills containing fentanyl in addition to illegally possessing and selling firearms.
According to court documents, Richard Michael Perez, 26, was identified by law enforcement around September of 2020 as a source of supply for various narcotics. During transactions spanning September 2020 through June of 2021, Perez sold nearly 1,000 pills containing fentanyl to an undercover law enforcement agent. During the course of the sales, Perez mentioned that he owned firearms, and, in April of 2021, sold a semi-automatic rifle to the undercover law enforcement agent.
In June of 2021, Perez was taken into custody and a search of his residence revealed additional narcotics, a privately manufactured firearm devoid of a serial number or other unique identifier, various ammunition, and over $9,000 in cash. Perez had previously been convicted of multiple felony offenses in Virginia and was thus prohibited from possessing firearms at the time of this offense.
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; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Kevin Davis, Fairfax County Chief of Police; Peter Newsham, Prince William County Chief of Police; and Jason Miyares, Attorney General of Virginia, made the announcement after sentencing by U.S. District Judge Rossie D. Alston.
Special Assistant U.S. 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-176.
Jury Convicts DC Man and Woman for Armed Robbery and CarjackingRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a District of Columbia man and woman Friday on charges of robbery, carjacking, and possession of a firearm during crimes of violence.
According to court records and evidence presented at trial, Douglas Damon Whitley, 39, and Kendal Robinson, 35, followed a Peloton delivery van in another vehicle into a 7-11 parking lot in Fairfax on August 25, 2021. Whitley got out of the vehicle driven by Robinson and entered the delivery van from the passenger side where he pulled a Tec 9 from his bag and ordered the driver out of the van. The van was found in Maryland stripped of the Peloton bikes several days later. Surveillance footage from the surrounding commercial establishments captured the crime.
Whitley faces a mandatory minimum penalty of 7 years in prison when sentenced on May 24. Robinson faces a maximum penalty of 20 years in prison when sentenced on May 24. 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 Kevin Davis, Fairfax County Chief of Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict.
Assistant U.S. Attorney Ronald L. Walutes, Jr. 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. 1:21-cr-227.
Foreign Service Officer and Former Spouse Sentenced for Obtaining U.S. Citizenship by FraudRead the Press Release
ALEXANDRIA, Va. – A California woman and Russian-born man were sentenced last week to a term of prison of 15 and 6 months, respectively, for their involvement in a conspiracy and obtaining citizenship by fraud.
According to court records and evidence presented at trial, Laura Gallagher, 32, a Foreign Service Officer with the U.S. Department of State, and Andrey Kalugin, 36, originally of Russia, conspired to fraudulently obtain lawful permanent resident status and citizenship for Kalugin through his marriage to Gallagher.
Evidence presented at trial demonstrated that the defendants met in law school in 2013. Kalugin was in the U.S. on a student visa that was due to expire in July 2015. The defendants married in June 2015 and submitted applications for Kalugin to obtain his “green card.” The defendants moved from California to Virginia in March 2016 but split up soon thereafter and lived separately from each other. However, they continued with the immigration process.
Gallagher, who was also a California-licensed attorney at the time of the conduct, then prepared for Kalugin an application for 319(b) expeditious naturalization, which is a benefit available to spouses of citizens who are regularly stationed abroad for their employment. The defendants provided materially false responses in the application. Kalugin appeared for an interview on Feb. 5, 2018, with U.S. Citizenship and Immigration Services (USCIS) in Fairfax, where he repeated the false statements to the adjudicating officer. After USCIS approved the application and he received his citizenship, Kalugin fraudulently obtained U.S. Diplomatic and tourist passports. Shortly thereafter, Gallagher filed for divorce. The defendants were convicted at trial on September 10, 2021.
Additionally, the district court judge entered an order revoking Kalugin’s naturalization.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Raizza K. Ty and Morris R. Parker, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-43.
Recidivist Defendant Sentenced to 120 Months for Possession of Child PornographyRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced yesterday to 10 years in prison followed by a lifetime of supervised release for possession of child pornography.
James B. Clawson Sr., 59, was convicted by a federal jury in the Eastern District of Virginia of possession of child pornography on Aug. 26, 2021. According to court documents and evidence presented at trial, Clawson was previously convicted of distribution of child pornography in the Eastern District of Virginia after law enforcement discovered that he was serving as the administrator of an online forum dedicated to child sexual abuse material and distributing such material to members of his forum.
While on a term of federal supervised release in connection with this conviction, a U.S. Probation Officer visited Clawson’s home and found a laptop and thumb drives in a hidden compartment in Clawson’s closet. Though Clawson had denied owning a laptop, law enforcement’s investigation established that Clawson had been using the laptop to search for and download images and videos of minors engaged in sexually explicit conduct, which he then stored on one of his thumb drives. Once saved to his thumb drive, Clawson categorized and renamed these files based on the specific sexual conduct they depicted.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, made the announcement.
The FBI Washington Field Office investigated the case, with significant assistance from the High Technology Investigative Unit of the Justice Department Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Assistant U.S. Attorney Seth M. Schlessinger and Trial Attorney William G. Clayman of the Criminal Division’s CEOS prosecuted 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.
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-119.
Recidivist Defendant Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
A Virginia man was sentenced yesterday to 10 years in prison followed by a lifetime of supervised release for possession of child pornography.
James B. Clawson Sr., 59, of Alexandria, was convicted by a federal jury in the Eastern District of Virginia of possession of child pornography on Aug. 26, 2021. According to court documents and evidence presented at trial, Clawson was previously convicted of distribution of child pornography in the Eastern District of Virginia after law enforcement discovered that he was serving as the administrator of an online forum dedicated to child sexual abuse material and distributing such material to members of his forum.
