Eastern District of Virginia
Press releases recorded for this federal judicial district.
Former Richmond City Employee Pleads Guilty to Fraudulently Diverting Social Services BenefitsRead the Press Release
RICHMOND, Va. – A Richmond woman pleaded guilty yesterday to mail fraud for abusing her authority as a case worker at the Richmond Department of Social Services to divert income and food-related benefits to herself.
According to court documents, De’Nisha Juanita Wilson, 47, was a case worker for the Richmond Department of Social Services, where she assisted with and oversaw needy individuals’ receipt of financial benefits and had access to state and city systems containing beneficiaries’ personal information. In May 2019, one of Wilson’s clients, a young woman who was receiving benefits on behalf of five children, tragically died in a car accident. Following the woman’s death, Wilson accessed the deceased woman’s personal identifying information, caused the issuance of new prepaid benefits cards, and directed those cards to herself. Wilson then used the prepaid benefits cards issued under the deceased woman’s name for her own purposes. In total, Wilson diverted more than $13,000, spending approximately $8,000 on food, entertainment, and other personal expenses. The scheme was halted in January 2020.
Wilson is scheduled to be sentenced on October 18. She faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 James Osuna, Inspector General, City of Richmond Office of the Inspector General, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorney Kevin Elliker is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-69.
Bloods Gang Member Pleads Guilty to Two Murders in Newport NewsRead the Press Release
NEWPORT NEWS, Va. – A New York man pleaded guilty yesterday to the murders of two men in Newport News in June and July 2014.
According to court documents, Mark Anthony Skeete, a.k.a. Mark Brown, 33, was a member of the Nine Trey Gangsters, an offshoot of the California-based “Bloods” street gang. In June 2014, Skeete came to Virginia to assist in the prostitution of adult women in the Richmond area. On June 28, 2014, Skeete and others traveled to Newport News to assist in the prostitution of a female from New York. When a client was unable to pay, Skeete shot and killed him to maintain his position as part of the Nine Trey enterprise.
After the June 2014 murder, Skeete and others fled to North Carolina. Skeete and others then returned to Newport News and killed another man on July 16, 2014 during a drug transaction. Skeete also robbed the victim of money, drugs, and a cell phone. Shortly thereafter, Skeete returned to Richmond. On September 17, 2014, Skeete, a previously convicted felon, possessed a firearm in Richmond that was later forensically linked to the Newport News murders. Cartridge casings recovered from the June and July 2014 murder scenes revealed that the same Ruger .45 caliber firearm recovered on September 17, 2014 in Richmond was the weapon used in both of those murders.
Skeete is scheduled to be sentenced on December 1. He faces a maximum sentence of up to two life terms in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge David J. Novak accepted the plea.
This investigation was conducted by the FBI’s Peninsula Safe Streets Task Force, a partnership that includes the FBI, Virginia State Police, Hampton Police Division, James City County Police Department, and Newport News Police Department. This task force investigates the most violent criminal enterprises operating on the Virginia Peninsula. Tips regarding gang activity and other violent crimes in the region can be reported to the FBI at 1-800-CALL-FBI or https://tips.fbi.gov/.
Assistant U.S. Attorneys Howard J. Zlotnick, Lisa McKeel, and Brian Samuels 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-62.
Former CEO Sentenced for Defrauding Multiple Federal AgenciesRead the Press Release
ALEXANDRIA, Va. – An Arlington businessman was sentenced today to 21 months in prison with three years of supervised release for making false statements to multiple federal agencies in order to fraudulently obtain multimillion-dollar government contracts, COVID-19 emergency relief loans, and undeserved military service benefits.
“In the early stages of the global pandemic, the defendant engaged in three egregious fraudulent schemes that he brazenly concocted to enrich himself,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “He falsely represented to the federal government that he could provide $38 million in life-saving N95 masks, and simultaneously, he fraudulently obtained over $1 million in pandemic assistance intended for deserving families and businesses. The defendant also continued an offensive seven-year scheme to obtain unearned veterans benefits by falsely claiming to have served as a Marine. This case underscores our commitment to holding accountable those who exploit essential government programs at the expense of veterans, front-line medical personnel, and vulnerable members of our communities.”
According to court documents, Robert S. Stewart, Jr., 35, was the owner and president of Federal Government Experts (FGE) LLC, an Arlington-based company that purported to provide various services to the U.S. government. In this capacity, between April 1, 2020 and May 14, 2020, Stewart made false statements to the Federal Emergency Management Agency (FEMA) and the Department of Veterans Affairs (VA) in order to obtain lucrative contracts to provide COVID-19 personal protective equipment (PPE). In addition, Stewart fraudulently obtained loans under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. He also defrauded the VA by falsely claiming to be entitled to veteran’s benefits for serving in the U.S. Marine Corps when, in fact, he never served in the Marines.
As part of his PPE scheme, Stewart falsely stated to procurement officials from FEMA and the VA that he was in possession of large quantities of PPE, including N95 masks. Based on Stewart’s false statements, the VA and FEMA awarded FGE contracts valued at $35,000,000 and $3,510,000, respectively. The VA intended to use the PPE purchased from FGE to protect employees and patients at various Veterans Health Administration facilities, which serve the medical needs of over nine million veterans each year. FGE failed to supply any PPE to the VA and FEMA. The U.S. government suffered no financial loss because the contract called for payment upon delivery and inspection of the goods.
“These were crimes against the American people. Stewart fraudulently pursued contracts that were needed to supply VA hospital patients and staff with critical personal protective equipment during the COVID-19 pandemic, and stole taxpayer dollars intended to help local businesses stay afloat during the pandemic. In addition, he lied about his service in the military and received veterans benefits for which he was not entitled,” said VA Inspector General Michael J. Missal. “This sentence should send a clear message that the VA Office of Inspector General will work diligently with its law enforcement partners to ensure those who would defraud the nation’s veterans and the public will be caught and prosecuted.”
“We continue to collaborate with our law enforcement partners to pursue and dismantle schemes aimed at exploiting critical COVID-19 resources, and we are grateful for today’s sentencing decision, which sends a strong message to help deter potential fraudsters,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS).
“Today’s sentencing shows that we will not allow criminals to get away with exploiting government relief efforts that were designed to assist millions of Americans during the COVID-19 pandemic. Stewart fraudulently obtained government-backed loans, and his nefarious and unethical actions were for his own personal gain,” said Robert E. Bornstein, Acting Special Agent in Charge of FBI’s Washington Field Office Criminal Division. “The FBI and our partners are committed to protecting the American people and the integrity of government assistance programs and will work to identify, arrest, and prosecute those who choose criminal activity and greed over principle and the law.”
Stewart also applied for various loans on behalf of FGE under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. These programs were designed to provide emergency financial assistance to the millions of people suffering the economic effects of the COVID-19 pandemic. The loan applications submitted by Stewart falsely overstated the number of FGE employees and the amount of FGE’s payroll, two factors that were important in determining loan eligibility and the proper amount of the loan. In addition, Stewart used some of the loan proceeds for personal expenditures rather than to pay employees or for other appropriate business expenses. As a result of these fraudulent loan applications, Stewart obtained approximately $1,066,000 in government-backed loans during the pandemic.
In a separate fraudulent scheme, Stewart, an Air Force veteran, submitted an application for benefits to the VA. The application was fraudulent in that Stewart falsely claimed that he also served in the U.S. Marine Corps. Stewart created fraudulent documents that stated he attained the rank of Corporal in the Marine Corps and was honorably discharged after receiving several awards and commendations, including the Rifle Expert Badge, Pistol Expert Badge, Meritorious Mast, National Defense Service Medal, Sea Service Deployment Ribbon, Southwest Asia Service Medal, Certificate of Appreciation, and the Kuwaiti Liberation Medal. Stewart, in fact, never served in the Marines. Based on his fraudulent application, he received excess benefits in the amount of $73,722.45 between September 2013 and October 2020.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of FBI Washington Field Office Criminal Division; Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS); and Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorney William Fitzpatrick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-5.
Convicted Felon Pleads Guilty in Extensive Firearms Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today in connection with a conspiracy to illegally straw purchase 62 firearms from federal firearms licensees (FFLs) in Virginia.
