Eastern District of Virginia
Press releases recorded for this federal judicial district.
Couple Pleads Guilty to $5.1 M Pandemic Loan FraudRead the Press Release
NEWPORT NEWS, Va. – A couple who formerly resided in Hampton pleaded guilty today to submitting fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Malik Mitchum, 26, and Jenna Mitchum, 25, worked together to obtain disaster-related loan benefits in the form of Small Business Administration (SBA) sponsored Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans. These programs, initiated and expanded under The Cares Act, are designed to provide support for small businesses for expenses related to the COVID-19 pandemic. Malik and Jenna Mitchum falsely claimed that they were owners of at least five small businesses struggling during the pandemic. In reality, Malik Mitchum was a junior enlisted member of the Air Force and Jenna Mitchum was unemployed.
Between March 2020 and May 2021, Malik and Jenna Mitchum submitted at least 19 fraudulent applications for pandemic-related loan benefits that contained false statements and misrepresentations about their income, employment, and claimed business entities. They are further linked to more than 20 other fraudulent loan applications by the IP address used to submit the applications or wire transfers of fraud proceeds. They intended to defraud the government out of more than $5.1 million and caused an actual loss to the United States and participating financial institutions of more than $1.4 million. Malik and Jenna Mitchum spent much of the fraud proceeds they obtained on luxury purchases, like a Rolex watch for $38,743.00.
Malik and Jenna Mitchum pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. They both face a maximum penalty of 30 years in prison. Malik and Jenna Mitchum are scheduled to be sentenced on July 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Brig. Gen. Terry L. Bullard, Commander of the Office of Special Investigations for the U.S. Air Force and Space Force, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney D. Mack Coleman is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Virginia Coronavirus Fraud Task Force is a federal and state partnership led by the Eastern and Western Districts of Virginia along with fraud investigators from the FBI and Virginia State Police. The task force’s mission is to identify, investigate, and prosecute fraud related to the ongoing pandemic. The task force reviews and investigates all credible leads of fraud associated with COVID-19, focusing on schemes to exploit vulnerable populations, including the elderly and concerned citizens. On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-85.
MS-13 Members and Associates Indicted in Racketeering, Narcotics and Multiple Murder ConspiraciesRead the Press Release
A federal grand jury in Virginia returned a superseding indictment yesterday charging 12 members and associates of La Mara Salvatrucha, aka MS-13, with a variety of offenses based on their alleged involvement in a series of murders, racketeering and drug trafficking crimes.
Those charged in the indictment are:
Name
Age
Gang Moniker(s) / Nickname(s)
From
Marvin Menjivar Gutiérrez
29
Astuto
New York
Melvin Canales Saldana
29
Demente
New York
Mario Antonio Guevara Rivera
26
Blue, Azul, Telele
Woodbridge
Cristian Ariel Arevalo Arias
26
Serio
Woodbridge
Carlos Jose Turcios Villatoro
23
Oculto
Woodbridge
Abner Jose Molina Rodriguez
24
Rino, Tecolote
Woodbridge
Manilester Andrade Rivas
32
Mani, Tandori, Conejo, Coqueto
Woodbridge
Jairo Gustavo Aguilera Sagastizado
26
Coy, Maruchan, Psicólogo
New York
Walter Jeovanny Rubio Lemus
27
Caskillo
Woodbridge
Juan Carlos Hernández Landaverde
23
Chele
Annandale
Karen Estefany Figueroa Alfaro
29
N/A
Woodbridge
Juan Manuel Vasquez Reyes
40
Güero
Manassas
According to the indictment, the defendants were members/associates of the Sitios Locos Salvatrucha clique (STLS) of MS-13.The indictment alleges that since at least in and around 2017, MS-13 members and associates regularly travelled to and from Long Island, New York, for the purpose of obtaining cocaine and transporting it to the Washington, D.C. metropolitan area, where they and other gang members would sell it primarily, in restaurants and night clubs.
The indictment also charges eight of the defendants with several offenses stemming from their alleged involvement in four murders that occurred in Eastern Prince William County between June 22, 2019, and Sept. 24, 2019. Specifically, the indictment charges:
- Guevara, Arevalo and Turcios with the June 2019 double-murder of M.B.L. and J.G.M., and Vasquez with helping them after they committed the murders;
- Canales and Andrade with the August 2019 murder of E.L.T.; and
- Guevara, Molina and Aguilera with the September 2019 murder of A.K.S.
Defendants in this case are charged with RICO conspiracy, conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, accessory after the fact to murder in aid of racketeering, witness tampering, using a firearm during a crime of violence causing death, possessing a firearm during a drug trafficking crime, and violations of the Controlled Substances Act, among other crimes. The statutory penalties for the charged offenses range from a statutory maximum of 10 years in prison to capital punishment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 Wayne A. Jacobs of the FBI’s Washington Field Office and Chief Peter Newsham of Prince William County Police Department made the announcement.
Assistant U.S. Attorney John Blanchard, Special Assistant U.S. Attorney Rachel Roberts and Trial Attorney Matthew Hoff from the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
This prosecution is supported by the Organized Crime and Drug Enforcement Task Force (OCDETF).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Virginia Beach Woman Sentenced for International Parental KidnappingRead the Press Release
NORFOLK, Va. – A woman formerly from Virginia Beach was sentenced today to 2 years in prison for international parental kidnapping.
According to court documents, Kathleen Shehadeh, 32, had joint custody of A.G. with her ex-husband. A.G. spent time with both parents based on a court-ordered schedule. Unknown to the father, Shehadeh applied for and was granted a New Zealand passport for A.G. In July 2018, Shehadeh took then two-year-old A.G. and fled Virginia Beach. They first went to Mexico City, Mexico. Shehadeh then took the girl to Bogota, Columbia, and, finally, to Spain. Shehadeh wrote a letter to the father, in which Shehadeh falsely stated that she and A.G. were moving out west and would let him know the exact address once they were settled. The father did not hear from Shehadeh or know where his daughter was for over two years.
Finally, in August 2020, the father tracked Shehadeh and his daughter to Tenerife, Spain, and was able to reunite and come back to the United States with A.G. Shehadeh was arrested by the Spanish authorities on the federal warrant and eventually waived extradition to return to the United States and face the charge.
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 Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorney Elizabeth Yusi 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-15.
MS-13 Members and Associates Indicted in Racketeering, Narcotics, and Multiple Murder ConspiraciesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned a superseding indictment today charging twelve members and associates of “La Mara Salvatrucha”, or MS-13, with a variety of offenses based on their involvement in racketeering, drug trafficking, and a series of murders.
Those charged in the indictment are:
Name
Age
Gang Moniker(s) / Nickname(s)
Residence
Marvin Menjivar Gutiérrez
29
Astuto
New York
Melvin Canales Saldana
29
Demente
New York
Mario Antonio Guevara Rivera
26
Blue, Azul, Telele
Woodbridge
Cristian Ariel Arevalo Arias
26
Serio
Woodbridge
Carlos Jose Turcios Villatoro
23
Oculto
Woodbridge
Abner Jose Molina Rodriguez
24
Rino, Tecolote
Woodbridge
Manilester Andrade Rivas
32
Mani, Tandori, Conejo, Coqueto
Woodbridge
Jairo Gustavo Aguilera Sagastizado
26
Coy, Maruchan, Psicólogo
New York
Walter Jeovanny Rubio Lemus
27
Caskillo
Woodbridge
Juan Carlos Hernández Landaverde
23
Chele
Annandale
Karen Estefany Figueroa Alfaro
29
N/A
Woodbridge
Juan Manuel Vasquez Reyes
40
Güero
Manassas
According to the indictment, the defendants were members or associates of the Sitios Locos Salvatrucha clique (STLS) of MS-13, which has operated in Northern Virginia and elsewhere for at least the past several years. The indictment alleges that since at least in and around 2017, these MS-13 members and associates regularly travelled to and from Long Island, New York, for the purpose of obtaining cocaine and transporting it to the Washington, D.C. metropolitan area, where they and other gang members would sell it primarily, though not exclusively, in restaurants and night clubs.
The indictment also charges eight of the defendants with a number of offenses stemming from their alleged involvement in four murders that occurred in Eastern Prince William County between June 22, 2019 and September 24, 2019. Specifically, the indictment charges:
- Guevara, Arevalo, and Turcios with the June 2019 double-murder of M.B.L. and J.G.M., and Vasquez with helping them after they committed the murders;
- Canales and Andrade with the August 2019 murder of E.L.T.; and
- Guevara, Molina, and Aguilera with the September 2019 murder of A.K.S.
Defendants in this case are charged with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, accessory after the fact to murder in aid of racketeering, witness tampering, using a firearm during a crime of violence causing death, possessing a firearm during a drug trafficking crime, and violations of the Controlled Substances Act, among other crimes. The statutory penalties for the charged offenses range from a statutory maximum of 10 years in prison to capital punishment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Peter Newsham, Chief of Prince William County Police, made the announcement.
Assistant U.S. Attorney John Blanchard, Special Assistant U.S. Attorney Rachel Roberts, and Trial Attorney Matthew Hoff from the Department of Justice Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Significant assistance was provided by our partners, including the Northern Virginia Violent Gang Safe Streets Task Force, the Northern Virginia Regional Gang Task Force, ICE/ERO, DEA, ATF, and the United States Marshal Service. The Office of the Commonwealth’s Attorney in Prince William County also provided significant assistance.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation City of Bridges. 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. 1:21-cr-260.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
EDVA Collects over $48 M in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
ALEXANDRIA, Va. – U.S. Attorney Jessica D. Aber announced today that the Eastern District of Virginia (EDVA) collected $48,454,99.23 in criminal and civil actions in Fiscal Year 2021. Of this amount, $24,547,719.25 was collected in criminal actions and $23,907,277.98 was collected in civil actions.
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $15,868,371.49 in cases pursued jointly by these offices. Of this amount, $29,835.95 was collected in criminal actions and $15,838,535.54 was collected in civil actions.
“EDVA prioritizes monetary collections, whether it’s to pay restitution to victims or return money to the public fisc for taxpayers,” said U.S. Attorney Jessica D. Aber. “I am grateful for the efforts of our attorneys and support staff in the Asset Recovery Unit and Civil Division to maximize these recoveries.”
In June, EDVA obtained $12,772,843 as part of the settlement with Level 3 Communications, LLC (Level 3), a multinational telecommunications and Internet service provider company. Level 3 agreed to settle allegations involving kickbacks paid to former Level 3 officials in return for favorable treatment to subcontractors in connection with government contracts; improperly obtaining competitive bid information; and misstating compliance with woman-owned small business subcontracting requirements.
