Eastern District of Virginia
Press releases recorded for this federal judicial district.
25th Operation High Tide Defendant Sentenced for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – A Portsmouth man, who was the 25th defendant associated with Operation High Tide, was sentenced today to five years in prison for his role in trafficking firearms and selling heroin.
According to court documents, in 2017, Shon E. Melton, 32, of Portsmouth, was attributed with trafficking 19 firearms, including a concealable short barrel shotgun, assault rifles, and stolen guns, one of which was a Ruger with a scope and laser modification. Firearms trafficked by Melton include stolen guns connected to burglaries in the London Oaks neighborhood of Portsmouth, sold within days or weeks of the home invasions.
Operation High Tide is a large-scale narcotics trafficking and firearms investigation that has resulted in the recovery of over 65 firearms, over 7 kilograms of cocaine, nearly a kilogram of crack cocaine, over 625 grams of heroin, over 100 grams of fentanyl, 75 grams of acetyl fentanyl, 12 pounds of marijuana, 621 grams of hash oil, 24 grams of MDMA (commonly known as ecstasy), 120 grams of methamphetamine, and over $560,000 in cash. The narcotics seized have a street value of nearly $1 million.
To date, Operation High Tide defendants have been sentenced to a combined total of over 250 years:
Name, Age
Hometown
Charges
Sentence
Brian D. Best, 34
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
92 months
Antisha Carrington, 25
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana
33 months
Portia L. Carrington-Green, 46, Chesapeake
Transferring a Firearm to a Prohibited Person
12 months and one day
Kawanta D. Epps, 40
Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana; Distribution of Heroin
46 months
Glenn Farris, 36
Norfolk
Using a Communication Facility to Commit, Cause, and Facilitate the Distribution of Controlled Substances
30 months
Armad J. Gatling, 26, Portsmouth
Felon in Possession of a Firearm, Aggravated Identity Theft, and Credit Union Fraud
216 months
Corey L. Jones, 50
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
240 months
Dominic D. Jones, 26
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
60 months
Malcolm D. Jones, Sr., 45
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Distribution of Heroin, Fentanyl; Distribution of Acetyl Fentanyl
246 months
Malcom Jones, Jr., 25
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin
156 months
Razagin K. Lee, 49, Elizabeth City, North Carolina
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine
140 months
Shon E. Melton, 30
Portsmouth
Distribution of Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime; Possession of an Unregistered National Firearms Act Firearm
60 months
Hasheed Mills, 25
Portsmouth
Distribution of Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; Distribution of Cocaine
60 months
Gary Norfleet, 52
Chesapeake
Possession with Intent to Distribute Cocaine; Felon in Possession of a Firearm
151 months
Jermaine C. Parker, 35
Chesapeake
Distribution of Fentanyl; 2 counts of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
240 months
Takieon J. Perkins, 36, Chesapeake
Felon in Possession of a Firearm
180 months
Raewkon A. Pierce, 24
Portsmouth
Distribution of Cocaine
140 months
Corey S. Reed, 38
Norfolk
Distribution of Heroin; Possession with Intent to Distribute Heroin
156 months
Tajh Rodgers, 29
Portsmouth
Robbery Affecting Commerce; Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence; and 3 counts of Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
336 months
Johnnie Ross, 29
Portsmouth
Distribution of Fentanyl
60 months
Jameel M. Simmons, 37
Portsmouth
Possession with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
123 months
Jelami M. Smith, 43
Portsmouth
Distribution of Heroin
24 months
Robert B. Spruill, 39
Chesapeake
Conspiracy to Distribute and Possess Methamphetamine
60 months
Paul C. Voskanyan, 36
Possession with Intent to Distribute Crack Cocaine
144 months
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Larry D. Boone, Chief of Norfolk Police; Col. K.L. Wright, Chief of Chesapeake Police; and Renado Prince, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Kristin G. Bird, Andrew C. Bosse, John F. Butler, Megan M. Cowles, Sherrie Capotosto, Kevin M. Comstock, Joseph E. DePadilla, William B. Jackson, Darryl Mitchell, and William D. Muhr prosecuted the cases referenced above.
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 on the Melton case are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-145. Other Operation High Tide cases can be found by searching for Case Nos. 2:19-cr-80, 111, 138, 145, 146, 147, 148, 149, 150, 151, 154, 155, 170, 193, and 2:20-cr-15.
EDVA Announces over $33 Million in Justice Department Grants to Assist Victims of Sexual Assault and Domestic ViolenceRead the Press Release
ALEXANDRIA, Va. – Acting U.S. Attorney Raj Parekh announced today the awarding of over $33 million in U.S. Department of Justice grants to 26 Virginia-based public and non-profit organizations to fund programs that help address violence against women.
“These grants will provide critical funding and essential services to vulnerable communities, especially women, individuals with disabilities, and immigrants who are victims of sexual assault and domestic violence,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will continue to not only bring perpetrators of these crimes to justice in our courts, but also strengthen the impactful work that is financed by grants to educate our communities and provide much needed resources to support survivors during the healing process and beyond.”
The Justice Department’s Office on Violence Against Women (OVW) selected 26 organizations from across the Eastern District of Virginia (EDVA) to receive over $33.3 million provided through 42 separate grants. The grants are provided to allow the organizations to better address a wide variety of needs and issues facing victims of domestic and sexual violence, such as increasing the availability of civil and criminal legal assistance, accommodating victims with disabilities or hearing impairment, and providing organizations expertise and support.
The recipients of these OVW grants in EDVA include state government entities that provide services throughout the Commonwealth, such as the Virginia Department of Criminal Justice Services and the Judiciary Courts of the Commonwealth of Virginia, and non-governmental organizations that provide technical training and assistance nationwide, including the International Association of Chiefs of Police, the National Center for State Courts, and the National Center for Victims of Crime. Additional grant recipients include local government entities in EDVA, such as Arlington, Fairfax, James City, Loudoun, and Spotsylvania County, and the City of Norfolk, along with the Upper Mattaponi Indian Tribe.
In addition, OVW awarded grants in EDVA to universities to combat domestic violence, dating violence, sexual assault, and stalking on campus, including the College of William & Mary, Norfolk State University, the University of Mary Washington, and Virginia Commonwealth University. Multiple non-profit organizations that provide direct services to victims and survivors in EDVA also received funding, including Alteristic, Boat People S.O.S., the Central Virginia Legal Aid Society, the disAbility Law Center of Virginia, Empowerhouse, the Korean Community Service Center of Greater Washington, Rappahannock Goodwill Industries, the Tahirih Justice Center, the Virginia Sexual & Domestic Violence Action Alliance, and the YWCA of South Hampton Roads.
The over $33 million in grants awarded to Virginia-based organizations is part of more than $476 million in OVW grants awarded to support projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold accountable those who have caused harm, and provide training and technical assistance to an array of professionals and systems working to address sexual assault, domestic violence, dating violence and stalking in every state and territory, as well as dozens of tribal 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.
Three Men Charged with Laundering Proceeds of a Business Email Compromise SchemeRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned a superseding indictment yesterday charging three individuals with money laundering and aggravated identity theft as part of a business email compromise (BEC) scheme.
According to allegations in the superseding indictment, Onyewuchi Ibeh, 21, of Bowie, Maryland, Jason Joyner, 42, of Washington, D.C., and Mouaaz Elkhebri, 30, of Alexandria, Virginia, participated in a scheme to launder the proceeds of a BEC scheme. In a BEC scheme, conspirators infiltrate the computer systems of a victim company, including their email servers and email accounts, through phishing attacks or the use of malware. Once there, the conspirators impersonate the victim’s business partner and claim the business partner’s bank account information has changed. Intending to send the money to the business partner, the victim business instead sends the money to bank accounts controlled by the conspirators.
The superseding indictment alleges the defendants laundered over $1.1 million fraudulently obtained from at least five victim businesses as a result of a BEC scheme. As alleged, the co-conspirators, laundered the proceeds of the BEC scheme through various financial transactions using dozens of bank accounts that they directly and indirectly controlled. Ibeh’s alleged role in the scheme was to manage the money laundering by causing conspirators to open bank accounts, which he used to wire money domestically and internationally. Joyner’s alleged role in the scheme was to withdraw the proceeds of the fraud in cash, which he delivered to other conspirators, including Ibeh. Elkhebri’s alleged role in the scheme was to open bank accounts in his name and use his position as a bank employee to facilitate the opening of bank accounts in the name of both co-conspirators and victims.
Ibeh and Joyner are charged with conspiracy to commit money laundering and money laundering. If convicted, Ibeh and Joyner each face a maximum penalty of 20 years in prison. Elkhebri is charged with conspiracy to commit money laundering, money laundering, false entries in a bank’s books, and aggravated identity theft. If convicted of all charges, Elkhebri faces a mandatory minimum penalty of two years in prison and a maximum penalty of 52 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Christopher A. Nielsen, Inspector in Charge of the Analytics and Cyber Group of the U.S. Postal Inspection Service; and Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement.
Assistant U.S. Attorney Christopher Hood 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-200.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Three Defendants Sentenced in Multi-State Dog Fighting ConspiracyRead the Press Release
RICHMOND, Va. – Three defendants have been sentenced for their roles in an interstate dog fighting network across the District of Columbia, Maryland, Virginia, and New Jersey.
“The violent and cruel act of dog fighting is a heinous form of animal abuse,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “These defendants served as leaders, breeders, and trainers for a multi-year dog fighting operation and brazenly promoted this barbaric form of ‘entertainment’ for illegal personal gain. We must treat these animals—who are among society’s most vulnerable victims—with dignity and respect. As this prosecution demonstrates, those who engage in this intolerable and abhorrent conduct will be brought to justice in our courts.”
According to court documents, from at least 2013 to July 2018, Chester A. Moody, Jr., 47, of Glenn Dale, Maryland; Emmanuel A. Powe, Sr., 46, of Frederick, Maryland; and Odell S. Anderson, Sr., 52, of the District of Columbia, sponsored and exhibited dogs, as well as participated in almost every other aspect of dog fighting: selling, buying, possessing, training, transporting, delivering and receiving dogs so that those dogs could be used in dog fighting ventures. The defendants also possessed significant dog fighting equipment, such as dog treadmills, medical veterinary kits, breeding stands used to forcibly immobilize female fighting dogs, dog collars with embedded weights, and chains weighing several pounds used to restrain the dogs.
“Dog fighting is a form of cruelty with no place in our society,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This cruelty will not be tolerated, nor will exposing a child to such horrific acts.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG) said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
Throughout the conspiracy, the defendants participated in multiple dog fights, from “roll” or “play” fights used to test a dog’s willingness to fight, to full-blown dog fighting shows planned months in advance and limited to known attendees. One of these dog fight events occurred in King George, Virginia, in April 2016 where most of the participants were led to the fight’s secret location. The event involved two separate dog fights with dogs owned and sponsored by Anderson, Powe and Moody. The two losing dogs died following their injuries sustained in the fights. Both Anderson and Moody trained and fought dogs who attained Champion and/or Grand Champion status – terms used to indicate a dog who has won three and five contract matches respectively, with no losses.
Moody will serve one year and one day in prison to be followed by one year of supervised release and 120 hours of community service. Moody pleaded guilty on April 28 to one felony count of conspiracy to engage in dog fighting activities over several years.
Powe will serve 18 months in prison to be followed by 3 years supervised release. Powe pleaded guilty on May 10 to one felony count of conspiracy to engage in dog fighting activities over several years.
Anderson will serve 18 months in prison to be followed by 3 years supervised release. Anderson pleaded guilty on June 1 to the same felony count of conspiracy to engage in dog fighting activities as the other two defendants. Anderson also pleaded guilty to one count of causing a child under the age of sixteen to attend an illegal animal fight venture.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Todd Kim, Assistant Attorney General for the Environment and Natural Resources Division; Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG); and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office made the announcement after sentencing by U.S. District Judge John A. Gibney.
Assistant U.S. Attorney Olivia L. Norman of the Eastern District of Virginia and Trial Attorney Shennie Patel, of the Justice Department’s Environmental Crimes Section prosecuted this case.
This case was prosecuted as part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The Humane Society of the United States, along with other entities, assisted with the care of the dogs seized by federal law enforcement.
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-24, 25, and 26.
Co-Conspirator of Former Norfolk Sheriff Pleads Guilty to Bribery SchemeRead the Press Release
NORFOLK, Va. – A Franklin, Tennessee, man pleaded guilty yesterday to conspiracy to commit honest services mail fraud by paying bribes to secure medical services contracts for the Norfolk City Jail.
“The defendant conspired with the corrupt former Norfolk Sheriff to defraud the citizens of our community through an extensive bribery scheme involving cash, travel, entertainment, gifts, and campaign contributions,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution should send a clear message to those who seek to erode the public’s trust through bribes—including government contractors who pay them and corrupt elected officials who accept them—that they will be held accountable, regardless of their wealth or position.”
According to court documents, Gerard Boyle, 66, admitted to engaging in a 13-year bribery scheme with former Norfolk Sheriff Robert McCabe. Boyle was the founder and chief executive officer of Correct Care Solutions (CCS), a company that provided medical services to inmates at local jails. Over the course of the conspiracy, Boyle provided McCabe things of value, such as gifts, cash, entertainment, a Richard Petty driving experience, travel, campaign contributions, and in-kind political contributions. In exchange, McCabe performed official acts related to CCS’ medical services contracts with the Norfolk Sheriff’s Office. The medical services contracts were worth approximately $3.2 million per year. On August 24, 2021, a Norfolk federal jury convicted McCabe of all eleven charged counts related in part to this scheme.
“Gerard Boyle leveraged McCabe’s greed to unfairly game the system and get ahead of competitors. Their conspiracy to steer contracts to Boyle’s business in exchange for bribes was not only unfair to other businesses that played by the rules, but it betrayed the trust and confidence of the community,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI will never allow bribery to become business as usual.”
“Paying bribes to get business is not only unethical, but it puts competitors who follow the law at an unfair disadvantage,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office. “We will continue to vigorously investigate those who seek to stifle fair competition by participating in pay-to-play contract schemes.”
Boyle is scheduled to be sentenced on February 25, 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Darrell J. Waldon, Acting Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorneys Melissa E. O’Boyle, Randy C. Stoker, and Anthony Mozzi are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-171.
Virginia Man Sentenced to 20 Years for Production and Receipt of Child Sexual Abuse MaterialRead the Press Release
A Virginia man was sentenced today to 20 years in prison for the production and receipt of child pornography.
Abraham Razook, 43, of Arlington, pleaded guilty to one count of production of child pornography and one count of receipt of child pornography on June 30. In pleading guilty, Razook admitted to sexually exploiting a prepubescent minor on multiple occasions and producing videos of this abuse. Specifically, from June to August of 2020, Razook created a series of sexually explicit videos of the prepubescent minor, and in February 2021, he produced a more than 6-minute video depicting graphic sexual abuse.
According to court documents, Razook also amassed a large number of online images and videos depicting the sexual abuse of hundreds of other child victims. Razook began this unlawful conduct as early as 2013, and between April and September 2020, he used a specific internet-based peer-to-peer program to download thousands of videos and images of child sexual abuse.
“The Department of Justice is committed to vigorously tracking down and holding accountable people like Razook who callously prey on vulnerable children for their selfish enjoyment,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “I commend the investigators and prosecutors in this case who are responsible for putting an end to Razook’s direct abuse of one minor and his perpetuation of the harm done to so many others in the videos and images he amassed.”
“The defendant engaged in devastating acts of sexual exploitation against a defenseless child and produced videos of her sexual abuse for his warped gratification,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “He escalated his conduct over the course of years, from viewing and amassing child sexual abuse material to becoming an abuser himself. For his crimes against children, the defendant will now serve a significant prison sentence where he can no longer prey on the most vulnerable members of our communities.”