“The straw purchasing of firearms poses a significant threat to our communities by placing guns in the hands of unlicensed and potentially dangerous individuals,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As a convicted felon and fugitive, the defendant ran a firearms trafficking operation, using co-conspirators to conduct 62 fraudulent gun purchases throughout Virginia. As Attorney General Garland recently emphasized, the Department of Justice is determined to take concrete steps to reduce the tragic toll of gun violence in our communities. Alongside our partners at the ATF, EDVA will continue to investigate, prosecute, and dismantle straw purchasing rings that could potentially feed into this senseless violence.”
According to court documents, Jesus Funez Fuentes, 37, was convicted in 2011 of a felony firearms-related offense in New York. Fuentes was also wanted by law enforcement in Virginia for his failure to appear for court proceedings in a separate felony narcotics case in 2017. While still a fugitive, Fuentes used two co-conspirators to straw purchase 62 firearms on his behalf from FFLs in Virginia. As a convicted felon, Fuentes was prohibited by law from purchasing the firearms himself or possessing any firearms and ammunition.
Shelby Lee Apperson, 37, of Fredericksburg, pleaded guilty on April 29 to making a false statement in connection with a firearms purchase. As part of her guilty plea, Apperson admitted to straw purchasing 32 firearms for Fuentes between August 2018 and January 2020.
Maria Antonia Lovos, 31, of Fredericksburg, also pleaded guilty today to her role in the conspiracy to make false statements to FFLs in the course of purchasing firearms. As part of her guilty plea, Lovos admitted to purchasing 30 firearms for Fuentes in less than one month in 2019. In each transaction, Apperson and Lovos falsely represented that they were the actual transferees of the firearms. Apperson and Lovos then provided the firearms to Fuentes, who sold all but one of the guns for a profit.
Multiple firearms straw purchased in connection with this conspiracy have been recovered by police officers in Baltimore and in Virginia. An automated ballistics evaluation conducted by the ATF’s National Integrated Ballistic Information Network (NIBIN) revealed that one of the firearms straw purchased by Lovos and subsequently sold by Fuentes had been used by others in Baltimore, including in three separate attempted homicides in May 2020.
As part of today’s plea, Fuentes pleaded guilty to one count of conspiracy to make false statements to FFLs in the course of purchasing firearms, and one count of possessing ammunition as a prohibited person. Fuentes is scheduled to be sentenced on October 20, and he faces a maximum penalty of 15 years in prison. Apperson and Lovos will each face up to five years in prison when they are sentenced on September 22 and October 27, respectively. 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 U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorney John C. Blanchard is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:21-cr-136, 1:21-cr-102, and 1:21-cr-86.
Virginia Woman Pleads Guilty to Fraudulently Obtaining COVID-Related Unemployment Benefits for Prison InmatesRead the Press Release
RICHMOND, Va. – A Glen Allen woman pleaded guilty today to mail fraud for her role in a conspiracy to fraudulently obtain pandemic-related unemployment benefits for 22 prison inmates, which she shared with the inmate beneficiaries.
“These critical unemployment funds were intended for deserving members of our communities to help alleviate their economic hardship during the pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution and the defendant’s guilty plea send a clear message that EDVA will bring to justice those who unlawfully exploit taxpayer-funded assistance for personal gain.”
According to court documents, Virginia Smith, 37, conspired with an inmate at Baskerville Correctional Center to collect the personally identifiable information of inmates to fraudulently apply for Virginia unemployment benefits from around June 2020 to January 2021, during the COVID-19 pandemic. Smith, with the assistance of the inmate co-conspirator, submitted successful applications for Virginia unemployment benefits for at least 22 inmates at Baskerville Correctional Center, resulting in the dispersal of at least $223,984.72 in fraudulent benefits.
“Smith and her co-conspirators used the identities of prisoners housed at the Baskerville Correctional Center to file fraudulent unemployment claims and unlawfully collect more than $223,000 in resulting benefit payments,” said Derek Pickle, Special Agent-in-Charge, Washington Region, U.S. Department of Labor Office of Inspector General. “As the primary law enforcement agency responsible for investigating unemployment insurance fraud, the Department of Labor Office of Inspector General is committed to supporting the prosecution of individuals who take advantage of unemployment insurance programs. We are grateful to the U.S. Attorney’s Office, the Virginia Employment Commission, and our law enforcement partners for their invaluable support of our mission.”
“Intentional abuse of COVID-19 unemployment benefits for personal gain is appalling,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “Today’s sentencing illustrates that DHS OIG and our law enforcement partners will work tirelessly to dismantle these greed-driven schemes.”
As part of their scheme, Smith’s co-conspirator would provide her with the names, dates of birth, and Social Security numbers of inmates serving a sentence at Baskerville Correctional Center. Smith would then file unemployment claims with the Virginia Employment Commission using that information. Once the applications were approved, Smith would share the proceeds of the crime with the inmates whose personal information she used to file the fraudulent claims, keeping a portion of the proceeds for herself. The applications contained several false statements such as a false physical address, rather than the address of the correctional facility at which the inmates were actually living; a false last employer; and a false certification that the inmates were ready, willing, and able to work in the event employment became available.
Smith is scheduled to be sentenced on September 9. 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; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office; and Eric D. English, Chief Henrico County Police Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
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 significant assistance from the Virginia Employment Commission.
Assistant U.S. Attorney Kashan Pathan is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-60.
U.S. Navy Petty Officer Pleads Guilty to Participating in Multi-State Anabolic Steroid Trafficking NetworkRead the Press Release
NORFOLK, Va. – Today, a Jacksonville, Florida man was the sixth and final defendant to enter a guilty plea for his role in a multi-state anabolic steroid conspiracy that operated in multiple states across the country.
According to court documents, law enforcement received information in February 2020 that Erik Eckert, 34, a Petty Officer with the U.S. Navy, was distributing anabolic steroids to an individual in Norfolk. The investigation revealed that Eckert was receiving wholesale quantities of anabolic steroids from a drug trafficking organization run by his co-conspirator, Michael Lambert, who pleaded guilty to drug distribution charges earlier this year. Eckert then sold the steroids to others, including fellow servicemembers.
Eckert is one of six members of the trafficking network, led by Michael Lambert, who have been charged in this case. In early 2020, Lambert and his wife, Laura Lambert, rented a residence in Surry County, where they used raw materials received from China to manufacture liquid and pill-form steroids for wholesale distribution. Lambert’s products were advertised on various underground internet forums and, with the assistance of his co-conspirators, the group shipped wholesale quantities of steroids through the U.S. Postal Service to various states for further distribution.
The organization concealed its activities by using false names and identity information, encrypted messaging platforms, and cyber-currency accounts. The Lamberts used the proceeds from the conspiracy to purchase luxury vehicles, jewelry, and a horse, among other items.
The following defendants involved in the organization have pleaded guilty to the crimes listed below:
Name, Age
Charges
Total Maximum Penalties
Sentencing Date
Michael Steven Lambert, a/k/a “Christopher DeCamillo,” 36
Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances; Possession with the Intent to Distribute; and Felon in Possession of a Firearm
50 years
July 13, 2021
Laura Frances Lambert, a/k/a “Laura Purcell,” 31
Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances; Possession with the Intent to Distribute=
20 years
Sept. 23, 2021
Adam Morin, 35
Making an Unregistered Silencer
10 years
Aug. 31, 2021
Hamdy Sayed, 36
Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances
10 years
Sept. 9, 2021
Clyde Edward Peele, a/k/a “Bo,” 45
Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances
10 years
Oct. 5, 2021
Erik Eckert, 34
Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances
10 years
Oct. 12, 2021
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Andrew Bosse are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-112.
Jury Convicts Woodbridge Man of Illegal Firearm PossessionRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man yesterday of illegally possessing a firearm after previously being convicted of a felony.
According to court records and evidence presented at trial, on March 22, 2019, Marc Allen Williams, 34, was staying at an apartment in Triangle rented by an acquaintance. Williams, who previously was convicted of a felony, had in his possession a nine-millimeter handgun. Later that afternoon, FBI agents and officers from the Prince William County Police Department executed a search warrant at the apartment in connection with a separate investigation.
When law enforcement knocked and announced their presence, Williams ran into the back bedroom of the apartment and into the bathroom. There, he stashed the firearm in the bathroom’s flush tank. Despite his efforts, law enforcement located the loaded gun.