While on a term of federal supervised release in connection with this conviction, a U.S. probation officer visited Clawson’s home and found a laptop and thumb drives in a hidden compartment in Clawson’s closet. Though Clawson had denied owning a laptop, law enforcement’s investigation established that Clawson had been using the laptop to search for and download images and videos of minors engaged in sexually explicit conduct, which he then stored on one of his thumb drives. Once saved to his thumb drive, Clawson categorized and renamed these files based on the specific sexual conduct they depicted.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
The FBI Washington Field Office investigated the case, with significant assistance from the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Trial Attorney William G. Clayman of the Criminal Division’s CEOS and Assistant U.S. Attorney Seth M. Schlessinger of the Eastern District of Virginia prosecuted 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.
Career Offender Sentenced for String of Armed RobberiesRead the Press Release
ALEXANDRIA, Va. – An Upper Marlboro, Maryland, man was sentenced today to 17 years in prison for committing five armed robberies across Northern Virginia and Maryland.
According to court documents, between January 24, 2021, and March 13, 2021, Jon Karl Mcree Fleet, 62, robbed a Macy’s Store in Springfield; a McDonald’s restaurant in Alexandria; a Subway restaurant in Largo, Maryland; a Papa John’s restaurant in Falls Church; and a Domino’s restaurant in McLean. During each robbery, Fleet brandished a firearm in the presence of employees and demanded money from them. Fleet used a short-barreled shotgun while committing the Domino’s robbery. At the time of the robberies, Fleet was a convicted felon, having previously been convicted for armed robberies, and was thus prohibited from possessing a firearm. Fleet’s lengthy and violent criminal history qualifies him as a “Career Offender.”
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; Michael L. Brown, Alexandria Chief of Police; Kevin Davis, Fairfax County Chief of Police; and Malik Aziz, Chief of Prince George’s County Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Cristina Stam 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-192.
Jury Convicts Norfolk Woman on Identity Theft ChargesRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Norfolk woman last Friday on charges of misuse of a Social Security number, loan fraud, and identity theft.
According to court records and evidence presented at trial, Shaneca Moseley, 38, engaged in an identity takeover of C.J., a New Jersey resident. Between 2018 and 2020, Moseley impersonated C.J. by possessing and using a forged driver’s license containing C.J.’s personal identifying information, including name, date of birth, home address, and driver’s license number, and a Social Security card containing C.J.’s Social Security number.
During these two years, Moseley used C.J.’s personal identifying information in acquiring an apartment lease; purchasing and obtaining a loan for a Mercedes Benz; purchasing furniture on credit; obtaining an email account, insurance, and other utilities; and masking her true identity during a traffic stop, among various other acts. Moseley’s activity left C.J. to deal with the results of various payment defaults and impacts to their credit.
Moseley was convicted of three counts of false representation of a Social Security number, one count of false statement on a loan application, and three counts of aggravated identity theft. She faces a maximum penalty of 30 years, along with a mandatory consecutive sentence of 2 years in prison when sentenced on July 15. 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.
Moseley plead guilty in 2009 to running another social security fraud scheme and was sentenced to 2 months imprisonment, 3 years of supervised release, and ordered to pay restitution.
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; Greg Torbenson, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Larry D. Boone, Chief of Norfolk Police, made the announcement after Senior U.S. District Judge John A. Gibney, Jr., accepted the verdict.
Assistant U.S. Attorney Brian J. Samuels and Special Assistant U.S. Attorney Danbee C. Kim 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. 4:21-cr-54.
Suffolk Man Sentenced for Real Estate Investment SchemeRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 41 months in prison for a wire fraud scheme in which he defrauded real estate investors out of approximately $378,000.
According to court documents, Kordrick Gibbons, 52, had a reputation with his co-workers and friends as being a savvy investor who was financially successful. From approximately 2015 through in or about 2018, Gibbons utilized this reputation to convince his co-workers to “invest” in his real estate holdings and, in exchange, Gibbons promised them lavish returns on their investments. Gibbons claimed to invest in properties, including businesses and condominiums, and that investors could realize 50% to 100% returns on their investments in as little as four to six months. Gibbons falsified documents to convince his investors that he had ownership interests in these properties. On multiple occasions, Gibbons emailed the victims documents that were inaccurate or false to deceive them into thinking he was wealthy and had multiple income-generating properties, when, in fact, he did not. The victims stated that Gibbons would make excuses as to why they had not yet received their money, all while promising that they would be paid. For instance, Gibbons often falsely suggested a bank had frozen his account in error or falsely asserted he was battling cancer.
In total, Gibbons defrauded at least 13 known victims and caused his investors to lose approximately $378,000.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-78.
Northern Virginia Company Settles False Claims Act Allegations of Improper Paycheck Protection Program LoanRead the Press Release
ALEXANDRIA, Va. – Zen Solutions Inc., located in Arlington, Virginia, has agreed to pay approximately $31,000 in damages and civil penalties to settle allegations that it violated the False Claims Act by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. Zen Solutions also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $192,000 on the improper loan.
“PPP funds were set aside by Congress to aid Americans in desperate need as a result of the global pandemic,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Abusing these funds prevents them from going to those truly in need and wastes public funding at the expense of the American taxpayers. As a result, pursuing PPP loan fraud is a high priority for our office.”
“PPP loans were intended to provide critical relief to small businesses so that they could pay employees and maintain operations,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“The continual commitment of the Office of Inspector General (OIG) is to shield SBA funds intended to support the nation’s robust small business community,” said Special Agent in Charge Amaleka McCall-Brathwaite of SBA OIG. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Zen Solutions applied for and received a second, duplicative PPP loan in 2020.
Zen Solutions is a Virginia-based company that provides staffing services in the fields of information technology, data analytics, cyber security and litigation support. The settlement with Zen Solutions resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by J. Bryan Quesenberry. As part of today’s resolution, he will receive a share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Assistant U.S. Attorneys Kristin Starr and William Hochul of the Eastern District of Virginia and Trial Attorney Jared S. Wiesner of the Civil Division.
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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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 claims resolved by the settlement are allegations only, and there has been no determination of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Northern Virginia Company Settles False Claims Act Allegations of Improper Paycheck Protection Program LoanRead the Press Release
Zen Solutions Inc., a Virginia-based company, has agreed to pay approximately $31,000 in damages and civil penalties to settle allegations that it violated the False Claims Act by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. Zen Solutions also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $192,000 on the improper loan.