“Today, Mr. Razook will begin to pay for his reprehensible actions,” said Special Agent in Charge Raymond Villanueva of the Department of Homeland Security’s Homeland Security Investigations (HSI) Washington, D.C. “This sentencing is the result of many arduous hours of work by members of HSI and the U.S. Attorney’s Office. It should serve as a warning to anyone who intends to victimize children; they will be held accountable.”
HSI investigated the case.
Trial Attorney Whitney Kramer of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Maya D. Song of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Arlington Man Sentenced for Production and Receipt of Child Sexual Abuse MaterialRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to 20 years in prison for production and receipt of child pornography.
“The defendant engaged in devastating acts of sexual exploitation against a defenseless child and produced videos of her sexual abuse for his warped gratification,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “He escalated his conduct over the course of years, from viewing and amassing child sexual abuse material to becoming an abuser himself. For his crimes against children, the defendant will now serve a significant prison sentence where he can no longer prey on the most vulnerable members of our communities.”
According to court documents, Abraham Razook, 43, admitted to sexually exploiting a prepubescent minor on multiple occasions and producing videos of this abuse. From June to August of 2020, Razook created a series of sexually explicit videos of the prepubescent minor. In February 2021, Razook produced a more than 6-minute video that depicted the graphic sexual abuse of the child.
“The Department of Justice is committed to vigorously tracking down and holding accountable people like Razook who callously prey on vulnerable children for their selfish enjoyment,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “I commend the investigators and prosecutors in this case who are responsible for putting an end to Razook’s direct abuse of one minor and his perpetuation of the harm he did to so many others in the images he amassed.”
“Today, Mr. Razook will begin to pay for his reprehensible actions,” said Raymond Villanueva, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C. “This sentencing is the result of many arduous hours of work by members of HSI and the U.S. Attorney’s Office. It should serve as a warning to anyone who intends to victimize children; they will be held accountable.”
Court records show the defendant also amassed a large number of online images and videos depicting the sexual abuse of hundreds of other child victims. Razook’s devices, that were recovered pursuant to a court-authorized search warrant and analyzed by law enforcement, contained evidence of additional child sexual abuse material including images and videos depicting violence against children. The evidence uncovered on his devices demonstrated that Razook began this unlawful conduct as early as 2013. Between April and September of 2020, Razook used an internet-based peer-to-peer program to download thousands of videos and images of child sexual abuse.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General for the Justice Department’s Criminal Division; and Raymond Villanueva, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C. made the announcement after sentencing by U.S. District Judge Rossie D. Alston Jr.
Special Assistant U.S. Attorney Whitney Kramer and Assistant U.S. Attorney Maya D. Song prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing 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. 1:21-cr-146.
Government Contractor Agrees to Pay More Than $1 Million to Resolve False Claims Act Lawsuit for Overbilling in Federal ContractsRead the Press Release
Airbus U.S. Space & Defense Inc., formerly known as Airbus Defense and Space Inc. (ADSI), has agreed to pay to the United States $1,043,475 to resolve allegations that it violated the False Claims Act by billing impermissible fees in contracts with a number of federal agencies.
“Government contractors have a responsibility to bill the government both accurately and transparently,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly inflate their costs or otherwise improperly bill the government will be held accountable.”
“This settlement underscores the important role that whistleblowers continue to serve in protecting critical taxpayer resources,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We encourage individuals who uncover suspected misconduct regarding federal contracts to come forward and report their observations.”
“Government contractors who deliberately inflate profits at the expense of our military and taxpayer will be held accountable,” said Special Agent in Charge Christopher Dillard of the Mid-Atlantic Field Office for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This civil settlement reflects DCIS’ commitment to work with our law enforcement partners to tenaciously investigate those alleged to have overcharged the Department of Defense.”
The settlement resolves allegations that from January 2016 through January 2017, ADSI submitted proposals for contracts that included an unapproved cost rate to which ADSI was not entitled. ADSI referred to this as the “Orlando Factor.” The government further alleged that on certain contracts, during 2013 through 2020, ADSI charged federal government agencies an additional fee from its affiliates on top of ADSI’s own fee for parts ADSI acquired from its affiliates, but did not accurately disclose this affiliate fee to the government. Finally, the government alleged that ADSI charged a third-party contractor an excessive monthly storage fee to store a radar system purchased to support a contract with the U.S. Navy. The contractor passed along the full storage fees charged by ADSI to the U.S. Navy. However, ADSI did not disclose that they paid only a portion of those storage fees to store the radar system.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a former ADSI employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Kmec v. Airbus Defense and Space, Inc., et al., No. 1:19-cv-660 (E.D. Va.). The former ADSI employee will receive $157,220 of the False Claims Act settlement.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Virginia, with investigative support from the DCIS and the U.S. Army Criminal Investigation Division.
The matter was handled by Trial Attorney Richard Hagner of the Civil Division and Assistant U.S. Attorney Krista Anderson of the Eastern District of Virginia.
Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:19-cv-660 (E.D. Va.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Government Contractor Agrees to Pay More Than $1 Million to Resolve False Claims Act Lawsuit Alleging Overbilling in U.S. Defense ContractsRead the Press Release
ALEXANDRIA, Va. – A U.S. Government contractor has agreed to settle allegations that the company improperly billed fees on U.S. defense contracts involving a number of federal agencies.
Airbus U.S. Space & Defense, Inc., formerly known as Airbus Defense and Space, Inc. (ADSI), with offices in Arlington, Virginia, has agreed to pay to the United States $1,043,475 to resolve allegations that it violated the False Claims Act by billing impermissible fees in contracts involving a number of federal agencies.
“This settlement underscores the important role that whistleblowers continue to serve in protecting critical taxpayer resources,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We encourage individuals who uncover suspected misconduct regarding federal contracts to come forward and report their observations.”
The settlement resolves allegations that, from January 2016 through January 2017, ADSI submitted proposals for contracts that included an unapproved cost rate to which ADSI was not entitled. ADSI referred to this cost rate as the “Orlando Factor.” The government further alleged that on certain contracts, during 2013 through 2020, ADSI charged federal government agencies an additional fee from its affiliates on top of ADSI’s own fee for parts ADSI acquired from its affiliates, but did not accurately disclose this affiliate fee to the government. The government also alleged that ADSI charged a third-party contractor an excessive monthly storage fee to store a radar system purchased to support a contract with the U.S. Navy. The government alleged that ADSI passed along the full storage fees charged by ADSI to the U.S. Navy but did not disclose that it paid only a portion of those storage fees to store the radar system.
“Government contractors have a responsibility to bill the government both accurately and transparently,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly inflate their costs or otherwise improperly bill the government will be held accountable.”
“Government contractors who deliberately inflate profits at the expense of our military and taxpayer will be held accountable,” said Christopher Dillard, Special Agent in Charge of the Mid-Atlantic Field Office for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This civil settlement reflects DCIS’ commitment to work with our law enforcement partners to tenaciously investigate those alleged to have overcharged the Department of Defense.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act, by a former Airbus employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Kmec v. Airbus Defense and Space, Inc., et al.). The former Airbus employee will receive $157,220 of the False Claims Act settlement.
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Civil Division’s Commercial Litigation Branch Fraud Section, with investigative support from the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, and the U.S. Army Criminal Investigation Division.
The matter was handled by Assistant U.S. Attorney Krista Anderson of the Eastern District of Virginia and Trial Attorney Richard Hagner of the Department of Justice’s Civil Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:19-cv-660 (E.D. Va.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Leading ISIS Media Figure and Foreign Fighter Charged with Conspiring to Provide Material Support to a Terrorist Organization, Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – As alleged in a criminal complaint unsealed today in the U.S. District Court for the Eastern District of Virginia, Mohammed Khalifa, a Saudi-born Canadian citizen who was a leading figure in the Islamic State of Iraq and al-Sham’s (ISIS) English Media Section and served as an ISIS fighter, was charged with conspiring to provide material support to ISIS, a foreign terrorist organization, resulting in death. Khalifa was captured overseas by the Syrian Democratic Forces (SDF) in January 2019. He was recently transferred into the custody of the FBI, at which point he was first brought to the Eastern District of Virginia.
“As alleged, Mohammed Khalifa not only fought for ISIS on the battlefield in Syria, but he was also the voice behind the violence,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through his alleged leading role in translating, narrating, and advancing ISIS’s online propaganda, Khalifa promoted the terrorist group, furthered its worldwide recruitment efforts, and expanded the reach of videos that glorified the horrific murders and indiscriminate cruelty of ISIS. EDVA and our partners have a long history of prosecuting national security cases, and we are honored to serve once again in this effort to seek justice on behalf of the United States and the victims of ISIS’s brutality.”
As alleged in the criminal complaint, Mohammed Khalifa, a/k/a “Abu Ridwan Al-Kanadi,” a/k/a “Abu Muthanna Al-Muhajir,” 38, of Canada, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the SDF in January 2019 following a firefight between ISIS fighters and the SDF. In addition to allegedly serving as an ISIS fighter, Khalifa allegedly served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple violent ISIS recruitment videos.
“This arrest is the first step in holding the defendant accountable for his alleged terrorist activity, which included serving as an ISIS fighter and an important member of the ISIS media bureau,” said Acting Assistant Attorney General for National Security Mark J. Lesko. “As alleged in the complaint, the defendant and others engaged in a wide-ranging conspiracy to provide material support to ISIS, with the conspirators serving the terrorist organization in a variety of capacities. As alleged, that conspiracy resulted in the death of numerous others at the hands of ISIS members and fighters. The National Security Division and our partners are committed to holding accountable those who provide material support to foreign terrorist organizations. I want to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
“Let there be no doubt, the FBI will hold terrorists and those who provide material support to terrorist organizations accountable for their actions,” stated Assistant Director Timothy Langan, FBI Counterterrorism Division. “The unsealing of the charges today demonstrates the FBI’s tireless dedication and commitment to pursue those who join foreign terrorist organizations like ISIS. The defendant is alleged to have, among other things, played an integral role in the recruitment and radicalization of Westerners through the production, narration, and dissemination of English-language ISIS propaganda, including the Flames of War videos that depicted the brutal execution of ISIS-held prisoners and hostages. He will now face justice inside of a U.S. courtroom for his actions. We will continue to present a united front, with our U.S. government and international partners, in the fight against ISIS, those who support ISIS, and other terrorist groups.”
“As alleged in the complaint, as one of the leading figures in ISIS’s English media section, Mohammed Khalifa contributed to the radicalization of individuals through his English narration of ISIS recruitment propaganda,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “While many Americans are aware of the brutal and violent crimes committed by many ISIS actors, ISIS’s efforts to radicalize individuals to travel to Syria and commit violence on its behalf were equally horrendous. The charges announced today, which are the result of years of diligent work by the FBI’s Washington Field Office and our partners, are a reminder to those who continue to support ISIS around the world that the U.S. Government has not forgotten your crimes. We will find you and hold you accountable.”
The complaint also alleges that 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 Bureau due in part to his linguistic capabilities as a fluent English and Arabic speaker. Khalifa played an important role in the production and dissemination of ISIS propaganda across multiple media platforms targeting Western audiences. A primary focus of much of Khalifa’s propaganda production was aimed at enticing ISIS supporters to travel to ISIS-controlled areas to join ISIS or to conduct attacks in the West, including in the United States, on ISIS’s behalf. Khalifa actively participated in armed hostilities on behalf of ISIS. Just prior to his capture by the SDF on or about January 13, 2019, Khalifa engaged in armed conflict on behalf of ISIS, including throwing grenades against opposing combatants.
The complaint further alleges that Khalifa was a prominent figure within the ISIS Media Bureau, the “Diwan of Central Media,” and assisted in the translation and narration of approximately 15 total 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. These videos, containing English narration by Khalifa, were part of an ISIS media campaign promoting violence committed against U.S. citizens and other countries’ citizens in order to incite further violence against the United States, allied nations, and their citizens. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, depictions of ISIS attacks in the United States, and footage of ISIS attacks and fighting in what is described as Syria and Egypt.
Khalifa also allegedly narrated a series of recruitment videos entitled “Inside the Khilafah” that depicted various aspects of daily life within the Islamic State and featured ISIS members encouraging potential recruits to join ISIS and conduct terrorist attacks against non-Muslims. The narration in one of these videos encourages recruits unable to leave their home countries to join ISIS in conducting attacks in countries outside the Islamic State, displaying footage of ISIS attacks in Europe, including attacks in Paris, France; Brussels, Belgium; and Nice, France. The video also includes a voice recording of Omar Mateen, the Pulse Nightclub mass shooter, declaring his allegiance to ISIS during the June 12, 2016 terrorist attack in Orlando, Florida.
Productions by the ISIS Media Bureau during the time period in which Khalifa was allegedly a prominent member include videos or images depicting: the beheadings of American hostages James Wright Foley, Steven Joel Sotloff, and Peter Edward Kassig; an announcement concerning the death of American hostage Kayla Jean Mueller; the beheadings of British citizens David Haines and Alan Henning; the decapitated body of Japanese citizen Haruna Yukawa; and the beheading of Japanese citizen Kenji Goto.
Khalifa is charged with conspiring to provide material support or resources to a foreign terrorist organization, resulting in death. If convicted, he faces a maximum penalty 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.
Assistant U.S. Attorney Dennis M. Fitzpatrick; Acting United States 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 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-mj-34.
Affidavit is available here.A criminal complaint contains allegations that a defendant has committed one or more crimes. The defendant is presumed innocent until and unless proven guilty.
ISIS Media Figure and Foreign Fighter Charged with Conspiring to Provide Material Support to a Terrorist Organization, Resulting in DeathRead the Press Release
As alleged in a criminal complaint unsealed today in the U.S. District Court for the Eastern District of Virginia, Mohammed Khalifa, a Saudi-born Canadian citizen, who was a leading figure in the Islamic State of Iraq and al-Sham’s (ISIS) English Media Section and served as an ISIS fighter, was charged with conspiring to provide material support to ISIS, a designated foreign terrorist organization, resulting in death. Khalifa was captured overseas by the Syrian Democratic Forces (SDF) in January 2019. He was recently transferred into the custody of the FBI, at which point he was first brought to the Eastern District of Virginia.
As alleged in the criminal complaint, Mohammed Khalifa, aka Abu Ridwan Al-Kanadi and Abu Muthanna Al-Muhajir, 38, of Canada, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the SDF in January 2019 following a firefight between ISIS fighters and the SDF. In addition to allegedly serving as an ISIS fighter, Khalifa allegedly served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple violent ISIS recruitment videos.
“This arrest is the first step in holding the defendant accountable for his alleged terrorist activity, which included serving as an ISIS fighter and an important member of the ISIS media bureau,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “As alleged in the complaint, the defendant and others engaged in a wide-ranging conspiracy to provide material support to ISIS, with the conspirators serving the terrorist organization in a variety of capacities. As alleged, that conspiracy resulted in the death of numerous others at the hands of ISIS members and fighters. The National Security Division and our partners are committed to holding accountable those who provide material support to foreign terrorist organizations. I want to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
“As alleged, Mohammed Khalifa not only fought for ISIS on the battlefield in Syria, but he was also the voice behind the violence,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Through his alleged leading role in translating, narrating, and advancing ISIS’s online propaganda, Khalifa promoted the terrorist group, furthered its worldwide recruitment efforts, and expanded the reach of videos that glorified the horrific murders and indiscriminate cruelty of ISIS. EDVA and our partners have a long history of prosecuting national security cases, and we are honored to serve once again in this effort to seek justice on behalf of the United States and the victims of ISIS’s brutality.”
“Let there be no doubt, the FBI will hold terrorists and those who provide material support to terrorist organizations accountable for their actions,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “The unsealing of the charges today demonstrates the FBI’s tireless dedication and commitment to pursue those who join foreign terrorist organizations like ISIS. The defendant is alleged to have, among other things, played an integral role in the recruitment and radicalization of Westerners through the production, narration, and dissemination of English-language ISIS propaganda, including the Flames of War videos that depicted the brutal execution of ISIS-held prisoners and hostages. He will now face justice inside of a U.S. courtroom for his actions. We will continue to present a united front, with our U.S. government and international partners, in the fight against ISIS, those who support ISIS, and other terrorist groups.”
