Eastern District of Virginia
Press releases recorded for this federal judicial district.
Virginia Beach Man Sentenced for Fraud Scheme Undermining Maritime SafetyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 45 months in prison for mail fraud, wire fraud, and aggravated identity theft.
According to court documents, from July 2016 to December 2019, Lamont Godfrey, 43, of Virginia Beach; Eugene Johnson, 46, of Manteca, California; Shunmanique Willis, 44, of Richmond, Texas; and Alonzo Williams, 46, of Pineville, Louisiana, acted in concert to create counterfeit certificates from the Mid-Atlantic Maritime Academy (MAMA) and sell them to merchant mariners for a profit. Godfrey worked as the Chief Administrator for the MAMA, a private state-of-the-art maritime training center, offering mariners over 100 U.S. Coast Guard-approved deck and engineering courses needed for merchant mariners to hold various positions on merchant vessels.
“The defendant and his co-conspirators devised a dangerous fraud scheme that enriched themselves at the expense of public safety,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “By selling counterfeit merchant mariner certificates in exchange for cash payments, the defendant and others permitted untrained and unqualified mariners to perform jobs onboard merchant vessels they were not entitled to hold. This case sends a clear message that those who endanger public safety on the water will face serious consequences in the Eastern District of Virginia.”
Godfrey used this position to create fake MAMA course certificates for mariners who had never taken the MAMA courses, in exchange for thousands of dollars in payments. The mariners would receive the fake certificates along with instructions on how to load them in the Coast Guard systems and be credited with a fraudulent Coast Guard qualification. Johnson, Willis, and Williams worked with Godfrey as brokers to find additional mariners willing to buy the fake certificates. In exchange for their efforts, Johnson, Willis, and Williams all received a cut of the illicit proceeds from the scheme. In total, the conspiracy netted over $394,000 in profits, $249,000 of which directly went to Godfrey, from the production of these counterfeit MAMA certificates, and involved over 252 mariners purchasing fraudulent qualifications.
“Credentialed mariners are entrusted with the safety and security of commercial vessels, and the vast majority are dedicated, safety-conscious individuals who work hard to earn their professional credentials and endorsements. By enabling a group of mariners to circumvent the Coast Guard’s credentialing protocols through fraud, this individual and his accomplices undermined our credentialing system and threatened our waterways,” said John Mauger, Rear Admiral and Assistant Commandant for Prevention Policy for the U.S. Coast Guard. “Today’s sentencing demonstrates the tireless efforts of the Coast Guard and Department of Justice, and ensures the United States’ Marine Transportation System remains one of the safest in the world. We are confident this ruling sends a strong message that the U.S. government will not tolerate these types of acts and will vigorously take action against such misconduct.”
Williams was sentenced on June 24 to 27 months in prison for his role in the conspiracy. Willis was sentenced on June 28 to 18 months in prison for his role in the conspiracy. Johnson was sentenced on August 3 to 29 months in prison for his role in the conspiracy.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, 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 Robert G. Doumar.
Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-95.
Jury Convicts Hampton Woman on Heroin and Money Laundering ChargesRead the Press Release
NEWPORT NEWS, Va. – On Friday, a federal jury convicted a Hampton woman on charges of conspiracy to distribute and possession with intent to distribute heroin, and conspiracy to commit money laundering.
“The jury’s verdict holds the defendant accountable for participating in a multi-year conspiracy to distribute large quantities of dangerous opioids and laundering the proceeds of this serious crime,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are grateful to the trial team and everyone who worked with our Office to secure justice in this case on behalf of the community.”
According to court records and evidence presented at trial, between January 2014 and May 2017, Contessa Williams, 45, conspired with others to distribute, and possess with intent to distribute, over 1,000 grams of heroin and launder drug proceeds. Her then-boyfriend, Tracy Hall, 46, of Norfolk, previously pleaded guilty to being the leader in the drug conspiracy and has been attributed with distributing at least 50 kilograms of heroin for total claimed profit of $1.5 million.
Williams’ primary role in the conspiracy was to assist Hall in retrieving, laundering, and spending drug proceeds. Williams deposited drug proceeds in her personal bank accounts and used drug money to start a liquor store in Georgia. After Hall was arrested on state drug charges in early 2016, Williams collected drug proceeds at his direction and otherwise relayed his directives to other co-conspirators responsible for selling drugs on the Peninsula.
Williams faces a mandatory minimum of 10 years in prison and a maximum of life in prison when sentenced on December 9. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 (HSI) Washington, D.C.; and Kenneth Mark Talbot, Chief of Hampton Police, made the announcement after U.S. District Judge Roderick C. Young accepted the verdict.
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.
Assistant U.S. Attorneys Eric M. Hurt and D. Mack Coleman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-19.
Former Pharmacy Technician Pleads Guilty to Prescription FraudRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to acquiring over 50,000 dosage units of prescription medications through fraudulent means.
“Pharmacy technicians are entrusted with safeguarding and maintaining prescription medications in a responsible manner,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This defendant did the opposite. He stole a large supply of prescription medications from a hospital that were intended for the treatment of deserving patients. As this case demonstrates, those who masquerade as health care professionals and abuse their trusted positions will be prosecuted in the Eastern District of Virginia.”
According to court documents, Justin Feliciano Agloro, 40, a former licensed pharmacy technician at Sentara Norfolk General Hospital, had the role of ensuring that the hospital’s controlled substance distribution system, a machine known as an Omnicell, was filled with the correct amounts of various controlled substances. From April 2018 to October 2019, Agloro executed a scheme by which he would steal controlled substances and falsify the Omnicell records to cover his theft. In this manner, Agloro was able to steal a variety of prescription medications, including thousands of prescription opioid pills and other medications.
According to court records, the supervising pharmacist and an Omnicell technician uncovered Agloro’s fraudulent scheme when he was on personal leave from the hospital. Agloro avoided camera systems and successfully intercepted daily Omnicell reports that would have confirmed his diversion of controlled substances while on duty at the hospital. Agloro also removed reports related to cabinets from which he had diverted controlled substances and replaced them with ones from cabinets he had not accessed or from which he had not diverted controlled substances. In total, Agloro stole over 50,000 units of controlled substances.
Agloro is scheduled to be sentenced on December 17. He faces a maximum penalty of four 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 Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Joseph Kosky 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-75.
Virginia Man Sentenced for String of Armed Robberies in Hampton RoadsRead the Press Release
NORFOLK, Va. – A Newport News man was sentenced today to 25 years in prison for his role in a series of armed convenience store robberies.
“The defendant and others committed a series of terrifying armed robberies and stole from community members throughout the Hampton Roads region,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will not tolerate the spreading of fear or violence in our neighborhoods, and our residents—including the hard-working entrepreneurs who run these businesses—deserve to feel safe at all times. This case serves as another example of our continued commitment to working closely with our federal, state, and local partners to combat violent crime and hold accountable those who commit such crimes.”
According to court documents, Daniel Zeigler-Irizarry, Jr., 22, and other co-conspirators, committed a string of armed robberies throughout the Hampton Roads region in November and December 2019. Zeigler-Irizarry and others robbed six different stores at gunpoint in four different cities in Hampton Roads of U.S. currency and commercial products. Zeigler-Irizarry and a co-conspirator stole vehicles belonging to others and used them to move between their targeted locations. During the final robbery, a tracker was concealed in one of the money packs stolen by Zeigler-Irizarry and a co-conspirator. The signal emitting from the tracking device allowed authorities to track their movements from the scene of the final robbery to a neighborhood in Newport News. To avoid being arrested, Zeigler-Irizarry and a co-conspirator fled at high speeds in a stolen vehicle through a neighborhood until they crashed the vehicle and were ultimately apprehended. At that point, law enforcement recovered the tracker, a firearm, commercial products, and U.S. currency.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Scott Burke, Interim Chief of Portsmouth Police; Col. K.L. Wright, Chief of Chesapeake Police; Kenneth Mark Talbot, Chief of Hampton Police; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Sherrie Capotosto 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-87.
Bloods Gang Member Sentenced for Murder, Robbery, and Drug TraffickingRead the Press Release
NEWPORT NEWS, Va. – A Washington, D.C. man was sentenced today to life in prison for committing murder with a firearm, robbery, and conspiracy to possess and distribute cocaine.
According to court documents, on January 15, 2017, Dawhan Archible, 27, and his co-conspirators, murdered Luke Michael Dudley, 23, with a firearm in the aftermath of a drug deal. Archible is a self-proclaimed “bloods boss” and admitted he has been in the Bloods gang since he was 13 years old.
On the morning of the murder, Archible traded heroin for cocaine, which he then traded with Dudley for what he believed to be Percocet pills. Following the drug transaction, Archible learned that Dudley had provided him fake drugs instead of Percocet. In response, Archible and his co-conspirators broke into Dudley’s rooming house in Newport News and confronted him. Archible directed a co-conspirator to bring a firearm. Archible shot Dudley several times with a 9mm Glock pistol and then handed the gun to his co-conspirator, who also shot Dudley.
Later that afternoon, local law enforcement officers responded to a burglary call and found Dudley deceased from 17 gunshot wounds to the head, torso, and extremities. Archible’s DNA was linked to blood recovered from the scene.
Archible was sentenced to life in prison for the use of a firearm resulting in death. Additionally, he was sentenced to a consecutive term totaling 20 years in prison for robbery and conspiracy to possess and distribute cocaine.
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; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
Former Assistant U.S. Attorney Howard J. Zlotnick and Assistant U.S. Attorneys Lisa McKeel and Brian Samuels 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-15.
Virginia Man Sentenced for $1.3 Million Fraud Schemes and Receipt of Child PornographyRead the Press Release
RICHMOND, Va. – A Glen Allen man was sentenced today to 151 months in prison for wire fraud, engaging in an unlawful monetary transaction using fraud proceeds, and receipt of child pornography.
“Not only did the defendant defraud innocent victims through a million dollar investment fraud scheme designed to maintain his lifestyle, but he also painfully contributed to the exploitation of children by collecting thousands of materials depicting child sexual abuse,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are thankful to the FBI and USPIS for their thorough investigative efforts and close partnership with our Office to hold the defendant accountable for his appalling conduct.”
According to court documents, Gordon G. Miller III, 56, was the sole owner and operator of G3 Systems, Inc., a software engineering company, and G3i Ventures, LLC, purportedly a venture capital company. Starting around 2017, Miller began to engage in overlapping fraud schemes to prevent his companies from going out of business and to maintain his lifestyle in the absence of legitimate income.
One scheme involved the solicitation of contacts in an online question-and-answer forum, where Miller falsely represented himself as an entrepreneur with a significant net worth, multiple advanced degrees, and expertise investing in technology companies. Between 2017 and 2018, through various misrepresentations, Miller fraudulently obtained approximately $1 million from at least 10 individuals through this scheme.
Another fraud entailed the diversion of a federal subcontract to G3 Systems, which he obtained using misrepresentations regarding his educational experience. Once he secured the subcontract, Miller submitted fraudulent timesheets and invoices to obtain more than $300,000 in payments from the prime contractor. Between 2018 and 2019, Miller took checks he received from the contractor to a check-cashing store in Richmond to convert the proceeds of the contract-fraud scheme to cash.
During the investigation of the above-described fraud schemes, federal agents obtained a search warrant for Miller’s residence. During the preliminary examination of devices seized from Miller’s home, agents discovered child sexual abuse material. After the execution of a search warrant targeting such material, and based on a review of the material which continued following Miller’s guilty plea, agents discovered more than 11,000 images or videos constituting child pornography, including images or videos Miller obtained between August 2017 and September 2020.
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 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 John A. Gibney, Jr.
Assistant U.S. Attorneys Katherine Lee Martin and Kevin Elliker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-109.
Victim Advisory- United States v. Choksi, et al. Case UpdatesRead the Press Release
CASE NAME: United States v. Choksi, et al., Criminal Case No. 3:19-cr-160
COURT: U.S. District Court for the Eastern District of Virginia, Richmond Division
CASE SUMMARY: The remaining defendants in this case, Shehzadkhan Khandakhan Pathan, Pradipsinh Dharmendrasinh Parmar, and Sumer Kantilal Patel have each pleaded guilty to offenses in connection with their participation in a conspiracy to commit mail and wire fraud. The purpose of this conspiracy was to defraud victims of money through unsolicited telephone calls originating from a call center in India operated by Pathan. Each defendant faces a maximum sentence of 20 years in prison for this conspiracy. Defendants Pathan and Parmar each also face an additional mandatory minimum sentence of two years for their convictions of aggravated identity theft.