“PPP loans were intended to provide critical relief to small businesses so that they could pay employees and maintain operations,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“PPP funds were set aside by Congress to aid Americans in desperate need as a result of the global pandemic,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Abusing these funds prevents them from going to those truly in need and wastes public funding at the expense of the American taxpayers. As a result, pursuing PPP loan fraud is a high priority for our office.”
“The continual commitment of the Office of Inspector General (OIG) is to shield SBA funds intended to support the nation’s robust small business community,” said Special Agent in Charge Amaleka McCall-Brathwaite of SBA OIG. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Zen Solutions applied for and received a second, duplicative PPP loan in 2020.
Zen Solutions provides staffing services in the fields of information technology, data analytics, cyber security and litigation support. The settlement with Zen Solutions resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by J. Bryan Quesenberry. As part of this resolution, he will receive a share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorneys Kristin Starr and William Hochul of the Eastern District of Virginia.
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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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 claims resolved by the settlement are allegations only, and there has been no determination of liability.
New Zealand Man Sentenced for Production of Child PornographyRead the Press Release
RICHMOND, Va. – A New Zealand man was sentenced today to 21 years in prison for production of child pornography.
According to court documents, between February and March 2018, Troy George Skinner, 28, interacted with a minor child online and used the child to produce numerous videos and image files of child pornography.
According to the Statement of Facts filed with the plea agreement, on June 20, 2018, Skinner departed from Auckland, New Zealand, en route to Virginia. On June 22, 2018, Skinner traveled to the victim’s home in Goochland, the location of which he learned in his online conversations with the minor victim. Upon arriving at the victim’s home in Goochland, the defendant approached the house and attempted to speak to family members inside. Skinner threw a paving stone through the glass window of the kitchen door to the house and attempted to enter. After several verbal warnings, the victim’s mother fired a handgun to prevent Skinner from entering the home, striking him once in the neck. Skinner fled from the house but collapsed in a neighbor’s yard, where he was apprehended by members of the Goochland County Sheriff’s Office.
According to additional court filings submitted by the government, a search at the scene of Skinner’s belongings revealed duct tape, pepper spray, and a folding pocketknife. Officials also seized two mobile phones from Skinner, which investigators later determined contained images of child pornography depicting the minor victim. U.S. authorities also made a mutual legal assistance request to officials with the government of New Zealand. New Zealand investigators executed a search warrant on the defendant’s apartment in New Zealand and conducted a forensic examination of the defendant’s laptop, and later provided to U.S. investigators a thumb drive containing 120 video and 56 image files depicting the minor victim.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
The Goochland County Sherriff’s Office and the Justice Department’s Office of International Affairs provided significant assistance in this case.
Assistant U.S. Attorney Brian R. Hood 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. 3:19-cr-19.
Bloods Gang Member Sentenced for Illegal Firearm SalesRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 2 years in prison for trafficking firearms in a Virginia Beach apartment complex.
According to court documents, on February 11, 2021, Tyereis Smith, 19, along with Jhaimeek Carter, 19, also of Virginia Beach, illegally sold an Honor Guard 9-millimeter pistol, a Palmetto State Armory PA-15 rifle, and a Bay State 12-gauge sawed off shotgun in exchange for money. In the two weeks that followed, Smith was involved in the sale of two additional firearms, one of which was sold to a convicted felon.
On March 28, 2021, Virginia Beach Police executed search warrants on Smith’s and Carter’s residences. In Smith’s apartment, they found marijuana, digital scales, and ammunition. In Carter’s apartment, they recovered crack cocaine, ammunition, and a firearm.
Smith is a law enforcement-confirmed member of Bounty Hunter Watts, a set of the Bloods gang. Carter is also gang-affiliated and was sentenced to 30 months in prison on January 25.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Special Assistant U.S. Attorney Kristin Bird prosecuted 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. 2:21-cr-92.
United States Attorney’s Office Reminds State and Local Government Agencies to Designate an Americans with Disabilities Act CoordinatorRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today that it has issued a
Dear Colleagues Letter reminding state and local government agencies that they are required by law to designate Americans with Disabilities Act (“ADA”) Coordinators and inviting ADA Coordinators to an informational meeting.The Dear Colleagues Letter announces that on March 15 at 2 pm, the U.S. Attorney’s Office will be holding a virtual meeting for ADA Coordinators in Virginia in order to provide information on the steps that state and local governmental entities can take to comply with the ADA and provide an opportunity for questions and collaboration.
When Congress passed the ADA, it recognized that discrimination against individuals with disabilities persists in critical areas, including access to public services. Through the ADA, Congress explained that it was issuing a national mandate for the elimination of discrimination against individuals with disabilities by providing strong and enforceable standards. In support of these goals, the ADA regulations require state and local government agencies with 50 or more employees to designate personnel, who are knowledgeable in how the ADA applies to the agency’s programs, services and activities, to coordinate its efforts to comply with and carry out its responsibilities under the ADA, including investigating any ADA complaints. To ensure that the public and the agency’s employees may easily locate the designated employees, the ADA regulations also require public entities to publish contact information for the ADA Coordinators.
The Dear Colleagues Letter explains that the ADA Coordinator “may serve as the point of contact for individuals with disabilities to request auxiliary aids and services, policy modifications, and other accommodations in order to participate in the services, programs, or activities of the public entity.” The Dear Colleagues Letter also includes links to numerous Department of Justice publications that provide detailed discussions of the ADA’s requirements, including publications on ADA.gov: “ADA Update: A Primer for State and Local Governments,” “Accessibility of State and Local Government Websites to People with Disabilities,” “ADA Requirements: Effective Communication,” “ADA Checklist for Polling Places.”