“As alleged in the complaint, as one of the leading figures in ISIS’ English media section, Mohammed Khalifa contributed to the radicalization of individuals through his English narration of ISIS recruitment propaganda,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “While many Americans are aware of the brutal and violent crimes committed by many ISIS actors, ISIS’ efforts to radicalize individuals to travel to Syria and commit violence on its behalf were equally horrendous. The charges announced today, which are the result of years of diligent work by the FBI’s Washington Field Office and our partners, are a reminder to those who continue to support ISIS around the world that the U.S. Government has not forgotten your crimes. We will find you and hold you accountable.”
The complaint also alleges that 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 Bureau due in part to his linguistic capabilities as a fluent English and Arabic speaker. Khalifa played an important role in the production and dissemination of ISIS propaganda across multiple media platforms targeting Western audiences. A primary focus of much of Khalifa’s propaganda production was aimed at enticing ISIS supporters to travel to ISIS-controlled areas to join ISIS or to conduct attacks in the West, including in the United States, on ISIS’s behalf. Khalifa actively participated in armed hostilities on behalf of ISIS. Just prior to his capture by the SDF on or about Jan. 13, 2019, Khalifa engaged in armed conflict on behalf of ISIS, including throwing grenades against opposing combatants.
The complaint further alleges that Khalifa was a prominent figure within the ISIS Media Bureau, the “Diwan of Central Media,” and assisted in the translation and narration of approximately 15 total 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. These videos, containing English narration by Khalifa, were part of an ISIS media campaign promoting violence committed against U.S. citizens and other countries’ citizens in order to incite further violence against the United States, allied nations and their citizens. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, depictions of ISIS attacks in the United States, and footage of ISIS attacks and fighting in what is described as Syria and Egypt.
Khalifa also allegedly narrated a series of recruitment videos entitled “Inside the Khilafah” that depicted various aspects of daily life within the Islamic State and featured ISIS members encouraging potential recruits to join ISIS and conduct terrorist attacks against non-Muslims. The narration in one of these videos encourages recruits unable to leave their home countries to join ISIS in conducting attacks in countries outside the Islamic State, displaying footage of ISIS attacks in Europe, including attacks in Paris, France; Brussels, Belgium; and Nice, France. The video also includes a voice recording of Omar Mateen, the Pulse Nightclub mass shooter, declaring his allegiance to ISIS during the June 12, 2016, terrorist attack in Orlando, Florida.
Productions by the ISIS Media Bureau during the time period in which Khalifa was allegedly a prominent member include videos or images depicting: the beheadings of American hostages James Wright Foley, Steven Joel Sotloff and Peter Edward Kassig; an announcement concerning the death of American hostage Kayla Jean Mueller; the beheadings of British citizens David Haines and Alan Henning; the decapitated body of Japanese citizen Haruna Yukawa; and the beheading of Japanese citizen Kenji Goto.
Khalifa is charged with conspiring to provide material support or resources to a foreign terrorist organization, resulting in death. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Raj Parekh and Assistant U.S. Attorneys Dennis M. Fitzpatrick, 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 National Security Division‘s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
EDVA Announces Grant Award for Certified Peer Recovery SpecialistsRead the Press Release
RICHMOND, Va. – Acting U.S. Attorney Raj Parekh announced today that the Washington/Baltimore High Intensity Drug Trafficking Area (HIDTA) has provided $301,780 in grant funding for Project RECOVER. The funding will provide peer recovery support for Central Virginians suffering with substance use disorders during one of the most critical times in their path to recovery – immediately following an overdose. This support will be provided by Certified Peer Recovery Specialists who work with local emergency services, are in recovery themselves, and have taken training to help others who want to join the same life-saving journey.
“With the help of our partners and through this important initiative, we are focusing on long-term and community-based support through the deployment of recovery-related resources immediately after overdose incidents,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “By deploying Certified Peer Recovery Specialists who have training and life experience in the treatment and recovery process, we can provide mentors to those in need and allow them to embark on the path to recovery.”
Project RECOVER provides four Certified Peer Recovery Specialists and a supervisory Peer Recovery Specialist to support individuals in Henrico and Chesterfield counties, and in the City of Richmond, suffering with substance use disorders that result in treatment by Emergency Medical Services (EMS) or contact with law enforcement. All too often, once EMS and law enforcement have addressed the immediate trauma of an overdose incident and have left the scene to respond to the next call from the community, the victim is left without sustainable treatment and recovery options. Project RECOVER’s goal is to help fill this gap by providing individuals in need with immediate support from a peer who has overcome similar challenges and has gained real-world knowledge of the ongoing process of treatment and recovery. The grant-funded Peer Recovery Specialists will provide a handbook with resources and help guide the individual through the process of obtaining those resources. They will also provide a continuum of long-term support for the individual as they navigate through treatment and recovery. The Peer Recovery Specialists will also provide education and training to Central Virginia community members, including law enforcement, about how to provide proper support for those suffering with substance use disorders.
Project RECOVER’s partners in this community-based initiative include its sub-grantee, the Substance Abuse and Addiction Recovery Alliance of Virginia (SAARA), Chesterfield County Fire & EMS, Henrico County Fire & EMS, Richmond Ambulance Authority, and the Richmond Police Department. The Certified Peer Recovery Specialists will be embedded within these partner organizations and will respond to overdoses with their partner agencies.
Project RECOVER was developed to address the gap in services described above, as identified by the Central Virginia Overdose Working Group (CVOWG). The CVOWG is comprised of over 330 stakeholders from 14 disciplines. It was created to eliminate the siloed structure of the substance use arena by bringing experts from multiple fields together to discuss issues, identify gaps, and develop solutions to the overdose epidemic in Central Virginia.
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.
Department of Justice Files Lawsuit Against Prince George County, Virginia to Enforce Servicemember’s Employment RightsRead the Press Release
RICHMOND, Va. – The Justice Department announced today that it filed a civil complaint in the U.S. District Court for the Eastern District of Virginia against Prince George County, Virginia, and the Virginia Retirement System (VRS) to enforce employment rights guaranteed to a member of the Virginia Army National Guard, Major Mark Gunn, under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
“It is our profound duty to help protect the brave servicemembers who temporarily leave their civilian employment when called upon to serve our country in times of need,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “These courageous Americans make immeasurable personal sacrifices associated with safeguarding the freedoms we enjoy. We will do everything we can to ensure that civilian employers comply with their legal obligation to return these honorable women and men to their previous jobs following their military service.”
“Servicemembers who take military leave from their civilian jobs to serve their country are entitled to return to their prior positions without having to sacrifice their hard earned promotions and employment benefits,” said Assistant Attorney General for Civil Rights Kristen Clarke. “The Department of Justice will work tirelessly to enforce federal laws that protect the rights of servicemembers when they are called up to service.”
In its complaint, the United States alleges that Gunn had been a detective with the Prince George County Police Department for fourteen years when, in January 2016, he was called to active duty by the Virginia Army National Guard. The United States further alleges that when Gunn returned from his active-duty service, the County refused to allow Gunn to return to his detective position Instead, the County assigned him back to a Patrol Unit officer position. The United States also alleges that the County denied Gunn employment benefits that he would have accrued during his period of active-duty service, including a bonus awarded to County employees. Finally, the United States alleges that the County’s unlawful actions caused Gunn to leave his employment with the Prince George County Police Department and return to active duty in the Virginia Army National Guard. The complaint seeks to have Gunn effectively reinstated to his prior detective position and to recover employment benefits that the County denied him during his period of active-duty service from 2016 to 2018, as well as the VRS pension credits and benefits that he lost as a result of the County’s USERRA alleged violations.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. USERRA also requires employers to provide pension benefits when their employees are called to active duty. The United States Attorney’s Office for the Eastern District of Virginia and Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the U.S. Department of Labor, at Major Gunn’s request, after an investigation by that agency’s Veterans’ Employment and Training Service. The case is being handled by Assistant U.S. Attorneys Deirdre Brou, Lauren Oberheim, and Robert McIntosh, and as a part of the Servicemember and Veterans’ Initiative within the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Shan Shah in the Employment Litigation Section of the Justice Department’s Civil Rights Division.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 1:21-cv-631.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims asserted in the complaint are allegations only; there has been no determination of civil liability.
EDVA Commemorates National Hispanic Heritage MonthRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) honors and celebrates the countless achievements, cultural contributions, and rich history of the Hispanic American community during this year’s National Hispanic Heritage Month.
“Hispanic Americans have enriched our Office, our communities, and our country through their strong bonds of family and friendship, tenacity, kindness, and invaluable contributions to all facets of our lives,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This year’s theme of resilience and hope comes at a critical time, as we continue to fight prejudice and collectively work to remove barriers to equality that have too often disproportionately impacted minority communities. EDVA expresses its deep gratitude to the many Hispanic Americans who have defended our Nation and to those who have dedicated their lives to upholding our Nation’s most sacred values. Hispanic Americans, through their courageous leadership, tireless efforts, and extensive civic contributions, consistently remind us of the importance of unity as we strive to achieve our cherished goal of ensuring that our system of justice is equal and fair to all.”
Each year, from September 15 to October 15, National Hispanic Heritage Month commemorates the contributions of Hispanic American communities to the social fabric of our country by recognizing the exceptional impact that these diverse communities have on American society. The unique timing of Hispanic Heritage Month coincides with the Independence Day celebrations of several Latin American nations. For example, on September 15, 1812, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua declared their independence from Spain. Mexico and Chile declared independence from Spain on September 16 and September 18, 1810 respectively. Belize also declared its independence from Great Britain on September 21, 1981.
The National Council of Hispanic Employment Program Managers announced that the theme of the 2021 celebration is: “Esperanza: A Celebration of Hispanic Heritage and Hope.” We are all invited to celebrate Hispanic Heritage and to reflect on the resilient nature of Hispanic Americans in the face of profound challenges and to look to the future with hope.
EDVA’s commemoration of National Hispanic Heritage Month will include an office-wide virtual panel discussion with the Honorable Mary H. Murguia, who began serving as a judge on the U.S. Court of Appeals for the Ninth Circuit in 2011 and who became the first Latina to ever serve as a judge on the federal bench in Arizona in 2000; and the Honorable Adalberto J. Jordán, who became the first Cuban American to serve as a judge on the U.S. Court of Appeals for the Eleventh Circuit in 2012.
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.
Virginia Beach Businessman Sentenced for $2.5 Million Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man was sentenced yesterday to 48 months in prison for defrauding the IRS out of more than $2.5 million of taxes by, among other things, hiding assets, making false statements about his ability to pay, using a nominee company to conduct business, and diverting huge sums of money to pay creditors instead of the IRS.
“The defendant has been held accountable for attempting to evade the payment of over $2.5 million in tax obligations while he was earning and spending millions of dollars on personal luxury expenses and the mortgage for his oceanfront home in Virginia Beach,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The sentence imposed in this case should send a clear message of deterrence to others who may be considering unlawfully enriching themselves at the expense of the American taxpayer.”
According to court documents, Richard Yanek, 53, has owned and operated a credit card processing business since at least 1995. Between 2013 and 2018, Yanek withheld employment taxes from his employees, but he failed to consistently pay more than a million dollars of those withholdings to the IRS. Each year, Yanek provided false 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.
“Yanek betrayed his employees’ trust and violated U.S. tax laws for personal financial gain,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office. “He deliberately chose not to pay over employment taxes he withheld from his employees, instead opting to use those monies to fund a life of opulence. For years, he spent millions of dollars on luxury items. Today, justice was served.”
Until recently, Yanek had not filed a personal income tax return or paid personal income taxes since 2010, despite earning and spending millions of dollars on the mortgage for his oceanfront home, personal credit cards, private school tuition, and golf and yacht club dues. Yanek had his personal tax returns prepared by his accountant for the years 2011 through 2016, all of which reported substantial taxes due and owing. However, Yanek intentionally chose not to file these returns with the IRS, and he later made false statements to the IRS and law enforcement when asked why those returns had not been filed.
Raj Parekh, Acting 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 (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Mack Coleman and former Assistant U.S. Attorney Howard 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. 4:21-cr-26.
Government Contractor Agrees to Settle Anti-Kickback Act AllegationsRead the Press Release
ALEXANDRIA, Va. – A Maryland-based federal company, as well as its president and sole owner, agreed to pay $450,000 to settle allegations that they solicited and received kickbacks in connection with federal government contracts reserved for “8(a)” small businesses.
Wete and Company, Inc. (Wete), located in Laurel, Maryland, was certified by the Small Business Administration as an 8(a) small business, meaning it was owned and operated by a socially or economically disadvantaged citizen. Dorothy Wete, a resident of Laurel, is the president and owner of Wete. Sage Consulting Group, Inc. (Sage), a federal government contractor located in Vienna, lacked an 8(a) certification.
According to the United States’ allegations, between 2014 and 2020, Wete and Sage agreed that Wete would use its 8(a) certification to bid on government contracts that Sage was not eligible to bid on. Wete and Sage allegedly agreed to subcontract all the work on those contracts to Sage in exchange for a “fee” calculated by each hour of work subcontracted to Sage, and Sage allegedly paid Wete the agreed upon kickback amount when the work was subcontracted to them. The United States and Sage reached a settlement in July 2021.
The settlement resolves allegations under the civil penalty provisions of the Anti-Kickback Act.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, and the General Services Administration Office of Inspector General.
This matter was investigated by Assistant U.S. Attorney Krista Anderson.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. A copy of a press release describing the United States’ settlement with Sage Consulting Group, Inc. can be found here.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Virginia Doctor Pleads Guilty to $1.8 Million Health Care Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Virginia doctor pleaded guilty today to his role in a $1.8 million health care fraud scheme to prescribe medically unnecessary compounded pain and scar creams and other expensive medications.
“Through his deceit and greed, Rosen exploited the trust placed in him as a medical professional to engage in an extensive scheme that defrauded health insurance programs out of $1.8 million,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Instead of prescribing medications in an honest and lawful manner to help those in need, the defendant sold out his medical license and training, and will now become a convicted felon.”
According to court documents, Leonard Rosen, 72, of Fairfax Station, was an obstetrician-gynecologist (OB-GYN) who practiced in Northern Virginia since 1980. Rosen was also the owner of an OB-GYN medical practice. In 2014, Rosen met Mohamed Abdalla, 48, of Allendale, New Jersey, who was a licensed pharmacist and owned and operated several pharmacies. Shortly thereafter, Rosen entered into an agreement with Abdalla to prescribe expensive compounded pain and scar creams, which Rosen then ensured were sent to Abdalla’s pharmacies. In return, Abdalla agreed to pay Rosen a percentage of the profits. Prior to this scheme, Rosen had not prescribed expensive compounded medications. However, during the scheme, Rosen prescribed countless medically unnecessary compounded medications. In total, Rosen’s illegal actions resulted in $1,880,575.70 in losses to private health care benefit programs.
“Leonard Rosen exploited health care programs and his patients for personal gain by participating in a scheme to prescribe medically unnecessary prescriptions in return for money, and those criminal actions have consequences,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s plea is an example of the dedicated work of the FBI and our partners to root out fraud, ensure the safety of our communities, and hold criminals accountable for their actions.”
For his role in this and other schemes, Abdalla was sentenced on March 19 to four years in prison. Rosen is scheduled to be sentenced on December 10. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Chris Dillard, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Monika Moore and Carina A. Cuellar 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-205.
Jury Convicts Hampton Roads Conspirators of Drug Trafficking and Money Laundering ChargesRead the Press Release
NEWPORT NEWS, Va. – On Wednesday, a federal jury convicted two individuals on charges relating to drug trafficking and money laundering.
“As the evidence at trial showed, the defendants engaged in a conspiracy to launder the proceeds of their drug trafficking crimes on behalf of a network of conspirators that peddled illegal and potent substances from Puerto Rico into the Hampton Roads area,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office is grateful to the trial team and our law enforcement partners for their thorough investigative efforts, which helped secure the guilty verdicts in this case.”