According to court documents, conspirators at the call center used automated, previously recorded calls, commonly referred to as “robocalls,” to initiate contact with victims. These robocalls usually contained messages designed to create a sense of urgency with the call recipient, including threats of serious legal problems, usually criminal in nature, that required immediate action in order to avoid drastic consequences, including arrest and/or significant financial penalties. Victims would be instructed to stay on the line or to call a particular number.
Eventually victims would speak with one or more live persons, who used a variety of scripts incorporating different fraud schemes to persuade victims to send money, including the following scripts:
- Conspirators impersonated an official with a federal law enforcement agency, such as the FBI or DEA, to convince victims that they were the subjects of criminal investigations, often involving the prospective seizure of all of the victims’ financial assets. Conspirators told victims to ship packages of cash or preloaded payment cards to addresses purportedly used to receive official government mail as demonstrations of good faith to avoid immediate arrest and prosecution. Conspirators promised victims that the money would be returned, sometimes with interest, if they were ultimately cleared of wrongdoing.
- Conspirators also posed as employees of federal agencies, such as the Social Security Administration or the Internal Revenue Service, to convince victims to send packages of cash and/or preloaded payment cards, or to wire funds, in order to keep or restore their federal benefits or as payment for purported tax bills.
- Conspirators also told victims that they had been approved for loans that required an earnest money or initial installment payment, which conspirators directed victims to send by wire transfer via Western Union, MoneyGram, or Walmart2Walmart. The typical amount of the requested transfers ranged from several hundred dollars up to three thousand dollars.
Pathan operated the call center in India through which the robocalls and follow-up calls were made. Pathan also recruited, supervised, and operated a network of money couriers in the United States who would retrieve victim shipments and wire transfers and then send the bulk of those funds to conspirators, including Pathan, through deposits into various bank accounts and via informal money transmitters, known as hawalas. These networks operated in several states, including Virginia, Minnesota, New Jersey, California, Indiana, Texas, and Illinois. Victim cash shipments were often directed to addresses in these states. Parmar and Patel worked for Pathan as money mules.
CASE STATUS: Pathan is scheduled to be sentenced on September 16. Parmar and Patel are scheduled to be sentenced on September 20.
VICTIM RESPONSE: To ensure that members of the public, including potential victims of this conspiracy, are informed of developments in this ongoing case, the U.S. Attorney’s Office has established a page on its website, available at the following link: https://www.justice.gov/usao-edva/united-states-v-chirag-choksi-et-al.
The website currently includes a copy of the second superseding indictment, plea agreements, and statements of fact filed in this case with respect to defendants Pathan, Parmar, and Patel. Victims with questions can email the United States Attorney’s Office at [email protected], referencing the above case name and docket number. The website includes information for submitting victim impact statements, which may be emailed or mailed to:
U.S. Attorney’s Office
Eastern District of Virginia
Attn: Dutch Parcel
919 E. Main Street, Suite 1900
Richmond, VA 23219
International Drug Trafficking Organization Member Sentenced for Trafficking Nearly Four Tons of CocaineRead the Press Release
RICHMOND, Va. – A Guatemalan national was sentenced today to 17 and a half years in prison for his role as a transportation manager in a large-scale Guatemalan drug trafficking organization (DTO).
According to court documents, between 2015 and 2016, Edi Barrera-Salguero, 46, conspired to distribute over 1,000 kilograms or more of cocaine. Barrera-Salguero, who was extradited to the United States on February 4, 2021, served as a transportation manager for the DTO. In this leadership role, Barrera-Salguero organized cocaine transportation networks, directed the movement of cocaine loads, and directed the movement of bulk cash.
Operating throughout Central America, Barrera-Salguero orchestrated the movement of 3,586 kilograms of cocaine from Costa Rica to Guatemala. In June 2016, Barrera-Salguero coordinated the transportation of 381 kilograms of cocaine from Costa Rica to Guatemala City, Guatemala. Once the cocaine arrived in Guatemala, the 381 kilograms of cocaine were seized by Guatemalan law enforcement authorities during a traffic stop in the vicinity of Barrera-Salguero’s commercial trucking business, “Importada La Zarza Encendida.”
On July 1, 2020, Luis Pedro Fuentes Amaya, a co-defendant of Barrera-Salguero, was sentenced to 192 months for his role in the cocaine trafficking conspiracy on behalf of the DTO.
This prosecution is part of the Organized Crime and Drug Enforcement Task Force (OCDETF) Operation Go Explorers. 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson
Assistant U.S. Attorneys Erik S. Siebert and Heather H. Mansfield 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-18.
Man Sentenced for the Sexual Exploitation of Two ChildrenRead the Press Release
ALEXANDRIA, Va. – A Mexican national was sentenced today to 22 years in prison and a lifetime of supervised release for production of child pornography.
According to court documents, in March 2018, Abel Ambrocio, 55, of Alexandria, developed an online relationship with a woman in Honduras over a social media platform. From at least October 2018 through at least February 2019, Ambrocio instructed the woman to record and send him over 100 images of herself sexually abusing two children—an approximately three-year-old boy and an approximately ten-year-old girl. Ambrocio instructed the woman to engage in specific sex acts with the children and record herself doing so on multiple occasions, even when she told Ambrocio that one of the children was in pain and crying from the previous sex act. Later, in March 2019, Ambrocio distributed images of the woman sexually abusing the three-year-old boy over a social media platform.
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; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorney Jonathan S. Keim prosecuted the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance in this matter was provided by the Fairfax County Police. Tips regarding child exploitation and human trafficking 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 May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-135.
Man Sentenced for Receiving, Soliciting and Promoting Child PornographyRead the Press Release
A Virginia man was sentenced today to 240 months, or 20 years, in prison, to be followed by a lifetime of supervised release, for downloading images and videos depicting children as young as 4 years old being sexually abused, and for utilizing the Dark Net to solicit and promote child pornography.
According to court documents and evidence presented at trial, Christopher Robert Sueiro, 40, of Fairfax, used a peer-to-peer network to download child sexual abuse material (CSAM). Sueiro was also a member of a Dark Net hidden service website dedicated to trafficking in CSAM depicting preteen boys, where he made posts promoting and soliciting CSAM images and videos and attempted to receive CSAM from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to how to find child pornography online. He downloaded CSAM repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro’s child pornography offenses first came to the attention of law enforcement when investigators searched Sueiro’s digital devices during an unrelated online threats investigation.
“The Department of Justice is committed to tracking down people like Christopher Sueiro who traffic in haunting images and videos of children during their worst moments and who perpetuate the grievous harm to the victims,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “I commend the excellent work done by the investigators and prosecutors in this case. Today’s sentence is a step in achieving some justice for the victims and sends a message to other offenders that we will continue to find and prosecute people who victimize vulnerable children.”
“For years, this defendant used the internet, including the dark web, to solicit, obtain and promote images and videos depicting the sexual abuse of children,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The trafficking of child pornography is egregious and repugnant behavior, and as today’s sentence demonstrates, will be met with serious consequences in EDVA. We are grateful to everyone who worked tirelessly on this case to secure a measure of justice on behalf of society’s most vulnerable victims.”
“Each time someone downloads child pornography, the child is victimized all over again,” said Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C. “Predators cannot hide behind the cloak of the internet; our special agents and law enforcement partners work tirelessly to identify them and ensure they are prosecuted to the fullest extent of the law.”
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
CEOS Trial Attorney James E. Burke IV and former Assistant U.S. Attorney Nathaniel Smith III of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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.
Jury Convicts Former NASA Subcontractor of FraudRead the Press Release
ALEXANDRIA, Va. – On Tuesday, a federal jury convicted a former government subcontractor who completed work at NASA’s Kennedy Space Center of fraud charges relating to the Small Business Administration’s women-owned small business program.
“The evidence at trial demonstrated that the defendant compromised the integrity of the contracting process by falsely representing the ownership and control of his company in order to obtain lucrative government contracts,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The steadfast dedication of the trial team and our partner agencies in this case serves as another example of EDVA’s continued commitment to a robust white-collar enforcement program.”
According to court records and evidence presented at trial, Kevin N. Smith, 61, of Rockledge, Florida, served as the general manager of SDB Engineers & Constructors, a Florida-based subcontractor that, between 2014 and 2015, completed work on two large NASA prime contracts. Smith participated in a fraudulent scheme to represent SDB as a woman-owned small business when, in reality, it did not qualify as a woman-owned small business because no woman controlled its daily business operations. In furtherance of the scheme, Smith falsely certified SDB as a woman-owned small business to the federal government and to NASA prime contractors. The scheme resulted in SDB receiving more than $6 million in fraudulently obtained contract payments with a total profit of approximately $1 million during Smith’s tenure at the company.
Smith was convicted of one count of conspiracy to commit wire fraud and five counts of wire fraud. Smith faces a maximum penalty of 20 years in prison when sentenced. 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; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; and Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorney Daniel Young and Special Assistant U.S. Attorney Ryan Faulconer are prosecuting the case. Former Assistant U.S. Attorney Samantha Bateman previously 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-74.
Fairfax Man Sentenced for Receiving, Soliciting and Promoting Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was sentenced today to 20 years in prison for downloading images and videos depicting children as young as four years old being sexually abused, and for utilizing the Darknet to solicit and promote child pornography.
According to court documents and evidence presented at trial, Christopher Robert Sueiro, 40, used a peer-to-peer network to download child sexual abuse material (CSAM). Sueiro was also a member of a Darknet hidden service website dedicated to trafficking in CSAM depicting preteen boys, where he made posts promoting and soliciting CSAM images and videos and attempted to receive CSAM from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to how to find child pornography online. He downloaded CSAM repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro’s child pornography offenses first came to the attention of law enforcement when investigators searched Sueiro’s digital devices during an unrelated online threats investigation.
“For years, this defendant used the internet, including the dark web, to solicit, obtain, and promote images and videos depicting the sexual abuse of children,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The trafficking of child pornography is egregious and repugnant behavior, and as today’s sentence demonstrates, will be met with serious consequences in EDVA. We are grateful to everyone who worked tirelessly on this case to secure a measure of justice on behalf of society’s most vulnerable victims.”
“The Department of Justice is committed to tracking down people like Christopher Sueiro who traffic in haunting images and videos of children during their worst moments and who perpetuate the grievous harm to the victims,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “I commend the excellent work done by the investigators and prosecutors in this case. Today’s sentence is a step in achieving some justice for the victims and sends a message to other offenders that we will continue to find and prosecute people who victimize vulnerable children.”
“Each time someone downloads child pornography, the child is victimized all over again,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C. “Predators cannot hide behind the cloak of the internet; our special agents and law enforcement partners work tirelessly to identify them and ensure they are prosecuted to the fullest extent of the law.”
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; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Erin Schaible, Chief Colonel of the City of Fairfax Police Department made the announcement.
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Former Assistant U.S. Attorney Nathaniel Smith III and CEOS Trial Attorney James E. Burke IV 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. 1:17-cr-284.
Darknet Drug Vendor Pleads Guilty to Distributing Illicit Prescription DrugsRead the Press Release
ALEXANDRIA, Va. – A Georgia man pleaded guilty yesterday to distributing illicit prescription drugs over the Darknet and shipping them across the country via the U.S Postal Service.
According to court documents, from around April 2020 through October 2020, Cullen Roberts, 23, of Duluth, Georgia, used the moniker “Pillpusher” to sell prescription opioids and other scheduled narcotics on a Darknet market. Beginning in July 2020, law enforcement began investigating Roberts by conducting a series of undercover purchases of various types of prescription drugs via the Darknet.
Roberts promoted the quality of the pills that he advertised for sale on his Darknet vendor page. For example, in September 2020, he listed a quantity of oxymorphone pills, a powerful opiate used to treat severe pain, for sale for $90/pill. In the listing, Roberts described the oxymorphone pills as “the gold standard for any opiate” and “the closest you will get to heaven.”
Roberts was identified as “Pillpusher” when he was caught shipping packages containing prescription drugs through the U.S. Post Office in Cumming, Georgia. Agents subsequently discovered dozens of tablets of Tramadol, a Schedule IV analgesic that is also commonly abused. Agents also recovered from Roberts’ residence empty boxes that had contained oxycodone and alprazolam (brand name Xanax).
Roberts is scheduled to be sentenced on November 2. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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; and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the 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-164.
U.S. Foreign Service Member Indicted for Engaging in Illicit Sexual Conduct in the Philippines and Possession of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury in the Eastern District of Virginia returned an indictment today charging a member of the Foreign Service with engaging in illicit sexual conduct in a foreign place and possession of child pornography.