When the defendant was arrested following the search warrant, he provided a false last name to law enforcement. The last name he provided matched the last name of the original purchaser of the firearm. Further, the FBI recovered DNA from the firearm. A sample of the defendant’s DNA, taken pursuant to a search warrant, was a match for the DNA on the firearm.
Williams faces a maximum of ten years in prison when sentenced on September 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; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Peter Newsham, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the verdict.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Rachael C. Tucker are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-242.
360 Patriot and 360 Ventures Pay $1.12 Million to Resolve False Claims Act Allegations of Service-Disabled Veteran-Owned Small Business FraudRead the Press Release
ALEXANDRIA, Va. – 360 Patriot Enterprises, LLC (360 Patriot), located in Alexandria, Virginia, and its former minority shareholder, 360 Ventures LLC (360 Ventures), located in Wilmington, Delaware, agreed to pay a combined $1.12 million to settle civil fraud allegations that 360 Patriot was awarded two U.S. Army contracts set aside for service-disabled veteran-owned small businesses (SDVOSB) at a time when 360 Patriot was not controlled by a service-disabled veteran (SDV), announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
In order to qualify as a SDVOSB, companies must meet defined eligibility criteria, including that the company is at least 51% unconditionally and directly owned and controlled by one or more SDVs. The United States alleged that from March 2015 to December 2017, 360 Patriot was controlled by a non-SDV, and 360 Ventures facilitated the non-SDV’s control of the company under previous ownership and management. During that time, 360 Patriot was awarded two Army contracts that were set aside for qualified SDVOSBs.
360 Patriot’s current management submitted a written contractor disclosure to the Department of Defense Office of Inspector General in October 2020, describing the company’s likely prior control by a non-SDV.
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; 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 Kristin S. Starr and William Hochul.
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.
Virginia Company Agrees to Settle Civil Fraud Allegations for Paycheck Protection Program LoansRead the Press Release
ALEXANDRIA, Va. – KC Investments Group, Inc. (KC Inc.) and its sole individual owner, Sunu P. KC, of Chantilly, have agreed to pay $230,414.65 to settle civil fraud allegations that KC Inc., through Sunu P. KC, obtained multiple loans during the first draw of the Paycheck Protection Program (PPP), announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
The PPP was established in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the program has been managed by the Small Business Administration (SBA). The PPP was intended to provide loans to qualified businesses to allow them to maintain payroll and operations through the COVID-19 pandemic. Each qualified business was allowed to receive only one PPP loan during the first phase of the program that ran from February 15, 2020 to December 31, 2020.
The government alleged that in April 2020, Sunu P. KC applied for PPP loans through both KC Inc. and his former company, KC Investments Group, LLC, the latter of which was not operating at the time. The government further alleged that in the loan applications, Sunu P. KC certified that KC Inc. would not receive multiple PPP loans, but both PPP loans were deposited into KC Inc.’s bank account.
As part of the resolution, KC Inc. and Sunu P. KC agreed to repay the second PPP loan within 30 days, together with the loan processing fee paid to the bank by the SBA, as well as an additional monetary amount pursuant to the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
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 and the SBA’s Office of General Counsel and Office of Inspector General.
The matter was investigated by Assistant U.S. Attorneys William Hochul and Kristin S. Starr.
The civil claims settled by this 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.
Jury Convicts Virginia Man for Role in Armed RobberyRead the Press Release
RICHMOND, Va. – Last Friday, a federal jury in Richmond convicted Ronnell Kareem Levon Johnson, 27, of Norfolk, for his role in robbing a Sprint Store in Colonial Heights in January 2019.
“As the evidence at trial demonstrated, the defendant and his co-conspirator participated in an armed robbery in which they restrained and frightened the victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the thorough investigative efforts of our law enforcement partners and the trial team, the defendant has been held accountable for his role in jeopardizing the safety of our community members.”
According to court records and evidence presented at trial, on the afternoon of January 7, 2019, Johnson and his co-conspirator, T.R., traveled from the Norfolk area to Colonial Heights to commit a violent armed robbery of a Sprint Store. During the robbery, T.R. brandished a loaded .40 caliber Ruger semi-automatic pistol and forced two employees into a back room of the store, where he let Johnson in through the back entrance. Johnson entered the store and started gathering Sprint Store merchandise into a bag.
Johnson and T.R. then held the two employees hostage in the back room, and attempted to tie up both employees while they completed the robbery. Due to a time-delay lock on the store’s safe, the defendants had to wait approximately twenty minutes for the safe to open. During that time, two separate customers entered the front of the store. T.R. let one of the employees assist each customer, along with a warning that the employee would be killed if he tried to alert anyone about the crime. The employee followed those instructions and the final customer left without incident. Minutes after the second customer departed, the time-delay lock on the safe opened, allowing Johnson and T.R. to steal dozens of cellular telephones and other store merchandise valued at approximately $25,000.
During a court-authorized search of T.R.’s residence, officers recovered the loaded .40 caliber Ruger semi-automatic pistol used in the robbery, various stolen Sprint Store items, and other evidence. T.R. later pleaded guilty for his role in the armed robbery, as well as additional charges. Using toll records and cellular tower data, law enforcement later identified Johnson as T.R.’s co-conspirator in the armed robbery based on Johnson’s travel to and from the Colonial Heights Sprint Store on January 7, 2019, along with other evidence.
The jury convicted Johnson on one count of robbery affecting commerce. Johnson faces a maximum penalty of 20 years in prison when sentenced on August 13. 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; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict. Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Michael Gill are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-133.
Justice Department Announces Court-Authorized Seizure of Domain Names Used in Furtherance of Spear-Phishing Campaign Posing as U.S. Agency for International DevelopmentRead the Press Release
ALEXANDRIA, Va. – On May 28, 2021, pursuant to court orders issued in the Eastern District of Virginia, the United States seized two command-and-control (C2) and malware distribution domains used in recent spear-phishing activity that mimicked email communications from the U.S. Agency for International Development (USAID). This malicious activity was the subject of a May 27, 2021 Microsoft security alert, titled “New sophisticated email-based attack from Nobelium,” in which Microsoft attributed the activity to a nation-state group.
The Department’s seizure of the two domains was aimed at disrupting the malicious actors’ follow-on exploitation of victims, as well as identifying compromised victims. However, the actors may have deployed additional backdoor accesses between the time of the initial compromises and the seizures.
“Cyber intrusions and spear-phishing email attacks can cause widespread damage throughout affected computer networks, and can result in significant harm to individual victims, government agencies, NGOs, and private businesses,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “As demonstrated by the court-authorized seizure of these malicious domains, we are committed to using all available tools to protect the public and our government from these worldwide hacking threats.”
“Last week’s action is a continued demonstration of the Department’s commitment to proactively disrupt hacking activity prior to the conclusion of a criminal investigation,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Law enforcement remains an integral part of the U.S. government’s broader disruption efforts against malicious cyber-enabled activities, even prior to arrest, and we will continue to evaluate all possible opportunities to use our unique authorities to act against such threats.”
“The FBI remains committed to disrupting this type of malicious cyber activity targeting our federal agencies and the American public,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We will continue to use all of the tools in our toolbelt and leverage our domestic and international partnerships to not only disrupt this type of hacking activity but to impose risk and consequences upon our adversaries to combat these threats.”
“Friday’s court-authorized domain seizures reflect the FBI Washington Field Office’s continued commitment to cyber victims in our region,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These actions demonstrate our ability to quickly respond to malicious cyber activities by leveraging our unique authorities to disrupt our cyber adversaries.”
As described in the seizure documents, on or about May 25, 2021, malicious actors commenced a wide-scale spear-phishing campaign leveraging a compromised USAID account at an identified mass email marketing company. Specifically, the compromised account was used to send spear-phishing emails, purporting to be from USAID email accounts and containing a “special alert,” to thousands of email accounts at over one hundred entities
Upon a recipient clicking on a spear-phishing email’s hyperlink, according to the court documents, the victim computer was directed to download malware from a sub-domain of theyardservice[.]com. Using that initial foothold, the actors then downloaded the Cobalt Strike tool to maintain persistent presence and possibly deploy additional tools or malware to the victim’s network. The actors’ instance of the Cobalt Strike tool received C2 communications via other subdomains of theyardservice[.]com, as well as the domain worldhomeoutlet[.]com. It was those two domains that the Department seized pursuant to the court’s seizure orders.