According to court records and evidence presented at trial, beginning in or about 2018 through in or about 2020, Jose Luis Cruz-Colon, 42, and Nastassja Lopez-Alvarado, 31, both originally from Puerto Rico but living in Suffolk, were responsible for importing kilogram quantities of cocaine into the Hampton Roads area for distribution and then sending the proceeds of those illegal sales back to Puerto Rico to further the drug trafficking conspiracy. Their participation in the conspiracy came to light as part of a larger investigation into the criminal activities of the Rivera Drug Trafficking Organization in the Hampton Roads area.
Through court-authorized wiretap interceptions, parcel interdictions, and other investigative work, agents were able to conduct controlled purchases of heroin and seize at least three kilograms of cocaine. Further, on December 12, 2020, Cruz-Colon and Lopez-Alvarado were stopped at the Richmond International Airport and were prevented from taking approximately $28,000 in U.S. currency in a vacuum-sealed bag from the Hampton Roads area to Puerto Rico.
Cruz-Colon was convicted of conspiracy to launder money and conspiracy to distribute and possess with intent to distribute at least five kilograms or more of cocaine and at least one kilogram or more of heroin. Lopez-Alvarado was convicted of conspiracy to launder money and conspiracy to distribute and possess with intent to distribute at least five kilograms or more of cocaine. Cruz-Colon and Lopez-Alvarado each face a mandatory minimum sentence of 10 years in prison with a maximum possible penalty of life in prison when sentenced on February 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Brian Dugan, Special Agent in Charge of the Federal Bureau of Investigation’s (FBI) Norfolk Field Office; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Kenneth Mark Talbot, Chief of Hampton Police; and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
The Richmond International Airport Police provided significant assistance in this investigation. This case was investigated by the DEA Norfolk Office in conjunction with the Norfolk Police Department.
Assistant U.S. Attorneys Eric Hurt and Julie Podlesni 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. 4:20-cr-69.
Convicted Felon Sentenced for Narcotics Trafficking and Manufacturing “Ghost Guns”Read the Press Release
ALEXANDRIA, Va. – A District Heights, Maryland man was sentenced today to 60 months in prison for distributing heroin and cocaine, and for his involvement in manufacturing untraceable “ghost guns” from the basement of his home.
“In addition to selling dangerous narcotics in our communities, the defendant was involved in buying, assembling, and selling ‘ghost guns’ that lack serial numbers,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “These unmarked and often untraceable firearms are frequently assembled from kits that are sold without background checks, making them more attractive to individuals who are prohibited from possessing them. This prosecution is another example of how we work closely with our partner agencies to mitigate public safety threats, including illegal narcotics and firearms trafficking.”
According to court documents, Keith Robert Marshall, 34, was a drug dealer who sold heroin and cocaine in the greater Washington, D.C. metropolitan area, including the Eastern District of Virginia. He sold heroin at a cost of $2,800 per ounce; a typical user amount of heroin is less than a gram. Over the course of several months in 2019, Marshall sold multiple ounces of heroin, as well as some cocaine, to an undercover officer.
“Marshall’s sentencing is an example of the exceptional collaboration and diligent work of our law enforcement and task force partners toward our shared goal of removing those who are the purveyors of instruments like ghost guns and illicit narcotics which often result in irreparable damage to our communities,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Ghost guns, which are privately manufactured, are untraceable and unserialized firearms that when in the hands of criminals, present a serious danger to us all. The FBI remains steadfast in identifying and aggressively investigating those criminals who have a blatant disregard for the harm they are causing in communities around the country.”
The investigation into Marshall revealed that he had been frequenting a firearms store in Virginia. There, Marshall, a previously convicted felon, had been purchasing AR-15 pistol kits and Polymer 80 kits to make AR-15 pistols and Glock-style pistols. These kits are used to make guns without serial numbers and may be legally sold to anyone, regardless of whether they are prohibited from possessing firearms.
In December 2020, law enforcement executed a search warrant at Marshall’s residence in Maryland. There, agents recovered a fully functional .40-caliber Polymer 80 Glock-style firearm with a 50-round agazine, as well as an AR-15 rifle. Agents also seized another five high-capacity magazines, various other gun magazines, and hundreds of rounds of ammunition for both rifles and pistols. Agents additionally discovered that Marshall’s workspace, tools, and parts were dedicated to turning the gun kits into the fully functional weapons found in his residence.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Peter Newsham, Chief of Prince William County Police; and Malik Aziz, Chief of Prince George’s County Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation Operation Optima Prime. 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.
This case was investigated by the FBI WFO’s Northern Virginia Safe Streets/HIDTA task force, which is composed of FBI agents and agents from HSI, the U.S. Marshals Service, and task force officers from Northern Virginia counties. The task force is charged with investigating and disrupting the most egregious and violent gang and narcotics distributors operating in Northern Virginia.
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-119.
Government Contracting Companies Agree to Settle Civil False Claims Act and Anti-Kickback Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Two Virginia-based companies agreed to pay a combined $1,174,584 to settle allegations that they solicited and received kickbacks in connection with federal government contracts reserved for “8(a)” small businesses, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
Index Systems, Inc. (Index), located in Fairfax, was certified by the Small Business Administration as an 8(a) small business, meaning that it was owned and operated by a socially or economically disadvantaged citizen. Chinna Nemelidinne, a resident of Herndon, is the president and sole owner of Index. Capital Consulting Group, Inc. (CCG), a company located in Arlington, lacked an 8(a) certification. Index and Nemelidinne agreed to pay $1,010,084 to settle claims under the Anti-Kickback Act and False Claims Act, and CCG agreed to pay $164,500 to settle claims under the Anti-Kickback Act.
According to the United States’ allegations, in 2018, Index and CCG agreed that Index would use its 8(a) certification to bid on a government contract on which CCG was not eligible to bid. Index and CCG allegedly agreed to subcontract all the work on that contract to CCG in exchange for a “fee” calculated by each hour of work subcontracted to CCG, and CCG allegedly paid Index the agreed upon kickback amount when the work was subcontracted to them.
The United States also alleged that, between 2018 through 2020, Index had a similar kickback arrangement in place with Sage Consulting Group, Inc. (Sage), in connection with three federal 8(a) set-aside contracts. The United States further alleged that Index also obtained one of the contracts through fraudulent representations to the federal agency that Index employees would be doing all the work on the contract, even though Index intended to subcontract much of the work on the contract to Sage. The United States and Sage reached a settlement in July 2021.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
This matter was investigated by Assistant U.S. Attorney Krista Anderson.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. A copy of a press release describing the United States’ settlement with Sage Consulting Group, Inc. can be found here: https://www.justice.gov/usao-edva/pr/sage-consulting-group-inc-agrees-pay-48-million-settle-civil-false-claims-act-and-anti
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Cyprus-Based Shipping Company Fined $2 million for Concealing Unlawful Discharges of Oily Water into Atlantic OceanRead the Press Release
NORFOLK, Va. – A Cyprus-based company was sentenced to pay a fine of $2 million today after pleading guilty in the Eastern District of Virginia to violations of the Act to Prevent Pollution from Ships.
“We are firmly committed to enforcing federal environmental laws and will not tolerate conduct that pollutes our water, imperils natural ecosystems, and endangers our wildlife,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, those who contaminate our most precious natural resources by illegally dumping hazardous waste into the ocean will be held accountable, especially when they falsify their records to avoid detection.”
Diana Wilhelmsen Management Limited (DWM) operates several commercial vessels. According to court documents, from mid-April 2020 until before the vessel arrived in Newport News on June 10, 2020, DWM crew members onboard the M/V Protefs, a 40,230 gross-ton, 738-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water. The vessel also arrived in New Orleans, Louisiana on June 1, 2020 with a knowingly false oil record book.
“The United States will vigorously enforce laws that protect our ocean resources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Holding shipping companies to account when wastes are unlawfully discharged overboard, and covered up through falsified documents, is vital to protecting our environment.”
The crew on the vessel used an emergency de-watering system to illegally discharge oily water directly into the Atlantic Ocean from the vessel’s bilge holding tank, duct keel, and bilge wells. Those discharges were not recorded in the oil record book as required. The chief engineer, Vener Dailisan, 47, pleaded guilty on December 18, 2020 to making a false statement to U.S. Coast Guard inspectors about the existence of a sounding log, which is routinely sought by inspectors in order to ascertain the accuracy of the oil record book.
“The commercial shipping industry is essential to commerce in this region, but their work must ensure they do not neglect their professional and legal obligations,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Today’s announcement emphasizes that our office along with our federal partners are committed to holding accountable all parties whose criminality jeopardizes our environment and places the public and the ecosystem at risk.”
DWM received a term of four years of probation, a fine of $2 million, and supervision under an environmental compliance plan.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Todd Kim, Assistant Attorney General for the Environment and Natural Resources Division; Duane A. Evans, U.S. Attorney for the Eastern District of Louisiana; and William P. Hicks II, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Joseph Kosky of the Eastern District of Virginia, Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana prosecuted the case.
The Coast Guard Investigative Service Chesapeake Region and Coast Guard Sector Virginia provided valuable assistance in this matter.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-6.
Chesapeake Man Sentenced for Interstate Methamphetamine ConspiracyRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to 15 years in prison for conspiring to distribute methamphetamine.
According to court documents, on May 20, 2020, an Arizona State Trooper stopped Jeremy Wayne Johnson, 45, and his passenger on Interstate 17 near Mayer, Arizona, because Johnson was speeding and texting on his phone while driving. During the stop, Johnson provided a false name and claimed he had lost his driver’s license. At the time, Johnson was carrying on him a loaded Ruger pistol, along with methamphetamine inside his vehicle. Johnson admitted during a Mirandized interview that he and his passenger drove from Virginia Beach to Phoenix, Arizona to purchase methamphetamine. The day before they planned to return to Virginia, Johnson purchased two pounds of methamphetamine from a drug dealer at a hotel in Phoenix, Arizona. Johnson and his passenger were transporting the narcotics to Virginia Beach for resale when they were stopped.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Darryl Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-103.
Fredericksburg Man Pleads Guilty to Straw Purchasing Numerous FirearmsRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today to conspiracy to make false statements to federally licensed firearms dealers during the purchase of firearms.
“This case serves as another example of our resolve to hold accountable those who illegally purchase guns on behalf of others,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While straw purchasers are often unaware of how the firearms they unlawfully obtain will be used, that’s what makes this conduct so dangerous, and it is why we must continue working together to prevent these crimes from occurring. Through our close partnerships on the federal, state, and local level, we have been leveraging the latest technology, evidence, data, and intelligence to combat firearms trafficking and reduce the tragic toll that gun violence has on our communities.”
According to court documents, Bernard Jenkins, Jr., 24, purchased 18 firearms from vendors in Fredericksburg and Colonial Heights between August 2019 and April 2020. Jenkins certified to the federally licensed firearms dealers from whom he purchased the firearms that he would be the owner of the firearms when, in fact, 16 of the firearms purchased by Jenkins were transferred to other individuals after purchasing. As reflected in the statement of facts filed with the plea agreement, several of the firearms purchased by Jenkins have been recovered at crime scenes since his purchases.
Jenkins is scheduled to be sentenced on Feb. 8, 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.
Raj Parekh, Acting 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 Senior U.S. District Judge Liam O’Grady accepted the plea.
Assistant U.S. Attorney Ronald L. Walutes, Jr. is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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. 1:21-cr-202.
Virginia Beach Investment Advisor and Williamsburg Attorney Sentenced for $25 Million Nationwide Investment Fraud SchemeRead the Press Release
NORFOLK, Va. – A former Virginia Beach investment advisor was sentenced today to 35 years in prison, following last week’s sentencing of his Williamsburg-based attorney to 10 years in prison, for their roles in a nationwide investment fraud scheme that resulted in over $25 million in losses to more than 300 victims, most of whom were elderly.
“These defendants and their co-conspirators are responsible for orchestrating an extraordinarily serious nationwide scheme to defraud hundreds of investors out of over $25 million,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Driven by their voracious greed, the defendants preyed on the elderly and exploited the trust of vulnerable victims by robbing them of their hard-earned retirement funds and lifelong savings meant for their families. The financial harm that they caused to each victim is heartbreaking, and the emotional harm they inflicted is incalculable. The sentences imposed in this case reflect the enormous scale and scope of this securities fraud scheme and send a strong message that those who commit these devastating financial crimes will face significant consequences in our courts.”
According to court documents, Daryl Bank, 51, of Port St. Lucie, Florida, ran an investment fraud scheme from approximately January 2012 through July 2017, based in the Tidewater area and Port St. Lucie, and operating across the country. Bank and his co-conspirators—including his attorney, Billy Seabolt, 56, of Williamsburg; corporate executive Raeann Gibson, 49, of Florida; and salesman Roger Hudspeth, 52, of Chesapeake—deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by fraudulently convincing them to invest in companies owned and controlled by Bank. At Bank’s direction, co-conspirators stole significant portions of investment contributions to fund their criminal enterprise and Bank’s lavish lifestyle.
“Darryl Bank and Billy Seabolt, along with their co-conspirators, robbed hundreds of elderly victims of their life savings and ruined the financial security many had worked for all their lives. Their actions caused needless hardships and were taken with cruel indifference to the long-lasting impact on their victims,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “Because of the devastating impact elder fraud schemes have on victims, the FBI is committed to stopping criminals who prey on the elderly. If you or a family member has been victimized, please contact the FBI at 1-800-CALL-FBI, or tips.fbi.gov.”
“Bank, Seabolt, and others caused significant financial ruin to hundreds of innocent people by tricking the victims into entrusting them with their retirement funds, under the guise of a promising investment opportunity,” said Darrell J. Waldon, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Washington DC Field Office. “While it cannot erase the hardships which these victims endured due to this scheme, we hope today’s sentencing brings some closure to this horrific time in their lives.”
“Those who engage in deceptive securities practices needs to know they will not go undetected and will be held accountable,” said Daniel A. Adame, Inspector in Charge of the Washington Division, of the U.S. Postal Inspection Service. “Postal Inspectors have been investigating financial crimes like the ones alleged here for many years. Our duty is to protect investors from those who misuse the U.S. Mail and protect the integrity of our mail system.”
In 2010, Bank, then a registered securities broker, was barred from the securities industry by the Financial Industry Regulatory Authority. Undeterred, Bank created an investment company called Dominion Private Client Group (Dominion) and continued to sell unregistered securities on his own and through insurance salesmen across the country. Seabolt, whose legal practice was otherwise focused on elder and trust law, served as Dominion’s legal counsel and was involved in negotiating and developing many of the fraudulent investments and corporations.
The conspirators made material misrepresentations and omissions to sell illiquid, highly speculative investment vehicles. Based on these fraudulent representations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest in Bank’s investments, without knowing that Bank immediately transferred 20%–70% of the investors’ funds to other companies that he controlled in the form of purported “fees,” much of which he ultimately spent on luxury and designer goods. As a result of this investment fraud scheme, the victims suffered losses in excess of $25 million.
Bank, who was convicted on all 27 counts submitted to the jury, was sentenced today to 35 years in prison for conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering. Seabolt was sentenced on September 15 to 10 years in prison on multiple conspiracy, mail fraud, and sale of unregistered securities charges.
Gibson pleaded guilty to conspiracy and was sentenced to 10 years in prison in February 2020. Hudspeth pleaded guilty to investment advisor fraud and money laundering, and was sentenced to over 12 years in prison in May 2018.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-CI; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
The U.S. Attorney’s Office for the Eastern District of Virginia extends its appreciation to the Virginia State Corporation Commission’s Division of Securities for its valuable assistance.
Assistant U.S. Attorneys Melissa E. O’Boyle, Elizabeth M. Yusi, and Andrew Bosse prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-126.