According to the indictment and court documents, Dean Cheves, 61, between September 2020 and February 2021, was a member of the U.S. Foreign Service, serving at the U.S. Embassy in the Philippines. While in the Philippines, Cheves allegedly met a 16-year-old online. Court documents further detail that Cheves allegedly engaged in sexual activity with the minor on two occasions, knowing the minor’s age, and produced cell phone videos of himself engaging in the sex acts each time. The videos were found on Cheves’s devices seized from his embassy residence while in the Philippines. Between February 2021 and March 2021, he also allegedly possessed child pornography.
Cheves is charged with one count of engaging in illicit sexual conduct in a foreign place and one count of possessing child pornography in the special maritime and territorial jurisdiction of the United States or on lands owned or leased by the United States. Cheves previously made his initial court appearance on July 6, 2021 before U.S. Magistrate Judge Ivan D. Davis of the U.S. District Court for the Eastern District of Virginia.
If convicted, he faces a maximum penalty of up to 30 years in prison on count one and up to 10 years in prison on count two. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Raj Parekh of the Eastern District of Virginia; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; and Mark Sullo, Assistant Director for Domestic Operations, U.S. Department of State’s Diplomatic Security Service, made the announcement.
The Diplomatic Security Service, Office of Special Investigations is investigating the case.
Assistant U.S. Attorney Lauren Pomerantz Halper and Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-177.
U.S. Foreign Service Member Indicted for Engaging in Illicit Sexual Conduct in the Philippines and Possession of Child PornographyRead the Press Release
A federal grand jury in the Eastern District of Virginia returned an indictment today charging a member of the U.S. Foreign Service with engaging in illicit sexual conduct in a foreign place and possession of child pornography.
According to the indictment and court documents, Dean Cheves, 61, was a member of the U.S. Foreign Service serving at the U.S. Embassy in the Philippines between September 2020 and February 2021. While in the Philippines, Cheves allegedly met a 16-year-old online. Court documents further detail that Cheves allegedly engaged in sexual activity with the minor on two occasions, knowing the minor’s age, and produced cell phone videos of himself engaging in the sex acts each time. The videos were found on Cheves’s devices seized from his embassy residence while in the Philippines. Between February 2021 and March 2021, he also allegedly possessed child pornography.
Cheves is charged with one count of engaging in illicit sexual conduct in a foreign place and one count of possessing child pornography in the special maritime and territorial jurisdiction of the United States or on lands owned or leased by the United States. Cheves previously made his initial court appearance on July 6 before U.S. Magistrate Judge Ivan D. Davis of the U.S. District Court for the Eastern District of Virginia. If convicted, he faces a maximum penalty of up to 30 years in prison on count one, and up to 10 years in prison on count two. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia made the announcement and Assistant Director for Domestic Operations Mark Sullo of the U.S. Department of State’s Diplomatic Security Service made the announcement.
The Diplomatic Security Service, Office of Special Investigations is investigating the case.
Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Lauren Pomerantz Halper of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 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, 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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Leader of Transnational Money-Laundering Network Pleads Guilty to Aiding Drug-Trafficking Organizations, While Co-Conspirator is SentencedRead the Press Release
A Chinese national and naturalized U.S. citizen pleaded guilty yesterday to his involvement in a conspiracy to launder at least $30 million in drug proceeds on behalf of foreign drug-trafficking organizations. Another Chinese national was sentenced to seven years in prison today for his role in the same conspiracy.
According to court documents, Xizhi Li, 48, played a leadership role within a years-long conspiracy to use a foreign casino, foreign and domestic front companies, foreign and domestic bank accounts, false passports and other false identification documents to launder money on behalf of transnational drug-trafficking organizations, whose main drug-trafficking activities involved cocaine. The defendant dealt directly with members of drug-trafficking organizations or their representatives to obtain and service “contracts” to move their drug proceeds. Once the defendant and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds, in return for the payment of commissions.
“The defendants laundered millions of dollars on behalf of drug traffickers through the global financial system in a manner that concealed the source and nature of the illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Global money-laundering networks enable drug cartels to profit from their deadly trade, and yesterday’s guilty plea and today’s sentence underscore the Justice Department’s commitment to dismantling the financial infrastructure of transnational criminal organizations to take the profit out of crime. This plea and sentence would not have been possible without the tireless efforts of our federal law enforcement partners and the United States Attorney’s Office for the Eastern District of Virginia.”
“This prosecution demonstrates the enormous value of collaborating with agencies across the government and with our international partners to dismantle and hold accountable transnational criminal organizations that pose a significant danger to the public,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The far-reaching conspiracy in this case involved the laundering of millions of dollars of illegal proceeds on behalf of transnational drug-trafficking organizations through the use of a casino, front companies, foreign and domestic bank accounts, false identification documents, and bulk cash smuggling. We greatly appreciate the essential and innumerable contributions from our partner agencies, all of whom worked closely together to thoroughly follow the facts and evidence that led to the unraveling of this multimillion-dollar money-laundering scheme.”
“DEA’s mission is to make our communities safer and healthier, which means bringing to justice the most dangerous individuals and organizations that traffic drugs in the United States and around the world,” said Administrator Anne Milgram of the Drug Enforcement Administration. “Through the collective efforts of the DEA and our law enforcement partners, we relentlessly pursue individuals, like the one here, who allegedly laundered more than $30 million in drug profits.”
“The successful outcome of this complex, multi-year investigation is owed to dogged determination by the dedicated men and women of the Drug Enforcement Administration, working closely with our federal law enforcement partners,” said Special Agent in Charge J. Todd Scott of DEA’s Louisville Division. “We will continue to be relentless in our efforts to stop transnational criminal organizations from operating within our borders, and we will use every tool available in our mission to protect the American people.”
Co-defendant Tao Liu, 46, of Hong Kong, helped to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of Xizhi Li, which he later deposited into bank accounts that Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Liu himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.
Li pleaded guilty to conspiracy to launder money. He is scheduled to be sentenced on Oct. 26 and faces a maximum penalty of 20 years in prison as well as a $10-million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Liu pleaded guilty to his role in the conspiracy and a separate bribery charge on April 14 and was sentenced today to seven years in prison.
On April 14, co-defendants Jiayu Chen, 46, of Brooklyn, New York, and Jingyuan Li, 49, of San Gabriel, California, pleaded guilty to their roles in the conspiracy. On July 20, Chen was sentenced to 60 months’ imprisonment and ordered to forfeit $2.8 million dollars.
Additionally, on June 16, Eric Yong Woo, 43, of Alhambra, California, also pleaded guilty to his role in the money-laundering conspiracy. He is scheduled to be sentenced on Sept. 21 and faces a maximum penalty of 20 years in prison.
Finally, Jianxing Chen, 40, of Belize, was charged in the superseding indictment for his alleged involvement in this money-laundering and drug-trafficking conspiracy. He is pending extradition following his arrest in Lima, Peru. Chen was captured with significant assistance from The International Criminal Police Organization (INTERPOL).
The DEA’s Louisville Division and the DEA’s Special Operations Division–Bilateral Investigations Unit are investigating this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland, Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection National Targeting Center (CBP – National Targeting Center) were partners in the investigation of this case.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance. The Australian Criminal Intelligence Commission, the Australian Federal Police, the Australia Department of Home Affairs, the Mexican Federal Police, the Guatemalan National Civil Police and the New Zealand Police also provided significant assistance.
This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF) investigations. 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.
Leader of Transnational Money Laundering Network Pleads Guilty to Aiding Drug Trafficking Organizations, While Co-Conspirator is SentencedRead the Press Release
ALEXANDRIA, Va. – A Chinese national and naturalized U.S. citizen pleaded guilty yesterday to his involvement in a conspiracy to launder at least $30 million in drug proceeds on behalf of foreign drug trafficking organizations. Another Chinese national was sentenced to 7 years in prison today for his role in the same conspiracy.
According to court documents, Xizhi Li, 48, played a leadership role within a years’ long conspiracy to use a foreign casino, foreign and domestic front companies, foreign and domestic bank accounts, false passports and other false identification documents, and bulk cash smuggling to launder money on behalf of transnational drug trafficking organizations, whose main drug trafficking activities involved cocaine. The defendant dealt directly with members of drug trafficking organizations or their representatives to obtain and service “contracts” to move their drug proceeds. Once the defendant and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds, in return for the payment of commissions.
“This prosecution demonstrates the enormous value of collaborating with agencies across the government and with our international partners to dismantle and hold accountable transnational criminal organizations that pose a significant danger to the public,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The far-reaching conspiracy in this case involved the laundering of millions of dollars of illegal proceeds on behalf of transnational drug trafficking organizations through the use of a casinos, front companies, foreign and domestic bank accounts, false identification documents, and bulk cash smuggling. We greatly appreciate the essential and innumerable contributions from our partner agencies, all of whom worked closely together to thoroughly follow the facts and evidence that led to the unraveling of this multimillion-dollar money laundering scheme.”
“The defendant laundered millions of dollars on behalf of drug traffickers through the global financial system in a manner that concealed the source and nature of the illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. “Global money laundering networks enable drug cartels to profit from their deadly trade, and yesterday’s guilty plea and today’s sentence underscores the Justice Department’s commitment to dismantling the financial infrastructure of transnational criminal organizations to take the profit out of crime. This plea and sentence would not have been possible without the tireless efforts of our federal law enforcement partners and the United States Attorney’s Office for the Eastern District of Virginia.”
“DEA’s mission is to make our communities safer and healthier, which means bringing to justice the most dangerous individuals and organizations that traffic drugs in the United States and around the world,” said Anne Milgram, Drug Enforcement Administration Administrator. “Through the collective efforts of the DEA and our law enforcement partners, we relentlessly pursue individuals, like the one here, who admitted to laundering more than $30 million in drug profits.”
Co-defendant, Tao Liu, 46, of Hong Kong, helped to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of Xizhi Li, which he later deposited into bank accounts that Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Liu himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.
Li pleaded guilty to conspiracy to launder money. He is scheduled to be sentenced on October 26 and faces a maximum penalty of 20 years in prison as well as a $10 million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Liu pleaded guilty to his role in the conspiracy and a separate bribery charge on April 14 and was sentenced today to 7 years in prison.
On April 14, co-defendants Jiayu Chen, 46, of Brooklyn, New York, and Jingyuan Li, 49, of San Gabriel, California, pleaded guilty to their roles in the conspiracy. On July 20, Chen was sentenced to 60 months’ imprisonment and ordered to forfeit $2.8 million dollars.
Additionally, on June 16, Eric Yong Woo, 43, of Alhambra, California, also pleaded guilty to his role in the money laundering conspiracy. He is scheduled to be sentenced on September 21 and faces a maximum penalty of 20 years in prison.
Finally, Jianxing Chen, 40, of Belize, was charged in the superseding indictment for his alleged involvement in this money laundering and drug trafficking conspiracy. He is pending extradition following his arrest in Lima, Peru. Chen was captured with significant assistance from The International Criminal Police Organization (INTERPOL).
The DEA’s Louisville Division and the DEA’s Special Operations Division – Bilateral Investigations Unit are investigating this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, INTERPOL, and U.S. Customs and Border Protection (CBP – National Targeting Center) were partners in the investigation of this case.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance. The Australian Criminal Intelligence Commission, the Australian Federal Police, the Australia Department of Home Affairs, the Mexican Federal Police, the Guatemalan National Civil Police, and the New Zealand Police also provided significant assistance.
This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF) investigations known as Operation Dark Castle and Operation Taishan Triangle. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-334.
EDVA to Participate in Community Events During National Night OutRead the Press Release
RICHMOND, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events this evening, August 3. During this year’s National Night Out, Acting U.S. Attorney Raj Parekh will attend community events in the Richmond area with Chief of Richmond Police, Gerald M. Smith.
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
“Participating in community-based events and strengthening the bonds of trust and friendship with the residents we serve are essential to our crime reduction efforts across the Eastern District of Virginia,” said Acting U.S. Attorney Raj Parekh. “We are committed to working closely with our communities to keep our neighborhoods safe, eliminate injustices, and protect civil rights and civil liberties. When we stand united with our neighbors in looking out for each other, we can make meaningful, long-lasting improvements in the safety of our cities and streets.”
National Night Out is a community-building and crime prevention program that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
During National Night Out, community involvement in crime prevention is generated through a variety of local events that help strengthen neighborhood spirit and unity, such as block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
This year, National Night Out organizers are expecting over 16,000 communities and millions of people from all 50 states, U.S. territories, and military bases worldwide to take part in community events. The program concludes annually on the first Tuesday of August in most areas of the country.
EDVA staff members have been encouraged to participate in community events located in or around the Office’s Alexandria, Richmond, Norfolk, and Newport News Divisions. For more information, visit https://natw.org/ or click on each of the preceding links for examples of National Night Out Events taking place across the Eastern District of 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.