The United States Attorney’s Office, through its Civil Rights Enforcement (“CRE”) Unit, and in partnership with the Department of Justice’s Civil Rights Division, works to uphold the civil and constitutional rights of all Americans, particularly some of the most vulnerable members of our society. This office vigorously enforces a variety of federal statutes that prohibit discrimination, including the ADA, the Civil Rights Act of 1964, Civil Rights of Institutionalized Persons Act, and the Equal Educational Opportunities Act of 1974. The CRE Unit also enforces the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act of 1994, which protect military members as they enter and return from active duty.
For more information on the ADA, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man Sentenced for Repeat Bomb Threats to Langley Air Force BaseRead the Press Release
NEWPORT NEWS, Va. – A New York man was sentenced today to 2 and a half years in prison for threatening to blow up Langley Air Force Base in Hampton.
According to court documents, D'Carlo Nimis Deluca, 51, called the New York Police Department (NYPD) at approximately 6:32 a.m. on February 22, 2021, and threatened to “blow up” Langley Air Force Base. About 11 minutes later at 6:43 a.m., Deluca directly called Langley Air Force Base and reported there was a bomb in a building on base. As a result of the threats, the Air Force cleared portions of the base and expended resources to ensure the area was safe. Deluca further disrupted Air Force operations by making another threat shortly before 1:00 p.m. on February 22, 2021, which again resulted in the Air Force clearing portions of the base.
Deluca has a history of making threats of violence or imminent emergency activity. At the time he made the threats to Langley Air Force Base, he was under federal court supervision from the Southern District of New York for his prior federal conviction for making threats to blow up Trump Tower and the White House. Since 2019, Deluca has made dozens of threats, including threats to kill former President Trump, President Biden, and the former First Lady. When Deluca was arrested in March 2020, he was found in possession of a pressure cooker, which he previously sent pictures of himself ordering to a tip line for law enforcement in the District of Columbia with messages like “SUSPICIOUS narc packages,” “Ka boom loca en la cabezza,” and “Ka boom.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
This investigation was conducted by the FBI’s Peninsula Safe Streets Task Force, a partnership that includes the FBI, Virginia State Police, Hampton Police Division, James City County Police Department, and Newport News Police Department. This task force investigates the most violent criminal enterprises operating on the Virginia Peninsula. Tips regarding gang activity and other violent crimes in the region can be reported to the FBI at 1-800-CALL-FBI or https://tips.fbi.gov/.
Assistant U.S. Attorney D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-24.
Florida Man Sentenced for Paying Bribes and Kickbacks and Defrauding the United StatesRead the Press Release
ALEXANDRIA, Va. – A Florida man was sentenced today to 15 years in prison for orchestrating a bribery and kickback conspiracy and committing fraud in connection with a contract for the U.S. Department of Defense’s Office of Inspector General (DoD OIG).
According to court records and evidence presented at trial, beginning in 2010 and continuing through 2015, William S. Wilson, 56, of Florida, paid numerous kickbacks and bribes to a public official and two government contractors in return for those individuals corruptly steering business to Wilson’s Florida-based companies. Among other things, Wilson paid tens of thousands of dollars in bribes to Mathew Kekoa LumHo, 46, of Fairfax Station, then employed at the DoD OIG. In return, LumHo took official actions that benefitted Wilson’s companies. LumHo steered work to Wilson’s company by placing fraudulent service orders through a government contract that LumHo controlled.
The evidence presented at trial further proved that, over the same time period from 2010 through 2015, Wilson also paid numerous kickbacks to Ronald Capallia and Co-conspirator 1, then employees for a telecommunications company that was a prime contractor to the government. Wilson paid these kickbacks Capallia and Co-conspirator 1 to cause them to steer work and provide favorable treatment to Wilson’s companies as subcontractors to the telecommunications company.
One of the key subcontracts steered to Wilson’s company related to a prime contract between the telecommunications firm and the DoD OIG, in which the telecommunications firm was supposed to supply various information technology-related services to the government. Wilson’s company was awarded this subcontract despite its lack of any relevant experience or expertise, and despite having no employees based in or near northern Virginia, where all the work was to be performed.
Wilson frequently disguised the bribes and kickbacks to Capallia, LumHo, and Co-conspirator 1 through fake invoices for services that were never provided, or by masking the payments as payroll to relatives of Capallia and LumHo for jobs that did not in fact exist.
As the scheme progressed, the co-conspirators caused the government to submit numerous false and fraudulent service orders through the prime contract. The false service orders typically described the items being provided as specialized IT-related support services, when in fact the co-conspirators were simply buying standard, commercially available items, dramatically marking up the price, and billing the government as though it had been provided with the specialized information technology-related services. The co-conspirators also used fraudulent service orders to conceal bribes in the form of high-end camera equipment and stereo equipment sent from Wilson to LumHo, thereby causing the government to pay for the very bribes that Wilson was sending to LumHo.
The evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documentation, making false statements to law enforcement officials, lying on a financial disclosure form, committing perjury during sworn civil deposition testimony, and tampering or attempting to tamper with a witness. Wilson threatened to murder Capallia and his family members by slitting their throats if Capallia ever testified on behalf of the government.
Co-conspirator Ronald A. Capallia, Jr., pleaded guilty on January 25, 2018, to his role in the conspiracy and was sentenced to one year and one day of imprisonment on September 14, 2021. Co-defendant Matthew Kekoa LumHo was convicted at trial and sentenced to 90 months in prison on January 14, 2022. Today, defendant William S. Wilson was sentenced to 15 years 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 Kelly P. Mayo, Deputy Inspector General for Investigations at the Department of Defense’s Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Matthew Burke and Russell L. Carlberg 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. 1:17-cr-222.
Chesapeake Man Pleads Guilty to Selling Firearms to FelonRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today in connection with the sale of a firearm to a prohibited person.
According to court documents, from April to July 2020, Ibrahim Nader Abdelhay, 27, a self-proclaimed “gun enthusiast,” purchased approximately 20 firearms in the Eastern District of Virginia. Abdelhay sold at least one of these firearms to an individual who was a convicted felon. Abdelhay told investigators that he knew the individual to whom he sold the firearm, who is now deceased, was a convicted felon and could not buy firearms for himself. During the investigation, law enforcement agents recovered six firearms originally purchased by Abdelhay at the residence of the individual.