The United States Attorney’s Office for the Eastern District of Virginia and the National Security Division’s Counterintelligence and Export Control Section are investigating this matter in coordination with the FBI’s Cyber Division and Washington Field Office.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; John C. Demers, Assistant Attorney General for National Security; Bryan Vorndran, Assistant Director of the FBI’s Cyber Division; and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
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.
Justice Department Announces Court-Authorized Seizure of Domain Names Used in Furtherance of Spear-Phishing Campaign Posing as U.S. Agency for International DevelopmentRead the Press Release
WASHINGTON – On May 28, pursuant to court orders issued in the Eastern District of Virginia, the United States seized two command-and-control (C2) and malware distribution domains used in recent spear-phishing activity that mimicked email communications from the U.S. Agency for International Development (USAID). This malicious activity was the subject of a May 27 Microsoft security alert, titled “New sophisticated email-based attack from Nobelium,” and a May 28 FBI and Cybersecurity and Infrastructure Security Agency joint cybersecurity advisory.
The Department’s seizure of the two domains was aimed at disrupting the malicious actors’ follow-on exploitation of victims, as well as identifying compromised victims. However, the actors may have deployed additional backdoor accesses between the time of the initial compromises and last week’s seizures.
“Last week’s action is a continued demonstration of the Department’s commitment to proactively disrupt hacking activity prior to the conclusion of a criminal investigation,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Law enforcement remains an integral part of the U.S. government’s broader disruption efforts against malicious cyber-enabled activities, even prior to arrest, and we will continue to evaluate all possible opportunities to use our unique authorities to act against such threats.”
“Cyber intrusions and spear-phishing email attacks can cause widespread damage throughout affected computer networks, and can result in significant harm to individual victims, government agencies, NGOs, and private businesses,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “As demonstrated by the court-authorized seizure of these malicious domains, we are committed to using all available tools to protect the public and our government from these worldwide hacking threats.”
“Friday’s court-authorized domain seizures reflect the FBI Washington Field Office’s continued commitment to cyber victims in our region,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These actions demonstrate our ability to quickly respond to malicious cyber activities by leveraging our unique authorities to disrupt our cyber adversaries.”
“The FBI remains committed to disrupting this type of malicious cyber activity targeting our federal agencies and the American public,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We will continue to use all of the tools in our toolbelt and leverage our domestic and international partnerships to not only disrupt this type of hacking activity but to impose risk and consequences upon our adversaries to combat these threats.”
On or about May 25, malicious actors commenced a wide-scale spear-phishing campaign leveraging a compromised USAID account at an identified mass email marketing company. Specifically, the compromised account was used to send spear-phishing emails, purporting to be from USAID email accounts and containing a “special alert,” to thousands of email accounts at over one hundred entities.
Upon a recipient clicking on a spear-phishing email’s hyperlink, the victim computer was directed to download malware from a sub-domain of theyardservice[.]com. Using that initial foothold, the actors then downloaded the Cobalt Strike tool to maintain persistent presence and possibly deploy additional tools or malware to the victim’s network. The actors’ instance of the Cobalt Strike tool received C2 communications via other subdomains of theyardservice[.]com, as well as the domain worldhomeoutlet[.]com. It was those two domains that the Department seized pursuant to the court’s seizure order.
The National Security Division’s Counterintelligence and Export Control Section and the United States Attorney’s Office for the Eastern District of Virginia are investigating this matter in coordination with the FBI’s Cyber Division and Washington Field Office.
Four Plead Guilty to Multi-State Dogfighting ConspiracyRead the Press Release
RICHMOND, Va. – Four defendants pleaded guilty in the Eastern District of Virginia to federal dogfighting and conspiracy charges for their roles in an interstate dogfighting network across the District of Columbia, Maryland, Virginia, and New Jersey.
“Dogfighting is absolutely intolerable and callously subjects defenseless animals to inhumane treatment and abuse,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We must protect and care for these animals—not cruelly turn them against each other for profit. Those who engage in this deplorable conduct will face justice to the fullest extent of the law.”
According to court documents filed in connection with the cases, four defendants—Odell S. Anderson Sr., 52, of the District of Columbia; Emmanuel A. Powe Sr., 46, of Frederick, Maryland; Chester A. Moody Jr., 46, of Glenn Dale, Maryland; and Carlos L. Harvey, 46, of King George, Virginia—and their co-conspirators participated in animal-fighting ventures from April 2013 through July 11, 2018. Those ventures involved training, transporting, and breeding dogs for dogfighting events, including at least one specific “two-card” event on April 3, 2016.
For the April 2016 event, Anderson, Powe, and Harvey met up with others in the parking lot of Walmart in King George, Virginia, and they followed one of the people in their vehicles to the location of a fight. Moody, Powe, and Anderson then participated in a pre-scheduled “two-card” dogfight, which is an event involving two separate dogfights with different dogs and handlers. This event involved a strict training regimen the dogfighters put the dogs through for several weeks before the event. At least one of the dogs died due to its injuries in this April 2016 dogfight.
The defendants also maintained other fighting dogs at their residences, as well as dogfighting equipment, including dog treadmills, “med kits,” “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot.
“Organized dogfighting—whether on a professional, hobbyist or street fighter level—does not have a place in our society. Dogfighting is an extremely violent and secretive venture of animal abuse, and bringing young children to these fighting events also exposes another generation to indifference towards animal cruelty and disrespect for the law against this violent and illegal activity,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD).
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal-fighting ventures.”
Odell Anderson Sr. pleaded guilty today to conspiracy to violate the animal-fighting prohibitions of the Animal Welfare Act by conspiring with others to sponsor and exhibit dogs in a dogfight, as well as to buy, sell, possess, train, transport, deliver, and receive dogs for the purposes of having those dogs participate in animal-fighting ventures. Additionally, Anderson pleaded guilty to one felony count of causing a child under the age of 16 to attend an animal-fighting venture.
Previously, on May 10, 2021, Emmanuel Powe Sr. pleaded guilty to conspiracy to violate the animal-fighting prohibitions of the Animal Welfare Act. On April 28, 2021, Chester Moody Jr. and Carlos Harvey each pleaded guilty to the same conspiracy. All four defendants entered their guilty pleas before U.S. District Judge John A. Gibney Jr. in Richmond, Virginia.
Moody will be sentenced on August 27, followed by Powe and Harvey on September 1 and Anderson on October 6. Each animal-fighting conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine. The charge against Anderson of taking a minor to attend a dogfight carries a maximum sentence of three years in prison and a $250,000 fine. The District Court will determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was prosecuted as part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dogfighting. The phrase “Grand Champion” is used by dogfighters to refer to a dog with more than five dogfighting “victories.”
Assistant U.S. Attorney Olivia L. Norman of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section prosecuted the cases. The case is being investigated by the USDA-OIG, with assistance from the FBI. The Humane Society of the United States, along with other entities, assisted with the care of the dogs seized by federal law enforcement.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:21-cr-23, 24, 25, and 26.
EDVA Commemorates LGBTQ+ Pride MonthRead the Press Release
ALEXANDRIA, Va. – For the month of June, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will honor the vast contributions and important history of the Lesbian, Gay, Bisexual, Transgender, and Queer community during LGBTQ+ Pride Month.
“Our Office commemorates the immense contributions of LGBTQ+ members of our community and celebrates the victories they have achieved in pursing equality,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While enduring intolerable and unjust legal and cultural discrimination, LGBTQ+ individuals have served honorably in every aspect of our Nation’s government, from the military to elected office to the judicial system, including as essential members of EDVA. We recognize their past struggles to receive equal treatment under the law. We further commit ourselves to the continued elimination of discrimination against our LGBTQ+ colleagues, friends, and family, who strengthen our communities through the courage of their example, clearing a path for individuals of all sexual orientations and gender identities.”
In 1969, after a police raid on the Stonewall Inn in New York City, members of the LGBTQ+ community engaged in several days of protest of discrimination against LGBTQ+ people. The following year, activists organized the first annual Pride March on June 28, 1970, a several-thousand-person march from the Stonewall Inn to Central Park commemorating the riots and protesting discrimination against LGBTQ+ people. Although not the first demonstration against LGBTQ+ discrimination, that Pride March marked the beginning of the galvanizing force that became a national civil rights movement to demand equal rights and protections for LGBTQ+ citizens under the law, ultimately culminating in the creation of the first gay pride parades in Chicago, Los Angeles, New York City, and San Francisco. Since 1970, the LGBTQ+ community has celebrated every June as Pride Month and held annual Pride Marches in a growing number of cities, including internationally.