New Zealand Man Pleads Guilty to Production of Child PornographyRead the Press Release
RICHMOND, Va. – A New Zealand man pleaded guilty today to production of child pornography.
According to court documents, between February and March 2018, Troy George Skinner, 28, interacted with a minor child online and used the child to produce numerous videos and image files of child pornography.
“Although no prosecution can undo the irreparable damage the defendant caused, we hope it is some measure of relief to the victim, the victim’s family, and the community that the defendant now faces lengthy and significant consequences for this heinous conduct when he is sentenced by the Court,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will continue to hold accountable those who exploit and prey on vulnerable members of our community.”
“The FBI will aggressively investigate any matter where persons prey on our children, and work with our partners to hold these predators accountable with the goal of removing them from our community,” said Special Agent in Charge Stanley M. Meador of the Federal Bureau of Investigation’s (FBI) Richmond Field Office. “Mr. Skinner's solicitation of this minor victim is unfortunately not uncommon for sexual predators; what is rather unusual is for a predator to travel this extensively to gain access to their victim. Had it not been for the intervention of an adult, this incident could have been much worse. We encourage anyone who may have fallen victim to a similar situation of sharing images or videos, to report it to law enforcement as soon as possible, so we can help end the trauma.”
According to the Statement of Facts filed with the plea agreement, on June 20, 2018, Skinner departed from Auckland, New Zealand, en route to Virginia. On June 22, 2018, Skinner traveled to the victim’s home in Goochland, the location of which he learned in his online conversations with the minor victim. Upon arriving at the victim’s home in Goochland, the defendant approached the house and attempted to speak to family members inside. Skinner threw a paving stone through the glass window of the kitchen door to the house and attempted to enter. After several verbal warnings, the victim’s mother fired a handgun to prevent Skinner from entering the home, striking him once in the neck. Skinner fled from the house but collapsed in a neighbor’s yard, where he was apprehended by members of the Goochland County Sheriff’s Office.
According to additional court filings submitted by the government, a search at the scene of Skinner’s belongings revealed duct tape, pepper spray, and a folding pocketknife. Officials also seized two mobile phones from Skinner, which investigators later determined contained images of child pornography depicting the minor victim. U.S. authorities also made a mutual legal assistance request to officials with the government of New Zealand. New Zealand investigators executed a search warrant on the defendant’s apartment in New Zealand and conducted a forensic examination of the defendant’s laptop, and later provided to U.S. investigators a thumb drive containing 120 video and 56 image files depicting the minor victim.
Skinner pleaded guilty to production of child pornography and is scheduled to be sentenced on February 11, 2022. He faces a mandatory minimum term of 15 years and a maximum term of 30 years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Significant and valuable assistance was provided by the Government of New Zealand and the Goochland County Sheriff's Office.
Assistant U.S. Attorneys Brian R. Hood and Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-19.
Former Medical Student Sentenced for Online Sextortion SchemeRead the Press Release
NORFOLK, Va. – A Canadian man was sentenced to 40 years in prison today for orchestrating an online sextortion scheme and producing images of child sexual abuse.
“The defendant repeatedly engaged in the sexual exploitation and extortion of numerous young girls using threats and fear to commit devastating crimes,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, we will aggressively pursue perpetrators of this unfathomable form of abuse – no matter how long it takes – to help bring a measure of justice and healing for the victims.”
According to court documents, Marco Viscomi, 36, of Ontario, was first identified by the Virginia Beach Police Department (VBPD) and Homeland Security Investigations (HSI) in 2012. In January 2012, a father of two girls, then ages 13 and 17 years old, reported to the VBPD that his daughters had been sexually extorted by someone they met online. The person online threatened the girls and forced the sisters to engage in sexually explicit conduct while he watched online from Canada. The VBPD and HSI traced the culprit to Ontario and identified Viscomi as the person responsible. Viscomi was a 26-year-old medical student at that time.
“After nearly a decade, this case is finally coming to a close because of the relentless work of law enforcement,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Viscomi manipulated young victims into engaging in sexually explicit conduct, and then, once identified, fought tirelessly to avoid facing charges for his actions. Today, justice was served, and another child predator is behind bars.”
Additional investigation uncovered Viscomi had engaged in similar sextortion conduct with hundreds of other victims, but not all victims were able to be identified. HSI was able to identify and locate over 70 such minors, including several sets of sisters who Viscomi terrorized online. In July 2012, Viscomi was charged in federal court in the Eastern District of Virginia and arrested in Canada. He fought extradition to the United States until December 2019, when the Canadian courts finally ordered him to be extradited to Norfolk to face the charges.
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 Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorneys Elizabeth M. Yusi and E. Rebecca Gantt 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. 2:12-cr-134.
Virginia Inmate Pleads Guilty to Involvement in Pandemic Unemployment Benefits SchemeRead the Press Release
NORFOLK, Va. – A Virginia inmate pleaded guilty today to his involvement in a scheme to obtain pandemic-related unemployment benefits by using the personal identifying information of over 30 other Virginia prison inmates.
According to court documents, in 2020, Michael Lee Lewis, Jr., 41, of Chesapeake, was incarcerated at the Augusta Correctional Center. Beginning in May 2020, he worked with Mary Landon Benton, 38, of Portsmouth, and Angelica Cartwright-Powers, 35, of Norfolk to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Lewis provided Benton and Cartwright-Powers information for inmates at the Augusta Correctional Center, resulting in approximately twenty-one successful unemployment claims for inmates there. Benton, with the help of Lewis and the others, submitted successful applications for Virginia unemployment benefits for 31 inmates, and Cartwright-Powers submitted successful applications for four inmates.
Lewis and his co-conspirators, along with the prisoners whose information was used for the unemployment applications, shared the proceeds of the crimes, which amounted to over $330,000. Although the conspirators initially obtained $436,834, the Virginia Employment Commission was able to reclaim some of the disbursed funds after discovering the fraud.
Benton and Cartwright-Powers have since pleaded guilty to their respective roles in the conspiracy. Lewis pleaded guilty to one count of mail fraud and is scheduled to be sentenced on December 2. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included assistance from the U.S. Secret Service’s Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment Commission.
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. 2:21-cr-33.
Former Intelligence Analyst Sentenced to 45 Months in Prison for Disclosing Classified Information to ReporterRead the Press Release
A Tennessee man was sentenced today to 45 months in prison followed by three years of supervised release for illegally obtaining classified national defense information and disclosing it to a reporter.
According to court documents, Daniel Everette Hale, 33, of Nashville, began communicating with a reporter beginning in April 2013 while enlisted in the U.S. Air Force and assigned to the National Security Agency (NSA). Hale admitted to meeting with the reporter in person on multiple occasions and communicating with the reporter via phone, text message, email and, at times, an encrypted messaging platform.
In February 2014, while working as a cleared defense contractor at the National Geospatial-Intelligence Agency (NGA), Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to court records, while employed as a cleared defense contractor for NGA, Hale printed 36 documents from his Top Secret computer, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.
According to court records, in August 2014, Hale’s cell phone contact list included contact information for the reporter. He also possessed a thumb drive that contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. In addition, Hale possessed on his home computer another document that he had stolen from NGA.
Hale pleaded guilty to retention and transmission of national defense information on March 31.
Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division made the announcement.
The FBI’s Baltimore Field Office investigated the case.
Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang for the Eastern District of Virginia and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Settlement Agent Sentenced for Misappropriating Closing FundsRead the Press Release
NORFOLK, Va. – The former president of an escrow and title company was sentenced today to 18 months in prison for misappropriating $715,000 of closing funds in connection with 48 real estate transactions for which she served as the settlement agent.
According to court documents, Tammy Hamrin, formerly known as Tammy A. Cheek, 58, of Virginia Beach, was a licensed title and settlement agent and was the president, secretary, and treasurer of Preferred Escrow and Title, Inc. During 48 real estate transactions between January 2018 and approximately February 2018, Hamrin misappropriated $715,000 of closing funds that had been deposited by various lenders and individual buyers into the company’s escrow account. She did so by making seven unauthorized wire transfers of funds from the escrow account to certain entities at the request of a person with whom Hamrin had an online personal relationship.
During this period, Hamrin partially replenished the funds that she had misappropriated by depositing approximately $199,000 of her own money into the escrow account, resulting in a remaining shortage of approximately $516,000. As a result, all 48 closings were affected. Among others, losses were sustained by sellers, buyers, business entities, financial institutions, various lienholders, municipal clerks of court and treasurer offices, and a title insurance company.
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 Raymond A. Jackson.
Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-2.
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
ALEXANDRIA, Va. – The U.S. Department of Justice has launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes), as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in Washington, D.C. originate from outside the city. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the Washington, D.C., metropolitan area, including in the Eastern District of Virginia, with their counterparts in locations where many of the firearms originate.
Acting U.S. Attorney Raj Parekh said: “Disrupting the flow of illegally trafficked firearms is critical to reducing the painful toll that gun violence inflicts on our communities and loved ones. Through our participation in the cross-jurisdictional strike force, EDVA will bring to justice gun traffickers and others who enable this tragic cycle of violence. We will also amplify our community engagement efforts to continue building the degree of trust that is required for positive and lasting change to occur. Because many of the firearm source locations for the Washington, D.C., metropolitan area overlap with the source locations for firearms recovered in the New York City area, we will work closely with our New York City counterparts to help make our communities safer for everyone.”
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local, and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
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 Individuals Charged in Bribery SchemeRead the Press Release
RICHMOND, Va. –Three individuals made their initial appearances in federal court this afternoon on charges of participating in a bribery scheme.
According to the indictment, Susan May Keim, 52, and Russell John Keim, Sr., 59, of Hopewell, allegedly accepted bribes from Rodney Gale Wilson, 65, of Imperial, Missouri, in return for Susan Keim’s award of federal subcontracts to Wilson’s company, C&L Supply.
According to the indictment, Susan Keim worked for Skookum Educational Services, a company that contracted with the federal government to provide maintenance and supply services at Fort Lee. Rodney Wilson was the owner of C&L Supply, a company formed for the sole purpose of selling supplies for Skookum for use at Fort Lee. From 2013 to 2018, in return for the award of the subcontracts valued at least $912,765.89 and the supply of confidential information, Wilson allegedly provided various things of value, totaling at least $92,039.79, to Susan and her spouse, Russell Keim, including: (1) checks and cash payments to Russell Keim disguised as compensation to Russell Keim for work performed for C&L Supply, when, in fact, Russell Keim never worked for that company; and (2) payments for work done on a property owned by Susan and Russell Keim.
All three individuals are charged with conspiracy and payment, and receipt of bribes. If convicted, each defendant faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The defendants will be arraigned before U.S. District Judge John A. Gibney, Jr. on August 16.
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; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; L. Scott Moreland, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit’s (MPFU) Mid-Atlantic Fraud Field Office; and Chris Dillard, Special Agent in Charge for Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.
Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia and Trial Attorney Rebecca M. Schuman of the Justice Department’s Public Integrity Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-083.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Former Richmond Attorney Pleads Guilty to Obstructing Investigation of Bankruptcy EmbezzlementRead the Press Release
RICHMOND, Va. – A former Richmond attorney pleaded guilty today to obstructing an official proceeding in connection with his attempts to thwart a 2019 investigation into his own fraudulent conduct as a bankruptcy trustee.
According to court documents, Bruce H. Matson, 64, misled the U.S. Trustee’s Office in 2019 when he made false statements in response to allegations that he misappropriated funds as a court-appointed trustee in the bankruptcy of LandAmerica Financial Group (LFG). A federal investigation into those allegations uncovered multiple instances of Matson’s embezzlement from the LFG Trust between 2015 and 2018, totaling approximately $800,000 in misappropriated funds.
“Matson abused his position as an attorney, officer of the court, and bankruptcy trustee to enrich himself at the expense of the people whose very interest the court appointed him to protect,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As part of our unwavering commitment to pursuing equal justice under the law, we will continue to root out the fraudulent conduct of those who violate the public’s trust and use their positions of power to conceal their crimes.”
Additionally, Matson manipulated the budget for LFG’s post-bankruptcy wind-down period so that he could divert residual funds to himself and others after the close of the LFG bankruptcy, when he would no longer be subject to scrutiny by LFG creditors and the Bankruptcy Court. In particular, Matson misrepresented the amount of money needed for the wind-down process and obscured the amount of money actually retained in Trust accounts. In order to access these residual funds, Matson also inserted language into the budget the night before it was filed with the Bankruptcy Court. This language seemingly gave Matson the authority to pay discretionary bonuses using residual funds. Matson knew the last-minute language included in the budget contradicted other court filings, but he instructed other trust professionals not to amend the filings, including the proposed Final Decree ultimately endorsed by the Bankruptcy Court in December 2015. As a result of this conduct, Matson was able to siphon away more than $3.2 million for personal payments to himself and others, depleting the Trust account more than two years before the end of the wind-down period.