In September, after securing jury verdicts against Daryl Bank for masterminding a $25 million investment fraud, EDVA obtained a restitution order for $25,608,156.83. This will require Bank and his codefendants to pay back the more than 350 victims of his crime. In the interim, EDVA is forfeiting Bank’s property, including real estate in Florida and North Carolina; luxury jewelry, to include a 5+ carat diamond ring; high-end clothing and handbags, to include an Hermes belt; over $625,000 seized from bank accounts; and over $75,000 in seized cash in order to request that the Money Laundering Asset Recovery Section of the Department of Justice permit those liquidated funds to be returned to victims.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in EDVA, working with Department of Justice partner agencies and divisions, collected $29,013,457 in asset forfeiture actions in FY 2021. Of that sum, $9,583,825 collected through asset forfeiture was returned to victims of crime through restoration and remission. This amount does not include forfeitures in partnership with Department of Treasury law enforcement agencies. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
Hampton Man Pleads Guilty to Defrauding Elderly Victims and Tax EvasionRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty yesterday to defrauding victims in the Hampton Roads area out of more than $630,000 and evading the assessment of more than $50,000 in income taxes.
According to court documents, between 2013 and 2019, Clarence M. Rice Jr., 54, falsely represented to victims that he was going to receive a sizeable inheritance from his father’s death, under the condition that Rice paid off all his existing debts. He tricked victims into giving him large sums of money using the false representations that he needed the funds to obtain his inheritance.
As a result of his fraud scheme, Rice stole more than $350,000 from a 75-year-old retired bricklayer and more than $140,000 from an elderly blind man. In total, Rice obtained at least $632,017.44 in fraudulent proceeds from the scheme. As part of the plea, Rice agreed that all his victims were of limited financial means and suffered substantial hardship from his fraud.
Despite earning income from his fraud scheme, Rice has not filed taxes since 2011. Between 2015 and 2019, he defrauded the IRS by living a cash lifestyle, negotiating checks from victims for U.S. currency instead of depositing them in bank accounts, hiding assets on prepaid cards, and lying to law enforcement about his income and assets. The approximate tax due and owing resulting from Rice’s failure to pay his personal income tax is $52,064.18.
Rice pleaded guilty to wire fraud and evasion of income tax assessment and is scheduled to be sentenced on May 25, 2022. He faces a maximum of 20 years in prison for the fraud offense and a maximum of five years in prison for the tax evasion. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorney D. Mack Coleman and Managing Assistant U.S. Attorney Brian J. Samuels 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. 4:21-cr-60.
Government Contractor Indicted for Bribing Public OfficialRead the Press Release
A federal grand jury in the Eastern District of Virginia returned an indictment charging a North Carolina man with engaging in a bribery and fraud scheme with a former contracting officer for the Broadcasting Board of Governors (BBG) (now known as the U.S. Agency for Global Media).
According to court documents, William F. Snow, 70, of Jamestown, worked for a government contracting firm that previously provided professional staffing services to BBG. Between late 2014 and late 2016, Snow, in addition to a BBG contracting officer and others, allegedly agreed to hire and pay the contracting officer’s relative for a job involving minimal work and which resulted in payments to the relative that totaled more than $68,000. In exchange, the BBG contracting officer took official actions that benefitted Snow, the contracting firm, and another executive, Rita Starliper, who previously pleaded guilty for her involvement in the scheme. In particular, the contracting officer took official action and provided preferential treatment that included the awarding of a professional staffing contract to the contracting firm that was worth millions of dollars and the steering of the procurement process to benefit Snow, Starliper, and the contracting firm.
Snow is charged with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery, and three counts of honest services mail fraud. The defendant will make his initial court appearance on Dec. 28. If convicted, Snow faces a maximum penalty of five years in prison for conspiracy to commit bribery and honest services mail fraud, fifteen years in prison for bribery, and twenty years in prison for each count of honest services mail fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber of the Eastern District of Virginia; Special Agent in Charge Elisabeth Kaminsky of the Office of Inspector General for the Department of State; and Assistant Director in Charge Steven M. D'Antuono of the FBI’s Washington Field Office made the announcement.
The Office of Inspector General for the Department of State and the FBI are investigating the case.
Assistant U.S. Attorney Heidi Boutros Gesch of the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan, and Trial Attorney Jordan Dickson of the Justice Department’s Public Integrity Section are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
EDVA Takes Action Against COVID-19 Fraud in 2021Read the Press Release
ALEXANDRIA, Va. – Today Jessica D. Aber, United States Attorney for the Eastern District of Virginia, announced an update on the Eastern District of Virginia’s criminal and civil enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program and Unemployment Insurance (UI) programs.
“In the past year, Virginians have endured the physical, mental, and economic hardship brought on by the COVID-19 pandemic,” said Aber. “Within the last year, we have stood firm in our commitment to protect the programs implemented by Congress to assist community members suffering from the economic effects of this pandemic and, going forward, will continue to aggressively prosecute those who steal taxpayers’ funds.”
Since the start of 2021, EDVA has charged over 30 defendants with criminal offenses based on fraud schemes connected to the COVID-19 pandemic. These cases involve attempts to defraud over $105 million from the U.S. government and unsuspecting private individuals. The success of these cases reflects a degree of reach, coordination, and expertise emblematic of EDVA’s and the Justice Department’s response to COVID-19-related fraud.
In March 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud.
On criminal matters, EDVA’s efforts to combat COVID-19-related fraud schemes in 2021 have proceeded on numerous fronts, including:
- Paycheck Protection Program (PPP) fraud: The PPP fraud cases charged in EDVA this year involve a range of conduct, from individual business owners who inflated their payroll expenses to obtain larger loans than they otherwise would have qualified for, to a serial fraudster applying for multiple loans using false claims about business entities and income. Most charged defendants misappropriated loan proceeds for prohibited purposes, such as the purchase of houses, cars, Cessna aircraft, jewelry, and other luxury items. In one case, U.S. v. Andrew Tezna, a Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) was sentenced for submitting fraudulent applications for over $357,000 in PPP relief loans and COVID-19 benefits.
- Economic Injury Disaster Loans (EIDL) fraud: EDVA has also focused on fraud against the EIDL program, which was designed to provide loans to small businesses, agricultural and non-profit entities. Nationally, fraudsters have targeted the program by applying for EIDL advances and loans on behalf of ineligible, newly created, shell, or non-existent businesses, and diverting the funds for illegal purposes. In U.S. v. Joseph Cherry, a repeat fraudster was sentenced in EDVA for engaging in an EIDL and PPP loan fraud scheme while under federal supervision, with an intended loss to the government of nearly $232,000.
- Unemployment Insurance (UI) fraud: Due to the COVID-19 pandemic, more than $860 billion in federal funds were appropriated for UI benefits through September 2021. Early investigation and analysis indicate that international organized criminal groups have targeted these funds by using stolen identities to file for UI benefits. Domestic fraudsters, ranging from identity thieves to prison inmates, have also committed UI fraud. In U.S. v. Mary Benton et al, the defendant operated a fraudulent scheme to obtain nearly $437,000 in pandemic-related unemployment benefits by using the personal identifying information of over 30 Virginia prison inmates.
- Personal Protective Equipment (PPE) fraud: EDVA charged and prosecuted criminals who exploited the nation’s need for personal protective equipment (PPE) required to protect medical professionals and the public from contracting and spreading COVID-19. These schemes often offered to sell scarce PPE, such as N95 respirator masks, to various medical supply companies, government entities, and consumers. For example, in U.S. v. Robert Stewart, the defendant falsely stated to multiple Federal Government agencies that he was in possession of large quantities of PPE, thus putting him in the position to obtain contracts with the Department of Veteran’s Affairs (VA) and the Federal Emergency Management Agency valued at $35.1 million and $3.5 million, respectively.
- Economic Impact Payments (Stimulus Checks) Fraud: EDVA has also worked to investigate and prosecute fraudsters who attempted financial scams, counterfeiting of checks, and mail, and identity theft targeting COVID-19 stimulus checks. In U.S. v. Jonathan Drew, the defendant stole U.S. mail addressed to more than 150 individuals in EDVA, stealing more than $700,000 in checks, including $1,200 in COVID-19 stimulus payments and checks which the defendant further used to create counterfeit stimulus checks.
EDVA has also worked to shut down fraudulent websites that were facilitating consumer scams related to COVID-19 and has taken scores of actions to disrupt financial networks supporting such scams. For example, EDVA announced the seizure of seven websites used to collect personal information and that sought to exploit the increased interest in vaccines, treatments, and employment opportunities associated with the COVID-19 pandemic.
EDVA has also used numerous civil tools to address fraud in connection with CARES Act programs. For example, EDVA obtained a civil settlement of $230,414.65 with KC Investments Group, Inc. and its owner for fraud involving Paycheck Protection Program loans.
"We are dedicated to preserving the integrity of these programs that were designed and implemented to assist citizens during a time of uncertainty and strain related to the COVID pandemic; and will continue to work with our partners to investigate and hold accountable those who manipulate these government resources for personal gain,” said Stanley M. Meador, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Richmond Field Office.
“The NASA Office of Inspector General is committed to working with the EDVA in aggressively investigating allegations of wrongdoing targeting PPP, EIDL, and UI programs,” said Robert Steinau, Assistant Inspector General for Investigations for NASA. “We will continue to pursue and hold those accountable that defraud these crucial programs.”
“Through the dedicated efforts of Special Agents around the world, HSI conducted investigations into the sale of counterfeit personal protective equipment, disrupted financial fraud schemes that exploited COVID-19 relief programs, shut down websites that defrauded consumers, and interdicted shipments of dangerous prohibited pharmaceuticals and medical supplies through Operation Stolen Promise,” said Ray Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI), Washington, D.C. “These efforts help protect American citizens from the transnational criminal organizations who seek to exploit the COVID-19 pandemic for financial gain.”
“Those who commit Covid fraud are robbing taxpayers while hurting the people who truly needed the financial support,” said Darrell Waldon, Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge, Washington DC Field Office. “We will continue to prioritize COVID-19 fraud investigations and ensure those who commit it are brought to justice.”
“Each day, the OIG stands beside the nation’s robust diverse small business community by safeguarding the unique SBA programs established to support their development and growth,” said the Small Business Administration’s (SBA) Office of Inspector General’s Eastern Region Special Agent in Charge, Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Initiatives like our Newport News Financial Crimes Task Force were created to crack down on various white-collar crimes, to include COVID-19 related fraud schemes. Our continued partnerships with area law enforcement, prosecutors and financial institutions will assist us in identifying and prosecuting those who commit pandemic-related fraud offenses involving the U.S. Mail,” said Daniel Adame, Postal Inspector in Charge of the Washington Division.
“So long as criminals continue to exploit pandemic relief programs, the U.S. Secret Service will continue to investigate and identify them for prosecution,” said U.S. Secret Service Special Agent in Charge Jerald Page. “The protection of our national economy and financial infrastructure has remained a critical part of our mission for more than 150 years, and our dedicated investigators will continue to work tirelessly to ensure that protection from any and all threats.”