The first presidential proclamation recognizing Pride Month occurred in 1999. On January 20, 2021, President Biden issued Executive Order 13988, directing the heads of every federal agency to take steps to prevent and combat discrimination on the basis of sexual orientation and gender identity, both in the federal government itself and in its enforcement of anti-discrimination laws such as Title VII. Pride Month 2021 takes place during a time of continued hardship for the LGBTQ+ community, including a rise in violence against transgender individuals, predominately transgender women of color.
This month, EDVA will host several office-wide events, including informational sessions on civil rights and other issues facing the LGBTQ+ community. EDVA’s commemoration of LGBTQ+ Pride Month will also include an office-wide virtual panel discussion with the Honorable Todd M. Hughes of the U.S. Court of Appeals for the Federal Circuit, who became the first openly gay judge on a federal appellate court (2013); the Honorable J. Paul Oetken of the U.S. District Court for the Southern District of New York, who became the first openly gay male federal judge (2011); and the Honorable Marisa J. Demeo of the Superior Court of the District of Columbia, who served as the co-founder of the Justice Department’s Pride organization and its first President (1994).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Virginia Beach Businessman Pleads Guilty to $2.5 Million Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man pleaded guilty today to defrauding the IRS out of more than $2.5 million of taxes by, among other things, hiding assets, making false statements about his ability to pay, using a nominee company to conduct business, and diverting huge sums of money to pay creditors instead of the IRS.
“The defendant attempted to evade the payment of over $2.5 million in taxes and instead used his ill-gotten gains for personal expenses such as an oceanfront home, luxury travel, and yacht club dues,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is committed to holding accountable those who try to defraud the system rather than paying their fair share.”
According to court documents, Richard Yanek, 52, has owned and operated a credit card processing business since at least 1995. Between 2013 and 2018, Yanek withheld employment taxes from his employees but failed to consistently pay more than a million dollars of those withholdings to the IRS. Each year, Yanek provided false employment tax forms to his employees, who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the Social Security program.
Yanek had not filed a personal income tax return or paid personal income taxes since 2010, despite earning and spending millions of dollars on the mortgage for his oceanfront home, personal credit cards, private school tuition, and golf and yacht club dues. Yanek had his personal tax returns prepared by his accountant for the years 2011 through 2015, all of which reported substantial taxes due and owing. However, Yanek intentionally chose not to file these returns with the IRS, and he later made false statements to the IRS and law enforcement when asked why those returns had not been filed.
Yanek is scheduled to be sentenced on September 27. 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorneys Mack Coleman and Howard Zlotnick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-26.
Richmond Man Sentenced for Fentanyl TraffickingRead the Press Release
RICHMOND, Va. – A Richmond man who was convicted by a federal jury in March was sentenced yesterday to 12 years in prison for distributing fentanyl in the Mosby Court neighborhood.
According to court records and evidence presented at trial and sentencing, Quotez Tyveck Pair, 33, was a drug trafficker with a reputation for violence in and around Mosby Court. Pair formerly associated with the “II Bloods” gang.
In October and November 2019, Drug Enforcement Administration (DEA) agents, with the aid of an inside cooperator, completed two controlled drug purchases from Pair. The cooperator, at the direction and under the supervision of law enforcement, purchased from Pair one ounce of heroin on October 30, 2019 and two ounces of heroin on November 12, 2019. Upon analysis, both substances purchased from Pair were found to be fentanyl.
Pair was subsequently arrested on January 21, 2020 in Henrico County and convicted on March 10, 2021 following a jury trial. At sentencing, the Court found that in addition to fentanyl, Pair also distributed over a half-kilogram of cocaine.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the DEA’s Washington Division, made the announcement after sentencing by Senior U.S. District Robert E. Payne.
Assistant U.S. Attorney Olivia L. Norman 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-3.
Maryland Man Pleads Guilty to Financial Scams Using Online Dating SitesRead the Press Release
RICHMOND, Va. – A Leonardtown, Maryland man pleaded guilty today to mail fraud in connection with an online dating site romance scam.
“Through his use of fictitious personas, the defendant’s fraudulent scheme preyed on members of our community who thought they were helping a servicemember with significant financial needs,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, we will continue to hold accountable those who use online forums to defraud victims.”
According to court documents, beginning in December 2014 and continuing through at least January 2018, Eugene Johnson Jr., 39, used online dating sites to establish romantic connections with various women. In these communications, Johnson used aliases and made other false claims about his identity, frequently describing himself as a U.S. Marine with a son whose mother had died. When purporting to establish a romantic relationship with his victims, Johnson claimed that he wanted to marry each victim, buy a house with her, and raise his son and any children they might have together.
Shortly thereafter, Johnson would ask the victims to send him money for various pressing financial needs. Although his claims varied, they generally involved some form of car, financial, legal, or health problems about which Johnson claimed to be very emotional. To bolster these claims, Johnson sent the victims text messages from different phone numbers in which he posed as individuals who could corroborate his prior claims. Johnson also falsely promised to repay the victims from income sources that he did not actually possess.
When victims agreed to send him money, Johnson directed them to do so via interstate wire transfers and bulk cash shipments. Thereafter, Johnson continued to ask the same victims for more money to meet other claimed needs until the victims exhausted their own resources, refused, or questioned the truth of his claims. In total, Johnson obtained at least $276,361 from at least eight women residing in three different states. Contrary to his claims and promises, Johnson used the victims’ money to pay personal debts and expenses and never repaid any of the victims.
Johnson is scheduled to be sentenced on September 17. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorneys Heather H. Mansfield and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-45.
Jury Convicts Norfolk Man on Fentanyl Distribution Resulting in Overdose DeathRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man today on charges of participating in a conspiracy to manufacture and distribute fentanyl, acetyl-fentanyl, and heroin in the Hampton Roads region. He was convicted of all five counts related to the drug conspiracy, including distribution of fentanyl resulting in a young woman’s death.
According to court records and evidence presented at trial, between early 2017 and May 2020, Daniel Carrington (a.k.a. “Eastside” and “E”), 27, traveled to Baltimore, Maryland and purchased heroin, fentanyl, and acetyl-fentanyl to resell in Chesapeake and throughout the Hampton Roads region. The drugs distributed by Carrington resulted in the December 27, 2019 overdose death of a Chesapeake woman, identified in court documents as D.J. Although Carrington was aware of D.J.’s death, he continued to sell fentanyl until his arrest in May 2020.
Evidence introduced at trial included a video of the defendant laughing at his “tester” while he was falling out of consciousness because of a fentanyl dose, and proudly declaring how strong his fentanyl was. Other videos introduced to the jury included large quantities of cash, a firearm, and illegal narcotics. Text messages introduced at trial showed the defendant knew that he was distributing pure fentanyl and that he was aware of its lethal effects. A medical examiner testified that the levels of fentanyl in the victim’s body were five times the minimum level considered to be lethal by forensic pathologists.
Carrington faces a mandatory minimum sentence of 20 years and a maximum of life in prison when sentenced on October 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Kelvin L. Wright, Chief of the Chesapeake Police Department, made the announcement after U.S. District Judge John A. Gibney accepted the verdict.
Assistant U.S. Attorneys John F. Butler 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. 2:20-cr-106.
Virginia Beach Businessman Sentenced for COVID-Relief Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to two years in prison for bank fraud by submitting a fraudulent application for a Paycheck Protection Program (PPP) loan, and then using the loan proceeds for his own personal benefit.
“The defendant used fraud and deception to exploit a critical COVID-19 relief program for his own personal gain,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Defrauding the Paycheck Protection Program wastes taxpayer dollars and keeps vital assistance from reaching those who are in genuine need of these funds. EDVA will continue bringing to justice those who seek to illegally profit from the pandemic.”
According to court documents, in June 2020, Scott Suber, 39, submitted to Celtic Bank a fraudulent application for a loan under the PPP, a program designed to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees. In the application, it was falsely represented that Suber’s business, Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000. In support of the fraudulent application, Suber submitted a false quarterly tax return claiming that the business had quarterly wages of $420,000 and federal tax withholdings of $36,620. In addition, Suber submitted a bank statement with an altered date in support of the application.