The federal investigation also uncovered an unrelated instance of Matson embezzling approximately $23,000 in 2016 from the estate of Forefront Capital, a defunct futures broker for which Matson served as receiver and debtor-designee. In total, between 2015 and 2019, Matson wrongfully obtained more than $4 million in bankruptcy-related assets.
Matson is scheduled to be sentenced on November 22. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
“The investigation into Mr. Matson's conduct as a bankruptcy trustee resulted in authorities uncovering a separate, unrelated incident. His plea today, for obstruction, is an admittance of responsibility,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “This plea is also a reflection of the investigative team's hard work and partnership between the FBI, the U.S. Postal Inspection Service, and the United States Attorney's Office, Eastern District of Virginia.”
“This guilty plea highlights the joint efforts of the U.S. Postal Inspection Service, our law enforcement partners, and the U.S. Attorney’s office to prosecute those who seek to exploit and embezzle by misleading the government,” said U.S. Postal Inspector in Charge for the Washington Division Daniel Adame. “The mission of the U.S. Postal Inspection Service is to protect consumers by ensuring the nation's mail system is not used in furtherance of criminal activity, which safeguards our customers’ trust in the United States Postal Service.”
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 Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. The U.S. Trustee Program provided significant assistance in this case.
Assistant U.S. Attorneys Katherine Lee Martin and Kevin S. Elliker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-79.
Portsmouth Man Sentenced for Firearm and Fraud-Related CrimesRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 18 years in prison for illegal possession of a firearm as a convicted felon, aggravated identity theft, and credit union fraud.
“With today’s sentence, the defendant has been held accountable for the serious nature of his crimes, including his recruitment of over 50 co-conspirators to participate in an extensive fraud scheme involving the Dark Web that inflicted significant financial loss on numerous victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thank you to our law enforcement partners for risking their lives to apprehend the defendant following his reckless high-speed chase during which he placed community members in danger. We appreciate the hard work and dedication of all our partner agencies who helped bring the defendant to justice on behalf of the victims in this case.”
According to court documents, between December 2018 and January 2019, Armad Jamall Gatling, aka “Peso Chapo,” 26, a dealer for a drug trafficking organization based in Portsmouth, sold cocaine to a cooperating source four times. In July 2019, Gatling sold an AR-style rifle to the cooperating source, who Gatling knew to be a convicted felon.
On September 11, 2019, after he was federally indicted, Gatling fled in his vehicle from pursuing Chesapeake Police Department law enforcement officers, traveling as fast as 120 mph, running red lights, driving into oncoming traffic on a bridge, and finally abandoning the vehicle and fleeing on foot, at which point he was arrested. Police searched his vehicle and recovered nine credit cards in other people’s names, a credit card swipe reader, a license with Gatling’s photo but listing a different name, and a security baton.
A court-authorized search of Gatling’s social media accounts and electronic devices revealed that, from January 2019 to September 2019, he was part of a check fraud scheme in which he recruited others to open credit union accounts, then deposited counterfeit checks into those accounts and quickly withdrew the funds before the fraud was detected. He also spearheaded a scheme in which he used Personal Identifying Information (PII) illegally obtained from the Dark Web to create cloned credit cards, and then used the credit cards to purchase trailers, lawn equipment, motorcycles, and other property, which he resold. One of Gatling’s devices contained PII for dozens of victims. Gatling recruited more than 50 co-conspirators to participate in his scheme, resulting in at least 50 victims suffering financial losses totaling more than $368,000.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; George D. Purefoy, Resident Agent in Charge of the U.S. Secret Service’s Norfolk Resident Office; Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
This case is part of Operation High Tide, a proactive, large-scale narcotics trafficking and firearms investigation that focused on high-impact targets driving crime in some of the hardest hit neighborhoods in Hampton Roads.
Assistant U.S. Attorney William Jackson prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-153.
Sage Consulting Group, Inc. Agrees to Pay $4.8 Million to Settle Civil False Claims Act and Anti-Kickback Act AllegationsRead the Press Release
ALEXANDRIA, Va. – A Virginia-based consulting group and its president and majority owner agreed to a $4.8 million settlement with respect to allegations that they paid kickbacks, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
Sage Consulting Group, Inc. (Sage), a federal government contractor located in Vienna, specializes in providing information technology services to the U.S. Department of Defense (DOD). Robert Pleghardt, of Vienna, is the President and 99.5% owner of Sage. Sage and Pleghardt agreed to pay $4.8 million to settle allegations that they paid kickbacks to companies certified by the Small Business Administration (SBA) as 8(a) small businesses, which are owned and operated by socially and economically disadvantaged citizens, in order to obtain subcontracts on 8(a) set-aside contracts. According to the United States’ allegations, Sage and Pleghardt falsely represented to government agencies that the 8(a) certified companies would be performing at least 50% of the work on these contracts when, in fact, Sage performed 100% of the work.
The United States alleged that Wete and Company, Inc. (Wete), formerly an 8(a) certified company, agreed to subcontract work on 8(a) set-aside contracts and task orders for the Department of Defense Education Activity (DODEA) to Sage in exchange for an hourly fee paid by Sage to Wete for every hour of work Wete subcontracted to Sage. The United States also alleged that Pleghardt falsely represented, in a proposal submitted to DODEA, that Wete employees would be working on a task order when he knew that all the work on the task order would, in fact, be performed by Sage employees.
The United States further alleged that Index Systems, Inc. (Index), an 8(a) certified company, agreed to subcontract work on 8(a) set-aside contracts for DODEA and the Defense Human Resources Activity (DHRA) to Sage in exchange for an hourly fee paid by Sage to Index for every hour of work Index subcontracted to Sage. The United States also alleged that Pleghardt falsely represented to DHRA officials that Index employees would be working on a DHRA contract when he knew that all the work on the contract would, in fact, be performed by Sage employees.
The settlement resolves federal civil claims under the False Claims Act and the Anti-Kickback Act. Sage and Pleghardt cooperated with the government’s investigation.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the 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.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Owner of Virginia Company Sentenced for $2.8 Million Medicaid FraudRead the Press Release
RICHMOND, Va. – A Texas woman was sentenced today to 50 months in prison for defrauding the Virginia Medicaid program out of nearly $3 million.
“For over six years, the defendant stole over $2.8 million from the Virginia Medicaid program, using those funds to go on a spending spree at casinos, luxury retail stores, and foreign travel destinations,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution underscores our steadfast commitment to protecting essential government resources that are intended to help those in need of this critical assistance throughout our communities.”
According to court documents, Katrina Lynch, 39, of Cypress, Texas, owned and operated A Tender Heart, LLC, a company based in Midlothian. A Tender Heart was enrolled with the Virginia Medicaid Program as a Service Facilitator, a Medicaid provider that ensures Medicaid recipients receive needed and required services.
“We must hold fraudulent healthcare providers accountable, not only because they are stealing from our healthcare system but they are also stealing from Virginia taxpayers in the process,” said Mark R. Herring, Attorney General of Virginia. “I want to thank my hardworking Medicaid Fraud Control Unit for their work on this case, as well as our state and federal partners for their collaboration.”
Between 2011 and 2018, Lynch routinely submitted bills to Medicaid for services that her company never provided. For example, Lynch submitted bills to Medicaid for services supposedly provided to Medicaid recipients that had died, recipients that were hospitalized, recipients that transferred to other service facilitators, and recipients that had not been visited by any company employees for months. Due to these fraudulent submissions, Medicaid paid Lynch at least $2,816,633 to which she was not entitled.
“The Medicaid system is a lifeline for so many who depend on those funds to receive the necessary medical care they would otherwise not be able to afford. The FBI will not take an idle approach to the abuse of government programs,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “We will work with our investigative partners to hold criminals accountable; and demonstrate to the American people we are committed to upholding the law and seeking justice for those who need it. If you have information to share about potential Medicaid fraud, please contact the FBI at tips.fbi.gov or by calling our local field office (804-261-1044).”
Lynch received warnings about her billing practices during two audits performed at the direction of the Virginia Department of Medical Assistant Services (DMAS). As a result of these audits, A Tender Heart was required to repay over $335,000 to Virginia Medicaid. Lynch, however, continued her fraudulent scheme after these audits.
Lynch used the fraudulently obtained Medicaid funds to engage in extensive personal expenditures, including overseas travel, restaurants, gambling, cosmetic surgery, jewelry, and vehicles. For example, Lynch spent over $47,000 of Medicaid funds at casinos, including the Bellagio in Las Vegas, Nevada, and Harrah’s in New Orleans, Louisiana. In addition, she spent over $100,000 on clothing and jewelry at luxury stores such as Neiman Marcus, Saks Fifth Avenue, Tiffany & Co., and Louis Vuitton. Lynch further spent over $250,000 on travel expenses, including a trip to London in 2018, a trip to Atlantis Paradise in the Bahamas in 2017, a Royal Caribbean Cruise also in 2017, as well as trips to Hollywood, California, and Miami, Florida. Finally, she spent more than $25,000 on beauty services such as nail and hair salons, and she spent approximately $29,000 on entertainment expenses, including concert tickets, movie theaters, and golf.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-174.
Jury Convicts Member of International Drug Trafficking ConspiracyRead the Press Release
NORFOLK, Va. – On Friday, a federal jury convicted a Kennewick, Washington man on charges of conspiracy to distribute and possession with intent to distribute cocaine, and distribution of cocaine.
According to court records and evidence presented at trial, Juan Gabriel Rodriguez-Preciado, 43, facilitated the trafficking of kilogram quantities of cocaine between a Mexican cartel and a regional drug trafficking organization (DTO) run by Adian Barth, 35, of Chesterfield. During July and August 2019, Rodriguez-Preciado stayed at a Richmond residence owned by Barth to assist him in a cocaine drug trafficking conspiracy. From that residence, Rodriguez-Preciado distributed approximately 10 kilograms of cocaine every other week to members of Barth’s DTO over a two-month period. In return, Rodriguez-Preciado collected approximately $30,000 per kilogram, which he funneled back to Mexico.
“The jury’s verdict holds the defendant accountable for dangerously facilitating the distribution of significant quantities of cocaine between an international drug cartel and a regional drug trafficking organization,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is grateful to everyone who worked tirelessly on this case to protect the public and pursue justice against those who placed profits over the well-being of our communities.”
“I’m really proud that my team was able to help shutdown this significant, international drug trafficking operation that threatened the health and safety of Virginians,” said Mark R. Herring, Attorney General of Virginia. “We appreciate our continuing, productive partnership with the U.S. Attorney’s Office and all the partner agencies who work each and every day to keep Virginians safe.”
Rodriguez-Preciado faces a mandatory minimum sentence of five years and a maximum of 60 years in prison when sentenced on November 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 11, Barth was sentenced to 225 months in prison for charges of conspiracy to distribute, possession with intent to distribute, and distribution of cocaine.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict.
Assistant U.S. Attorney Megan Montoya and Special Assistant U.S. Attorney Kristin Bird 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-164.
Jury Convicts Former IRS Employee of FraudRead the Press Release
ALEXANDRIA, Va. – On Saturday, a federal jury convicted a former Internal Revenue Service (IRS) employee of access device fraud.
“As the evidence at trial showed, the defendant engaged in a scheme involving fraudulent purchases and payments, including by using a fictitious charity website, for his own benefit,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We thank the trial team and our partner agencies for ensuring that the defendant has been held accountable for inexcusably committing this crime while he was serving as a federal employee.”
According to court records and evidence presented at trial, a former Information Technology Specialist for the IRS, Kwashie Senam Zilevu, 37, of Woodbridge, operated a fraud scheme in which he used a line of credit in a victim’s name to make hundreds of purchases totaling more than $58,000, for his own benefit. In connection with this scheme, identity information was obtained from the Dark Web. Ultimately, a credit card in the victim’s name was mailed to the defendant’s home in Woodbridge.
Zilevu’s purchases included international plane tickets, expensive hotel rooms, interior decorating services, and construction materials used to remodel his home, among other goods and services. Evidence presented at trial also demonstrated that Zilevu made fraudulent payments to himself using financial instruments belonging to other people, including routing charitable donations to a fictitious African charity website he created, controlled, and used to further his criminal activity, and by receiving payments from a PayPal account associated with the credit card opened in the victim’s name.