“COVID-19 demands have created a climate for bad actors to pursue unique and considerable opportunities for fraud," said VA Inspector General Michael J. Missal. “This office is actively engaging with our law enforcement partners to identify those who would capitalize on this pandemic to steal from veterans and taxpayers.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to Unemployment Insurance programs,” stated Troy W. Springer, Acting Special Agent-in-Charge, Washington Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with the U.S. Attorney’s Office, our law enforcement partners, and the Virginia Employment Commission, to protect the integrity of programs intended for unemployed American workers, including those who continue to be affected by the ongoing COVID-19 pandemic.”
Some of the major COVID-19-related cases prosecuted by EDVA in 2021 are as follows:
Case Name
Case #
Program Targeted
Intended Loss to Taxpayer
U.S. v. Punelli*
1:21-cr-224
PPP, EIDL
$55,606,000
U.S. v. Stewart
1:21-cr-5
PPP, EIDL, PPE
$39,576,500
U.S. v. Mitchums*
4:21-cr-85
PPP, EIDL
$5,100,000
U.S. v. Kindambu
1:20-cr-260
PPP
$2,501,753
U.S. v. Noel*
4:21-cr-72
UI
$469,635
U.S. v. Benton et al.
2:21-cr-33
UI
$436,834
U.S. v. Tezna
1:21-cr-77
PPP, EIDL, UI
$357,734
U.S. v. Suber
2:20-cr-110
PPP
$350,000
U.S. v. Cherry
4:20-cr-27
PPP, EIDL
$231,900
KC Investments
Civil Settlement
PPP
$230,414
U.S. v. Smith
3:21-cr-60
UI
$223,984
U.S. v. Khan*
1:21-cr-207
EIDL
$110,000
U.S. v. Tierney et al
3:21-cr-32
UI
$74,805
U.S. v. Jefferson
4:20-cr-64
EIDL
$25,000
U.S. v. Drew
1:21-cr-71
Stimulus
$1,200
*pending sentencing
In addition to these efforts, the Newport News Financial Crimes Task Force, led by the U.S. Postal Inspection Service (USPIS) and in partnership with EDVA, the FBI Norfolk Field office through its Resident Agency in Newport News, and the Washington Regional Office of the U.S. Department of Labor Office of Inspector General (DOL-OIG), have launched a joint pandemic counter-fraud operation focused on the Virginia Peninsula region. This collaborative initiative targets the trend of criminal organizations and networks incorporating pandemic-related fraud into their other illegal activities. As of December 13, 2021, this operation has successfully initiated 21 investigations, resulting in 14 individuals charged in 7 criminal cases, with identified losses of over $800,000 related to the charged cases. An additional 14 cases remain ongoing and active.
All these efforts have been made possible through the diligent work of a wide range of law enforcement partners from the FBI (Washington, Norfolk and Richmond Field Offices), DOL-OIG, U.S. Secret Service, IRS-CI, Defense Criminal Investigative Service, HSI, USPIS, the Offices of Inspectors General from SBA, Department of Homeland Security, Social Security Administration, Federal Deposit Insurance Corporation, NASA, Department of Health and Human Services, and the VA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Virginia Coronavirus Fraud Task Force is a federal and state partnership led by the Eastern and Western Districts of Virginia along with fraud investigators from the FBI and Virginia State Police. The task force’s mission is to identify, investigate, and prosecute fraud related to the ongoing pandemic. The task force reviews and investigates all credible leads of fraud associated with COVID-19, focusing on schemes to exploit vulnerable populations, including the elderly and concerned citizens.
EDVA continues its fight against COVID-19 related fraud. To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Jury Convicts Marijuana Trafficker of Drug-Related MurderRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria man yesterday of murdering another man in retaliation for robbing him of an ounce of marijuana, and trying to convince a witness to lie for him to cover it up.
According to court documents and evidence presented at trial, Melvin Palma Flores, 20, was a marijuana dealer who carried firearms for protection while dealing drugs. On October 25, 2019, the victim, X.B., arranged for his two associates to purchase marijuana from Palma Flores. In reality, X.B. intended for his associates to rob Palma Flores. When the associates showed up to Palma Flores’s home in Alexandria, one of them stole the marijuana from Palma Flores and brought it back to X.B.
Palma Flores then planned his retaliation against X.B. for setting up the robbery. Palma Flores, who was carrying a firearm, met with two of his associates and traveled to X.B.’s apartment complex in Alexandria. X.B., who was unarmed, was sitting on the staircase outside of his apartment. Palma Flores discharged his firearm multiple times, striking X.B. in the right arm and in the top of the head, causing X.B.’s death.
Following his arrest in February of 2020, Palama Flores wrote a letter to his girlfriend instructing her to lie about the events that occurred on the night of the murder and to influence others to lie about the incident to law enforcement.
Palma Flores was convicted of murder by firearm in relation to drug trafficking, possession with intent to distribute marijuana, and witness tampering and is scheduled to be sentenced on June 29, 2022. He faces a maximum term of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kevin Davis, Fairfax County Chief of Police; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
Assistant U.S. Attorneys Michael P. Ben’Ary and Katherine E. Rumbaugh 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-142.
Chesapeake Man Pleads Guilty to Firearms TraffickingRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today to conspiracy to make false statements in connection with 45 firearm transactions.
According to court documents, from June 2019 through June 2020, Kevin Staton, Jr., 23, engaged in the business of buying and selling 45 firearms without a license. In furtherance of this illegal activity, he made false official statements on ATF forms in order to buy firearms. Staton claimed he was the actual buyer of the firearms, but, in actuality, he was purchasing the firearms for other individuals or with intent to resell them. Staton would coordinate with co-conspirators to identify firearms for purchase through online firearm marketplaces.
When Staton was interviewed by ATF agents he said, “Guns are like money,” and “I’m buying them knowing I’m going to be selling them.”
At least 15 of the 45 firearms Staton purchased were recovered from crime scenes in other cities and states. All but one of those firearms had been used for a crime or recovered by law enforcement less than one year after purchase from Staton.
Staton is scheduled to be sentenced on April 27, 2022. He faces a maximum penalty of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Greg D. Underwood, Norfolk Commonwealth’s Attorney; and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorney John F. Butler and Special Assistant U.S. Attorney Graham M. Stolle are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-141.
Portsmouth Fraudster Sentenced for Absconding and Fraud OffensesRead the Press Release
RICHMOND, Va. – A Portsmouth man was sentenced today to over 10 years in prison for charges of conspiracy, fraud, identity theft, and failure to appear.
According to court documents, Troy McFarland, 27, conspired with another man to repeatedly commit credit card fraud at the expense of more than a dozen identity theft victims and multiple financial institutions. McFarland and his co-conspirator used credit and debit cards re-encoded with stolen financial information to purchase goods and services from local retailers, including a luxury car rental, a hotel stay, dining expenses, motorcycle equipment, furniture, prepaid gift cards, and a $14,310 Rolex watch.
After McFarland was arrested on July 31, 2020, he was released to a third-party custodian in Portsmouth and required to submit to location monitoring. On October 24, 2020, he removed his location-monitoring device and absconded. On March 4, he was located and arrested again. While McFarland’s whereabouts were unknown, he released multiple music videos about his lack of remorse for his crimes and boasted about having removed his location-monitoring device. At the time of his arrest, he was found in possession of more debit and credit cards associated with suspected fraud.
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; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
The United States Marshals Service provided significant assistance in this case.
Assistant U.S. Attorney D. Mack Coleman and former Managing Assistant U.S. Attorney Howard J. Zlotnick 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. 4:20-cr-44.
DC Man Sentenced for Multi-Kilogram Cocaine ConspiracyRead the Press Release
A Washington, DC man was sentenced yesterday to 70 months in prison for conspiring to distribute five kilograms or more of cocaine.
According to court documents, since at least July 2019, Marcelin Saturne, 33, was a source of supply for multi-kilogram quantities of cocaine. Saturne acknowledged that he was personally involved in the distribution of, or it being reasonably foreseeable to him that his co-conspirators distributed, at least 15 kilograms but less than 50 kilograms of cocaine. At one point, Saturne brought cocaine to the greater Washington, DC area through parcels shipped from California where his source of supply was located. Saturne sold his cocaine for approximately $34,000-35,000 per kilogram.
In May 2021, Saturne met a Drug Enforcement Administration (DEA) confidential source (CS) who represented himself to be a source for cocaine. Saturne advised the CS that he wanted to purchase 15 kilograms of cocaine from the CS. In June 2021, the CS advised Saturne that a shipment of cocaine would be arriving to the Washington, DC area soon. Saturne agreed to purchase 10 kilograms of cocaine from that shipment. Saturne was arrested after agreeing to purchase the requested cocaine and his residence was searched. Therein law enforcement located and seized approximately $35,640 in U.S. currency as well as high end jewelry valued at approximately $146,160.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the DEA Washington Field Division; and Michael L. Chapman, Loudoun County Sherriff, made the announcement after sentencing by U.S. District Judge Leonie M Brinkema.
Assistant U.S. Attorneys Bibeane Metsch and Michael BenAry 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-198.
Man Pleads Guilty to a Return Fraud Scheme Victimizing Amazon.com, Inc.Read the Press Release
ALEXANDRIA, Va. – A Manassas man pleaded guilty today to defrauding the online retailer, Amazon.com, Inc. (Amazon), of over $300,000 by operating a mail fraud scheme to buy high-end products, claim a refund, then return a similar item of significantly lesser value.
According to court documents, from 2017 through 2020, Farhaad Riyaz, 34, would open multiple Amazon accounts, purchase high-end items online and have them shipped to his residence. Riyaz would then claim the item had arrived too late or was not as described online, thereby initiating a return. He would send back to Amazon, via United Parcel Service, an item of materially lesser value but Amazon would refund him the full purchase price. For instance, in June 2019, Riyaz bought a rare Fender Telecaster electric guitar for approximately $2,600 from Amazon, then returned a Squier Telecaster electric guitar of the same color that had cost him approximately $400. During the scheme, Riyaz also fraudulently obtained a $37,000 home theater system by returning a $2,000 model, and fraudulently obtained multiple $4,400 toilets with electric bidets.
Riyaz is scheduled to be sentenced on March 22, 2022. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; 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 plea.
Amazon’s fraud detection unit provided valuable assistance in the investigation of the case.
Assistant U.S. Attorney Russell L. Carlberg 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-264.
Leading ISIS Media Figure and Foreign Fighter Pleads Guilty to Conspiring to Provide Material Support to a Terrorist Organization, Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – A Saudi-born Canadian citizen pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization (ISIS), resulting in death.
According to court documents, Mohammed Khalifa, aka Abu Ridwan Al-Kanadi and Abu Muthanna Al-Muhajir, 38, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the Syrian Democratic Forces (SDF) in January 2019, following a firefight between ISIS fighters and the SDF. In addition to serving as a fighter and executing two Syrian soldiers on behalf of ISIS, Khalifa served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple ISIS videos.