Abdelhay is scheduled to be sentenced on June 7. 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; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney Amanda Turner 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-134.
Richmond Community College Director Charged with Stealing Student Financial Aid FundsRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging a Richmond woman with orchestrating a nearly decade-long scheme to defraud the United States Department of Education and the Commonwealth of Virginia of student financial aid funds.
According to the indictment, from about 2006 through 2017, Kiesha Pope, 47, was the Director of Financial Aid at J. Sargent Reynolds Community College (JSRCC), a public community college servicing the greater Richmond area. Pope is alleged to have used her access to financial aid systems at JSRCC to boost the financial aid eligibility for co-conspirators, who were Pope’s friends and family members and who were not otherwise eligible for financial aid benefits at JSRCC. Pope allegedly had agreements with these same co-conspirators to receive a portion of the improperly obtained financial aid funds as compensation. Pope is alleged to have spent these financial aid funds on various of her personal expenses, including repairs for her personal vehicle, retail shopping, and expenses for her minor-aged daughter.
The indictment alleges that, from 2011 to 2017, Pope procured financial aid for her son, knowing that he was not attending JSRCC in this timeframe. In another instance, Pope also allegedly procured financial aid for her ex-fiancé from in or about 2010 through in or about 2015 while he was serving a term of incarceration and not attending JSRCC. To conceal her scheme, Pope allegedly falsified supporting justification for the financial aid. In one alleged instance, Pope forged medical documents and financial aid documents reflecting that her goddaughter, for whom Pope also procured financial aid, was failing to meet academic eligibility due to a breast cancer diagnosis, despite knowing that her goddaughter had no cancer diagnosis.
The indictment further alleges that in or about September through October 2017, JSRCC leadership confronted Pope about her relationship with various academically ineligible students receiving high amounts of financial aid. In those conversations, Pope is alleged to have claimed not to know these students when such students were, in fact, Pope’s son, goddaughter, and cousin. Pope allegedly claimed that all such students had supporting justification for receiving continued financial aid, but when pressed for the documentation, Pope resigned from JSRCC.
Pope is charged with conspiring to commit wire fraud, wire fraud, and aggravated identity theft. Pope faces a maximum penalty of 20 years in prison if convicted of any of the fraud offenses, and a mandatory two-year term of imprisonment, to run consecutive to any other sentence imposed, if convicted of aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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; Michael C. Westfall, State Inspector General for the Commonwealth of Virginia; and Terry Harris, Special Agent in Charge of the Eastern Region of the U.S. Department of Education Office of Inspector General, made the announcement.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-9.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
North Carolina Psychologist Sentenced for Medicaid Fraud Scheme Involving MinorsRead the Press Release
RICHMOND, Va. – A Durham, North Carolina, clinical psychologist was sentenced today to 52 months in prison for defrauding Virginia Medicaid of at least $544,067.69 by creating false diagnoses and medical records for Medicaid recipients, mostly minors, and falsely representing to Medicaid that he was providing them mental health services.
According to court documents, Dr. Malik Muhammad, Ph.D., 46, obtained identifying information of Medicaid recipients from a co-conspirator and used that information to bill Virginia Medicaid for outpatient psychotherapy that never actually occurred. Muhammad, a licensed clinical psychologist, hired a co-conspirator to write patient medical records as if Muhammad had performed actual therapy and created inapplicable diagnoses—including depression, anxiety, attention deficit disorder, and post-traumatic stress disorder—to give the appearance of actual treatment. The mostly minor victims were unaware of the false diagnoses Muhammad was inventing and applying to them. Through this fraud scheme, Muhammad defrauded Virginia Medicaid of at least $544,067.69.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services; and Virginia Attorney General Jason Miyares made the announcement after sentencing by U.S. District Judge David J. Novak.
Investigators with the North Carolina Attorney General’s Office Medicaid Fraud Control Unit provided significant assistance.
Assistant U.S. Attorney Shea Gibbons and Special Assistant U.S. Attorney David Tooker of the Virginia Attorney General’s Office 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-34.
Virginia Inmate Sentenced for Role in Pandemic Unemployment Benefits SchemeRead the Press Release
NORFOLK, Va. – A Virginia inmate was sentenced today to 57 months in prison for his involvement in a scheme to obtain pandemic-related unemployment benefits by using the personal identifying information of over 30 other Virginia prison inmates.
According to court documents, in 2020, Michael Anthony White, 39, originally of Norfolk, was incarcerated at the Lawrenceville Correctional Center. Beginning in May 2020, he worked with Mary Landon Benton, 38, of Portsmouth, to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. White provided Benton information for inmates at the Lawrenceville Correctional Center, resulting in approximately ten successful unemployment claims for inmates there. Michael Lee Lewis, Jr., an inmate at the Augusta Correctional Center, provided Benton and another co-defendant, Angelica Cartwright-Powers, with information for inmates at his facility.
Benton, with the help of White and inmates at two other prisons, submitted successful applications for Virginia unemployment benefits for 31 inmates. Cartwright-Powers additionally submitted successful applications for four inmates.
White and his co-conspirators, along with the prisoners whose information was used for the unemployment applications, shared the proceeds of the crimes, which amounted to over $330,000. Although the conspirators initially obtained $436,834, the Virginia Employment Commission was able to reclaim some of the disbursed funds after discovering the fraud.
Benton and Lewis have both been sentenced for their roles in the scheme to 78 and 115 months of imprisonment, respectively. Cartwright-Powers, has pleaded guilty to one conspiracy count and is scheduled to be sentenced on March 24.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Troy W. Springer, Acting Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Dr. Joseph V. Cuffari, Inspector General for the Department of Homeland Security, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included assistance from the U.S. Secret Service’s Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment Commission.
Assistant U.S. Attorney Rebecca Gantt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.