Zilevu faces a maximum penalty of 15 years in prison when sentenced on November 10. 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; J. Russell George, Treasury Inspector General for Tax Administration; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
Assistant U.S. Attorneys Ronald P. Fiorillo II and Jamar K. Walker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-356.
Senior NASA Employee Sentenced for COVID-19 Related Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) was sentenced today to 18 months in prison for submitting fraudulent applications for over $350,000 in COVID-19 economic relief loans and benefits.
“While serving in a high-ranking position at NASA, this defendant used the identities of others to carry out a brazen scheme in which he exploited taxpayer-funded programs during the global pandemic for his own personal benefit,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of EDVA’s commitment to pursuing justice against those who attempt to take advantage of essential programs that are intended for deserving community members.”
According to court documents, Andrew Tezna, 36, of Leesburg, fraudulently submitted three loan applications to two financial institutions totaling $272,284, under the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic. Tezna also submitted two Economic Injury Disaster Loan Program applications to the Small Business Administration totaling $69,500, and he applied for COVID-related unemployment benefits, totaling $15,950, from Virginia, ostensibly for his mother-in-law, who was retired and did not qualify for the benefits. In support of the fraudulent PPP loan applications, Tezna submitted fabricated IRS tax returns and fraudulently claimed payroll expenses that did not exist.
Tezna successfully obtained over $285,000 from the PPP loans and unemployment benefits. The bulk of the money came from PPP loans applied for in his and his mother-in-law’s names for businesses that did not exist. He then spent the funds, among other things, to pay off a personal loan for a residential pool, a personal loan for a minivan, personally incurred credit card debt, a down payment on a new car, and a dog-breeder. In addition, Tezna also admitted to filing a false Financial Disclosure Report with NASA.
“Tezna made fraudulent representations to obtain funds from COVID-19 relief programs designed to aid businesses and individuals that were struggling as a result of the pandemic. In doing so, he stole funds from American taxpayers that he ultimately used to pay down personal debt and purchase luxury items,” said Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office. “Today’s sentencing should serve as a deterrent to all those trying to game the system for personal gratification.”
“COVID-19 relief programs are not meant to be used for paying off personal indulgences. Tezna, despite having an executive position, stole funds from the government meant to aid struggling businesses during the pandemic. Today, the penalties of his actions were realized,” said Darrell J. Waldon, Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.
In addition to the 18 months of imprisonment, Tezna was sentenced to 3 years of supervised release and $285,449.11 of restitution and forfeiture.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-CI; and Mark J. Zielinski, Special Agent in Charge, NASA Office of Inspector General, Eastern Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker prosecuted the case.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]. Members of the public in the Eastern District of Virginia are encouraged to call 804-819-5416, or email [email protected] to reach their local Coronavirus Fraud Coordinator.
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-77.
Drug Trafficker Pleads Guilty to Role in 2011 Reston MurderRead the Press Release
ALEXANDRIA, Va. – A Beltsville, Maryland man and long-time fugitive pleaded guilty today to aiding and abetting a drug-related murder nearly a decade ago.
According to court documents, Saul Pacheco Mejia, 55, arranged to sell cocaine to individuals in Reston on December 12, 2011. On that date, Mejia and two associates arrived at an apartment in Reston in anticipation of the cocaine transaction. Instead of purchasing the cocaine, the intended customer attempted to steal the cocaine and flee. Mejia’s associates chased, shot, and killed the man. Mejia did not have a firearm, but knew the two other individuals did have firearms. Mejia and the others fled to Honduras shortly after the crime. In late 2019, Mejia was located in the United States and arrested in Texas.
Mejia pleaded guilty to aiding and abetting the use of a firearm in furtherance of a drug trafficking conspiracy, causing death. Mejia pleaded guilty to aiding and abetting the use of a firearm in connection with a drug conspiracy resulting in death. Mejia is scheduled to be sentenced on November 10. Under the plea agreement entered today, the parties have agreed that the Court will not sentence the defendant to more than 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
Assistant U.S. Attorney Michael P. Ben’Ary is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-2.
Virginia Man Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Southampton County man was sentenced today to 40 years in prison for producing and possessing images of child sexual abuse.
James William Thomas, III, 36, was found guilty by a jury on February 13, 2020, of seven counts of production of child pornography and three counts of possession of child pornography. According to court records, Thomas’s crimes were discovered in 2014 after he was caught burglarizing a coin shop in Franklin. Southampton County investigators obtained a search warrant for Thomas’s residence and seized evidence related to over 25 unsolved burglaries in Virginia and North Carolina. Part of this seizure included computers and other digital storage devices.
The evidence presented at trial showed that a review of these electronic devices revealed the presence of child pornography. Moreover, investigators found detailed folders on the devices with names of child victims and saved chat sessions. Over multiple years, Thomas, then in his late 20s, posed as a 17-year-old teen and befriended female victims on social media who were generally between the ages of 12-16. Thomas then groomed these victims and convinced them to produce naked images of themselves to send to him. In some instances, he convinced them to masturbate over a webcam, which Thomas recorded and saved. Thomas saved these chat sessions and the images in the folders on the electronic devices.
The evidence adduced at trial further demonstrated that Thomas chatted online with dozens of minor victims. To keep track of them, he employed a “cheat sheet” at the top of the saved chat sessions for each victim, which contained information including their name, age, phone number, and other facts, such as how easily they provided him with naked images. In one instance, he convinced a 14-year-old girl to meet him for sex on three separate occasions. Each time, Thomas had the victim pose naked for photographs and then recorded their sexual encounters.
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. Attorney Joseph L. Kosky 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. 2:18-cr-58.
Leader of Cross-Country Methamphetamine Conspiracy ConvictedRead the Press Release
NORFOLK, Va. – A Chesapeake man was convicted today on methamphetamine and money laundering charges after a three-day bench trial.
According to court records and evidence presented at trial, Xavier Howell, 35, led the Virginia side of a multi-state, multi-kilogram methamphetamine conspiracy. He and his co-conspirators imported over 10 kilograms of high-purity methamphetamine, sourced from a California-based Grape Street Crips gang member, through the mail with the assistance of a corrupt U.S. Postal Service supervisor. The group also smuggled fentanyl into Hampton Roads on a commercial air flight.
“With the assistance of a corrupt federal employee and others, the defendant flooded South Hampton Roads with methamphetamine as part of a cross-country conspiracy supplied by a California-based gang,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through the hard work and dedication of the trial team, this defendant and others have been brought to justice for threatening the safety of our communities.”
Howell faces a mandatory minimum sentence of 10 years and a maximum sentence of life when he is sentenced on November 12. 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; Daniel A. Adame, U.S Postal Inspector in Charge for the Washington Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge John A. Gibney, Jr. announced the verdict.
Assistant U.S. Attorneys Andrew Bosse and Amanda Turner 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. 2:20-cr-11.
Ringleader of Extensive Sinaloa Cartel-Linked Fentanyl and Heroin Trafficking Network SentencedRead the Press Release
NEWPORT NEWS, Va. – The ringleader behind an extensive drug trafficking ring was sentenced today to 33 years in prison for distributing large amounts of fentanyl, heroin, and cocaine in Newport News and North Carolina.
“This defendant served in a significant leadership role as the regional distributor of heroin, fentanyl, and cocaine for the Sinaloa Cartel, one of the most prolific and violent cartels in the world,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue working with our law enforcement partners to combat these transnational criminal organizations in order to protect the health and safety of our communities.”
According to court documents, Ramiro Ramirez-Barreto, 44, from the Mexican State of Morelos, operated a continuing criminal enterprise with ties to Virginia, North Carolina, and California. Ramirez-Barreto was linked to the Sinaloa Cartel in Mexico, as were his drug sources, and his operation supplied cocaine, heroin, and fentanyl to numerous drug trafficking organizations in Newport News, Virginia, and in Henderson and Greensboro, North Carolina. According to one of Ramirez-Barreto’s many North Carolina customers, Ramirez-Barreto supplied him with 60 kilograms of heroin from early 2018 to mid-2019. Another one of Ramirez-Barreto’s customers was an inmate in federal prison operating a drug trafficking organization in Henderson, North Carolina, using a bootleg mobile phone.
In addition to his sentence, Ramirez-Barreto was ordered to pay a forfeiture money judgment of $4,200,000 and forfeit his house in Lawrenceville.
Barreto was arrested in 2019 as a result of Operation Cookout.
Background on Operation Cookout
In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina, and Texas executed a major operation, known as Operation Cookout, which resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.
To date, 45 total defendants have been charged in Operation Cookout. All 45 defendants have admitted their criminal conduct and pleaded guilty. Thus far, 41 defendants have been sentenced, with the majority being sentenced to prisons terms ranging from two to ten years, and five defendants sentenced between 15 to 25 years in prison.
These prosecutions are part of an Organized Crime Drug Enforcement Task Force’s (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.
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 (HSI) Washington D.C.; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Mark Talbot, Chief of Hampton Police; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth’s Attorney Anton A. Bell, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Kevin Hudson and Peter G. Osyf and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals Service, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina, and Texas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
Member of 36th Street Bang Squad Gang Sentenced for Attempted Murder and Multiple ShootingsRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced on Friday to 30 years in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.
According to court documents and evidence presented at trial, Ryan Taybron, 24, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On June 5, 2015, Taybron and four of his fellow gang members gathered at his Hampton home and discussed killing a rival gang member who was suspected of murdering a 36th Street Bang Squad member two days prior. Taybron provided a handgun to one of the gang members when the gang member left to find the rival. Once at the location, other 36th Street members and associates joined the group and followed a Hampton City school bus in two vehicles, waiting for their target to get off at a stop. When the target exited the bus, the co-defendants and associated gang members chased him into an apartment complex. With Taybron’s encouragement, the gang members carried loaded firearms and planned to kill the target if he was found, which he was not.
Throughout the conspiracy, Taybron actively used social media to taunt rival gangs and make threats of violence towards anyone who would disrespect the 36th Street Bang Squad. On September 1, 2015, Taybron provided a pistol-grip shotgun to a fellow gang member and had two gang members shoot a residence in Newport News because the female resident had disrespected the gang. The house was struck by multiple gun shots. After the shooting, the gang members returned the firearm to Taybron. On January 2, 2017, alongside a fellow gang member, Taybron verbally provoked and engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News.
On December 10, 2019, after a seven-week jury trial, Taybron was convicted of racketeering conspiracy, attempted murder in aid of racketeering activity, discharge of a firearm in furtherance of a crime of violence, conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28. Co-defendant Xavier Greene, 26, of Newport News, was sentenced to four life sentences for his role in the conspiracy on July 2.
Two additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing through August 2.
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; Steve R. Drew, Chief of Newport News Police; Kenneth Mark Talbot, Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Brian Samuels, former Assistant U.S. Attorney Howard J. Zlotnick, and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang 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 No. 4:17-cr-52.
Jury Convicts Hampton Return Preparer of Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man Friday of aiding and assisting in the preparation of false tax returns, theft of government funds, and failing to file federal income tax returns.
According to court records and evidence presented at trial, from at least 2013 through 2019, Karl Burden-El Bey prepared false tax returns for clients. On his clients’ returns, Burden-El Bey claimed false dependents, residential energy credits, gifts to charity, deductions, and child and dependent care expenses in order to inflate refunds obtained from the Internal Revenue Service (IRS). Burden-El Bey also stole $5,000 by directing a portion of his client’s refunds into his personal bank account. As to his own taxes, Burden-El Bey did not file individual tax returns for 2013 through 2017 with the IRS, despite being legally obligated to do so.
“The evidence at trial demonstrated that the defendant’s criminal conduct in this case spanned several years and included assisting in the preparation of false tax returns, stealing government funds, and failing to file personal federal income tax returns even though he held a trusted position as a tax preparer,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its appreciation to the trial team, and we are grateful for the jury’s verdict, which holds the defendant accountable for betraying the public’s trust and unlawfully enriching himself through this multi-year fraud scheme.”
Burden-El Bey faces a statutory maximum sentence of ten years in prison for theft of government funds, three years in prison for each count of aiding and assisting in the preparation of a false tax return, and one year in prison for each count of failing to file a tax return when sentenced on December 7. 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; General Stuart M. Goldberg, Acting Deputy Assistant Attorney of the Department of Justice’s Tax Division; and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Lisa McKeel and Brian Samuels and Trial Attorneys Grace Albinson and Francesca Bartolomey of the Tax Division are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-17.
EDVA Launches “UnMasked” Initiative to Combat Online ExploitationRead the Press Release
ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the launch of “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness about the prevalence of online sexual exploitation involving children and young adults.