Khalifa traveled to Syria in the spring of 2013 with the intent of becoming a foreign fighter and ultimately joining ISIS. He joined ISIS in or around November 2013 and swore allegiance to then-ISIS leader Abu Bakr al-Baghdadi. In early 2014, he was recruited to join ISIS’s media department due in part to his language abilities as a fluent English and Arabic speaker. Starting in 2016, Khalifa directed various supporter networks that assisted in the translation, production, and dissemination of propaganda released under various ISIS media brands in order to reach Western audiences. He worked within the ISIS media operation until late 2018.
Khalifa provided the narration and translation for approximately 15 videos created and distributed by ISIS. The productions narrated by Khalifa include two of the most influential and exceedingly violent ISIS propaganda videos: “Flames of War: Fighting Has Just Begun,” distributed on September 19, 2014, and “Flames of War II: Until the Final Hour,” distributed on November 29, 2017. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, footage of ISIS attacks and fighting, and depictions of ISIS attacks in the United States.
The ISIS “Flames of War” videos include scenes of Khalifa executing a different Syrian soldier in each of the two videos. In the final scenes of both videos, a masked Khalifa speaks to the camera and is then seen executing a kneeling Syrian soldier while other masked ISIS members also shoot the prisoners kneeling in front of each of them.
During the time Khalifa was a prominent member of ISIS, the terrorist organization was conducting a hostage-taking and ransom demand campaign involving American, British, and European journalists and aid workers. Between August 19, 2014 and February 6, 2015, ISIS killed eight American, British or Japanese citizens in Syria as part of the hostage scheme.
In January 2019, Khalifa engaged in fighting on behalf of ISIS and attacked an SDF position in Abu Badran, Syria. Khalifa, alone and armed with three grenades and an AK-47, threw a grenade on the roof of a house where SDF soldiers were standing. The grenade detonated and Khalifa ran into the house and attempted to go to the roof, but an SDF soldier was firing from the stairs. Khalifa began firing at the SDF soldier and attempted to use all three of his grenades during the attack. Khalifa fired most of his ammunition during the assault before his AK-47 jammed. Khalifa surrendered to the SDF on or about January 13, 2019 and was detained by the SDF. Earlier this year, he was transferred to the custody of the FBI and brought to the Eastern District of Virginia, where he had his initial appearance on October 4, 2021.
Khalifa pleaded guilty to conspiring to provide material support or resources to a foreign terrorist organization, resulting in death and is scheduled to be sentenced on April 15, 2022. Khalifa faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 after U.S. District Judge T. S. Ellis III accepted the plea.
Assistant U.S. Attorney Dennis M. Fitzpatrick, First Assistant U.S. Attorney Raj Parekh, and Assistant U.S. Attorneys John T. Gibbs and Aidan Taft Grano-Mickelson, all from the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department are prosecuting this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-271.
Leading ISIS Media Figure and Foreign Fighter Pleads Guilty to Conspiring to Provide Material Support to Terrorist Organization Resulting in DeathRead the Press Release
A Saudi-born Canadian citizen pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization (ISIS), resulting in death.
According to court documents, Mohammed Khalifa, aka Abu Ridwan Al-Kanadi and Abu Muthanna Al-Muhajir, 38, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the Syrian Democratic Forces (SDF) in January 2019, following a firefight between ISIS fighters and the SDF. In addition to serving as a fighter and executing two Syrian soldiers on behalf of ISIS, Khalifa served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple ISIS videos.
Khalifa traveled to Syria in the spring of 2013 with the intent of becoming a foreign fighter and ultimately joining ISIS. He joined ISIS in or around November 2013 and swore allegiance to then-ISIS leader Abu Bakr al-Baghdadi. In early 2014, he was recruited to join ISIS’s media department due in part to his language abilities as a fluent English and Arabic speaker. Starting in 2016, Khalifa directed various supporter networks that assisted in the translation, production and dissemination of propaganda released under various ISIS media brands in order to reach Western audiences. He worked within the ISIS media operation until late 2018.
Khalifa provided the narration and translation for approximately 15 videos created and distributed by ISIS. The productions narrated by Khalifa include two of the most influential and exceedingly violent ISIS propaganda videos: “Flames of War: Fighting Has Just Begun,” distributed on Sept. 19, 2014, and “Flames of War II: Until the Final Hour,” distributed on Nov. 29, 2017. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, footage of ISIS attacks and fighting, and depictions of ISIS attacks in the United States.
The ISIS “Flames of War” videos include scenes of Khalifa executing a different Syrian soldier in each of the two videos. In the final scenes of both videos, a masked Khalifa speaks to the camera and is then seen executing a kneeling Syrian soldier while other masked ISIS members also shoot the prisoners kneeling in front of each of them.
During the time Khalifa was a prominent member of ISIS, the terrorist organization was conducting a hostage-taking and ransom demand campaign involving American, British, and European journalists and aid workers. Between Aug. 19, 2014 and Feb. 6, 2015, ISIS killed eight American, British or Japanese citizens in Syria as part of the hostage scheme.
In January 2019, Khalifa engaged in fighting on behalf of ISIS and attacked an SDF position in Abu Badran, Syria. Khalifa, alone and armed with three grenades and an AK-47, threw a grenade on the roof of a house where SDF soldiers were standing. The grenade detonated and Khalifa ran into the house and attempted to go to the roof, but an SDF soldier was firing from the stairs. Khalifa began firing at the SDF soldier and attempted to use all three of his grenades during the attack. Khalifa fired most of his ammunition during the assault before his AK-47 jammed. Khalifa surrendered to the SDF on or about Jan. 13, 2019 and was detained by the SDF. Earlier this year, he was transferred to the custody of the FBI and brought to the Eastern District of Virginia, where he had his initial appearance on Oct. 4, 2021.
Khalifa pleaded guilty to conspiring to provide material support or resources to a foreign terrorist organization, resulting in death and is scheduled to be sentenced on April 15, 2022. Khalifa faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 after U.S. District Judge T. S. Ellis III accepted the plea.
First Assistant U.S. Attorney Raj Parekh and Assistant U.S. Attorneys Dennis M. Fitzpatrick, John T. Gibbs and Aidan Taft Grano-Mickelson for the Eastern District of Virginia, and Trial Attorney Alicia H. Cook of the National Security Division’s Counterterrorism Section are prosecuting this case.
CEO of Private Jet Charter Company Convicted of Bankruptcy FraudRead the Press Release
ALEXANDRIA, Va. – A federal judge convicted a Reston businessman yesterday on a series of fraud charges relating to a bankruptcy case in which he discharged over $6 million in personal debt.
According to court records and evidence presented at trial, on July 13, 2017, President and CEO of Metropolitan Aviation, Alan Russell Cook, Sr., 64, filed for chapter 7 bankruptcy in his individual capacity. In anticipation of the filing, Cook transferred over $350,000 to his former girlfriend. He directed her to open accounts in her name and in the name of a fake company, Metro Aire, to receive his personal property and revenue from Metropolitan Aviation.
In connection with his bankruptcy case, Cook failed to disclose several bank accounts and over $50,000 in casino cash-outs. In addition, at the meeting of his creditors, Cook made several false statements under oath, including that his company was shut down for four to five months and generated no money in 2017. In actuality, Metropolitan Aviation generated revenue every month of 2017, totaling more than $1 million. Cook further failed to disclose making payments for his girlfriend’s luxury vehicle and his access to the fraudulent entity’s bank account, including writing checks for personal expenses, withdrawing cash, and paying for hotel stays.
Cook faces a maximum of 20 years in prison when sentenced on April 22, 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 Greg Thompson, Mid-Atlantic Region Acting Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict.
Assistant U.S. Attorneys Jamar K. Walker and Alexander E. Blanchard 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. 1:21-cr-72.
Jury Convicts Men of Hijacking 18-Wheeler Commercial Truck at GunpointRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two New York City men last week on charges of carjacking, armed robbery and possession of a firearm in relation to a crime of violence.
According to court records and evidence presented at trial, on April 1, at 3:05 a.m., Stephen Pierre Paul, 30, Wayne Ricardo Taylor, 26, and co-conspirators traveled to a truck stop in Mount Jackson in a van with blacked out windows. Once at the truck stop, Pierre-Paul, Taylor, and the co-conspirators hijacked an 18-wheel commercial tractor-trailer with Alabama tags. The group abducted the truck driver at gunpoint and forced him into their van. Both vehicles, the van and hijacked commercial truck, were stopped at a roadblock on eastbound Interstate 66 at 5:15 a.m. in Fairfax County. The victim truck driver was rescued, and the defendants were arrested.
Co-defendants Cornelius Crossman, 37, and Odane Butler, 27, both of Brooklyn, New York, will be sentenced for their roles in the conspiracy on December 10 and January 21, 2022, respectively.
Pierre-Paul and Taylor each face a mandatory minimum sentence of 7 years and maximum of life in prison when sentenced on March 11, 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; Kevin Davis, Fairfax County Chief of Police; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Stacey A. Kincaid, Fairfax County Sheriff, made the announcement after Senior U.S. District Judge T. S. Ellis, III 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-144.
International Drug Trafficking Organization Member Sentenced for Trafficking over a Thousand Kilograms of CocaineRead the Press Release
RICHMOND, Va. – A Guatemalan national was sentenced today to 172 months in prison for his role as a maritime transportation manager in a large-scale Guatemalan drug trafficking organization (DTO).
According to court documents, beginning in 2016, Amilcar Chavez-Barrera, 42, conspired to distribute over 1,000 kilograms of cocaine for distribution into the United States. Chavez-Barrera managed and coordinated the maritime transportation of cocaine off the Pacific Coast of Guatemala onto the Guatemalan mainland. In this leadership role, Chavez-Barrera worked for a maritime transportation cell contracted by the DTO and managed the boats that picked up cocaine loads approximately 100 miles off the coast of Guatemala and transported the cocaine to the Guatemalan mainland. Chavez-Barrera coordinated the maritime transportation of 1,500 kilograms of cocaine from the Pacific Ocean to mainland Guatemala, where the cocaine was offloaded for further ground transportation through Central America.
On July 1, 2020, Luis Pedro Fuentes Amaya, a co-defendant of Chavez-Barrera, was sentenced to 192 months for his role in the cocaine trafficking conspiracy on behalf of the DTO. On August 10, 2021, Edi Donaldo Barrera-Salguero, another co-defendant of Chavez-Barrera, was sentenced to 210 months for his role in the cocaine trafficking conspiracy on behalf of the DTO.
This prosecution is part of the Organized Crime and Drug Enforcement Task Force (OCDETF). 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.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorneys Heather Hart Mansfield and Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-18.
Felon Sentenced for Illegal Possession of Firearms and Witness TamperingRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 17.5 years in prison for illegally possessing firearms as a felon, four counts of witness tampering and obstruction of justice, and one count of unlawful possession of a controlled substance.