Celtic Bank approved and funded a PPP loan for the business in the amount of $350,000 and transferred the funds to an account Suber maintained in the name of his company. The loan application stated that Suber’s company would use the loan proceeds for business-related purposes, such as the costs of payroll, lease, and utilities. Instead, Suber used the proceeds for his own personal benefit, including making large cash withdrawals, traveling to Las Vegas, and making non-business-related payments to several individuals.
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-Criminal Investigation (IRS-CI); Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration (SBA) Office of Inspector General, Eastern Region; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
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. 2:20-cr-110.
New York Couple Indicted for Romance Fraud ScamRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a New York City man and woman with wire and mail fraud as part of a social media scheme that defrauded elderly victims out of over $660,000.
“The defendants allegedly impersonated military servicemembers, diplomats, and others to deprive elderly victims of their retirement savings,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Working with our law enforcement partners, EDVA will aggressively pursue the perpetrators of scams that prey on vulnerable members of our communities.”
According to the indictment, from at least September 2019 through April 2021, Linda Mbimadong, 29, and Richard Broni, 31, along with other unnamed co-conspirators, targeted elderly victims on social media and email by impersonating romantic love interests, diplomats, military personnel, and more. The pair, and other co-conspirators, tricked victims into mailing them cashier’s checks, wiring funds, and sending Apple computer products and other items of value.
According to the indictment, Victim #1 was a 78-year-old man who lost $580,000 to the scheme. He had set up an iFlirt account, an online dating application, on his cell phone for the purpose of communicating with women. A member of the conspiracy began communicating with him on the app as part of the scheme to defraud, transitioning the conversations to Google Hangouts and text messages around September 2019. Victim #2 was a 74-year-old woman who lost approximately $80,000 to the scheme from her retirement savings. A member of the conspiracy contacted Victim #2 on Facebook and transitioned the conversation with her to email and text messages around March 2021.
Posing as a young widow who had inherited gold bars, or as a diplomat assisting people in dire straits overseas, Mbimadong, Broni, and other co-conspirators allegedly tricked elderly victims into sending the conspirators large sums of money. Victims were also allegedly directed to purchase brand new Apple MacBooks and mail them to a conspirator. Mbimadong and Broni allegedly received cashier’s checks and wires directly from victims, which they allegedly deposited and shared among the co-conspirators.
Mbimadong and Broni are charged with wire fraud and conspiracy to commit mail and wire fraud. Additionally, Mbimadong is charged with making false statements to law enforcement during the investigation. If convicted of the conspiracy or fraud charges, they both face a maximum penalty of 20 years in prison. If convicted of the false statement charge, Mbimadong faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement.
Assistant U.S. Attorney Russell L. Carlberg and Special Assistant U.S. Attorney Amelia Medina are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-98.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former Chesapeake OB/GYN Sentenced to 59 Years in PrisonRead the Press Release
NORFOLK, Va. – A former Chesapeake doctor was sentenced today to 59 years in prison after a jury convicted him on 52 counts of health care fraud and other charges arising from his performance of irreversible hysterectomies, improper sterilizations, and other medically unnecessary surgeries and procedures on his patients over a decade.
According to court records and evidence presented at trial and at sentencing, Javaid Perwaiz, approximately 71 years old, an obstetrician-gynecologist (OB/GYN) who practiced in Hampton Roads since the 1980s, executed a scheme to defraud health insurance programs between at least 2010 and 2019. During that period, Perwaiz caused approximately $20.8 million dollars in losses to private and government health care insurers for irreversible hysterectomies and other surgeries and procedures that were not medically necessary for his patients. In many instances, Perwaiz would falsely tell his patients that they needed the surgeries because they had cancer, or to avoid cancer, in order to induce them to agree to the surgeries. Many of the surgeries occurred within days of the false diagnoses.
“Motivated by his insatiable and reprehensible greed, Perwaiz used an arsenal of horrifying tactics to manipulate and deceive patients into undergoing invasive, unnecessary, and devastating medical procedures,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “These fraudulent and destructive surgeries caused irreversible damage to the victims. In many instances, the defendant shattered their ability to have children by using fear to remove organs from their bodies that he had no right to take. Despite having to endure immeasurable physical and emotional pain, the victims showed resilience, strength, and courage by speaking out and sharing their stories to hold the defendant accountable for his heinous crimes. While no prosecution can undo the lifelong trauma that Perwaiz cruelly inflicted on his patients, today’s sentence ensures that the victims and their families have the last word.”
“This individual not only defrauded our healthcare system out of millions of dollars, he did so by performing unnecessary surgeries on women and putting their health and safety at risk,” said Mark R. Herring, Attorney General of Virginia. “Doctors should never take advantage of the trust that their patients put in them, and those who do should be held accountable. I want to thank my team for their hard work on this case and I also want to thank our local, state, and federal partners for their ongoing collaboration and partnership on this and other important cases.”
“Today’s sentence is a significant step toward justice for the women Perwaiz preyed upon and harmed through his deception, betrayal, and greed,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI is committed to stopping predators like Perwaiz who abuse their position of trust, but this outcome was ultimately made possible by the brave victims and nurses who deserve our gratitude for coming forward and exposing his horrible criminal conduct.”
“When unscrupulous healthcare providers such as Perwaiz put greed above patient care, they not only violate public trust, they stain the profession.” said Christopher W. Dillard, Special Agent in Charge of the Defense Criminal Investigative Service’s Mid-Atlantic Field Office. “DCIS is committed to working alongside our investigative partners in rooting out criminal malpractice and bringing to justice those who put the public and community at risk.”
The evidence also demonstrated that Perwaiz falsified records for his obstetric patients so that he could induce their labor early, prior to the recommended gestational age that minimizes risk to the mother and baby, to ensure he would be reimbursed for the deliveries. Perwaiz also violated the 30-day waiting period Medicaid requires for elective sterilizations by submitting backdated forms to falsely make it appear as if he had complied with the waiting period. Perwaiz billed insurance hundreds of thousands of dollars for diagnostic procedures that he only pretended to perform at his office.
The witnesses at trial included more than 25 former patients, some of whom testified to the complications they continue to endure as a result of the unnecessary surgeries Perwaiz performed. In addition, the Court received over 60 Victim Impact Statements and the FBI received hundreds of tips through its hotline concerning Perwaiz’s actions. Witnesses also included nurses who worked at the hospitals where Perwaiz performed his surgeries, who testified that they repeatedly complained about his practices to their supervisors.
On November 9, 2020, a federal jury convicted Perwaiz of 52 counts of health care fraud and false statements. In total, Perwaiz was responsible for $20.8 million worth of false and fraudulent billings for both himself and the hospitals where he performed the surgeries.
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; Chris Dillard, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorneys Elizabeth Yusi, E. Rebecca Gantt, and John F. Butler prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-189.
Norfolk Man Responsible for Fatal Overdose Pleads Guilty to Fentanyl, Heroin, and Firearm ChargesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to conspiring to distribute fentanyl and heroin, and to possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, Christopher McKinley Barnes, 36, sold heroin and fentanyl from late 2016 until he was arrested on April 16, 2019. During that time, Barnes sold a total of over a kilogram of heroin in the Hampton Roads area and to users from the Outer Banks region of North Carolina. In July 2018, he sold a mixture of heroin and fentanyl that led to the fatal overdose of a victim in Nags Head. During a search of the defendant’s residence, officers recovered heroin and a loaded handgun, among other items.
Barnes is the fourth and final member of the conspiracy to plead guilty. Deshawn Jones, 29, of Portsmouth; James Boone, 48, of Eure, North Carolina; and Grey Miller, 32, of Kill Devil Hills, North Carolina, pleaded guilty and were sentenced to prison in the Eastern District of Virginia. The group was responsible for selling fentanyl and heroin to individuals in Portsmouth, Norfolk, and the Outer Banks. At least two fatal overdoses and several non-fatal overdoses have been linked to the group.
Barnes is scheduled to be sentenced on Oct. 8. He faces a mandatory minimum sentence of 15 years in prison and a maximum of life. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Col. K.L. Wright, Chief of Chesapeake Police; and Phil Webster, Chief of the Nags Head Police Department, made the announcement after U.S. District Judge John A. Gibney accepted the plea.