“Online predators target some of the most vulnerable members of our society and can cause a devastating impact on our communities and loved ones,” said Acting U.S. Attorney Raj Parekh. “The first step to fighting back is awareness—educating our youth and parents with information on how to prevent these crimes from happening. UnMasked will help achieve these goals by establishing a community-based program that is designed to raise awareness and combat the often-hidden scourge of cyber abuse.”
UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders committed to raising awareness of threats and resources through education. The initiative provides a platform to educate middle school, high school, and college students, along with parents, teachers, and the broader community, about the potential dangers of the internet. UnMasked presentations will use real-life case examples of online sexual exploitation, as illustrated by law enforcement agents, prosecutors, and survivors of these crimes.
The program name, “UnMasked,” alludes to the often hidden and clandestine nature of online sexual exploitation. Not only are internet predators able to use online identities as a mask to lure in their victims, but those victims are often also “masked” as a result of the fear and stigma that can accompany cyber exploitation. This educational initiative seeks to address both sides of these issues to “unmask” and expose these invisible dangers. The program will also provide a safe environment and opportunity for students and adults to disclose if they have been victims of online exploitation.
The UnMasked initiative will involve educational presentations at schools, colleges, and universities throughout the Eastern District of Virginia. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. Participants and others in the audience will hear personal stories by real survivors, along with presentations from experts in the investigative, forensic, and mental health fields. These events, which are set to begin during the 2021–2022 school year, will include interactive components, as well as live and video testimonials from survivors cautioning students about the dangers of online communications. UnMasked will offer lessons learned, tips, and best practices on how to avoid being subjected to exploitation, as well as what to do if they or someone they know becomes a victim.
According to NCMEC, online exploitation exploded in 2020 during the COVID-19 pandemic as social isolation and online activity increased. NCMEC’s “CyberTipline” received more than 21.4 million reports of child sexual exploitation from electronic service providers in 2020, as well as over 303,000 reports of online sexual exploitation from the public. This represents a 27% annual increase in reporting from electronic service providers, as well as a more than doubling in reports from the public. According to NCMEC, online exploitation encompasses a broad range of offenses, including “online enticement of children for sexual acts, child sexual molestation, child sexual abuse material, child sex tourism, child sex trafficking, unsolicited obscene materials sent to a child, misleading domain names, and misleading words or digital images on the internet.” Cyber exploitation often begins with perpetrators contacting potential victims through social media applications, video games, and websites, typically using false online profiles, and such conduct can involve both online sexual exploitation and in-person sexual abuse.
EDVA’s partners in this community-based initiative will include the Washington, D.C., Richmond, and Norfolk Field Offices of the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI); the U.S. Department of Defense’s Naval Criminal Investigative Service (NCIS) Washington, D.C., and Norfolk Field Offices; and NCMEC, among other law enforcement, educational, and community organizations.
“In those unfortunate instances when these horrific crimes occur, EDVA will prosecute the perpetrators to the fullest extent of the law, seek justice for all victims, and send a strong message to deter others from engaging in this reprehensible conduct,” said Acting U.S. Attorney Parekh.
To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. The CyberTipline is operated by NCMEC in partnership with the FBI and other law enforcement agencies. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
36th Street Bang Squad Member Sentenced for Gang-Related Murders and ShootingsRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to four life sentences in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.
According to court documents, Xavier Greene, 26, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between March and August 2015. On March 8, 2015, Greene and two other gang members shot and killed Dwayne Parker, 18, in Newport News. On April 6, 2015, Greene and three other members of the 36th Street Bang Squad drew firearms and began shooting at people outside a residence in Newport News. Two teenagers were killed during this incident.
On August 1, 2015, Greene, who was armed with a firearm, and two other people ran to a convenience store in Newport News to help gang members who were being jumped by a rival gang. When Greene did not fire at the rival gang, another gang member grabbed the gun and fired eight rounds at the store. A customer was grazed by bullets striking the storefront. Less than a week later, Greene and three other individuals stole more than 30 firearms from a federally licensed firearms dealer outside Richmond. Greene distributed some of the firearms to members of the gang immediately upon returning to the Tidewater area.
On December 10, 2019, after a seven-week jury trial, Greene was convicted on eight counts of crimes in aid of racketeering, including racketeering conspiracy, three murders, using a firearm in each murder, and an attempted murder.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28.
Three additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.
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; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorneys Brian Samuels and Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang 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 No. 4:17-cr-52.
Operator of Residential Nursing Facility Sentenced for Health Care FraudRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to two years in prison for defrauding the Virginia Medicaid program by submitting over $188,000 in false claims for a residential nursing facility.
“For three years, the defendant used his position as a nursing home operator to fraudulently obtain over $188,000 from the Virginia Medicaid program,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Health care fraud takes funding and critical services away from those who truly need it. We will continue to hold accountable those who exploit these essential health care programs at the expense of vulnerable members of our communities.”
According to court documents, Lopez Scott, 47, operated Turning Points Residential Care, a business authorized to provide residential support services and skilled nursing services to recipients of Medicaid. Between October 2016 and October 2019, Scott submitted numerous false and fraudulent claims to Virginia Medicaid, known as the Virginia Medical Assistance Program (VMAP), which misrepresented that 5,847.75 hours of skilled nursing services had been provided to a Medicaid recipient. As a result, Scott received approximately $188,297.39 in health care payments to which he was not entitled.
“When Lopez Scott launched his fraud scheme, he threatened the integrity of the Medicaid program and illegally pocketed taxpayer funds meant to pay for the legitimate care of needy patients,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services (HHS) Office of the Inspector General. “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their unprincipled actions.”
According to court documents, in order to conceal and cover up the fact that no skilled nursing services had been provided to the Medicaid recipient, Scott created fraudulent entries of nursing notes in the electronic office records of Turning Points, including the forged signature of a nurse, which falsely indicated that such services had been provided. Scott also asked this nurse to falsely state to investigators that she had continued to work for the company even after her employment had ceased.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for HHS, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Alan Salsbury 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-104.
Acting U.S. Attorney Raj Parekh Announces Enhanced Commitment to Civil Rights Enforcement in EDVARead the Press Release
ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the formation of a Civil Rights Team in the Office’s Criminal Division, which will be responsible for enforcing the Nation’s federal criminal civil rights laws in EDVA, including additional resources to investigate and prosecute hate crimes, bias-related incidents, and alleged law enforcement misconduct, and to enhance outreach and awareness among impacted communities. The development of the Civil Rights Team in EDVA’s Criminal Division builds upon the prior establishment of the Civil Rights Enforcement Unit in EDVA’s Civil Division, which has engaged in trailblazing efforts to protect the civil rights of military servicemembers and individuals with disabilities, among others.
“Every individual has the right to enjoy their lives free from violence or discrimination based on race, color, national origin, religion, gender, gender identity, sexual orientation, age, disability, or any other protected basis,” said Acting U.S. Attorney Parekh. “Far too often, victims of hate crimes and discrimination suffer in silence. Through the creation and expansion of the Civil Rights Teams in both our Criminal and Civil Divisions, we aim to bring awareness, improve reporting of hate crimes and discrimination, increase enforcement of civil rights protections, and ensure the prosecution of those who infringe on the civil rights of others.”
These initiatives implement President Biden’s and Attorney General Garland’s directives to confront violence, hatred, and discrimination through modern, comprehensive methods that address the complexity of these issues. In a May 2021 memorandum, Attorney General Garland directed U.S. Attorneys’ Offices nationwide to bolster the Department’s effectiveness in this area, stating that these actions “will enhance our current efforts to combat unlawful acts of hate by improving incident reporting, increasing law enforcement training and coordination at all levels of government, prioritizing community outreach, and making better use of civil enforcement mechanisms.”
The civil rights enforcement efforts in EDVA’s Criminal and Civil Divisions are designed to meet these goals through close coordination with our federal, state, and local partners, and through sustained collaboration with impacted communities in the Eastern District of Virginia.
EDVA’s Criminal Civil Rights Team will focus on violations of federal civil rights laws, including hate crimes and bias-related incidents, alleged law enforcement misconduct, and other federal civil rights offenses. Assistant U.S. Attorney (AUSA) Nicholas U. Murphy II will continue to serve as the district-wide Civil Rights and Hate Crimes Coordinator for EDVA’s Criminal Division. Acting U.S. Attorney Parekh also announced today that he is appointing the following AUSAs to serve as additional Civil Rights Coordinators in all four of EDVA’s geographic divisions: Jamar K. Walker (Alexandria); Stephen E. Anthony (Richmond), E. Rebecca Gantt (Norfolk), and D. Mack Coleman (Newport News). These Civil Rights Coordinators will serve as internal subject matter experts and provide legal advice and training to other AUSAs and EDVA personnel on best practices for investigating and prosecuting federal hate crimes and other civil rights violations, in coordination with the Justice Department’s Civil Rights Division. In addition, the Civil Rights Coordinators will engage with federal, state, and local partners to expand EDVA’s existing outreach programs by improving awareness and proactively engaging with communities to increase hate crimes reporting and strengthen law enforcement’s collective response on these critical issues.
The creation of the Criminal Civil Rights Team follows last year’s announcement of the establishment of the Civil Rights Enforcement Unit in EDVA’s Civil Division, in connection with the 30th anniversary of the Americans with Disabilities Act (ADA). EDVA’s Civil Rights Enforcement Unit has engaged in groundbreaking work to enforce the ADA and ensure equal access to public accommodations, such as health care providers, and state and local government services, such as polling locations, in addition to protecting the rights of military servicemembers and veterans under the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act. The Civil Rights Enforcement Unit has also interacted extensively with the vulnerable communities that these laws seek to protect, providing essential education so that impacted individuals can understand and exercise the rights that the law affords.
Although the work of the Civil Rights Enforcement Unit has focused primarily on the enforcement of federal laws protecting the civil rights of veterans and individuals with disabilities, Acting U.S. Attorney Parekh announced today that the Unit’s work would expand to include the enforcement of federal civil rights laws for all protected individuals in connection with housing discrimination and harassment, actions that unduly burden religious expression, and law enforcement and correctional entities that engage in a pattern or practice of unlawful conduct.
The Civil Rights Enforcement Unit in EDVA’s Civil Division includes AUSA Steve Gordon, who serves as the Civil Rights Enforcement Coordinator, and AUSAs Lauren F. Oberheim, Deirdre G. Brou, and Clare P. Wuerker. AUSA Wuerker will focus her civil rights work on pattern or practice allegations in the law enforcement and correctional context.
“These enhanced efforts within EDVA’s Criminal and Civil Divisions will strengthen our Office’s unwavering commitment to ensuring that the civil rights of all who call the Eastern District of Virginia home—especially those in vulnerable communities—are vigorously protected,” said Acting U.S. Attorney Parekh.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Armed Forces Services Corporation Pays $4.3 Million to Resolve Anti-Kickback Act and False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Armed Forces Services Corporation d/b/a Magellan Federal (“AFSC”), located in Alexandria, agreed to pay $4,342,651 to resolve allegations that three former AFSC executives accepted kickbacks in exchange for awarding subcontracts on federal government contracts, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
The United States alleged that from 2010 to 2015, a former AFSC executive directed a subcontractor to mark up the cost of services that the subcontractor provided to AFSC primarily in support of various Wounded Warrior programs. The United Sates further alleged that the former AFSC executive directed the subcontractor to divide the proceeds of the scheme between the subcontractor, the former AFSC executive, and two other former AFSC executives in exchange for awarding the subcontracts.
AFSC’s current ownership submitted a written contractor disclosure to the U.S. Small Business Administration describing potential kickbacks to the former executives, and cooperated in full in the ensuing investigation. The settlement resolves federal civil claims under the Anti-Kickback Act and the False Claims Act.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; and the Naval Criminal Investigative Service.
The matter was investigated by Assistant U.S. Attorneys William Hochul and Kristin S. Starr.
The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man Pleads Guilty to Violating Endangered Species ActRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today to the unlawful sale of endangered species, including elephant and whale ivory.
According to court documents, Gary L. Cooper, 60, operated online storefronts to sell elephant and whale ivory, all in violation of the Endangered Species Act. From at least June 2015 through early 2020, Cooper used online platforms, such as Craigslist and eBay, to list for sale individual carvings made in whole, or in part, from ivory. These items ranged in size, including two raw elephant tusks that measured at least 28 inches long. In addition to several raw and carved tusks, the advertisements offered numerous elephant ivory carvings and both raw and scrimshawed sperm whale teeth. Cooper told his clients, including an undercover agent, that he was selling off an estate belonging to an elderly couple in poor health, when in reality he was regularly buying ivory online and flipping the pieces for profit.