American Woman Who Led ISIS Battalion Charged with Providing Material Support to a Terrorist OrganizationRead the Press Release
A criminal complaint filed in 2019 in the U.S. District Court for the Eastern District of Virginia, which is now unsealed, alleges that Allison Fluke-Ekren, a United States citizen, organized and led an all-female military battalion on behalf of the Islamic State of Iraq and al-Sham (ISIS), and charges Fluke-Ekren with providing and conspiring to provide material support to ISIS, a designated foreign terrorist organization.
Fluke-Ekren was previously apprehended in Syria and transferred into the custody of the FBI yesterday, at which point she was first brought to the Eastern District of Virginia. She is expected to have her initial appearance at the federal courthouse in Alexandria on Monday at 2:00 p.m.
As alleged in the criminal complaint, Allison Elizabeth Fluke-Ekren, aka “Allison Elizabeth Brooks,” aka “Allison Ekren,” aka “Umm Mohammed al-Amriki,” aka “Umm Mohammed,” and aka “Umm Jabril,” 42, a former resident of Kansas, traveled to Syria several years ago for the purpose of committing or supporting terrorism. Since her departure from the United States, Fluke-Ekren has allegedly been involved with a number of terrorism-related activities on behalf of ISIS from at least 2014. These activities allegedly include, but are not limited to, planning and recruiting operatives for a potential future attack on a college campus inside the United States and serving as the appointed leader and organizer of an ISIS military battalion, known as the Khatiba Nusaybah, in order to train women on the use of automatic firing AK-47 assault rifles, grenades and suicide belts. Additionally, Fluke-Ekren allegedly provided ISIS and ISIS members with services, which included providing lodging, translating speeches made by ISIS leaders, training children on the use of AK-47 assault rifles and suicide belts and teaching extremist ISIS doctrine.
The complaint details the eyewitness observations of six separate individuals who collectively observed Fluke-Ekren’s alleged terrorist conduct from at least 2014 through approximately 2017. For example, Fluke-Ekren allegedly told a witness about her desire to conduct an attack in the United States. To conduct the attack, Fluke-Ekren allegedly explained that she could go to a shopping mall in the United States, park a vehicle full of explosives in the basement or parking garage level of the structure, and detonate the explosives in the vehicle with a cell phone triggering device. Fluke-Ekren allegedly considered any attack that did not kill a large number of individuals to be a waste of resources. As alleged by the same witness, Fluke-Ekren would hear about external attacks taking place in countries outside the United States and would comment that she wished the attack occurred on United States soil instead.
The complaint further describes Fluke-Ekren’s alleged leadership role in the Khatiba Nusaybah. According to a witness, in or about late 2016, the “Wali” (or ISIS-appointed mayor) of Raqqa, Syria, allegedly permitted the opening of the “Khatiba Nusaybah,” which was a military battalion comprised solely of female ISIS members who were married to male ISIS fighters. Shortly thereafter, Fluke-Ekren allegedly became the leader and organizer of the battalion. Fluke-Ekren’s alleged main objective in this role was to teach the women of ISIS how to defend themselves against ISIS’ enemies. According to another witness, ISIS allegedly mandated women who were staying in Raqqa during the 2017 siege to attend the training. The siege was launched by the Syrian Democratic Forces (SDF) against ISIS with an aim to seize Raqqa, the former de facto capital of ISIS in Syria. The battle began on or about June 6, 2017 and concluded on or about Oct. 17, 2017, at which point the SDF regained controlled of Raqqa.
The members of Khatiba Nusaybah were allegedly instructed on physical training, medical training, Vehicle-Borne Improvised Explosive Device (VBIED) driving courses, religious classes and how to pack and prep a “go bag” with rifles and other military supplies. According to eyewitness accounts, some of these classes were allegedly taught by Fluke-Ekren. One witness in particular allegedly observed that the leaders of ISIS and the other members of the military battalion were proud to have an American instructor. Fluke-Ekren also allegedly trained children on the use of automatic firing AK-47 assault rifles, grenades and suicide belts.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Fluke-Ekren is charged with providing and conspiring to provide material support or resources to a foreign terrorist organization. If convicted, she 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.
First Assistant U.S. Attorney Raj Parekh and Assistant U.S. Attorney John T. Gibbs from the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case, with assistance from the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
American Woman Who Led ISIS Battalion Charged with Providing Material Support to a Terrorist OrganizationRead the Press Release
ALEXANDRIA, Va. – A
criminal complaint filed in 2019 in the U.S. District Court for the Eastern District of Virginia, which is now unsealed , alleges that Allison Fluke-Ekren, a United States citizen, organized and led an all-female military battalion on behalf of the Islamic State of Iraq and al-Sham (ISIS), and charges Fluke-Ekren with providing and conspiring to provide material support to ISIS, a designated foreign terrorist organization.Fluke-Ekren was previously apprehended in Syria and transferred into the custody of the FBI yesterday, at which point she was first brought to the Eastern District of Virginia. She is expected to have her initial appearance at the federal courthouse in Alexandria on Monday at 2:00 p.m.
As alleged in the criminal complaint, Allison Elizabeth Fluke-Ekren, aka “Allison Elizabeth Brooks,” aka “Allison Ekren,” aka “Umm Mohammed al-Amriki,” aka “Umm Mohammed,” and aka “Umm Jabril,” 42, a former resident of Kansas, traveled to Syria several years ago for the purpose of committing or supporting terrorism. Since her departure from the United States, Fluke-Ekren has allegedly been involved with a number of terrorism-related activities on behalf of ISIS from at least 2014. These activities allegedly include, but are not limited to, planning and recruiting operatives for a potential future attack on a college campus inside the United States and serving as the appointed leader and organizer of an ISIS military battalion, known as the Khatiba Nusaybah, in order to train women on the use of automatic firing AK-47 assault rifles, grenades, and suicide belts. Additionally, Fluke-Ekren allegedly provided ISIS and ISIS members with services, which included providing lodging, translating speeches made by ISIS leaders, training children on the use of AK-47 assault rifles and suicide belts, and teaching extremist ISIS doctrine.