According to court documents, in October and November 2017, Adonis Marquis Perry, 32—a five-time convicted felon who had sustained two state convictions and one federal conviction for being a felon in possession of firearms and ammunition—took pictures of himself holding a Glock, Model 17, 9mm semi-automatic handgun, loaded with an extended magazine, and a Taurus, Model 66, .357 magnum revolver.
On December 18, 2017, Perry was arrested at a traffic stop in Norfolk after attempting to elude law enforcement by running through stop signs and making rapid turns, finally stopping in a residential parking lot. When law enforcement caught up to the car, they ordered the two occupants out of the vehicle. After receiving permission to search the vehicle, officers found the Taurus revolver and the Glock handgun—the latter loaded with the same magazine that was in the defendant’s pictures.
Perry spent the next seven months after his arrest making recorded calls from the jail to engage in witness tampering and obstruction of justice, specifically involving a series of efforts to interfere with the potential testimony of the second person who was in the car during Perry’s arrest encounter. The defendant controlled the witness through fear—at one point before his arrest, he pointed the Glock handgun at the witness and threatened to kill her if she left him, and on jail calls he reminded her that he knew where she and her family members lived.
Since his arrest, Perry has threatened to hurt or kill at least five of his seven court-appointed attorneys and even lunged at one in the middle of a status hearing in federal court. Perry also mailed letters to some of his attorneys threatening to send associates to their offices if they did not move to withdraw from his case.
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 Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney s William B. Jackson and Joseph E. DePadilla 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. 2:18-cr-113.
Bloods Gang Member Sentenced to Life in Prison for Murders in Newport NewsRead the Press Release
NEWPORT NEWS, Va. – A New York man was sentenced today two consecutive terms of life in prison for the murders of two men in Newport News in June and July 2014.
According to court documents, Mark Anthony Skeete, a.k.a. Mark Brown, 33, was a member of the Nine Trey Gangsters, an offshoot of the California-based “Bloods” street gang. In June 2014, Skeete came to Virginia to facilitate and profit from the prostitution of adult women in the Richmond area. On June 28, 2014, Skeete and others traveled to Newport News to facilitate and profit from the prostitution of a woman from New York. When a client of the woman was unable to pay, Skeete shot and killed him to maintain his position as part of the Nine Trey enterprise.
After the June 2014 murder, Skeete and others fled to North Carolina. Skeete and others then returned to Newport News and killed another man on July 16, 2014 during a drug transaction. Skeete also robbed the victim of money, drugs, and a cell phone. Shortly thereafter, Skeete returned to Richmond. On September 17, 2014, Skeete, a previously convicted felon, possessed a firearm in Richmond that was later forensically linked to the Newport News murders. Cartridge casings recovered from the June and July 2014 murder scenes revealed that the same Ruger .45 caliber firearm recovered on September 17, 2014 in Richmond was the weapon used in both of those murders.
Following the two murders in this case, Skeete shot and killed two other individuals in Richmond in September 2014. He was sentenced in state court to 75 years in prison for those murders.
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 David J. Novak.
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. Attorneys Lisa McKeel and Brian Samuels and former Managing Assistant U.S. Attorney Howard J. Zlotnick 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. 4:19-cr-62.
Two Virginia Inmates Plead Guilty to Pandemic Unemployment Benefits SchemeRead the Press Release
NORFOLK, Va. – Two men pleaded guilty today to fraudulently obtaining benefits made available as a result of the COVID-19 pandemic.
According to court documents, from approximately June 2020 through in or around March 2021, Mark Hilliard, 36, and Elvon George, 33, who were inmates at Greensville Correctional Center during the fraud, collected the personally identifiable information (PII) of their fellow inmates. They then provided the PII to two outside facilitators to file fraudulent unemployment insurance claims. To alleviate financial hardships caused by the COVID-19 pandemic, in 2020 Congress and the Virginia Employment Commission (“VEC”) expanded unemployment benefits by increasing benefit payments and by making them available to gig workers, the self-employed, and others whose employment status the VEC could not easily verify. The defendants exploited these changes to obtain over $220,000 in fraudulent unemployment benefits by making numerous false statements in the inmate unemployment applications.
Hilliard pleaded guilty to conspiracy to commit fraud in connection with major disaster benefits and is scheduled to be sentenced on April 19, 2022. George also pleaded guilty to conspiracy to commit fraud in connection with major disaster benefits and is scheduled to be sentenced on March 31, 2022. Hilliard and George each face a maximum penalty of 5 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Troy Springer, Acting-Special-Agent-in-Charge, Washington, D.C. Region, U.S. Department of Labor Office of Inspector General; and Joseph V. Cuffari, Inspector General for the Department of Homeland Security, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-111.
Chesapeake Businessman Pleads Guilty to $1.2 Million Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Chesapeake man and business owner pleaded guilty today to defrauding the Internal Revenue Service (IRS) out of more than $1.2 million in taxes.
According to court documents, from 2013 through 2017 Shane August, 36, owned and operated a home-healthcare business in Chesapeake. August defrauded the IRS by, among other things, hiding personal bank accounts, using undisclosed accounts to conduct business, maintaining a cash lifestyle to avoid the IRS, making false statements about his ability to pay, lying to IRS agents, and diverting large sums of money to pay for personal expenses.
August withheld employment taxes from approximately 60 of his employees and failed to consistently pay more than $900,000 of those withholdings to the IRS. Each year, August provided fraudulent employment tax forms to his employees, who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the Social Security program.
Additionally, between 2014 and 2017, August reported personal income to the IRS of more than $900,000 but failed to pay taxes on this income and now owes more than $288,000 in personal income tax for those years. Instead of paying his taxes, August used large sums of money to pay for personal expenses like a building contract on a home and a luxury vehicle lease.
August is scheduled to be sentenced on March 24, 2022. He faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell Waldon, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Washington, D.C., Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney D. Mack Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-62.
Former Richmond Attorney Sentenced for Obstructing Investigation of Bankruptcy EmbezzlementRead the Press Release
RICHMOND, Va. – A former Richmond attorney was sentenced today to 44 months in prison and ordered to pay a $10,000 fine for obstructing an official proceeding in connection with his attempts to thwart an investigation into his own fraudulent conduct as a bankruptcy trustee.
According to court documents, Bruce H. Matson, 64, misled the U.S. Trustee’s Office in 2019 when he made false statements in response to allegations that he misappropriated funds as a court-appointed trustee in the bankruptcy of LandAmerica Financial Group (LFG). A federal investigation into those allegations uncovered multiple instances of Matson’s embezzlement from the LFG Trust between 2015 and 2018, totaling approximately $800,000 in misappropriated funds.
Additionally, Matson manipulated the budget for LFG’s post-bankruptcy wind-down period so that he could divert residual funds to himself and others after the close of the LFG bankruptcy, when he would no longer be subject to scrutiny by LFG creditors and the Bankruptcy Court. In particular, Matson misrepresented the amount of money needed for the wind-down process and obscured the amount of money actually retained in Trust accounts. In order to access these residual funds, Matson also inserted language into the budget the night before it was filed with the Bankruptcy Court. This language seemingly gave Matson the authority to pay discretionary bonuses using residual funds. Matson knew the last-minute language included in the budget contradicted other court filings, but he instructed other trust professionals not to amend the filings, including the proposed Final Decree ultimately endorsed by the Bankruptcy Court in December 2015. As a result of this conduct, Matson was able to siphon away more than $3.2 million for personal payments to himself and others, depleting the Trust account more than two years before the end of the wind-down period.
The federal investigation also uncovered an unrelated instance of Matson embezzling approximately $23,000 in 2016 from the estate of Forefront Capital, a defunct futures broker for which Matson served as receiver and debtor-designee. In total, between 2015 and 2019, Matson wrongfully obtained more than $4 million in bankruptcy-related assets.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
The U.S. Trustee Program provided significant assistance in this case.
Assistant U.S. Attorney Thomas A. Garnett and former Assistant U.S. Attorneys Katherine Lee Martin and Kevin S. Elliker 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-79.
Mother of FCI Petersburg Inmate who Spearheaded Bribery Scheme SentencedRead the Press Release
RICHMOND, Va. – A Baltimore, Maryland, woman was sentenced to 45 months in prison yesterday for her role in a bribery scheme that allowed for the introduction of contraband into Federal Corrections Institution (FCI) Petersburg.
According to court documents, Kim Williams, 57, facilitated over $60,000 in bribe payments consisting of both wire transfers and cash payments to former Bureau of Prisons (BOP) correctional officers Stephen Taylor, 49, of Wake Forest, North Carolina, and Shanice Bullock, 28, of South Hill. In return, Taylor and Bullock permitted the introduction and distribution of contraband items across the prison facility. Williams’s son, Dontay Cox, 38, of Baltimore, Maryland, was an inmate at FCI Petersburg from around January 2014 to July 2019. Cox ran a gambling ring within the prison and distributed the contraband, including Suboxone, marijuana, heroin, cigarettes, and cellular telephones, to fellow inmates.
Over the course of the conspiracy, specifically between December 2016 and September 2019, Williams’s bank accounts show deposits of $137,855.29. These funds included $94,961.39 in untraceable cash deposits.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Kenneth Simon Jr. and Michael C. Moore prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-125.
Texas Man Pleads Guilty to Selling Chinese-Made Military Helmets and Body Armor to Federal AgenciesRead the Press Release
ALEXANDRIA, Va. – A Celeste, Texas, man pleaded guilty today to 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 and various national guard units.
Jackson is scheduled to be sentenced on February 22, 2022. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Diana Shaw, Acting Inspector General for the Department of State, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
The U.S. Army Criminal Investigation Division provided significant assistance in this case.
Assistant U.S. Attorney Russell L. Carlberg 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-238.
Virginia Beach Man Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to 22 years in prison for producing images of child sexual abuse.
According to court documents, from December 2018 to January 2019, James Thomas White, 26, knowingly communicated with a thirteen-year-old child on Twitter and repeatedly asked her to send him sexually explicit photographs and videos of herself, which she did. White also used Twitter and other online accounts to find others with whom to trade child sexual abuse material, which he kept on his electronic devices as well as in online cloud storage accounts. After court-authorized searches were executed at White’s residence and in electronic accounts, he was found to possess approximately 1,500 images and 450 videos of child pornography, some of which portrayed the sexual abuse of infants or toddlers.
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. Office; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith.
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-12.
Man Sentenced for Armed Robbery and CarjackingRead the Press Release
ALEXANDRIA, Va. – A Washington, DC, man was sentenced today to 357 months in prison for his role in an armed robbery and carjacking that led to a high-speed police chase and resulted in injuries to two police officers.