Assistant U.S. Attorneys Andrew Bosse and William B. Jackson are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-163.
Man Pleads Guilty to Million Dollar Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – After three days of trial before a federal jury, an Owings Mills, Maryland man pleaded guilty to wire fraud and identity theft in connection with a fraudulent investment scheme worth approximately $1.26 million.
“In the midst of a jury trial, the defendant admitted that he deceived victims into believing they were investing more than $1.2 million in a high-end fabric design business, when in reality, he fraudulently used their money to fund personal expenses,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office is grateful to the FBI and prosecution team for uncovering and piecing together the evidence that exposed this investment fraud scheme. We will continue to hold accountable those who seek to swindle honest investors.”
According to court records and evidence presented at trial, Manish Singh, 48, entered into an agreement in 2016 with a married couple to create a business that would design and sell high-end fabrics. The couple was to provide the capital for the business, and Singh was to contribute his expertise and contacts in the fabric industry.
Singh represented to the victim investors that their money was being used for numerous expenses related to the business, such as the manufacture of fabric in India. In reality, Singh was using the victims’ money almost entirely for personal expenses, mostly to view live pornography online. Based on Singh’s misrepresentations, the victims gave him approximately $1.26 million for the fraudulent joint business venture.
Singh pleaded guilty to wire fraud and identity theft and faces a maximum penalty of 20 years in prison when sentenced on July 30. 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 James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge T. S. Ellis III accepted the plea.
Assistant U.S. Attorneys Grace L. Hill and Heidi B. Gesch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-59.
Former Army Green Beret Sentenced for Russian Espionage ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former Army Green Beret was sentenced today to 188 months in prison for conspiring with Russian intelligence operatives to provide them with U.S. national defense information.
“Debbins flagrantly and repeatedly sold out his country, including while he served as a Captain in the U.S. Army Special Forces,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendant’s brazen disclosures to Russian intelligence agents jeopardized U.S. national security and threatened the safety of his fellow servicemembers. This prosecution underscores our firm resolve to hold accountable those who betray their sworn oath and bring them to justice for their exceptionally serious crimes.”
According to court documents, from December 1996 to January 2011, Peter Rafael Dzibinski Debbins, 46, of Gainesville, a former member of the U.S. Army, conspired with agents of a Russian intelligence service. During that time, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces, and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit as a spy,” said John C Demers, Assistant Attorney General for National Security. “His conduct is a personal betrayal of colleagues and country, and it reflects the threat of Russian intelligence operations targeting our military. Today’s almost 16-year sentence reflects the seriousness of his conduct. It should also serve as a warning to those who would be tempted to do the same.”
“The Green Berets epitomize heroics, leadership, and bravery, but Debbins was just the opposite,” said Alan E. Kohler, Jr., Assistant Director of Counterintelligence for the FBI. “Debbins’ actions in this case show a complete disregard for his fellow soldiers and for his country. The FBI will do everything in its power to identify those who choose to betray our country and bring them to justice.”
“The betrayal of fellow U.S. citizens and servicemembers is inexcusable, and today Debbins was sentenced for his reprehensible and dangerous actions,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “He was entrusted to serve his country and protect his fellow Special Forces team, but instead he chose to provide classified national defense information to his own country’s adversary. This investigation which led to today’s sentencing is a reminder that the FBI and our partners will continue to diligently and doggedly counter national security threats to the U.S.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents encouraged him to join and pursue a career in the Special Forces, where he attained the rank of Captain.
Over the course of the conspiracy, Debbins provided Russian intelligence agents with information he obtained as a member of the U.S. Army, including sensitive details about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with names of and information about several his former Special Forces team members for the purpose of allowing the agents to recruit them to conspire with the Russian intelligence service.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; John C. Demers, Assistant Attorney General for National Security; Alan E. Kohler, Jr., Assistant Director of Counterintelligence for the FBI; and Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office; made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Acting U.S. Attorney Parekh and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service, and MI5.
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-193.
Former Army Green Beret Sentenced for Russian Espionage ConspiracyRead the Press Release
WASHINGTON – A Virginia man and former Army Green Beret was sentenced today to 188 months in prison for conspiring with Russian intelligence operatives to provide them with U.S. national defense information.
Peter Rafael Dzibinski Debbins, 46, of Gainesville, admitted to conspiring with agents of a Russian intelligence service. According to court documents, from December 1996 to January 2011, Debbins periodically visited Russia and met with Russian intelligence agents. In 1997, Debbins was assigned a code name by Russian intelligence agents and signed a statement attesting that he wanted to serve Russia.
“Debbins violated his oath as a U.S. Army officer, betrayed the Special Forces, and endangered our country’s national security by revealing classified information to Russian intelligence officers, providing details of his unit, and identifying Special Forces team members for Russian intelligence to try to recruit them as spies,” said Assistant Attorney General John C. Demers for the Justice Department's National Security Division. “His conduct is a personal betrayal of colleagues and country, and it reflects the threat of Russian intelligence operations targeting our military. Today’s almost 16-year sentence reflects the seriousness of his conduct. It should also serve as a warning to those who would be tempted to do the same.”
“Debbins flagrantly and repeatedly sold out his country, including while he served as a Captain in the U.S. Army Special Forces,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The defendant’s brazen disclosures to Russian intelligence agents jeopardized U.S. national security and threatened the safety of his fellow servicemembers. This prosecution underscores our firm resolve to hold accountable those who betray their sworn oath and bring them to justice for their exceptionally serious crimes.”
“The betrayal of fellow U.S. citizens and servicemembers is inexcusable, and today Debbins was sentenced for his reprehensible and dangerous actions,” said Assistant Director in Charge Steven M. D’Antuono for the FBI Washington Field Office. “He was entrusted to serve his country and protect his fellow Special Forces team, but instead he chose to provide classified national defense information to his own country’s adversary. This investigation which led to today’s sentencing is a reminder that the FBI and our partners will continue to diligently and doggedly counter national security threats to the U.S.”
“The Green Berets epitomize heroics, leadership, and bravery, but Debbins was just the opposite,” said Assistant Director Alan E. Kohler Jr. for the FBI’s Counterintelligence Division. “Debbins' actions in this case show a complete disregard for his fellow soldiers and for his country. The FBI will do everything in its power to identify those who choose to betray our country and bring them to justice.”
From 1998 to 2005, Debbins served on active duty as an officer in the U.S. Army, serving in chemical units before being selected for the U.S. Army Special Forces. The Russian intelligence agents encouraged him to join and pursue a career in the Special Forces, which he did, where he served at the rank of Captain.
Over the course of the conspiracy, Debbins provided the Russian intelligence agents with information that he obtained as a member of the U.S. Army, including information about his chemical and Special Forces units. In 2008, after leaving active duty service, Debbins disclosed to the Russian intelligence agents classified information about his previous activities while deployed with the Special Forces. Debbins also provided the Russian intelligence agents with the names of, and information about, a number of his former Special Forces team members so that the agents could evaluate whether to approach the team members to see if they would cooperate with the Russian intelligence service.
Assistant U.S. Attorneys Thomas W. Traxler and James L. Trump for the Eastern District of Virginia and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Acting U.S. Attorney Parekh and Assistant Attorney General Demers greatly appreciate the assistance of Army Counterintelligence, the FBI’s Minneapolis Field Office, the United Kingdom’s Metropolitan Police Service and MI5.
Virginia Man Sentenced for Defrauding Export-Import Bank of $1.6 MillionRead the Press Release
RICHMOND, Va. – A Glen Allen man was sentenced today to 34 months in prison for defrauding both a Pennsylvania-based bank and the Export-Import Bank of the United States in connection with a $1.6 million loan.
“For over two years, the defendant deliberately deceived financial institutions to fraudulently obtain a $1.6 million government-backed loan,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, those who defraud American taxpayers and seek to undermine the integrity of our financial system will be held accountable for their criminal conduct.”
According to court documents, Tae Il Lee, 41, was the Managing Director of New World Group, a Richmond-based company engaged in the business of exporting American snacks and other food stuffs to international buyers (typically South Korean companies). In April 2016, Lee sought what eventually became a $1.6 million loan from First National Bank of Pennsylvania, relying on the “Working Capital Program” offered by the Export-Import Bank of the United States (EXIM Bank). Under the program, EXIM guaranteed to provide financial backing for the loan in the event that New World Group defaulted.