Two Former Bureau of Prisons Officials Sentenced for Bribery Scheme at Federal Prison in PetersburgRead the Press Release
RICHMOND, Va. – Former Bureau of Prisons (BOP) correctional officers at Federal Correctional Institution (FCI) Petersburg, Stephen Taylor and Shanice Bullock, were sentenced today for their respective roles in a bribery scheme that allowed for the introduction of contraband into the prison by FCI Petersburg inmate Dontay Cox.
“Taylor and Bullock blatantly abused their positions of authority as federal correctional officers to enrich themselves at the expense of the public, the safety of the prison they were responsible for protecting, and the dedicated Bureau of Prison employees with whom they served,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Instead of ensuring that the inmates of the prison served their sentences in a safe and lawful manner, these defendants violated their oaths as sworn officers and joined a criminal enterprise that was driven by their greed. As this prosecution demonstrates, we will not tolerate any criminal acts that are designed to corrupt or undermine the fair and impartial administration of justice.”
According to court documents, Taylor, 49, of Wake Forest, North Carolina, Bullock, 28, of South Hill, and Cox, 38, of Baltimore, Maryland, along with other co-conspirators, participated in a bribery scheme at FCI Petersburg between 2015 and 2019 to facilitate the introduction and distribution of contraband across the prison facility.
“This investigation demonstrates the resolve of the FBI, the United States Attorney’s Office, and the Department of Justice's Office of the Inspector General to ensure fair justice. In this instance, sworn officers of the law and inmates alike, at the Federal Correctional Institution in Petersburg, manipulated and circumvented the justice system for significant personal gain, and have been justly sentenced for their criminal actions,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “FBI Richmond is committed to working with our partners to preserve the integrity of the system and ensure faith is not lost for those respecting it.”
“Correctional Officers Taylor and Bullock jeopardized the safety and security of their colleagues by accepting bribes from inmate Cox to bring contraband into the prison. The Office of the Inspector General is committed to rooting out these bribery schemes and bringing the perpetrators to justice,” said Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office.
Cox, who pleaded guilty to bribery of public officials on March 22, 2021, was an inmate at FCI Petersburg from on or about January 23, 2014 until on or about July 18, 2019, when he was transferred to another institution. During this time, Cox ran a gambling operation contrary to BOP regulations and, with the assistance of other inmates, obtained and sold contraband, including Suboxone, marijuana, heroin, cigarettes, and cellular telephones. Taylor, then a case manager, and Bullock, then a correctional officer at FCI Petersburg, accepted monetary bribes from friends and family of Cox who were not incarcerated. In return, Taylor and Bullock permitted the introduction as well as distribution of the contraband items in the prison.
From October 2017 to April 2019, Taylor and Bullock received at least $46,841 in bribe payments consisting of both wire transfers and cash payments from individuals associated with Cox.
Taylor was sentenced to 4 years in prison for solicitation and acceptance of bribes. Bullock was sentenced to 10 months in prison for solicitation and acceptance of bribes.
Raj Parekh, Acting 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.
NDUTIME Youth & Family Services and its CEO Settle False Claims Act Allegations Relating to the Virginia Medicaid ProgramRead the Press Release
RICHMOND, Va. – A Henrico County mental health services provider and its executive officer agreed to settle a civil lawsuit alleging they caused the submission of false claims to the Virginia Medicaid program, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia and Mark R. Herring, Attorney General of Virginia.
NDUTime Youth & Family Services, Inc. (NDUTime) and its current Chief Executive Officer, Teshana Gipson, of Henrico County, have agreed to pay $700,000 to settle a civil fraud lawsuit alleging they caused false claims to be submitted for payment from the Virginia Medicaid program.
The United States and the Commonwealth of Virginia jointly filed a complaint against NDUTime and Gibson under the federal False Claims Act and the Virginia Taxpayers Against Fraud Act. NDUTime provided crisis intervention, crisis stabilization, and therapeutic day treatment for children, among other mental health services. NDUTime was only entitled to reimbursement for services that it actually provided. In addition, Virginia state law required that certain services be provided by a licensed mental health professional and that initial assessments be made before services were provided. The lawsuit alleged that, between 2013 and 2017, NDUTime submitted false claims for services that it did not actually render, false claims for services that were not provided by a licensed counselor, and false claims that were based on initial assessments that were not completed by a licensed counselor.
The Government initiated an investigation after two separate lawsuits were filed under the False Claims Act and the Virginia Taxpayers Against Fraud Act by whistleblowers who made the allegations. These Acts permit the government time to investigate allegations of fraudulent conduct and to intervene in such lawsuits. Based on their investigation of the allegations, the Government intervened, the cases were consolidated and unsealed, and the Government filed its own complaint.
The False Claims Act and the Virginia Taxpayers Against Fraud Act also permit whistleblowers to receive a share of between fifteen and twenty-five percent of any recovery.
The resolution in this matter was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Virginia and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit. The matter was investigated by Assistant U.S. Attorney Robert McIntosh, former Assistant Attorney General Jessica McKenzie, and Assistant Attorneys General Airen Adamonis, Ray Bowman, and Megan Winfield.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 3:16-cv-653.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Leader of International Robocall Scam Sentenced for Defrauding over 4,000 U.S. Victims Out of More Than $10 MillionRead the Press Release
RICHMOND, Va. – An Indian national was sentenced today to 22 years in prison for conspiracy and identity theft in connection with his operation of an overseas robocall scam that defrauded thousands of victims out of more than $10 million.
“This defendant has been sentenced to 22 years in prison for being the mastermind and leader of an extensive multimillion-dollar robocall scheme that, from overseas, exploited over 4,000 American victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The impact of the harm inflicted on the victims of these robocall schemes can be devastating. The victims, many of whom are elderly, continue to endure significant financial hardship from the defendant’s vast fraud enterprise. The defendant operated and supervised the call center, was the ‘closer’ when speaking to victims, and managed the money couriers who illegally sent millions of stolen and hard-earned funds belonging to the victims back to his call center. When you consider the sheer number of victims this defendant extorted and the magnitude of their losses, the scale of harm and pain he caused is enormous. As this case demonstrates, we will continue to work closely with our partners to investigate, apprehend, and prosecute transnational criminal enterprises that steal from vulnerable American victims, and will bring the perpetrators of these scams to justice no matter where they are located.”
According to court documents, Shehzadkhan Pathan, 40, operated a call center in Ahmedabad, India, from which automated robocalls were made to victims in the United States. After establishing contact with victims through these automated calls, Pathan and other “closers” at his call center would coerce, cajole, and trick victims into sending bulk cash through physical shipments and electronic money transfers. Pathan and his conspirators used a variety of schemes to convince victims to send money, including impersonating law enforcement officers from the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA) and representatives of other government agencies, such as the Social Security Administration, to threaten victims with severe legal and financial consequences. Conspirators also convinced victims to send money as initial installments for falsely promised loans.
“Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable. This conspiracy, which defrauded over 4,000 victims, many of whom were elderly, out of at least $10 million, is again an unfortunate reminder of the type of devastation these fraud schemes can wreak,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal/Cyber Division. “Pathan, a leader of this scheme, which relied on impersonating law enforcement to threaten victims, is the 4th individual sentenced in this investigation and represents a step forward in our efforts to hold those who engage in these scams accountable to the fullest extent of the law. The FBI's work in this area is far from over as we remain steadfast in our commitment to relentlessly pursue these types of investigations to ensure the protection of the hard-earned livelihood of our nation's elderly.”
In addition to operating the call center, Pathan recruited and supervised a multitude of money couriers, whom he directed to receive money sent by victims. Pathan’s network of money couriers was located in multiple states, including but not limited to Virginia, New Jersey, Minnesota, Texas, California, South Carolina, and Illinois. Pathan assigned various aliases to these individuals and supplied them with hundreds of counterfeit identification documents to facilitate their receipt of victim cash shipments and money transfers. Pathan then directed the couriers to send the money to himself and other conspirators through various means, including cash deposits into numerous bank accounts and via informal money transmitters known as Hawalas.
Pathan is the fourth of six defendants in this case to be sentenced for their role in the conspiracy. Co-defendants Pradipsinh Parmar, 41, and Sumer Patel, 38, both of Ahmedabad, India, acted as money couriers during the conspiracy, and are scheduled to be sentenced on September 20.
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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
The Eden Prairie, Minnesota, Police Department provided significant assistance with this investigation.
Assistant U.S. Attorneys Brian R. Hood and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.
Richmond Assisted Living Facility Owner Pleads Guilty to Health Care FraudRead the Press Release
RICHMOND, Va. –The former owner of a Richmond-based assisted living facility pleaded guilty today to health care fraud after diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents.
“For more than three years, the defendant stole essential benefits entrusted to her facility for the care of its elderly and infirm residents,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While the vulnerable residents of her facility suffered through dreadful living conditions, the defendant selfishly used their benefits to pay for her own debts, travel, and gambling expenses in Atlantic City and Las Vegas. Today’s guilty plea demonstrates that those who abuse the trust placed in them to care for our elderly and infirm will be held accountable for their egregious crimes.”
“Representative payees for elderly and incapacitated adults who are legally incapable of managing their own funds fulfill a critical role in ensuring that the Social Security benefits are used to provide for the needs of this vulnerable community,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will aggressively pursue those who knowingly game the system for personal gain, and we will work to recover funds for SSA and all taxpayers. I want to thank our law enforcement partners for working with us and the U.S. Attorney’s Office for prosecuting this individual.”
According to court documents, Mable B. Jones, 78, of Richmond, owned and operated Jones & Jones, an assisted living facility complex that served primarily elderly and incapacitated adults. For residents who were legally incapable of managing their own funds, Jones & Jones served as a representative payee and regularly received state and federal benefit payments on behalf of those residents. Representative payees are required to use Social Security benefits to provide for the beneficiary’s needs, including food, clothing, housing, and medical care. Representative payees, moreover, are specifically prohibited from using Social Security benefits for anything other than the beneficiary’s needs. Similar requirements also apply to auxiliary grants issued by the Commonwealth of Virginia’s Department for Aging and Rehabilitative Services.
Beginning around December 2015 and continuing through the facility’s closure in the spring of 2019, Jones converted more than $800,000 of the residents’ federal and state benefits for her own personal use. Jones used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey, and Las Vegas, Nevada.
Jones’s diversion of resident benefits led to significant and persistent deficiencies in the facilities, care, and services provided to Jones & Jones residents, including deficiencies that endangered residents’ health and safety. These conditions ultimately prompted state and federal audits of the facility before its closure, during which Jones made false statements about her conversion and use of resident funds.
Jones is scheduled to be sentenced on Jan. 11, 2022. She faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, Philadelphia Field Division, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorneys Kaitlin G. Cooke and Shea Gibbons prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-30.
Virginia Beach Couple Sentenced for $31 Million Coupon Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to 12 years in prison, following last month’s sentencing of her husband to over 7 years in prison, for perpetrating a counterfeit coupon fraud scheme that cost retailers and manufacturers over $31 million in losses.
“These two defendants have been sentenced and held accountable for operating one of the largest coupon fraud schemes ever discovered in the United States, resulting in over $31 million in losses to victims across the country,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This massive counterfeit coupon scheme harmed consumers, retailers, and manufacturers nationwide, and the economy at large. The sentences imposed in this case illustrate the serious consequences that criminals can face in EDVA for carrying out these sham get-rich-quick schemes.”
“Protecting American consumers and businesses from individuals who seek to take advantage of the U.S. Mail by distributing counterfeit, illegal, and improper items remains a priority to Postal Inspectors,” said Inspector in Charge Daniel A. Adame, Washington Division of the U.S. Postal Inspection Service. “We will continue to pursue these individuals to bring them to justice. We are committed to safeguarding the public’s trust in our nation’s mail system.”
“Coupon fraud is not a harmless crime. Lori Ann Talens and her husband operated an audacious fraud scheme that stole more than $31 million directly from retailers and manufacturers,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI investigates these matters aggressively because this kind of fraud ripples through the economy, and unfortunately it is the innocent consumer that ultimately pays the price.”
According to court documents, from approximately April 2017 through May 2020, Lori Ann Talens, a/k/a "Lori Ann Villanueva Talens," 41, operated a complex scheme using social media sites and apps such as Facebook and Telegram to find groups of coupon enthusiasts and sell them counterfeit coupons. Lori Ann Talens, who operated online under the moniker “MasterChef,” used a computer to design, create, and produce a wide variety of counterfeit coupons in her Virginia Beach home. These counterfeit coupons were virtually indistinguishable from authentic coupons and were often created with inflated values, far in excess of what an authentic coupon would offer, in order to receive items from retail for free or for a greatly reduced price.
As part of the scheme, Lori Ann Talens would ship the counterfeit coupons throughout the United States using the U.S. Postal Service and other commercial parcel delivery services. She accepted payment for the counterfeit coupons through a variety of online payment methods, including Bitcoin and Paypal. Lori Ann’s husband, Pacifico Talens, Jr., 43, was aware of the counterfeit coupon scheme, profited from it, and assisted in the operation by shipping packages of counterfeit coupons and performing other administrative tasks at the direction of his wife.
The scheme was discovered when one of the Talens’s customers reported them to the Coupon Information Center (CIC), a coalition of consumer product manufacturers dedicated to coupon integrity. The CIC purchased coupons from the Talens, confirmed they were counterfeit, and contacted the U.S. Postal Inspection Service for further investigation.
After identifying the defendants as the source of the counterfeit coupons, federal law enforcement executed a search warrant on their residence. During the search, agents seized nearly $1 million worth of counterfeit coupons from the residence. Furthermore, a review of the Talens’s computer revealed images for over 13,000 separate and distinct counterfeit coupon designs. The CIC reviewed these images and compared them to the known counterfeit coupons in circulation. The analysis concluded that coupon redemptions using the 13,000 counterfeit designs on the couple’s computer had caused approximately $31,817,997 million in losses to retailers and manufacturers.
In a separate scheme, from approximately November 2015 through February 2020, Lori Ann Talens defrauded Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Lori Ann Talens applied for benefits for each of these programs and failed to disclose either her husband Pacifico’s legitimate employment income, or their own illegitimate counterfeit coupon income. Had she disclosed this income, the Talens would not have been eligible for these benefits. The total loss to Medicaid and SNAP was approximately $43,000.
Both defendants pleaded guilty to mail fraud in April. Lori Ann Talens also pleaded guilty to wire fraud and health care fraud. Pacifico Talens, Jr. was sentenced to 87 months in prison on August 19.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Assistant U.S. Attorney Joseph Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-39.
North Carolina Woman Pleads Guilty in Medicaid Fraud SchemeRead the Press Release
NORFOLK, Va. – A Raleigh, North Carolina, woman pleaded guilty today to making false statements to Medicaid to obtain payments for services and benefits.
“The defendant abused her position as a licensed professional counselor to orchestrate a scheme involving the fraudulent submission of Medicaid claims for over 100 patients,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Working with our partner agencies, we will continue to investigate and prosecute those who attempt to defraud and manipulate the health care system for their own personal benefit.”
According to court documents, Connie Omari, 37, was a licensed professional counselor in both the Commonwealth of Virginia and North Carolina. Omari owned and operated a Norfolk-based company called Sacred Journey, Inc., a provider of partial hospitalization services to psychiatric patients at risk of full hospitalization, or patients transitioning from psychiatric hospitalization. Omari overbilled Medicaid by submitting false claims to Medicaid when no service was provided to any Medicaid recipient.
Court documents detail thirty-nine specific instances in January and February of 2017 when Omari billed Medicaid for services she purportedly provided to patients. In reality, Omari and her family were on a trip out of the country, and it was impossible for her to provide the services for which she billed. In total, from in or about September 2015 through June 2017, Omari submitted false claims to Medicaid for over 100 patients, causing Medicaid a loss in excess of $548,000.
Omari is scheduled to be sentenced on Feb 18, 2022. She 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Significant assistance was provided by the Medicaid Fraud Control Unit of the Virginia Office of the Attorney General.
Assistant U.S. Attorney Joseph Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-113.