According to court documents, on August 28, 2019, Antwain Proctor, 36, together with Jovan Doir Johnson, obtained a stolen vehicle at gunpoint in Arlington, taking the driver with them for part of the drive. Proctor and Johnson then drove to a 7-Eleven in Lorton and robbed it at gunpoint, leaving the clerk with a visible injury. Both men then fled the 7-Eleven traveling north on Interstate 95 before taking Interstate 495 toward the Wilson Bridge, where several Virginia State Police cruisers attempted to stop the individuals in the stolen vehicle as it approached the bridge. When one cruiser attempted to stop the stolen vehicle, the vehicle drove into the rear corner of the cruiser, forcing it into the concrete median barrier at a high rate of speed. The first cruiser’s air bag deployed and the trooper was taken to the hospital with injuries as a result of the impact. A second cruiser subsequently advanced and pushed the stolen vehicle into the concrete median just before it reached the bridge. The resulting impact also caused the second cruiser’s driver-side airbag to deploy. The trooper driving that second cruiser was also subsequently taken to the hospital. The Fairfax County Police Helicopter assisted in the stop.
On December 2, 2020, Jovan Doir Johnson was sentenced to 357 months of imprisonment.
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; Andy Penn, Arlington County Chief of Police; Kevin Davis, Fairfax County Chief of Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorneys Ron Walutes and Bibeane Metsch prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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. 1:19-cr-351.
York County Man Sentenced for Distributing Heroin to Women Who Died from Drug OverdosesRead the Press Release
NEWPORT NEWS, Va. – A York County man was sentenced today to 17 years in prison for distributing heroin to two women who died from overdoses at his Seaford home and for possessing firearms and ammunition as an unlawful drug user who maintained a drug-involved premises.
According to court documents, Michael Kerlin, 53, owned a Newport News business, Dixie Fuel Company, which primarily sold propane gas to customers. Kerlin used funds derived from his business sales to purchase cocaine, cocaine base, prescription drugs, and heroin. In November 2015, Kerlin distributed heroin to a young woman at his home who subsequently died in the hospital after he called 911 and reported a person down. In May 2016, he distributed heroin to another young woman who died at his house. Rather than calling 911, he put her body into a garbage can which he transported to and left at his business.
During the investigation, it was determined that Kerlin possessed firearms and ammunition at his home where he also stored heroin and cocaine as well as other drugs.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorneys Lisa McKeel and Brian Samuels along with former Managing Assistant U.S. Attorney Howard J. Zlotnick 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. 4:19-cr-07.
Former Medical Student Sentenced for Fatal Party Drug OverdoseRead the Press Release
ALEXANDRIA, Va. – An Ontario, Canada, man was sentenced today to one year in prison for distributing MDA—a psychedelic drug similar to MDMA, or “molly”—that resulted in the fatal overdose of a 21-year-old Falls Church woman.
According to court documents, Saad Jalal, 28, was a Canadian medical student doing a clinical rotation in the District of Columbia when he met the victim and her roommates out at a bar. A few weeks later, Jalal and the women made plans to go out together again and Jalal offered to obtain some MDMA for the women from a supplier he knew in Maryland. Jalal obtained what he believed was MDMA, but was actually MDA (methylenedioxyamphetamine), a Schedule I controlled substance of similar chemical structure.
On the night of September 19, 2019, after Jalal obtained the MDA from his connection, he went to the residence of the victim and her roommates in Falls Church. The roommates and Jalal then drove into the District of Columbia to pick up the victim from her workplace. Shortly thereafter, the victim consumed the MDA, became noticeably impaired, and eventually, her roommates and Jalal decided to take her back to her home in Falls Church. She suffered an overdose caused by the MDA that Jalal distributed and became unresponsive. The victim was later pronounced dead, and her death was ruled an accidental overdose caused by MDA intoxication.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Katherine Rumbaugh prosecuted the case.
This matter was investigated by FBI WFO's Health Care Fraud squad and the Northern Virginia Safe Streets HiDta Task Force. These squads are focused on reducing the illegal flow of opioids, to include fentanyl, which is adversely impacting our communities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-261.
North Carolina Man Convicted of Multi-State Cocaine Distribution ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted an Edenton, North Carolina man yesterday on charges of conspiring with others to distribute more than five kilograms of cocaine, possessing cocaine with the intent to distribute it, and distributing cocaine.
According to court records and evidence presented at trial, Trezith Smart, 40, who maintained residences in Newport News and Edenton, would travel to Houston, Texas to obtain multi-kilogram quantities of cocaine and return to Newport News and Edenton, where the cocaine would be distributed. In 2017, Smart was stopped for speeding by the Louisiana State Police with five kilograms of cocaine. After posting bond, Smart returned to Newport News and continued his cocaine trafficking activities. In May 2018, Smart sold cocaine to a middleman, who then sold the drug to an undercover law enforcement cooperator. Then in August 2018, Smart was stopped and arrested by the Newport News Police Department with an ounce of cocaine and more than $15,000 in cash. When he was ultimately detained in November 2018, Smart confessed to distributing more than 500 kilograms of cocaine between 2015 and 2018.
Smart was convicted of conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute cocaine, and distribution of cocaine, and he faces a mandatory minimum sentence of 10 years and a maximum penalty of life imprisonment when sentenced on March 15, 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 Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
This investigation was conducted by the DEA Hampton Post of Duty and significant assistance was provided by the Newport News Police Department.
Assistant U.S. Attorneys Eric M. Hurt 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. 4:18-cr-95.
Jury Convicts Felon of Sex Trafficking, Drug, and Firearm ChargesRead the Press Release
A federal jury convicted a Norfolk man yesterday on charges of sex trafficking, fraud, conspiracy to distribute methamphetamine and other drugs, and being a felon in possession of a firearm.
According to court records and evidence presented at trial, 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 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.
At the time of his arrest, Winston had approximately 16.8 grams of crack cocaine on his person. 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.
Winston faces a mandatory minimum of 20 years in prison and a maximum penalty of life in prison when sentenced on March 7, 2022. Hardesty pleaded guilty on May 3 to promotion of prostitution and is scheduled for sentencing on December 9. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C. Field Office; and Larry D. Boone, Chief of Norfolk Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict.
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 Convicted of Armed Fentanyl TraffickingRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria man yesterday on charges of conspiracy, possession, and distribution of fentanyl and Eutylone, and being a felon in possession of a firearm during drug trafficking.
According to court records and evidence presented at trial, 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.
Degefa faces a mandatory minimum of 10 years in prison when sentenced on February 18, 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; Andy Penn, Arlington County Chief of Police; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; 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 U.S. District Judge Liam O’Grady accepted the verdict.
Special Assistant U.S. Attorney Rachel M. Roberts and Assistant U.S. Attorneys Jim Trump, Ryan Bredemeier, and Michael P. Ben’Ary 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. 1:21-cr-104.
Ringleader and Members of Multi-State Anabolic Steroid Trafficking Network SentencedRead the Press Release
NORFOLK, Va. – Today, a Richmond man was the sixth and final defendant to be sentenced for his role in a multi-state anabolic steroid conspiracy that operated across the country.
According to court documents, Clyde Edward Peele, 46, is one of six members of a trafficking network, led by Michael Steven Lambert, 37, of Wilson County, North Carolina. Starting in 2018, Lambert and the five other members of the conspiracy manufactured and distributed anabolic steroids to customers across the country. They also worked together to hide and launder the proceeds of their illegal activities.
Lambert and his wife, Laura Lambert, 32, began this operation in their residence located in Wilson County. They used raw materials received from China to manufacture liquid and pill-form steroids for wholesale distribution. Lambert’s products were advertised on various underground internet forums and, with the assistance of his co-conspirators, the group shipped wholesale quantities of steroids through the U.S. Postal Service to various states for further distribution. The organization concealed its activities by using false names and identity information, encrypted messaging platforms, and crypto-currency accounts.
In 2018, North Carolina authorities arrested and charged Lambert with possession of anabolic steroids with the intent to distribute. Lambert was convicted and ordered to serve an active sentence in 2019. Rather than turn himself in to serve the sentence, Lambert adopted a new identity and moved the operation to Pennsylvania. Once there, the Lamberts and other co-conspirators resumed the distribution operation.
After the arrest of another co-conspirator, the Lamberts moved in with Adam Morin, 36, of Hanover County. Morin not only assisted in the manufacture of anabolic steroids, but he also manufactured silencers for weapons Lambert illegally possessed.
In early 2020, Lambert and his wife rented a residence in Surry County, where they established another massive anabolic steroid distribution operation. Peele worked for Lambert several days a week pressing powders into pills and shipping product to customers across the country. To avoid detection, Peele shipped packages using false names and from various postal branches in Surry County and Richmond.
Erik Eckert, 35, of Jacksonville, Florida, a Petty Officer with the U.S. Navy, and Hamdy Sayed, 37, of Katy, Texas, each received wholesale quantities of anabolic steroids from Lambert’s trafficking network and sold the steroids to others. Sayed also assisted the organization by collecting drug proceeds and funneling them through various cryptocurrency accounts and using drug proceeds to purchase luxury vehicles for the Lamberts to drive.
In total, Lambert manufactured and distributed tens of thousands of steroid units and admitted that he earned well over a million dollars in gross drug proceeds over the course of approximately two and a half years. The Lamberts used those proceeds to purchase luxury vehicles, jewelry, and a horse, among other items.
Today, Peele was sentenced to 5 years in prison for his role in the conspiracy. On September 7, Morin was sentenced to 18 months in prison for his role in the conspiracy. On September 23, Laura Lambert and Sayed were sentenced to 18 months and 3 months in prison respectively for their roles in the conspiracy. On October 12, Eckert was sentenced to time served, or approximately three months, in prison for his role in the conspiracy. Additionally, as a result of his involvement in this conspiracy, he will be discharged from the U.S. Navy.
On October 22 Lambert was sentenced to nine years in prison for his role in the conspiracy.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Frederick E. Franks, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
The Norfolk Resident Office Tactical Diversion Squad conducted the investigation with the assistance of the Virginia Beach Police Department.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Andrew Bosse are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-112.
Leader of Wholesale Drug Distribution Network Pleads Guilty to Distributing Synthetic Cannabinoids and Laundering Millions in ProceedsRead the Press Release
ALEXANDRIA, Va. – A Los Angeles man pleaded guilty today to being the head of 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 caused 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.
Ruis is scheduled to be sentenced on March 2, 2022. He faces a maximum penalty of 20 years in prison. As part of his plea agreement, Ruis has 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. They are scheduled to be sentenced on December 8. They face a maximum penalty of 20 years in prison for each of the counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Three additional defendants have pleaded guilty to their roles in the conspiracy and will be sentenced on December 1 and January 5, 2022.
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.
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; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Robert P. Mosier, Fauquier County Sheriff, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
Assistant U.S. Attorneys Katherine Rumbaugh and Bibeane Metsch 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-76.
Heroin and Cocaine Suppliers for Bloods Gang Members SentencedRead the Press Release
NEWPORT NEWS, Va. –A New Jersey couple was sentenced yesterday to 125 and 30 months in prison for conspiracy to distribute heroin and cocaine to members of the Bloods gang.