Over about a sixteen-month period beginning in September 2018, Cooper did business with United States Fish and Wildlife Service (USFWS) undercover agents by selling or offering for sale no less than 50 pieces of elephant ivory, with a total market value between $40,000 and $95,000. During their correspondence, Cooper and the undercover agents discussed the illegality of buying and selling ivory across state lines. On November 17, 2018, Cooper offered to sell to an undercover USFWS Special Agent multiple ivory pieces for a total cost of $8,125. On November 26, 2018, Cooper sold two pieces of carved elephant ivory to the undercover agent and mailed the items from Virginia to New York. Upon forensic investigation, the items were confirmed to be genuine elephant ivory.
Cooper is scheduled to be sentenced on August 31. As part of the plea, Cooper will forfeit approximately 136 pieces of raw and carved ivory. He faces a maximum penalty of 1 year 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 Ryan Noel, Special Agent-in-Charge, United States Fish and Wildlife Service, Office of Law Enforcement, made the announcement after U.S. Magistrate Judge John F. Anderson accepted the plea.
This investigation was conducted by the United States Fish and Wildlife Service, Office of Law Enforcement, with assistance from the Virginia Department of Wildlife Resources.
Assistant U.S. Attorney Gordon Kromberg and Special Assistant U.S. Attorneys Alejandra Arias and Sara Hallmark 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-212.
36th Street Bang Squad Member Sentenced for Gang-Related Attempted MurdersRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 30 years in prison for his role in a gang-related racketeering conspiracy that engaged in multiple murders, attempted murders, and drug trafficking.
According to court documents, Eric Nixon, 25, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On January 2, 2017, Nixon and another gang member engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News. On February 26, 2017, Nixon shot a rival gang member in the head during a drive-by shooting in Newport News, because the rival had disrespected the gang on social media. The rival gang member survived the shooting after undergoing brain surgery.
On December 10, 2019, after a seven-week jury trial, Nixon was convicted on six counts of crimes in aid of racketeering, including racketeering conspiracy, two attempted murders, using a firearm in each crime, and having another person unlawfully purchase a firearm for him.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. In addition to Hunt and Nixon, five co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.
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; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorneys Howard Zlotnick and Brian Samuels and Special Assistant U.S. Attorney Amy Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang 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 No. 4:17-cr-52.
Virginia Man Sentenced for Child Exploitation OffensesRead the Press Release
ALEXANDRIA, Va. – A Bluemont man was sentenced today to 19 years in prison for the production and distribution of child pornography.
According to court documents, Kevin Hewlett, 36, was convicted by a federal jury on October 8, 2020, of producing and distributing child pornography. According to court documents and evidence presented at trial, Hewlett was a farrier, a craftsman who trims and shoes horses’ hooves. He was hired to be the farrier to a minor girl’s horses. Hewlett began communicating with the minor regularly through text messages and social media applications. Then in August 2018, Hewlett recorded himself engaging in sexually explicit conduct with the minor in his bedroom. A few months later, in January 2019, Hewlett sent the minor the recording.
Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office made the announcement.
This case was investigated by the Loudoun County Sheriff’s Office and the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task force, which is composed of FBI agents along with local, state, and federal partners.
Former Assistant U.S. Attorney Nathaniel Smith III and Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section 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. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-64.
Level 3 Communications, LLC Agrees to Pay over $12.7 Million to Settle Civil False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Level 3 Communications, LLC (Level 3), a multinational telecommunications and Internet service provider company with offices throughout the world, including in McLean, agreed to pay $12,772,843 to settle allegations involving: kickbacks paid to former Level 3 officials in return for favorable treatment to subcontractors in connection with government contracts; improperly obtaining competitive bid information; and misstating compliance with woman-owned small business subcontracting requirements.
“Kickbacks paid in connection with government contracts defraud the American taxpayer and undermine the federal procurement process,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is firmly committed to utilizing all available civil remedies to combat such alleged conduct and protect the public fisc.”
Level 3 entered a contract issued by the General Services Administration under which the U.S. Department of Defense Office of Inspector General ordered supplies and services, known as the “WITS 3” contract. Level 3 subcontracted work under the WITS 3 contract to MSO Tech, Inc. (MSO Tech) and P.V.S. Inc. (PVS), two Florida-based companies owned by William S. Wilson.
The United States alleged that in 2012, Wilson paid kickbacks to Level 3 senior managers Ronald Capallia and another individual to induce them to steer Level 3 subcontract work to MSO Tech and PVS. In return for these alleged kickbacks, MSO Tech and PVS were allegedly given favorable treatment and subcontracts. The United States also alleged that Capallia knowingly obtained protected competitor bid information in connection with the WITS 3 contract to gain an advantage in bidding on task orders on the contract.
Level 3 also entered into a contract with the U.S. Department of Homeland Security (DHS), known as the “Terrawatt” contract. The United States alleged that in 2011, Level 3 informed DHS that PVS qualified as a woman-owned small business in order to satisfy contractual obligations to award a certain portion of work under the Terrawatt contract to a woman-owned small business, despite Capallia and another individual knowing that PVS was owned and controlled by Wilson, and that the work awarded to PVS was in fact performed by MSO Tech.
The settlement resolves federal civil claims under the False Claims Act, the Anti-Kickback Act, and the Procurement Integrity Act. Level 3 cooperated during the investigation.
The settlement arises in connection with a lawsuit filed by a former Level 3 employee under the whistleblower provision of the False Claims Act. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery.
The resolution obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Defense Criminal Investigative Service, and the Department of Homeland Security’s Office of Inspector General.
This matter was investigated by Assistant U.S. Attorneys Krista Anderson and Gerard Mene.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:13-cv-1453. Court documents regarding related criminal proceedings can be found at Case Nos. 1:17-cr-223 and 1:17-cr-222.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Jury Convicts Felon for Illegal Possession of Multiple Firearms and Witness TamperingRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man yesterday on one count of illegally possessing firearms as a felon, four counts of witness tampering and obstruction of justice, and one count of unlawful possession of a controlled substance.
According to court records and evidence presented at trial, in October and November 2017, Adonis Marquis Perry, 31—a five-time convicted felon who had sustained two state convictions and one federal conviction for being a felon in possession of firearms and ammunition—took pictures of himself holding a Glock, Model 17, 9mm semi-automatic handgun, loaded with an extended magazine, and a Taurus, Model 66, .357 magnum revolver.
According to the evidence presented at trial, on December 18, 2017, Perry was arrested at a traffic stop in Norfolk after attempting to elude law enforcement by running through stop signs and making rapid turns, finally stopping in a residential parking lot. When law enforcement caught up to the car, they ordered the two occupants out of the vehicle. After receiving permission to search the vehicle, officers found the Taurus revolver and the Glock handgun—the latter loaded with the same magazine that was in the defendant’s pictures.
According to the evidence presented at trial, Perry spent the next seven months after his arrest making recorded calls from the jail to engage in witness tampering and obstruction of justice, specifically involving a series of efforts to interfere with the potential testimony of the second person who was in the car during Perry’s arrest encounter.
Perry faces a maximum penalty of 92 years in prison when sentenced on November 17. 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 Rebecca Beach Smith accepted the verdict.
Assistant U.S. Attorneys William B. Jackson and Joseph E. DePadilla 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. 2:18-cr-113.
Portsmouth Woman Pleads Guilty to Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison InmatesRead the Press Release
NORFOLK, Va. – A Portsmouth woman pleaded guilty today to her involvement in a fraudulent scheme to obtain over $300,000 in pandemic-related unemployment benefits by using the personal identifying information of over 30 Virginia prison inmates.
“This scheme resulted in the deliberate theft of unemployment funds that were intended to serve as a lifeline for members of our communities who faced financial hardship during the pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As Attorney General Garland recently emphasized, we will continue to work with our law enforcement partners to use all available tools to protect these essential taxpayer-funded resources and hold accountable those who seek to illegally profit from the pandemic.”
According to court documents, Mary Landon Benton, 38, worked with inmates at three Virginia correctional institutions to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Benton submitted successful applications for Virginia unemployment benefits for 31 inmates across three Virginia correctional facilities. Benton also attempted to file approximately ten to twenty other unemployment claims that were not approved because someone else had already filed a claim for that inmate. Each application that Benton submitted contained numerous false statements that made the application successful, such as the inmates’ contact information and last employer, and that they were ready and willing to work.
According to the Statement of Facts entered with her guilty plea, Benton took a portion of the successful claims and provided a portion of the proceeds to the inmate facilitators as well.
“Today’s guilty plea affirms the U.S. Department of Labor Office of Inspector General’s commitment to working with our federal and state agency partners to investigate fraud and identity theft that adversely impacts the integrity of the unemployment insurance program. We are grateful to the U.S. Attorney’s Office, the U.S. Department of Homeland Security Office of Inspector General, and the Virginia Employment Commission for their continued partnership,” said Derek Pickle, Special Agent-in-Charge, Washington, D.C. Region, U.S. Department of Labor Office of Inspector General.
"Defrauding the U.S. unemployment insurance and FEMA’s Lost Wage Assistance program, especially during the COVID-19 pandemic, is unconscionable,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “This investigation and resulting guilty plea speaks to the strength of our law enforcement partnerships with the Department of Labor – Office of Inspector General, U.S. Attorney’s Office, and the Virginia Employment Commission which ensure these limited public funds go to the intended beneficiaries."
Benton was indicted for her role in the conspiracy on April 8, 2021, along with three other defendants. The criminal cases against Benton’s three co-defendants remain pending, and each individual is presumed innocent until proven guilty.
Benton is scheduled to be sentenced on October 25. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, D.C. Regional Office, U.S. Department of Labor Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.
Jury Convicts Two Men for Bribery and Kickback Conspiracy Involving U.S. Department of Defense ContractsRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two men today for participating in a bribery and kickback conspiracy involving a contract for the U.S. Department of Defense’s Office of Inspector General (DoD OIG).
According to court records and evidence presented at trial, beginning in 2010 and continuing through 2015, William S. Wilson, 56, of Florida, was the owner of a small construction company based in Lake Butler, Florida that paid numerous kickbacks and bribes to his co-conspirators. Among other things, Wilson paid tens of thousands of dollars in bribes to Matthew K. LumHo, 46, of Fairfax Station, then employed with the DoD OIG’s Information Services Directorate. In return, LumHo took official acts that benefitted Wilson’s companies, including steering work to Wilson’s company by placing fraudulent service orders through a government contract that LumHo controlled.
The evidence presented at trial further proved that, over the same time period from 2010 through 2015, Wilson also paid numerous kickbacks to Ronald Capallia and another employee for a telecommunications company that was a prime contractor to the government. Wilson paid these kickbacks to Capallia and the other individual to cause them to steer work and provide favorable treatment to Wilson’s companies as subcontractors to the telecommunications company.
One of the key subcontracts steered to Wilson’s company related to a prime contract between the telecommunications firm and the DoD OIG, in which the telecommunications firm was supposed to supply various information technology-related services to the government. Wilson’s company was awarded this subcontract despite its lack of any relevant experience or expertise, and despite having no employees based in or near northern Virginia, where all the work was to be performed.
Wilson frequently disguised the bribes and kickbacks to Capallia, LumHo, and another individual through fake invoices for services that were never provided, or by masking the payments as payroll to relatives of Capallia and LumHo for jobs that did not in fact exist.
As the scheme progressed, the co-conspirators caused the government to submit numerous false and fraudulent service orders through the prime contract. The false service orders typically described the items being provided as specialized IT-related support services, when in fact the co-conspirators were simply buying standard, commercially available items, dramatically marking up the price, and billing the government as though it had been provided with the specialized IT-related services. The co-conspirators also used fraudulent service orders to conceal bribes in the form of high-end camera equipment and stereo equipment sent from Wilson to LumHo, thereby causing the government to pay for the very bribes that Wilson was sending to LumHo.
The evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documentation, making false statements to law enforcement officials, lying on a financial disclosure form, committing perjury during sworn civil deposition testimony, and tampering or attempting to tamper with a witness. In addition, Wilson threatened to murder Capallia and his family members by slitting their throats if Capallia ever testified on behalf of the government.
Co-conspirator Ronald A. Capallia, Jr., 40, pleaded guilty on January 25, 2018 to his role in the conspiracy and will be sentenced on September 14, 2021.
Wilson and LumHo each face a maximum penalty of 20 years in prison when sentenced on October 15. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Timothy R. Thibault, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kelly P. Mayo, Deputy Inspector General for Investigations at the Department of Defense’s Office of Inspector General, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the verdict.
Assistant U.S. Attorneys Matthew Burke and Russell L. Carlberg 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. 1:17-cr-222.