Ghanaian National Sentenced for Online Romance Fraud SchemeRead the Press Release
NORFOLK, Va. – A Ghanaian national was sentenced on Friday to 40 months in prison for wire fraud as part of his scheme to defraud victims on a dating website.
“The defendant repeatedly and shamelessly defrauded a recently widowed victim through a variety of manipulative tactics, leaving her in financial ruins,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, reporting these scams to law enforcement helps us uncover the fraud schemes and bring scammers, like this defendant, to justice.”
According to court documents, Richard Yaw Dorpe, 38, posed as a single, 57-year-old man from Virginia Beach on “OurTime,” an online dating website for people over 50 years old. Dorpe purported to be a jeweler who was traveling abroad to buy gold and other jewelry before returning home to Virginia Beach. Dorpe met victim E.F., who was a 68-year-old recent widow from Chesapeake, on the website and started an online romantic relationship. Between August 2016 and January 2017, through his romantic manipulations, Dorpe convinced E.F. to send clothes, jewelry, a computer, a watch, and over $300,000 to him. Eventually, E.F. realized she was a victim of a scam, and was contacted by the FBI.
In January, Ghana approved the United States’ extradition request and the FBI brought Dorpe to the Eastern District of Virginia to face charges. Dorpe pleaded guilty to wire fraud in May.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Valuable assistance concerning the extradition of Dorpe from Ghana to the United States was provided by Ghana’s Economic and Organized Crime Office, the Ghana Police Service, the International Criminal Police Organization (INTERPOL), the National Security Agency of Ghana, and the Ministry of Justice and Attorney General’s Office of Ghana. Additional valuable assistance was provided by the FBI Legal Attaché Office, the DEA Country Liaison, the Regional Security Office, and staff at the U.S. Embassy in Accra, Ghana. The Justice Department’s Office of International Affairs also provided significant assistance in securing his extradition from Ghana.
Assistant U.S. Attorney Elizabeth Yusi prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-53.
Virginia Beach Man Sentenced for Child Pornography OffensesRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced on Thursday to nearly 20 years in prison, to be followed by a lifetime of supervised release, for receiving and possessing images of child sexual abuse.
“This defendant’s appalling conduct included his possession of over 30,000 images and over 3,000 videos depicting the sexual exploitation of children,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The significant sentence imposed in this case sends a strong message of deterrence and a clear warning to those who are considering committing crimes that involve the continued victimization of children.”
According to court documents and evidence presented at trial, in July 2018, the FBI executed a search warrant at the residence of Bradley Jeffrey-Moe, 29 after an online undercover operation identified Jeffery-Moe as having made available dozens of images of child sexual abuse for download over various peer-to-peer networks. During the search, the FBI discovered five electronic devices which contained thousands of images of child sexual abuse, as well as digital records reflecting the use of peer-to-peer software to search for and download such images. During a Mirandized interview conducted by the FBI, Jeffery-Moe confessed that he had downloaded and viewed the images.
Jeffrey-Moe was sentenced to 236 months. He was previously convicted by a federal jury on November 13, 2020. According to forensic evidence presented at trial through expert testimony, a total of over 30,000 images and 3,000 videos of child pornography were recovered from the defendant’s electronic devices.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Anthony Mozzi and Michael Gill prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-165.
Jury Convicts Foreign Service Officer and Former Spouse for Obtaining U.S. Citizenship by FraudRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a California woman and Russian-born man on Friday on charges of conspiracy and obtaining U.S. citizenship by fraud.
According to court records and evidence presented at trial, Laura Gallagher, 32, a Foreign Service Officer with the U.S. Department of State, and Andrey Kalugin, 36, originally of Russia, conspired together to obtain lawful permanent residence and U.S. citizenship for Kalugin through his marriage to Gallagher.
“The jury’s verdict holds these two defendants accountable for orchestrating a scheme to defraud the United States and obtain unlawful citizenship and passports,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Gallagher disregarded her responsibilities to the public as a federal government employee and licensed attorney when she engaged in this fraudulent scheme with Kalugin. Thanks to the dedication of the trial team and our partners at the State Department, these defendants have been brought to justice.”
Evidence presented at trial demonstrated that the defendants met in law school in 2013. Kalugin was in the United States on a student visa that was due to expire in July 2015. The defendants married in June 2015 and submitted applications for Kalugin to obtain his “green card.” The defendants moved from California to Virginia in March 2016, but split up soon thereafter. However, they continued with the immigration process.
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office to investigate allegations of crime related to naturalization fraud and to bring those who commit these crimes to justice,” said Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service. “When a Department employee in a position of trust is alleged to have committed a federal felony involving naturalization fraud by exploiting their status, we vigorously investigate claims of corruption.”
Gallagher, who is also a California-licensed attorney, then prepared for Kalugin an application for 319(b) expeditious naturalization, which is a benefit available to spouses of citizens who are regularly stationed abroad for their employment. The defendants provided materially false responses in the application, including that Kalugin was still in a good-faith marriage and intended to reside with Gallagher abroad and return with her to the United States. Kalugin appeared for an interview on Feb. 5, 2018 with U.S. Citizenship and Immigration Services (USCIS) in Fairfax, where he repeated the false statements to the adjudicating officer. After USCIS approved the application and he received his citizenship, Kalugin fraudulently obtained U.S. Diplomatic and tourist passports. Shortly thereafter, Gallagher filed for divorce.
Gallagher and Kalugin each face a maximum penalty of 10 years in prison when sentenced on Feb. 4, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. Kalugin additionally faces mandatory revocation of his U.S. citizenship. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service, made the announcement after Senior U.S. District Judge T. S. Ellis, III accepted the verdict.
Assistant U.S. Attorneys Raizza K. Ty and Morris R. Parker, Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-43.
EDVA Commemorates the 20th Anniversary of 9/11Read the Press Release
ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today that the U.S. Attorney’s Office will commemorate the 20th anniversary of September 11, 2001 with events reflecting on that tragic day, the aftermath of the terrorist attacks, and EDVA’s role in the prosecution of Zacarias Moussaoui, the only individual to date to have ever been convicted in a U.S. court in connection with the 9/11 attacks.
“As we approach the somber 20th anniversary of the 9/11 attacks, we will never forget the nearly 3,000 innocent lives that were lost, the countless individuals who suffered injuries or have experienced devastating effects from the aftermath of the attacks, and the families of victims and survivors who continue to endure unimaginable pain arising from the horrific events that day,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office continues to reflect on the tragic events of 9/11, which have shaped us as Americans, as public servants, and as individuals. In addition to the loved ones that our staff members, families, and friends lost in New York, Virginia, and Pennsylvania on 9/11, as the attack on the Pentagon took place within EDVA, these tragedies are deeply personal for our community. In our sadness we also find the resolve to stand together against terror, hatred, and fear. We join with our neighbors in remembering those whom we lost, thanking those who responded to save lives, and honoring those who gave their last full measure of devotion following the attacks to protect and defend our country.”
EDVA’s history relating to 9/11 includes the prosecution of Zacarias Moussaoui, who remains the only individual to date to have ever been convicted in a U.S. court in connection with the September 11, 2001 attacks. As he admitted in an EDVA courtroom, Moussaoui knew of al Qaeda’s plan to fly airplanes into prominent buildings in the United States and he agreed to travel to the United States as a member of al Qaeda to participate in the terrorist operation. Moussaoui was arrested weeks before 9/11 on immigration charges after he engaged in suspicious behavior at a flight training school in Minnesota. At the time of his arrest, Moussaoui was in possession of knives, fighting gloves, and shin guards, along with flight manuals for the Boeing 747-400, a hand-held aviation radio, and other items. Moussaoui provided a series of false statements to federal agents to conceal his involvement in the plot and ensure his al Qaeda “brothers” could go forward with the operation. Moussaoui was sentenced on May 4, 2006 to life in prison without parole.
EDVA’s 9/11 20th anniversary commemoration will include the following events:
- On September 7, Acting U.S. Attorney Parekh will host a virtual fireside chat with Michael J. Morell, the former Acting Director and Deputy Director of the Central Intelligence Agency (CIA). Mr. Morell served for 33 years in the CIA, worked for six different U.S. presidents, and is the only person who was both with President Bush on September 11, 2001 and with President Obama on May 1, 2011 when Osama bin Laden was brought to justice. Mr. Morell will discuss the period leading up to 9/11, share his eyewitness accounts on the day of the attacks, describe the U.S. Government’s response leading up to the Bin Laden operation, and reflect upon counterterrorism efforts since then and going forward.
- On September 9, Acting U.S. Attorney Parekh will host a virtual panel discussion titled, “Behind the Scenes of the Moussaoui Prosecution,” featuring U.S. District Judge Leonie M. Brinkema, who presided over the case; former Assistant U.S. Attorney Rob Spencer, EDVA’s lead prosecutor on the case; and Edward MacMahon, Moussaoui’s lead defense attorney. The participants will share stories from both inside and outside the courtroom and reflect on the historic nature of the case in the aftermath of the 9/11 attacks.
- On September 10, EDVA will host an internal virtual remembrance program during which staff members district-wide will have the opportunity to voluntarily share their personal stories and recollections about 9/11, honor the memory of their loved ones, and describe the impact the tragedy had on their decision to enter or continue public service.
- On September 11, a team from EDVA will participate in the annual Arlington Police, Fire, Sheriff and Emergency Communications Center (ECC) 9/11 Memorial 5K Race. Members from all four of EDVA’s Divisions will participate in either the in-person event in Arlington, Virginia or virtually from other locations. The event raises funds for charities that focus on the healing of military personnel and civilians directly affected by the 9/11 attacks.
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.
- On September 7, Acting U.S. Attorney Parekh will host a virtual fireside chat with Michael J. Morell, the former Acting Director and Deputy Director of the Central Intelligence Agency (CIA). Mr. Morell served for 33 years in the CIA, worked for six different U.S. presidents, and is the only person who was both with President Bush on September 11, 2001 and with President Obama on May 1, 2011 when Osama bin Laden was brought to justice. Mr. Morell will discuss the period leading up to 9/11, share his eyewitness accounts on the day of the attacks, describe the U.S. Government’s response leading up to the Bin Laden operation, and reflect upon counterterrorism efforts since then and going forward.
Former Police Officer Indicted for Child Pornography OffensesRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment yesterday charging a Virginia Beach man with attempted production of child pornography, receipt of child pornography, and access with intent to view child pornography.
According to court documents, Nathan Allen, Jr., 33, who was employed as a police officer by the Kingsmill Resort in Williamsburg and before that by the Hampton Police Department, allegedly attempted to produce child pornography using a minor on separate dates in 2019 and 2021, when she was then 11 and 12 years old. The indictment alleges that Allen received images of child sexual abuse material on various dates in the spring of 2021, and in May 2021 accessed child pornography on a cell phone.
Allen is charged with two counts of attempted production of child pornography, three counts of receipt of child pornography, and one count of access with intent to view of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison on the production charges, a mandatory minimum of 5 years in prison and a maximum penalty of 20 years in prison on the receipt charges, and a maximum penalty of 20 years on the access with intent to view charge. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement.
Assistant U.S. Attorney Rebecca Gantt and Special Assistant U.S. Attorney Matthew Heck are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-107.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Statement of Acting U.S. Attorney Raj Parekh on Alexanda Kotey’s Guilty PleaRead the Press Release
Acting United States Attorney Raj Parekh, who is also one of the prosecutors on the case, issued the following statement on Alexanda Kotey’s guilty plea entered this evening in the U.S. District Court for the Eastern District of Virginia:
“Alexanda Kotey, an avowed member of ISIS, pleaded guilty today to all charges that were brought against him in the United States for his participation in a horrific hostage-taking scheme that resulted in the deaths of four U.S. citizens, as well as the deaths of British and Japanese nationals, in Syria. He has agreed to spend the rest of his life in prison.
“The four American victims in this case—James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig—were journalists and humanitarian aid workers, pillars of courage and kindness on the front lines of a perilous conflict. They risked their lives to shine a light on the darkest corners of the globe and to help others most in need. The values that they personified to the very end are the antithesis of those embodied by the terrorist organization that murdered them.
“Contrary to the propaganda perpetuated by ISIS, we have given Alexanda Kotey the opportunity to face justice. Kotey has been afforded due process and, in the face of overwhelming evidence, he made the independent decision to plead guilty to his crimes. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused.
“Today is also a painful anniversary. Seven years ago, the world was devastated by images depicting the death of Steven Sotloff. It is our hope that we can not only remember the heartbreaking loss of Steven, Kayla, Jim, Peter, and all of the other victims who suffered at the hands of the Islamic State, but also begin to bring a measure of comfort and healing for their loved ones.
“This case has always been focused on the victims and their families. Their resilience, courage, and perseverance have ensured that terror will never have the last word. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
ISIS Militant Pleads Guilty to Role in Deaths of Four Americans in SyriaRead the Press Release
A militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, pleaded guilty today to all charges that were pending against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to court records, from in or around November 2012 through on or about Feb. 7, 2015, former British citizen Alexanda Amon Kotey, 37, served as an ISIS fighter and participated in the captivity of American and European hostages in Syria. Kotey specifically participated in the seizure, detention and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Kotey participated in hostage operations involving British, Italian, Danish and German nationals, among others.
“This guilty plea ensures that Kotey will spend the rest of his life in prison for the horrific crimes he has committed,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Although there remains much work to be done in this case, we hope today’s events provide some measure of justice for Kotey’s victims and their families as they continue to grieve the loss of their loved ones. I want to thank all of the agents, analysts and prosecutors who worked tirelessly on this investigation and prosecution – their efforts are proof that the National Security Division and our partners will not rest in our commitment to hold accountable terrorists who target and attack U.S. citizens anywhere in the world.”
“This case has always been focused on the victims and their families,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Their resilience, courage, and perseverance have ensured that terror will never have the last word. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
“Years ago, Alexanda Kotey’s actions played out on the world stage, and those brutal crimes against Americans James Foley, Steven Sotloff, Peter Kassig and Kayla Mueller, as well as two British and two Japanese hostages are forever burned into the eyes of the American people,” said Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office. “This guilty plea will not lessen the suffering of those affected by his cruelty, but I hope it reminds the world of the FBI’s unwavering dedication to finding and prosecuting all individuals who inflict harm on U.S. citizens, no matter their location.”
“Today we take a moment to remember all of the victims who perished at the hands of the Islamic State of Iraq and al-Sham (ISIS) in Syria, and our thoughts are especially with the Sotloff, Kassig, Foley and Mueller families,” said Executive Assistant Director Jill Sanborn of the FBI’s National Security Branch. “Alexanda Kotey’s admission of guilt does not lessen the pain suffered by these families and others whose loved ones were taken from them by this heinous terror group, but we hope that this announcement will bring them closer to the justice that they deserve. I am proud of the unwavering dedication and tireless efforts of the men and women of the FBI and all of our partners – both domestic and international – to see justice served for these acts of terrorism.”
According to court records, Kotey and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held and were responsible for transferring hostages between detention facilities. Kotey and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to control the hostages. These actions were also intended to compel the victims’ family members and the U.S. government to pay large monetary ransoms for their release, in addition to compelling the U.S. government to agree to other terms and conditions for the victims’ return.
In addition to physically and psychologically abusing the hostages, Kotey and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed on or about April 25, 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Kotey and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about Feb. 7, 2015, Kayla Mueller’s family received an email from ISIS fighters confirming Mueller’s death in Syria.
Kotey was part of a group of four ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” Kotey and alleged co-conspirator El Shafee Elsheikh, 33, whose case remains pending in the U.S. District Court for the Eastern District of Virginia, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohamed Emwazi, who conducted the videotaped beheadings referenced above, was killed in November 2015 in a U.S. military airstrike in Syria.
Kotey pleaded guilty to all of the offenses charged in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff and Peter Edward Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British and Japanese nationals.
Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on March 4, 2022 by Senior U.S. District Judge T. S. Ellis, III.