According to court documents, from at least 2015 to 2017, Stephen Price, 48, and Dominique Waller, 33, both of Freehold, New Jersey, participated in a conspiracy to traffic drugs from New Jersey for distribution in the Hampton Roads region. Price was one of the sources of supply for members of the Bloods criminal street gang on the Virginia Peninsula. Price traveled to Virginia and provided gang members with distribution quantities of cocaine and heroin. Price also would distribute cocaine and heroin to Bloods gang members who traveled from Virginia to New Jersey to obtain the narcotics for redistribution on the Virginia Peninsula. When Price was unavailable, Waller would meet with the gang members and provide them with narcotics. Price and Waller would then launder the proceeds from the sale of the narcotics, which in total amounted to almost $550,000.
Price and Waller pleaded guilty to conspiracy to distribute cocaine and heroin on May 27 and June 1, respectively. Price was sentenced to 125 months in prison for his role in the conspiracy and Waller was sentenced to 30 months in prison for her role in the conspiracy.
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 David J. Novak.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
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/.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-40.
Dutch National Faces Charges for Participation in Terror Financing RingRead the Press Release
After more than seven years of extradition proceedings in the Netherlands, a Dutch woman brought by the FBI to the United States yesterday made her initial appearance today in the U.S. District Court for the Eastern District of Virginia to face charges stemming from her alleged participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to allegations in an indictment, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women allegedly funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women allegedly coordinated the payments using online chatrooms.
Hassan, in particular, was allegedly involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12- and 11-years imprisonment, respectively.
Hassan is charged with conspiracy to provide material support to a designated foreign terrorist organization. If convicted, she faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh for the Eastern District of Virginia and Trial Attorney Kathleen Campbell of the National Security Division’s Counterterrorism Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition from the Netherlands.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dutch National Faces Charges for Participation in Terror Financing RingRead the Press Release
ALEXANDRIA, Va. – After more than seven years of extradition proceedings in the Netherlands, a Dutch woman brought by the FBI to the United States yesterday made her initial appearance today in the U.S. District Court for the Eastern District of Virginia to face charges stemming from her alleged participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to allegations in an indictment, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women allegedly funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women allegedly coordinated the payments using online chatrooms.
Hassan, in particular, was allegedly involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12 and 11 years imprisonment, respectively.
Hassan is charged with conspiracy to provide material support to a designated foreign terrorist organization. If convicted, she faces a maximum penalty of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark J. Lesko, Acting Assistant Attorney General of the Justice Department’s National Security Division; and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-230.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Virginia Man Convicted of Sexual Exploitation of MinorsRead the Press Release
A federal jury convicted a Virginia man today for producing, receiving, and possessing child pornography.
According to court records and evidence presented at trial, Zackary Ellis Sanders, 26, of McLean, engaged in sexual conversations over multiple mobile messaging platforms with at least six different minors. In these conversations, he directed five minors to engage in sexually explicit and self-harming conduct, record themselves doing so, and send the resulting videos to him. He also received videos of a sixth minor engaged in sexually explicit conduct. Additional forensic evidence recovered from multiple laptops and thumb drives found in Sanders’s bedroom established that he possessed different images and videos depicting the sexual abuse of other children, including videos depicting the sexual abuse of a toddler, and prepubescent children being sexually abused and subjected to sadistic acts. Sanders obtained these images from a Darkweb website, the sole purpose of which was to share and facilitate the viewing of such material.
Sanders was convicted of production, receipt, and possession of child pornography. He is scheduled to be sentenced on March 4, 2022 and faces a mandatory minimum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth Polite of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; and Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office’s Criminal Division made the announcement.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force.
Trial Attorney William G. Clayman of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Seth M. Schlessinger and Jay V. Prabhu of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the 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 www.justice.gov/psc.
McLean Man Convicted of Sexual Exploitation of MinorsRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a McLean man today for producing, receiving, and possessing child pornography.
According to court records and evidence presented at trial, from at least 2017 to 2020, Zackary Ellis Sanders, 26, engaged in sexual conversations over multiple mobile messaging platforms with at least six different minors. In these conversations, he directed five minors to engage in sexually explicit and self-harming conduct, record themselves doing so, and send the resulting videos to him. He also received videos of a sixth minor engaged in sexually explicit conduct. Additional forensic evidence recovered from multiple laptops and thumb drives found in Sanders’s bedroom pursuant to a court-authorized search established that he possessed different images and videos depicting the sexual abuse of other children, including videos depicting the sexual abuse of a toddler and prepubescent children being sexually abused and subjected to sadistic acts. Sanders obtained these images from a Darkweb website, the sole purpose of which was to share and facilitate the viewing of such material.
Sanders was convicted of production, receipt, and possession of child pornography. He is scheduled to be sentenced on March 4, 2022 and faces a mandatory minimum penalty of 15 years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth Polite, Assistant Attorney General of the Justice Department’s Criminal Division; and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the verdict.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force.
Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorneys Seth M. Schlessinger and Jay V. Prabhu are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit 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-143.
Williamsburg Businessman Convicted of Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Williamsburg man yesterday on charges of filing false tax returns and failure to file a tax return.
According to court records and evidence presented at trial, from at least 2014 through 2017, Michael J. Tiernan, 62, served as the financial officer for a number of business entities related to Ford’s Colony, including Ford’s Colony Realty, LLC, a large resort community in Williamsburg. For tax years 2015 and 2016, Tiernan filed federal income tax returns that falsely understated the income he received from these entities. Although the defendant reported some earnings in both years, he offset his claimed income with high deductions that resulted in zero taxable income for both 2015 and 2016, and also claimed to be insolvent in order to exclude the discharge of debt in 2015.
The evidence at trial revealed that Tiernan received underreported income from the business entities in the amount of at least $289,401 in 2015 and at least $204,523 in 2016. He cashed many of the checks he wrote and received from these entities and deposited cash into his personal bank account. Additionally, Teirnan failed to file a tax return for 2017, despite receiving $111,352 from one business. From 2015 to 2017, he deposited over $1.6 million into his personal bank account and spent nearly all of these funds in a combination of checks and debit card transactions. Teirnan further prepared and filed business tax returns for the entities that concealed the true compensation that he received.
Tiernan was convicted of filing false income tax returns and failing to file an income tax return and faces a maximum penalty of seven years in prison when sentenced on March 2, 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 Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after U.S. District Judge Raymond A. Jackson accepted the verdict.
Assistant U.S. Attorneys Brian J. Samuels and David Mack Coleman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-59.
Man Sentenced to Prison after String of Grocery Store RobberiesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 11 years in prison for committing robberies at four commercial grocery stores over the course of four days before taking law enforcement on a high-speed car chase.
According to court documents, on November 20, 2020, Michael B. Bishop, 48, began his conduct after stealing a friend’s Ford F-150 truck. Over the next four days, Bishop robbed a Whole Foods Market in Glen Allen, a Wegmans in Henrico, a Trader Joe’s in Richmond, and a Publix in Midlothian. At each robbery, Bishop entered the grocery store wearing a face mask. Aside from the Whole Foods Market robbery, Bishop explicitly stated that he had a firearm or appeared to hold his hand in his pocket as if he had a firearm. At the Trader Joe’s robbery, Bishop brandished a firearm at the victim cashier.
Based on witness interviews and review of surveillance video from Publix and Wegmans, investigators from Henrico, Richmond, and Chesterfield identified Bishop as the main suspect and obtained an arrest warrant. When law enforcement sought to arrest Bishop on November 25, 2020, Bishop entered the F-150 and took officers on a nearly 10-minute high-speed pursuit across several highways, including I-95 northbound and I-295 southbound. Bishop was only apprehended after officers used a pitting maneuver to stop the vehicle.
During an authorized search of the F-150 that Bishop was driving during the high-speed pursuit, law enforcement recovered clothing items matching those worn by the suspected robber as well as items in the bed of the truck that were notable from exterior surveillance at one of the grocery stores.
At the time of the robberies, Bishop was probation in Henrico County following time served for committing two robberies in 2013.
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, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Kenneth R. Simon, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-16.
Leader of Money Laundering Network Responsible for Laundering Millions of Dollars in Drug Proceeds Sentenced to 15 Years in PrisonRead the Press Release
The leader of a money laundering network was sentenced today to 15 years in prison for laundering tens of millions of dollars in drug proceeds on behalf of foreign drug trafficking organizations.
According to court documents, Xizhi Li, 48, a U.S. citizen who previously resided in Mexico, led a years-long scheme to launder money on behalf of transnational drug trafficking organizations. To carry out the scheme, Li and his conspirators used a foreign casino; foreign and domestic front companies; foreign and domestic bank accounts (some of which were opened under fictitious identities; encrypted communications platforms; and false identification documents. Li often dealt directly with members of drug trafficking organizations or their representatives to obtain “contracts” to move their drug proceeds. Once Li and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original proceeds in return for the payment of commissions.
On Aug. 2, Li pleaded guilty to one count of conspiring to commit money laundering. Today, Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Jessica D. Aber of the Eastern District of Virginia made the announcement.
The Drug Enforcement Administration’s (DEA) Louisville Division and the DEA’s Special Operations Division – Bilateral Investigations Unit investigated this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, INTERPOL Washington, the U.S. National Central Bureau, and U.S. Customs and Border Protection (CBP) National Targeting Center were partners in the investigation of this case.
This prosecution is part of two investigations supported by the Organized Crime Drug Enforcement Task Force, known as Operation Dark Castle and Operation Taishan Triangle.
Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.
Leader of Money Laundering Network Responsible for Laundering Millions of Dollars in Drug Proceeds SentencedRead the Press Release
ALEXANDRIA, Va. – A Chinese national and naturalized U.S. citizen was sentenced today to 15 years in prison for conspiring to launder tens of millions of dollars in drug proceeds on behalf of foreign drug trafficking organizations.
According to court documents, Xizhi Li, 48, who previously resided in Mexico, led a years’ long conspiracy to launder money on behalf of transnational drug trafficking organizations. To carry out the scheme, Li and his conspirators used a foreign casino; foreign and domestic front companies; foreign and domestic bank accounts, some of which were opened under fictitious identities; encrypted communications platforms; and false identification documents. Li often dealt directly with members of drug trafficking organizations or their representatives to obtain “contracts” to move their drug proceeds. Once Li and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds in return for the payment of commissions. On August 2, Li pleaded guilty to one count of conspiring to commit money laundering. Today, Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
The DEA’s Louisville Division and the DEA’s Special Operations Division – Bilateral Investigations Unit investigated this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection National Targeting Center (CBP – National Targeting Center) were partners in the investigation of this case.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section prosecuted the case.
This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF). investigations known as Operation Dark Castle and Operation Taishan Triangle. 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. 1:19-cr-334.
Richmond Man Pleads Guilty in Internet Sales Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to wire fraud in connection with a scheme involving the sale of fictitious online businesses.