The complaint details the eyewitness observations of six separate individuals who collectively observed Fluke-Ekren’s alleged terrorist conduct from at least 2014 through approximately 2017. For example, Fluke-Ekren allegedly told a witness about her desire to conduct an attack in the United States. To conduct the attack, Fluke-Ekren allegedly explained that she could go to a shopping mall in the United States, park a vehicle full of explosives in the basement or parking garage level of the structure, and detonate the explosives in the vehicle with a cell phone triggering device. Fluke-Ekren allegedly considered any attack that did not kill a large number of individuals to be a waste of resources. As alleged by the same witness, Fluke-Ekren would hear about external attacks taking place in countries outside the United States and would comment that she wished the attack occurred on United States soil instead.
The complaint further describes Fluke-Ekren’s alleged leadership role in the Khatiba Nusaybah. According to a witness, in or about late 2016, the “Wali” (or ISIS-appointed mayor) of Raqqa, Syria, allegedly permitted the opening of the “Khatiba Nusaybah,” which was a military battalion comprised solely of female ISIS members who were married to male ISIS fighters. Shortly thereafter, Fluke-Ekren allegedly became the leader and organizer of the battalion. Fluke-Ekren’s alleged main objective in this role was to teach the women of ISIS how to defend themselves against ISIS’ enemies. According to another witness, ISIS allegedly mandated women who were staying in Raqqa during the 2017 siege to attend the training. The siege was launched by the Syrian Democratic Forces (SDF) against ISIS with an aim to seize Raqqa, the former de facto capital of ISIS in Syria. The battle began on or about June 6, 2017 and concluded on or about October 17, 2017, at which point the SDF regained controlled of Raqqa.
The members of Khatiba Nusaybah were allegedly instructed on physical training, medical training, Vehicle-Borne Improvised Explosive Device (VBIED) driving courses, religious classes, and how to pack and prep a “go bag” with rifles and other military supplies. According to eyewitness accounts, some of these classes were allegedly taught by Fluke-Ekren. One witness in particular allegedly observed that the leaders of ISIS and the other members of the military battalion were proud to have an American instructor. Fluke-Ekren also allegedly trained children on the use of automatic firing AK-47 assault rifles, grenades, and suicide belts.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Fluke-Ekren is charged with providing and conspiring to provide material support or resources to a foreign terrorist organization. If convicted, she 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.
First Assistant United States Attorney Raj Parekh and Assistant United States Attorney John T. Gibbs from the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case, with assistance from the National Security Division’s Counterterrorism Section.
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-mj-231.
A criminal complaint contains allegations that a defendant has committed one or more crimes. The defendant is presumed innocent until and unless proven guilty.
Man Convicted of Abusive Sexual Contact of a Minor at QuanticoRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Afghan national Friday on charges of abusive sexual contact with a 3-year-old girl.
“This case is indicative of law enforcement’s commitment to ensure the safety of immigrant and refugee members of our community,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “People who come to our country seeking haven from tyranny and terrorism deserve to live here in safety. I want to thank the Marines and the FBI for their commitment to upholding that ideal. It is the resilience and courage of the victim and her family in speaking out against this offender that is truly emblematic of the contributions refugees and immigrants make to our country.”
According to court records and evidence presented at trial, Mohammed Tariq, 24, engaged in sexual contact with the victim while both the victim and Tariq were housed at Camp Upshur, on Marine Corps Base Quantico, following evacuation from Afghanistan. United States Marines observed the defendant inappropriately touching the victim over her clothing, on her chest, genitals, and buttocks. The victim and Tariq were unrelated, however, both Tariq and the victim and her family had recently been evacuated from Afghanistan and brought to the United States.
Tariq faces a maximum term of life in prison when sentenced on April 26, 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, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict.
Assistant U.S. Attorney Patricia Haynes and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
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 Department of Justice’s 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.
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-225.
Career Offender Sentenced for Possessing a Firearm while Distributing FentanylRead the Press Release
NEWPORT NEWS, Va. – An Ahoskie, North Carolina, man was sentenced yesterday to 18 years in prison for possessing a firearm while distributing narcotics throughout Hampton Roads.
According to court documents, in or around July 2020, the Newport News Police Department was informed that Marcus Dewayne Smith, 39, was distributing narcotics from various hotels throughout the City of Newport News. In Smith’s hotel room, law enforcement discovered 82 prepackaged glassine packets individually stamped “FIREBALL,” containing a mixture of heroin, fentanyl, and tramadol. Also in Smith’s room was a distribution amount of cocaine, approximately $8,000 in cash, tools and packaging materials for drug distribution, and two loaded semiautomatic handguns. Smith, a prior convicted felon, is prohibited from possessing firearms. Smith’s lengthy and violent criminal history over the past two decades qualifies him as a “Career Offender.”
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; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Peter Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-43.
Two Men Charged in Separate Incidents of Misconduct on AirlinesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned two indictments today and yesterday charging an Alexandria man and a New York City man in separate incidents of criminal conduct aboard aircraft arriving at Washington Dulles International Airport.
According to the indictment filed today, on December 2, 2021, Elias Fethamlk, 40, knowingly interfered with a flight attendant’s duties by disregarding the flight attendant’s instructions and assaulting the flight attendant while on board an Ethiopian Airlines flight traveling from Dublin, Ireland to Dulles International Airport.
Fethamlk is charged with one count of interference with flight crew members and attendants, and one count of simple assault in the special aircraft jurisdiction of the United States. If convicted, he faces a maximum penalty of 20 years in prison.
A separate indictment filed yesterday charges Ivan Lopez, Jr., age 26, with sexually assaulting another passenger onboard a commercial flight
According to court documents, it is alleged that Lopez was a passenger on a commercial flight from Las Vegas McCarran International Airport to Washington Dulles International Airport on December 24, 2021. During the flight, the passenger seated next to Lopez fell asleep. The indictment alleges that she awoke to Lopez repeatedly rubbing her right breast. When the passenger opened her eyes, she allegedly observed Lopez leaning over her and his right hand was placed on her right breast. The passenger allegedly yelled at Lopez and he moved to the back of the aircraft, where he allegedly admitted to a flight attendant that he sexually assaulted the woman.