The plea agreement entered in the case ensures that the defendant will serve the rest of his life in prison. Per the agreement, after 15 years of the defendant’s imprisonment in the United States, if the defendant has complied with all terms of the plea agreement and requests a transfer to the United Kingdom, the U.S. Attorney’s Office for the Eastern District of Virginia has agreed to take all reasonable measures under the law to support the transfer of Kotey to the United Kingdom. As part of the plea agreement, Kotey has agreed that, prior to any such transfer, he would plead guilty in a U.K. prosecution, accept responsibility for relevant violations of U.K. law, and face a sentence in the U.K. of life in prison without parole – a sentence which he has agreed would be a fair and proper punishment. If the actual sentence he serves in the U.K. is less than life for any reason, Kotey has agreed to serve the remainder of his U.S.-imposed life sentence in the U.K., if that is legally available, or to be transferred back to the United States to serve the remainder of his sentence.
Pursuant to the plea agreement, the U.S. Attorney’s Office for the Eastern District of Virginia and Kotey understand and agree that – even if all of the necessary preconditions are met – the acceptance of any such requested transfer would be subject to the discretion of the United Kingdom. As indicated in the plea agreement, should the U.K. government deny any such requested transfer, Kotey will serve his mandatory life sentence in the United States.
The Department of Justice expresses its profound appreciation to our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
This case is being investigated by the FBI’s Washington Field Office.
Assistant U.S. Attorney Dennis M. Fitzpatrick, Acting U.S. Attorney Raj Parekh, and Assistant U.S. Attorneys John T. Gibbs and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Alicia H. Cook of the National Security Division‘s Counterterrorism Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided invaluable assistance.
ISIS Militant Pleads Guilty to Role in Deaths of Four Americans in SyriaRead the Press Release
ALEXANDRIA, Va. – A militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, pleaded guilty today to all charges that were brought against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to court records, from in or around November 2012 through on or about February 7, 2015, former British citizen Alexanda Amon Kotey, 37, served as an ISIS fighter and participated in the captivity of American and European hostages in Syria. Kotey specifically participated in the seizure, detention, and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Kotey participated in hostage operations involving British, Italian, Danish, and German nationals, among others.
“This case has always been focused on the victims and their families,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Their resilience, courage, and perseverance have ensured that terror will never have the last word. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
“This guilty plea ensures that Kotey will spend the rest of his life in prison for the horrific crimes he has committed,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Although there remains much work to be done in this case, we hope today’s events provide some measure of justice for Kotey’s victims and their families as they continue to grieve the loss of their loved ones. I want to thank all of the agents, analysts and prosecutors who worked tirelessly on this investigation and prosecution – their efforts are proof that the National Security Division and our partners will not rest in our commitment to hold accountable terrorists who target and attack U.S. citizens anywhere in the world.”
“Years ago, Alexanda Kotey’s actions played out on the world stage, and those brutal crimes against Americans James Foley, Steven Sotloff, Peter Kassig, and Kayla Mueller, as well as two British and two Japanese hostages are forever burned into the eyes of the American people,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “This guilty plea will not lessen the suffering of those affected by his cruelty, but I hope it reminds the world of the FBI’s unwavering dedication to finding and prosecuting all individuals who inflict harm on U.S. citizens, no matter their location.”
According to court records, Kotey and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held and were responsible for transferring hostages between detention facilities. Kotey and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to control the hostages. These actions were also intended to compel the victims’ family members and the U.S. government to pay large monetary ransoms for their release, in addition to compelling the U.S. government to agree to other terms and conditions for the victims’ return.
In addition to physically and psychologically abusing the hostages, Kotey and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed on or about April 25, 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Kotey and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff, and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about February 7, 2015, Kayla Mueller’s family received an email from ISIS fighters confirming Mueller’s death in Syria.
Kotey was part of a group of four ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” Kotey and alleged co-conspirator El Shafee Elsheikh, 33, whose case remains pending in the U.S. District Court for the Eastern District of Virginia, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohamed Emwazi, who conducted the videotaped beheadings referenced above, was killed in November 2015 in a U.S. military airstrike in Syria.
Kotey pleaded guilty to all of the offenses charged by the U.S. Attorney’s Office for the Eastern District of Virginia in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British, and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British, and Japanese nationals.
Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on March 22, 2022 by Senior U.S. District Judge T. S. Ellis, III.
The plea agreement entered in the case ensures that the defendant will serve the rest of his life in prison. Per the agreement, after 15 years of the defendant’s imprisonment in the United States, if the defendant has complied with all terms of the plea agreement and requests a transfer to the United Kingdom, the U.S. Attorney‘s Office for the Eastern District of Virginia has agreed to take all reasonable measures under the law to seek the transfer of Kotey to the United Kingdom. As part of the plea agreement, Kotey has agreed that, prior to any such transfer, he would plead guilty in a U.K. prosecution, accept responsibility for relevant violations of U.K. law, and face a sentence in the U.K. of life in prison without parole – a sentence which he has agreed would be a fair and proper punishment. If the actual sentence he serves in the U.K. is less than life for any reason, Kotey has agreed to serve the remainder of his U.S.-imposed life sentence in the U.K., if that is legally available, or to be transferred back to the United States to serve the remainder of his sentence. Pursuant to the plea agreement, the U.S. Attorney’s Office for the Eastern District of Virginia and Kotey understand and agree that – even if all of the necessary preconditions are met – the acceptance of any such requested transfer would be subject to the sole discretion of the United Kingdom. As indicated in the plea agreement, should the U.K. government deny any such requested transfer, Kotey will serve his mandatory life sentence in the United States.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its profound appreciation to our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Dennis M. Fitzpatrick; Acting United States Attorney Raj Parekh; and Assistant U.S. Attorneys John T. Gibbs and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-239.
EDVA Announces New Project Safe Neighborhood InitiativesRead the Press Release
ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today new district-wide Project Safe Neighborhood (PSN) initiatives, to include federal prosecutors specifically assigned to coordinate PSN efforts in each of the district’s four geographic Divisions, as part of the district’s ongoing violent crime reduction efforts. The coordinators will work with local, state, and federal partners to help devise and execute enforcement strategies; prioritize community outreach and engagement; support community violence intervention strategies; and measure the effectiveness of these collective efforts. This new initiative arises from the Justice Department’s recently announced Comprehensive Strategy to Reduce Violent Crime.
“Violent crime impacts our communities at the neighborhood level, which is where we are focusing our efforts. We are collaborating closely with our local, state, and federal partners on violence prevention and building trust in the communities we serve,” said Acting U.S. Attorney Raj Parekh. “Together, we are dedicated to protecting our community members, disrupting the organizations behind violent crime and gun trafficking, and pioneering new strategies to help reduce violent crime throughout our district.”
The U.S. Attorney’s Office has appointed eight seasoned federal prosecutors to help coordinate EDVA’s violent crime reduction efforts under the PSN program. 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. To cover the district, each of EDVA’s four Divisions in Alexandria, Richmond, Norfolk, and Newport News have two designated PSN Division Representatives. They, in turn, will work with the district’s team of over 40 experienced Assistant U.S. Attorneys (AUSAs) and Special AUSAs (SAUSAs), who focus on prosecuting violent crime, firearms trafficking, and related cases that are prioritized under the enforcement component of the PSN program. These prosecutors will coordinate with EDVA’s law enforcement and community partners to prevent and disrupt violent crime and prosecute the most violent offenders and dangerous criminal organizations in our communities.
Consistent with the Department’s comprehensive strategy, EDVA’s PSN team will work with local, state, and federal law enforcement partners to identify and focus on the most significant drivers of violent crime in all four Divisions. As part of these enhanced PSN efforts, EDVA will also collaborate with state, local, non-governmental, and community partners that are awarded U.S. Department of Justice grants to combat violent crime, strengthen community-based prevention and intervention efforts, and assess the effectiveness of these steps.
EDVA and its PSN partners are also working with the Justice Department’s newly launched cross-jurisdictional strike forces to help reduce gun violence. These efforts are part of a long-term, coordinated, multi-jurisdictional strategy to disrupt the flow of illegally trafficked firearms. The strike forces are being deployed in five metropolitan areas across the country that the Department has identified as key illegal-firearm markets based on years of firearms trace data compiled and analyzed by ATF as well as gun-trafficking intelligence. Leveraging existing resources, the Washington, D.C. metropolitan area strike force, of which EDVA is a member, will complement EDVA’s PSN initiatives by disrupting trafficking networks from the areas where guns originate to the places where they are used to commit violent crimes.
On May 26, 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN so that it is built on newly articulated core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results of our efforts. The Department expressly underscores that the fundamental goal of this work is to reduce violent crime in the places we call home, not to increase the number of arrests or prosecutions as if they were ends in themselves.
EDVA is also increasing its engagement with community partners under the PSN program, including participating in local offender re-entry efforts, such as the Greater Prince William Re-entry Council, in their ongoing work to help returning citizens successfully reintegrate into society following incarceration. Another major facet of PSN is raising awareness by engaging youth through education. Programs, such as “Silent No More,” are being introduced at schools in the Eastern District of Virginia to educate students and parents about the threat of opioids and other dangerous substances, as well as connecting law enforcement with parents, medical professionals, and educators for life-saving conversations. Additionally, through EDVA’s community-based educational outreach and prevention program known as “UnMasked,” the district is dedicated to raising awareness about the prevalence of online sexual exploitation involving children and young adults.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Portsmouth Woman Sentenced for Fraud Schemes Targeting VeteransRead the Press Release
NEWPORT NEWS, Va. – A Portsmouth woman was sentenced today to 9.5 years in prison for wire fraud and aggravated identity theft in connection with a scheme to defraud veterans.
“What is most egregious about the defendant’s conduct is that she used her own status as a former veteran to defraud and take advantage of other veterans,” said Raj Parekh, Acting U.S. Attorney in the Eastern District of Virginia. “The sentence imposed in this case reflects the serious nature of these fraud schemes and the potential consequences that those who victimize veterans, who have sacrificed so much for our country, could face in the Eastern District of Virginia.”
According to court documents, Rita Copeland, 59, operated an entity known as “Veteran Services of the Commonwealth.” From 2016 through 2020, Copeland purported to provide caregiving, contracting, and rental assistance services to various veterans. Copeland caused a number of victims to apply for Home Improvements and Structural Alterations (HISA) grants through the U.S. Department of Veterans Affairs. Such grant payments are to be used for certain designated improvements to the residences of veterans. Copeland failed to perform all of the promised work and used a portion of these payments to her own benefit, contrary to the designated purposes of the funds.
Copeland also diverted the income and retirement fund payments of another veteran to a bank account that she had opened. In addition, Copeland fraudulently obtained and diverted loan funds and used the credit and debit cards of this elderly victim. Finally, Copeland engaged in a rental fraud scheme, purporting to link veterans and others with landlords, but then diverted rental and security deposit payments to her own benefit. In total, from at least 2017-2020, Copeland’s fraud schemes impacted at least 29 victims, resulting in a combined loss of approximately $430,000.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Brian Samuels prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-63.
Norfolk Man Sentenced for Role in Colonial Heights Armed RobberyRead the Press Release
RICHMOND, Va. – A Norfolk man was sentenced today to over 14.5 years in prison for his role in a violent armed robbery of a Sprint Store in Colonial Heights.
According to court records and evidence presented at trial, on the afternoon of January 7, 2019, Ronnell Kareen Levon Johnson, 28, and his co-conspirator, Tajh Rodgers, 32, of Norfolk, traveled from the Norfolk area to Colonial Heights to commit an armed robbery of a Sprint Store. During the robbery, Rodgers brandished a loaded .40 caliber Ruger semi-automatic pistol and forced two employees into a back room of the store, where he let Johnson in through the back entrance. Johnson entered the store and started gathering Sprint Store merchandise into a bag.
Johnson and Rodgers then held the employees hostage in the back room, and attempted to tie up both victims while they completed the robbery. Due to a time-delay lock on the store’s safe, the defendants had to wait approximately 20 minutes for the safe to open. During that time, two separate customers entered the front of the store. Rodgers let one of the employees assist each customer, along with a warning that the employee would be killed if he tried to alert anyone about the crime. The employee followed those instructions and the final customer left without incident. Minutes after the second customer departed, the time-delay lock on the safe opened, allowing Johnson and Rodgers to steal dozens of cellular telephones and other store merchandise valued at approximately $25,000.
During a court-authorized search of Rodgers’s residence, officers recovered the loaded .40 caliber Ruger semi-automatic pistol used in the robbery, various stolen Sprint Store items, and other evidence. Using toll records and cellular tower data, law enforcement later identified Johnson as Rodgers’s co-conspirator in the armed robbery based on Johnson’s travel to and from the Colonial Heights Sprint Store on January 7, 2019, along with other evidence.
Johnson was sentenced today to 175 months in prison. On May 28, a federal jury in Richmond convicted Johnson on one count of robbery affecting commerce. Rodgers pleaded guilty on October 22, 2019 to the Colonial Heights armed robbery as well as three charges of possessing a firearm in furtherance of drug trafficking. Rodgers was sentenced to 28 years imprisonment on January 9, 2020 for his role in the armed robbery and other unrelated criminal conduct.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Michael Gill prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-133.
Jury Convicts Recidivist Defendant of Possessing Child PornographyRead the Press Release
A federal jury in the Eastern District of Virginia convicted a Virginia man yesterday for possession of child pornography.
According to court documents and evidence presented at trial, James B. Clawson Sr., 58, of Alexandria, was previously convicted of distribution of child pornography after law enforcement learned that he was serving as an administrator of an online forum dedicated to trafficking in child sexual abuse material. In 2019, while Clawson was serving a term of federal supervised release in connection with this conviction, a U.S. probation officer discovered that he was concealing a laptop computer and multiple thumb drives in his home. Clawson told the probation officer that he had built a hidden compartment in a shelving unit in his closet to conceal the devices because he did not want to have his internet activity monitored.
“James Clawson is a repeat child sex offender who has demonstrated that he cannot and will not be deterred from downloading images and videos depicting the sexual abuse of children,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department is committed to working closely with our law enforcement partners to ensure that child sex offenders like Clawson will be held accountable for their crimes.”
“The evidence at trial demonstrated that the defendant’s prior conviction for distributing child pornography unfortunately did not deter him from continuing to seek out such heartbreaking and illegal images,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Thanks to the diligent efforts of the trial team and our law enforcement partners, the defendant has been held accountable for his recidivist conduct by a jury of his peers.”
“Child exploitation sites present a grave danger to children and unprecedented challenges to the world’s law enforcement agencies,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s verdict demonstrates the FBI’s ongoing commitment to pursue individuals engaging in child exploitation offenses and secure justice for children that are victimized by this egregious conduct.”
“Recidivism is a real problem among convicted sex offenders,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “As this jury verdict shows, the FBI is committed to bringing individuals like Clawson – who continued to exploit children even after they have been caught once – to justice no matter what it takes. The safety of our children is a priority for the FBI, and we will stop at nothing to protect them.”
Evidence presented at trial established that Clawson used the laptop to search for and repeatedly download from the internet images and videos of minors engaged in sexually explicit conduct and then stored those images on one of his thumb drives. The evidence further established that Clawson sorted these child sexual abuse images on his thumb drive and assigned them files names based on the specific sexually explicit conduct they depicted.
Clawson was convicted of possession of child pornography. He is scheduled to be sentenced on Dec. 1 and faces a mandatory minimum sentence of 10 years in prison and a maximum of 20 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case, with significant assistance from the High Technology Investigative Unit of the Justice Department Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Trial Attorney William G. Clayman of CEOS and Assistant U.S. Attorney Seth M. Schlessinger of the Eastern District of Virginia are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
Jury Convicts Recidivist Defendant of Possessing Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria man today on charges of possessing child pornography.
“The evidence at trial demonstrated that the defendant’s prior conviction for distributing child pornography unfortunately did not deter him from continuing to seek out such heartbreaking and illegal images,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the diligent efforts of the trial team and our law enforcement partners, the defendant has been held accountable for his recidivist conduct by a jury of his peers.”