According to court documents, between 2018 and 2019, Harlan Barry Cox, 24, promoted the sale of internet-based businesses, including multiple companies that purported to specialize in the sale of drones, by listing those businesses on online marketplaces. When soliciting the sales of the purported businesses, Cox, using aliases, misrepresented information about the businesses, including that the businesses had generated millions of dollars in revenue. Cox also fabricated statements from banks and payment processors to support his false claims of substantial revenue.
Interested buyers of the misrepresented businesses subsequently wired substantial down payments to accounts controlled by Cox. Cox used the money for personal expenses and the upkeep of his lifestyle, including the purchase of a luxury Mercedes SUV and various trips to Miami, New York City, and Los Angeles. Ultimately, Cox defrauded five victims of at least $706,000.
Cox is scheduled to be sentenced on March 1, 2022. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Avi Panth and Michael C. Moore are prosecuting the case. Former Assistant U.S. Attorney Kevin S. Elliker assisted with the prosecution.
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-078.
Norfolk Man Sentenced for Fentanyl Distribution and Bribery of a Federal AgentRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 262 months in prison for conspiracy to distribute 400 grams or more of fentanyl and bribery of a public official.
According to court documents, Donatarius Leshay Boone, 31, received numerous packages through the U.S. Postal Service containing pressed fentanyl pills over the course of approximately sixteen months. Once received, Boone wholesale distributed the pills to at least three other individuals for further sale and distribution. Although these pills contained fentanyl, they were pressed to look like real prescription opioid medication.
Between February and March 2021, law enforcement identified two packages, each containing approximately 2,000 fentanyl pills, bound for the Eastern District of Virginia. They further determined that one package was bound for a business located in Windsor and the other to a rented postal box at a UPS Store located in Suffolk. On March 15, Boone arrived to pick up the second package and, when confronted by law enforcement, he attempted to flee on foot. Upon apprehension, Boone admitted he was the intended recipient of both packages. He further admitted he had been responsible for the importation of approximately 10,000 pills per month. A subsequent search of Boone’s residence resulted in the recovery of a firearm, additional quantities of cocaine and fentanyl, scales, and commonly used adulterants.
Shortly after his interaction with law enforcement, Boone attempted to bribe a federal agent to form a “partnership.” Boone told the agent in a recorded phone call that, in exchange for $20,000, he expected the agent to protect him from criminal charges and assist him in maintaining his lines of drug supply and distribution. The agent immediately reported the conversation to his supervisors. On April 29, 2021, Boone was arrested after arranging a meeting with the agent. After his arrest, agents searched his car and found the $20,000 he promised.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Al Chandler, Interim Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
The U.S. Immigration and Customs Enforcement Office of Professional Responsibility provided significant assistance in this case.
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. 2:21-cr-44.
Skilled Nursing Facility Operator Agrees to Settle Americans with Disabilities Act AllegationsRead the Press Release
ALEXANDRIA, Va. – A company that previously operated skilled nursing facilities agreed to pay compensatory damages and a civil penalty to settle allegations involving violations of the Americans with Disabilities Act (ADA).
LTC Holdings, Inc., which previously operated 38 skilled nursing facilities under the name Medical Facilities of America, Inc. (MFA), including Culpeper Health & Rehabilitation Center (CHRC), located in Culpeper, agreed to pay $225,000 to a Deaf individual, who previously resided at CHRC for 67 days, and a $75,000 civil penalty to the United States to settle allegations that MFA failed to furnish necessary sign language services to the former resident. The ADA prohibits covered entities from failing to furnish appropriate auxiliary aids and services, including sign language services to individuals with communication disabilities. Prior to selling its nursing facilities, LTC Holdings, Inc. also voluntarily made changes to its policies and procedures and provided ADA training to thousands of its personnel.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled by this settlement are allegations only; there has been no determination of civil liability.
The Department of Justice has a number of publications available to assist entities in complying with the ADA including effective Communication, and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, 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). Civil Rights complaints may be filed at the following website: https://civilrights.justice.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.
Maryland Couple Pleads Guilty to Kickback Scheme Related to NASA ContractRead the Press Release
ALEXANDRIA, Va. – A Gaithersburg, Maryland, husband and wife pleaded guilty on September 30 and today, respectively, to engaging in a kickback scheme in which they unlawfully received money related to a National Aeronautics and Space Administration (NASA) grant program and to conspiring to defraud the Internal Revenue Service (IRS) by not paying income taxes on the kickbacks they received.
According to court documents, since around 2002 through 2019, Ana Veronica Giri, 49, a NASA subcontractor, conspired with her husband, Vishesh Giri, 45, to receive kickbacks in exchange for Ana Giri ensuring that a specific vendor would be selected to provide information technology and audio-visual services necessary for a NASA contract. Vishesh Giri served as a runner by traveling to the vendor’s office locations in the Eastern District of Virginia to collect the payments.
Court records show the Giris and the vendor agreed to a payment routine in which the Giris would receive 10% of each contract awarded to the vendor. In addition to the monetary kickbacks, the vendor provided the Giris with televisions, computers, and other electronic equipment. Since 2011, the Giris received at least $707,331, paid through 260 kickback payments. The Giris did not report these earnings on their 2011 through 2019 income tax returns, which resulted in a tax loss of at least $165,471. As a result of this conspiracy, the Giris were able to maintain a lavish lifestyle, including the purchase of multiple real estate properties between 2005 and 2018 in Maryland and North Carolina.
The Giris pleaded guilty to conspiracy to commit honest services wire fraud and to defraud the IRS. Ana Giri and Vishesh Giri are scheduled to be sentenced on February 25, 2022. The Giris each face a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after 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; NASA Inspector General Paul K. Martin; and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the pleas.
Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker 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 Nos. 1:21-cr-196 and 1:21-cr-197.
Stafford County to Allow Islamic Cemetery in Response to Justice Department LawsuitRead the Press Release
ALEXANDRIA, Va. – The Justice Department filed a notice to dismiss its Religious Land Use and Institutionalized Persons Act (RLUIPA) lawsuit against Stafford County because the County repealed ordinances that prevented the All Muslim Association of America (AMAA) from developing a religious cemetery for persons of the Islamic faith.
The original complaint, filed in June 2020, alleged that Stafford County violated RLUIPA when it enacted an ordinance in December 2016 that prevented the AMAA from developing an Islamic cemetery. County officials had previously confirmed that the proposed cemetery was a permitted use of the property. The ordinance imposed new requirements, unsupported by any legitimate health or safety concerns, that the County knew the AMAA could not meet. After the United States filed the lawsuit, the County replaced the ordinance with another one that also imposed unreasonable constraints on the group’s ability to build a religious cemetery.
In October 2020, the County repealed the second ordinance as well and replaced it with one that allows for the establishment of cemeteries by right in the zoning district where the AMAA’s property is located and removes other restrictions specific to cemeteries. This latest action allowed the AMAA to file its site plan application, which the County approved on July 9, enabling the organization to develop its cemetery. As a result, the Justice Department filed a notice to dismiss its RLUIPA lawsuit against Stafford County.
“RLUIPA protects people of all faiths in their right to exercise their religion,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce RLUIPA—through litigation if necessary—against zoning regulations that unreasonably burden religious exercise, including by restricting a religious group’s right to bury its dead in accordance with religious rituals and customs.”
The Notice of Dismissal filed today describes additional steps the County undertook to comply with RLUIPA after the department notified the County of its investigation. For example, the County has implemented an internal procedure to address complaints by any person who believes that the County may have violated RLUIPA, provided RLUIPA training to County employees who are responsible for implementing and enforcing zoning and land use regulations, posted notices of its obligations to comply with RLUIPA on several County website pages, and placed RLUIPA notices in land use application documents.
In a private settlement between the County and AMAA, Stafford County agreed to pay $500,000 in damages to the AMAA.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
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.
Local Arabic Tutor Convicted of Child Pornography ChargesRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man, who worked as a children’s tutor, yesterday on charges of transporting and receiving child pornography.
According to court records and evidence presented at trial, from around May 2019 to January 2020, Majed Talat Hajbeh, 58, used a messaging application to forward himself over 800 videos and images of child pornography in order to access them across multiple devices. Along with the videos, Hajbeh forwarded himself links to online groups where child pornography was openly traded, some of which had names such as “Send Child Porn,” “Only Children Sex,” “kids only cp,” and “12 years kids XXX child.” Prior to his arrest in this case, Hajbeh operated a small business providing Arabic language and religious tutoring to school-aged children. GPS data from Hajbeh’s phone showed that some of the child pornography was forwarded from the homes of his tutoring students.
Hajbeh faces a mandatory minimum penalty of five years in prison when sentenced on February 11, 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 Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the verdict.
Assistant U.S. Attorneys Danya E. Atiyeh and Seth M. Schlessinger are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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-83.
Jessica D. Aber Sworn in as U.S. Attorney for the Eastern District of VirginiaRead the Press Release
ALEXANDRIA, Va. – Jessica D. Aber was officially sworn in today as the 63rd United States Attorney for the Eastern District of Virginia by Chief United States District Judge Mark S. Davis and United States District Judge M. Hannah Lauck at the federal courthouse in Norfolk.
“I am grateful to the President for my nomination and to Senators Warner and Kaine for their recommendation and endorsement,” said Aber. “After serving as an Assistant U.S. Attorney for more than a decade, I am honored to lead this tremendous district with its dedicated public servants and to help preserve public safety with our law enforcement and community partners. I look forward to working in support of the mission of the Department of Justice and toward the realization of fair and equal justice for all.”
U.S. Attorney Aber was nominated by President Joseph R. Biden, Jr. on August 10 and unanimously confirmed by the Senate on October 5 for the position of United States Attorney for the Eastern District of Virginia. President Biden signed Aber’s commission on October 7.
Aber began her service to EDVA in 2009 as an Assistant U.S. Attorney, handling a variety of financial fraud, public corruption, violent crime, and child exploitation cases. She has served as the EDVA representative to the Richmond Division’s drug court for her entire tenure. From 2015 to 2016, she served on a detail assignment as counsel to the Assistant Attorney General for the Criminal Division of the Department of Justice. Since 2016, Aber has served as the Deputy Chief of the Criminal Division for EDVA.
Prior to joining the Department of Justice, Aber was an associate at McGuireWoods LLP from 2007 to 2008. She served as a law clerk for then-Magistrate Judge M. Hannah Lauck on the United States District Court for the Eastern District of Virginia from 2006 to 2007.
Aber received her J.D. from William & Mary Law School in 2006 and her B.A., magna cum laude, from the University of Richmond in 2003.
As U.S. Attorney, Aber supervises the prosecution of all federal crimes and the litigation of all civil matters in which the United States has an interest. She leads a staff of approximately 300 prosecutors, civil litigators, and support personnel across four Divisions located in Alexandria, Richmond, Norfolk, and Newport News. The district serves over six million residents.
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.