Lopez is charged with abusive sexual contact aboard an aircraft in flight. If convicted, he faces a maximum penalty of two 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 Michael Glasheen, Special Agent in Charge of the FBI Washington Field Office Counterterrorism Division, made the announcement.
Special Assistant U.S. Attorney Caylee Campbell and Assistant U.S. Attorney Amanda Lowe are prosecuting the case against Fethamlk. Special Assistant U.S. Attorney Rachel L. Rothberg and Assistant U.S. Attorney Marc J. Birnbaum are prosecuting the case against Lopez.
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 006 and Case No. 1:22 cr 10.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Virginia Beach Man Sentenced for Life Insurance Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 27 months in prison for defrauding life insurance companies.
According to court documents, in 2018, Michael Leonard Morgan-Towe, 37, and Antionette D. Pringle, 33, also of Virginia Beach, obtained approximately $150,000 in fraudulent advance commissions from life insurance companies. Morgan-Towe recruited indigent individuals, falsely promising them months of “free” life insurance if they would provide their personal identifying information. Then, Pringle, a licensed insurance agent in Virginia, used this information to submit applications for life insurance, falsifying their income to make it appear as if they could pay the monthly premiums, when she knew they could not. In some instances, she misstated their health conditions as to ensure their application would be approved.
The life insurance companies sent Pringle thousands of dollars in advance commissions as soon as the applications were approved, which she shared with Morgan-Towe. However, almost all of the policies lapsed immediately because no premiums were paid, as the individual beneficiaries thought they were obtaining free life insurance.
In December 2020, Pringle was sentenced to 4 years in prison for her role in the scheme.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
The Virginia State Corporation Commission provided significant assistance with this investigation.
Assistant U.S. Attorney Rebecca Gantt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-22.
Former DoD OIG Official Sentenced for Accepting Bribes and Defrauding the United StatesRead the Press Release
ALEXANDRIA, Va. – A former official of the U.S. Department of Defense’s Office of Inspector General (DoD OIG) was sentenced today to 7.5 years in prison for accepting bribes and defrauding the government, among other crimes, in relation to a contract he oversaw at the DoD OIG.
According to court documents, Matthew K. LumHo, 47, of Fairfax Station, was employed at the DoD OIG’s Information Services Directorate. In that position, LumHo oversaw and administered a prime federal contract designed to allow federal agencies in the National Capital Region to order routine telecommunications services and equipment from one of two national telecommunications companies.
Beginning no later than 2012, LumHo solicited and accepted bribes from co-conspirator William S. Wilson, in exchange for steering what nominally was intended to be telecommunications or information technology services through the prime government contract, through an intermediary telecommunications company, to Wilson’s company. Wilson’s company received all of this business without any competition, despite its lack of any relevant experience or expertise, and despite having no employees based in or near northern Virginia, where all the work was to be performed. Wilson and LumHo disguised the bribes by falsely masking them as payroll payments to a relative of LumHo for a job that did not in fact exist, with the bribes being deposited into an account that LumHo in fact controlled.
As the scheme progressed, LumHo, who was supposed to be safeguarding the contract, knowingly authorized numerous false and fraudulent service orders through the prime contract. The false service orders typically described the items supposedly being provided to the government as specialized IT-related support services, when in fact the co-conspirators were simply buying standard, commercially available items, dramatically marking up the price, and billing the government as though it had been provided with the specialized IT-related services. LumHo and Wilson also used fraudulent service orders to conceal bribes in the form of high-end camera equipment and stereo equipment sent from Wilson to LumHo, thereby defrauding the government into to paying for the very bribes themselves.
The evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documentation, making false statements to law enforcement officials, lying on a financial disclosure form, committing perjury during sworn civil deposition testimony, and tampering or attempting to tamper with a witness. In addition, at sentencing, Senior U.S. District Judge Judge O’Grady found that LumHo had obstructed justice by committing perjury when he testified at trial.
Co-conspirator Ronald A. Capallia, Jr., pleaded guilty on January 25, 2018, to his role in the conspiracy and was sentenced to one year and one day in prison on September 14, 2021. Today, LumHo was sentenced to 90 months in prison. Co-conspirator William S. Wilson is scheduled to be sentenced on February 4, 2022.
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 Kelly P. Mayo, Deputy Inspector General for Investigations at the Department of Defense’s Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Matthew Burke and Russell L. Carlberg 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. 1:17-cr-222.
Insurance Agent Sentenced for $3M Fraud SchemeRead the Press Release
NORFOLK, Va. – A West Valley City, Utah, man was sentenced today to 5 years in prison for conspiracy to commit wire fraud as part of an investment fraud scheme against mostly elderly victims.
According to court documents, Tony Scott Sellers, 62, was a licensed insurance salesman in Idaho. From about January 2011 through August 2017, Sellers, along with other conspirators, made material misrepresentations and omissions to sell illiquid, highly speculative investment vehicles that were sold and controlled by Daryl Bank, among others. Based on these fraudulent representations, unsuspecting investors cashed out of 401(k) and other retirement accounts to purchase the investments, without knowing that 20% to 70% of their funds would be skimmed off the top in the form of purported “fees.” In September 2021, Bank was sentenced to 35 years in prison for his role in a nationwide investment fraud scheme that resulted in over $25 million in losses to more than 300 victims, most of whom were elderly.
As a result of Seller’s part in this investment fraud scheme, victims suffered losses in excess of $3 million. Most of the victims were at or near retirement age when Sellers and his co-conspirators defrauded them.
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; Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Greg Torbenson, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Significant assistance in this case was provided by the Virginia State Corporation Commission.
Assistant U.S. Attorneys Melissa O’Boyle, Andrew Bosse, and Elizabeth Yusi 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.
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-47.