According to court records and evidence presented at trial, James B. Clawson, Sr., 58, was previously convicted of distribution of child pornography in 2009 after law enforcement learned that he was serving as an administrator of an online forum dedicated to trafficking child sexual abuse material. In July 2019, while Clawson was completing a term of federal supervised release in connection with his conviction, a U.S. probation officer discovered that Clawson had been hiding a laptop computer and multiple thumb drives in a hidden compartment in a shelving unity in his home.
Evidence presented at trial established that Clawson used the laptop to search for and repeatedly download from the internet images and videos of minors engaged in sexually explicit conduct and then stored those images on one of his thumb drives. The evidence further established that Clawson sorted these child sexual abuse images on his thumb drive and assigned them files names based on the specific sexually explicit conduct they depicted.
Clawson was convicted of possession of child pornography. He faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of 20 years in prison when sentenced on December 1, 2021. 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
The FBI investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Assistant U.S. Attorney Seth Schlessinger and Special Assistant U.S. Attorney William G. Clayman are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-119
Reston Man Sentenced for Counterfeit COVID-19 Stimulus Checks SchemeRead the Press Release
ALEXANDRIA, Va. – A Reston man was sentenced today to 70 months in prison for bank fraud and aggravated identity theft in connection with a scheme to create counterfeit Economic Impact Payments, also known as COVID-19 stimulus checks, and for attempting to conduct a series of fraudulent financial transactions.
“The defendant’s extensive fraud scheme involved the unlawful acquisition of personal identification information belonging to over 150 individuals,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In addition to causing financial harm to the individuals from whom he stole checks and credit cards, the defendant’s sweeping criminal conduct also inflicted emotional harm and distress to his identity theft victims. As this case demonstrates, we are determined to hold accountable those who seek to illegally enrich themselves by defrauding and stealing from our residents.”
According to court documents, between approximately December 2019 and August 2020, Jonathan Drew, 39, stole U.S. mail addressed to more than 150 individuals in Fairfax and Loudoun counties. The mail Drew stole included bank statements, credit cards, credit card statements, W-2 forms, and more than $700,000 in checks, including a COVID-19 stimulus payment and checks Drew used to create counterfeit checks.
According to court documents, Drew used the stolen stimulus check to create counterfeit stimulus checks ranging from $1,200 to $2,400, and he negotiated his own authentically issued stimulus check twice. Drew also used the personally identifiable information of several individuals without authorization to lease an apartment; open bank accounts; and attempt to conduct fraudulent transactions through counterfeit checks, forged checks, unauthorized use of credit cards, and wire transfers.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; J. Russell George, Treasury Inspector General for Tax Administration; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Kevin Davis, Fairfax County Chief of Police; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Special Assistant U.S. Attorneys Olivia Zhu and Roberta O. Roberts, and Assistant U.S. Attorney Russell L. Carlberg prosecuted the case.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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-71.
Jury Convicts Chesapeake Man of Child Pornography OffensesRead the Press Release
NORFOLK, Va. – A federal jury convicted a Chesapeake man yesterday on charges of attempted receipt of child pornography and access with intent to view child pornography.
“The jury’s verdict holds the defendant accountable for his inexplicable decision to engage in this serious conduct while on supervised release and notwithstanding his prior federal conviction involving the receipt of child pornography,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its gratitude to the trial team and the FBI for their thorough investigative efforts, which helped secure this conviction.”
According to court records and evidence presented at trial, in 2011 in the Eastern District of Virginia, Curtis Culbertson, 63, pleaded guilty to receipt of child pornography and was sentenced to 90 months in prison, followed by a lifetime of supervised release. While on supervised release in 2017, Culbertson began living and working in Chesapeake. Within days of starting his job, Culbertson began using an unmonitored work computer to search for and access with intent to view child sexual abuse material.
Culbertson faces a mandatory minimum penalty of 15 years in prison when sentenced on January 6, 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.
Raj Parekh, Acting 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 Senior U.S. District Judge Robert G. Doumar accepted the verdict.
Assistant U.S. Attorneys Elizabeth Yusi and Megan Montoya are prosecuting the case.
This case was investigated by the FBI’s Norfolk Child Exploitation Task Force, which is composed of FBI agents and detectives from the Chesapeake Police Department, Hampton Police Division, and Newport News Police Department. Assistance in this matter was also provided by federal agents from Homeland Security Investigations. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children. Tips regarding child exploitation can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-97.
Former Norfolk Sheriff Convicted of Public Corruption ChargesRead the Press Release
NORFOLK, Va. – A federal jury convicted a former Norfolk City Sheriff today on eleven counts, including conspiracy to commit honest services mail fraud, honest services mail fraud, conspiracy to obtain property under color of official right, obtaining property under color of official right, and conspiracy to commit money laundering.
“As the evidence at trial demonstrated, former Sheriff McCabe brazenly abused his position of power as an elected official and accepted bribes to enrich himself in exchange for granting city contracts,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The jury’s guilty verdict on all counts sends a strong message that government officials who corrupt their oaths and betray the community’s trust will be held accountable in the Eastern District of Virginia. We are deeply grateful to trial team, our law enforcement partners, and the witnesses who came forward to help bring this defendant to justice on behalf of the citizens of Norfolk.”
According to court records and evidence presented at trial, Robert James McCabe, 63, who currently resides in West Palm Beach, Florida, engaged in illicit quid pro quo relationships with vendors while McCabe served as the Sheriff of the City of Norfolk.
Evidence presented at trial showed that, from 1994 through 2016, vendors provided McCabe with cash, travel, entertainment, gift cards, catering, personal gifts, and campaign contributions, in exchange for official actions that favored the vendors and their contracts with the Norfolk City Jail. These favorable actions included changing the terms of the contracts to favor certain companies, granting extensions and renewals, and providing inside bidding information. In exchange, ABL Management, Inc., the company that provided food services for the Norfolk City Jail, regularly provided free catering at the defendant’s home, for his annual golf tournaments, and for other political events. ABL’s former CEO also gave the defendant free trips – including a trip to the 2004 BCS National Championship game in Louisiana – and a ride in a glass-bottomed helicopter in San Francisco.
Evidence further demonstrated that the defendant met with one vendor at a hotel in Philadelphia where he received $6,000 in cash, which he described during his testimony at trial as a “loan.” However, the defendant never executed any loan documents, never made any payments on this “loan,” and never disclosed the existence of this “loan” on his Statement of Economic Interest forms. Evidence presented at trial also showed that, despite receiving a multitude of gifts from these vendors, the defendant never disclosed any of these items in his required campaign disclosures.
“Robert McCabe betrayed his oath to the citizens of Norfolk out of greed and self-interest. Instead of living up to his promise to serve the community, he abused his official position to serve himself,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “There is no place in public service for this kind of self-dealing, and this case demonstrates the FBI’s continued commitment to rooting out and exposing public corruption.”
“Elected officials should be the standard bearers for the rule of law and be the model of integrity to their constituency. McCabe was neither. Instead, he used his position of public trust for personal enrichment,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office. “We will continue to dedicate resources to investigate crimes of this nature to ensure those who exploit their powers are held accountable.”
McCabe faces a maximum penalty of 20 years in prison for each count when sentenced on January 21, 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Darrell J. Waldon, Acting Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service, made the announcement after U.S. District Judge Arenda Wright Allen accepted the verdict.
Assistant U.S. Attorneys Melissa E. O’Boyle, Randy C. Stoker, and Anthony Mozzi are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-171.
Florida Man Sentenced for Selling Counterfeit Drugs on the Dark NetRead the Press Release
ALEXANDRIA, Va. – An Inverness, Florida, man was sentenced today to three years in prison for selling hundreds of thousands of counterfeit prescription drug pills through the Internet.
“By selling counterfeit drugs through the Darknet, the defendant recklessly endangered the community and placed his own personal gain over the health and safety of the public,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Working closely with our partners through the Hi-Tech Opioid Task Force, EDVA will continue to investigate, prosecute, and hold accountable those who contribute to the proliferation of illegal pharmaceuticals on dark web marketplaces.”
According to court documents, from at least April 2019 until October 2020, Benjamin Burdick, 55, sold at least 249,700 counterfeit Xanax pills through online hidden marketplaces. From his residence in Florida, Burdick used a pill press to manufacture pills that he stamped with the letters ‘Xanax.’ The pills that Burdick created did not contain just alprazolam, which genuine Xanax contains, but also contained substances such as flualprazolam, etizolam, adinazolam, and microcrystalline cellulose.
“The FBI works every day with our law enforcement partners to stop the sale of illegal drugs on the Dark Web. These drugs are not only illegal but can be extremely dangerous because these drug dealers are not selling the drugs they claim to be. The counterfeit pills that Burdick was selling online could have deadly consequences in our communities across the country,” said Acting Special Agent in Charge Robert E. Bornstein of the FBI Washington Field Office Criminal Division. “The FBI Washington Field Office’s Hi-Tech Opioid Task Force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.”
“Selling counterfeit prescription drugs in the U.S. marketplace puts consumers’ health at risk,” said Special Agent in Charge Mark S. McCormack of the FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA remains fully committed to disrupting and dismantling illegal prescription drug distribution networks that place profits ahead of public health and safety.”
“Whenever someone uses the U.S. Mail to send anything that is counterfeit, illegal or potentially dangerous, Postal Inspectors will find them and bring them to justice,” said Daniel A. Adame, Inspector in Charge of the Washington Division, U.S. Postal Inspection Service. “Together with our partners at the Hi-Tech Opioid Task Force we continue to investigate those who misuse the mail in furtherance of their criminal activity. We remain committed to keeping the mail safe for our customers and our employees.”
Between June 2019 and August 2020, undercover federal agents purchased multiple packages of counterfeit pills from Burdick. When his home was searched pursuant to a federal search warrant in October 2020, agents recovered 16,000 counterfeit pills, a pill press, and almost $150,000 in cash. Law enforcement also discovered six firearms and miscellaneous ammunition in Burdick’s residence.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Alexander P. Berrang and Jay V. Prabhu and former Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted the case. Trial Attorney Josh Rothman and Senior Litigation Counsel Linda Marks of the Civil Division’s Consumer Protection Branch provided significant assistance on this case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
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-47.
Maryland Man Sentenced for Million Dollar Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Owings Mills, Maryland man was sentenced today to 40 months in prison for wire fraud and identity theft in connection with a fraudulent investment scheme worth approximately $1.26 million.
According to court records and evidence presented at trial, Manish Singh, 48, entered into an agreement in 2016 with a married couple to create a business that would design and sell high-end fabrics. The couple was to provide the capital for the business, and Singh was to contribute his expertise and contacts in the fabric industry.
Singh represented to the victim investors that their money was being used for numerous expenses related to the business, such as the manufacture of fabric in India. In reality, Singh was using the victims’ money almost entirely for personal expenses, mostly to view live pornography online. Based on Singh’s misrepresentations, the victims gave him approximately $1.26 million for the fraudulent joint business venture.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis III.
Assistant U.S. Attorney Grace L. Hill and Heidi B. Gesch 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. 1:20-cr-59.
U.S. Defense Contractor and Employees Sentenced for Procurement Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Hampton-based U.S. defense contractor, its owner, and four of its employees were sentenced yesterday and today. The owner was sentenced to 58 months in prison, and his four employees were sentenced today to a combined 93 months years in prison, for engaging in an extensive procurement fraud scheme involving more than $7 million in government contracts targeting the U.S. Department of Defense and other federal government agencies.
“The defendants’ egregious scheme caused the U.S. government to spend over $7 million on fraudulently imported goods. These funds were intended for deserving beneficiaries, including American workers, service-disabled veterans, and authorized trading partners,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “This prosecution demonstrates our firm commitment to holding accountable those who defraud our military and brazenly disregard laws that are designed to protect the strength of our country’s infrastructure and manufacturing base.”
According to court documents, from 2011 to 2018, Iris Kim, Inc., (aka “I-Tek”) owner Beyung S. Kim, 62, of Newport News, and employees Seung Kim, 31, of Newport News; Dongjin Park, 54, of Yorktown; Chang You, 62, of Yorktown; Pyongkon Pak, 53, of Toano; and Li-Ling Tu, 58, of China, engaged in a conspiracy and scheme related to certain government contracts for which I-Tek acted as a supplier of goods, including items for the U.S. Marine Corps, U.S. Army, U.S. Coast Guard, and the National Guards of various states, among other agencies.
The defendants obtained government contracts that had certain set-aside preferences and source-of-good requirements. The conspirators acted to defraud the U.S. and commit other substantive offenses by fraudulently importing goods into the U.S. that were made in China in violation of the terms of these contracts. They then falsely relabeled these goods as if they were made in the U.S. Kim and his employees also acted through a separate nominee company to conceal the importing of goods from China and installed a nominee officer of I-Tek in order to be able to fraudulently qualify for contracts set aside for service-disabled veterans. The conspirators also submitted false documents and further falsely classified the value of the goods imported into the U.S. to avoid higher duties and taxes.
“The defendants deserve to be held fully accountable for this reprehensible scheme to knowingly and deceptively source illicit Chinese goods to fulfill Department of Defense contracts,” said Eric Maddox, Special Agent in Charge of the NCIS Economic Crimes Field Office. “This scheme threatened the readiness and safety of our nation’s warfighters, defrauded the American taxpayer, damaged the integrity of the Department of the Navy procurement process, and squandered valuable investigative resources that could have been directed elsewhere. NCIS will continue to work with our law enforcement partners to aggressively root out those who seek to defraud the Navy and Marine Corps.”
“For years, the Iris Kim, Inc., corporation defrauded the U.S. government out of millions of dollars and violated its contract by attempting to use substandard goods made in China, then relabeling them as 'Made in the U.S.A.' in order to make a hefty profit,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Thanks to the multi-agency investigative work uncovering this procurement fraud scheme, those involved will now face the consequences of their crimes.”
“These sentencings demonstrate the resolve of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and its law enforcement partners in protecting the safety and readiness of our military,” said Christopher Dillard, Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “DCIS and its partners will vigorously pursue those who put our warfighters at risk by introducing substandard products into the DoD supply chain.”
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Chris Dillard, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and Eric Maddox, Special Agent in Charge of the NCIS Economic Crimes Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak. Significant assistance was provided by the Defense Contract Audit Agency.
Assistant U.S. Attorney Brian J. Samuels and D. Mack Coleman, and Trial Attorney Matthew P. Mattis of the Justice Department’s Criminal Division 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-47.
Virginia Man Sentenced for Role in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – A Virginia man was sentenced today to 14 years in prison for his role in an investment fraud scheme in which he and his co-conspirators stole approximately $5.7 million from victim investors.
According to court documents, James Leonard Smith, 65, of Midlothian, was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and money laundering on October 30, 2020, after a four-day trial.
According to the evidence presented at trial, from around 2014 to 2017, Smith participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. The fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date in exchange for an up-front payment. Among other misrepresentations, Smith and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these documents were fabricated, sometimes with the assistance of Smith himself. The evidence also showed that Smith and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give victims the impression that their money would remain secure until the defendants’ promises had been kept. Smith and his co-conspirators stole at least $5.7 million from their victims.
Co-conspirator Stuart Jay Anderson, 54, of Aliso Viejo, California, an escrow attorney involved in the scheme, was sentenced to four years in prison on December 3, 2020. Co-defendant James Michael Johnson, 70, of Richmond, was sentenced to more than eight years in prison on March 5. Co-defendant Brian Michael Bridge, 48, of London, England, a fugitive, was also charged in the superseding indictment and is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group; and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
The U.S. Postal Inspection Service, FBI’s Richmond Field Office, and the Virginia State Corporation Commission investigated the case.
Assistant U.S. Attorney Michael C. Moore and Trial Attorneys Vasanth Sridharan and Christopher Jackson of the Criminal Division’s Fraud Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:19-cr-117 and 3:19-cr-178.