Over the next two years, Lee regularly provided First National Bank, and the bank’s auditing firm, with financial documents that purported to show New World Group’s accounts receivable, banking statements, and financial statements. These documents reflected that New World Group was a growing, thriving export company, grossing more than $6 million in export sales in 2017 and another $6.3 million in just the first few months of 2018.
Those financial documents, however, were false. Specifically, Lee had created fictitious accounts receivable and financial statements, and doctored New World Group’s actual bank statements to show non-existent, high-dollar transactions that never took place. During the course of his fraud scheme, Lee also created a fictitious intermediary—a purported employee of New World Group—in order to account for delays in Lee’s communications with First National Bank.
In the spring of 2018, First National Bank issued a demand letter for the $1.6 million loan to New World Group. New World Group never completed any payments to First National Bank, which requested that EXIM cover the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee pleaded guilty to committing wire fraud and making false statements to a federally insured bank.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jennifer Fain, Acting Inspector General for the Export-Import Bank of the United States, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin G. Cooke prosecuted the case.
This matter was investigated by the EXIM Office of Inspector General (OIG). EXIM is the official export credit agency of the United States and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to EXIM programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
A copy of this press release is located on the website of the 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-2.
Dark Web Vendor of Opioids and Counterfeit U.S. Currency Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Utica, New York man pleaded guilty yesterday to charges relating to his sale of over $1.2 million in opioid pills and counterfeit U.S. currency on multiple dark web criminal marketplaces.
According to court documents, from around October 2016 through February 2021, Albie Pagan, 65, operated under the moniker H00k3d on various dark web markets, including AlphaBay, Apollon, Avaris, Cryptonia, Dark Market, Darkode, Dream, Nightmare, and Wall Street. Pagan, as H00k3d, advertised prescription opioids and medications for sale, including oxycodone, hydromorphone, hydrocodone, and Adderall, as well as counterfeit $10 and $20 bills. Pagan mailed these online-purchased narcotics and counterfeit currency to individuals across the country.
“The defendant illegally distributed over $1.2 million of highly addictive opioids and counterfeit currency while attempting to operate anonymously on dark web marketplaces,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Those who seek to profit by using the dark web to fuel a devastating opioid crisis that has ravaged our communities will be found and brought to justice.”
On Wall Street alone, Pagan sold over $325,000 in counterfeit U.S. currency, and his gross proceeds for the sale of narcotics and counterfeit currency was at least $1,011,079. On AlphaBay, Pagan’s gross proceeds for narcotics sales was at least $90,399. A review of H00k3d’s sales on Dark Market revealed 475 voluntary customer-rated orders reflecting purchases for several illicit items, including 3,293 hydrocodone, 2,250 oxycodone, and 382 hydromorphone pills. On Dark Market, Pagan’s gross proceeds for narcotics and counterfeit currency exceeded $131,948 based on reviewed transactions.
Pagan pleaded guilty to distribution of controlled substances and selling counterfeit currency. He is scheduled to be sentenced on August 24 and 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; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Bibeane Metsch 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-95.
U.S. Attorney’s Office in EDVA Commemorates National Police WeekRead the Press Release
ALEXANDRIA, Va. – In honor of National Police Week, Acting U.S. Attorney Raj Parekh joins Attorney General Merrick B. Garland in recognizing the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“The Eastern District of Virginia expresses its deep appreciation to the courageous women and men of law enforcement who serve on the front lines and put themselves in harm’s way to protect us and our loved ones, repeatedly sacrificing their safety to ensure ours,” said Acting U.S. Attorney Parekh. “The unprecedented COVID-19 pandemic has inflicted pain, heartache, and tragedy on so many, including members of law enforcement and their families. We mourn for and pay our respects to those who lost their lives in the line of duty, offer our condolences to their families, and express our gratitude to those who carry on their legacy with honor and valor each day.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year, the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Eastern District of Virginia, four law enforcement officers died in the line of duty and were added to the 2021 Roll Call of Heroes: Officer Katherine Mary Thyne of the Newport News Police Department, Master-at-Arms Oscar J. Temores of the U.S. Navy Security Forces, Major Angelanette Moore of the Virginia Peninsula Regional Jail, and Master Jail Officer Robert Charles Sunukjian of the Hampton Roads Regional Jail.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 p.m. EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to Oct. 13-17, 2021. An in-person Candlelight Vigil event is scheduled for Oct. 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dual Lebanese-U.S. Citizen Pleads Guilty to Money Laundering and Tax OffensesRead the Press Release
ALEXANDRIA, Va. – A dual Lebanese and U.S. citizen who resides in Vienna, Virginia pleaded guilty today to participating in a conspiracy to launder money as part of a decade-long scheme to ship electronics equipment to a Hizballah-owned television station in Lebanon. In addition, the defendant and her husband pleaded guilty to conspiring to commit tax fraud by concealing income from her employment in Virginia.
“For over a decade, Racha Farhat participated in a conspiracy to purchase electronics equipment using the proceeds of illegal activity, which benefited a Lebanese television station owned by Hizballah,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Working with our law enforcement partners, we will bring to justice those who use the U.S. financial system to further the interests of prohibited entities that engage in unlawful activities abroad.”
According to court documents, Racha Farhat, 44, began laundering money in 2010 and continued to do so until the time of her arrest in February 2021. The scheme involved Farhat receiving money from an unindicted co-conspirator (UCC-1) in Lebanon, which she used to purchase electronics equipment in the United States. Farhat then shipped the items purchased by herself and other co-conspirators overseas, primarily to Lebanon, where UCC-1 supplied at least $175,000 worth of goods to Al Manar TV. Al Manar TV is a Lebanon-based TV station owned and operated by Hizballah. Both Hizballah and Al Manar TV are prohibited entities for a U.S. person to conduct business with under the International Emergency Economic Powers Act (IEEPA).
“This plea is an example of the FBI and our partners using available tools and techniques to investigate criminals who attempt to launder funds through U.S. financial institutions,” said Matthew R. Alcoke, Special Agent in Charge of the FBI’s Washington Field Office Counterterrorism and Incident Management Division. “The FBI will work with our law enforcement partners to bring to justice international money launderers and to deter those who may attempt to perpetrate criminal activity in the U.S.”
In order to facilitate the purchase of electronics equipment in the United States, UCC-1 used a variety of means to transfer money to Farhat that were designed to conceal the money’s origins. Farhat received over $1 million in wire transfers from Lebanon, more than $500,000 of which went into a third-party bank account that actually was controlled by Farhat. Farhat also received nearly $80,000 worth of money orders that were purchased in a way to evade identification reporting requirements.
Farhat received direction from UCC-1 as to what equipment to buy, and she lied to vendors about the intended destination of the items, knowing (or being willfully blind to the fact) that at least some of the money was derived from unlawful activity. Farhat also filed U.S. tax returns for UCC-1 that contained false information and used the refunds generated for electronics purchases.
Farhat and her husband, Hussam Hawi, 46, also pleaded guilty to conspiring to defraud the United States in the collection of income taxes. Farhat and Hawi concealed Farhat’s employment from the IRS, declaring her as a “stay home mom” and failing to declare any of the employment wages she earned for tax years 2015–2019. As a result of these willful misstatements and omissions, Farhat and Hawi received a tax refund each year. They owe the IRS more than $64,000.
Both defendants are scheduled to be sentenced on September 21. Farhat faces a maximum combined penalty of 25 years in prison, and Hawi faces a maximum five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Matthew R. Alcoke, Special Agent in Charge of the FBI’s Washington Field Office Counterterrorism and Incident Management 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 Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Anthony T. Aminoff and Dennis M. Fitzpatrick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:21-cr-112 and 1:21-cr-113.
Williamsburg Wellness Center Owner Indicted for $2 Million Health Care FraudRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment yesterday charging a Williamsburg wellness center owner with defrauding Virginia Medicaid and other health care programs out of over $2 million.
“The defendant allegedly defrauded health care programs and the government by submitting false claims and engaging in multiple overbilling schemes,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA remains committed to holding accountable anyone who undermines the integrity of our health care system, including the Virginia Medicaid program, which is designed to subsidize critical health care coverage for those who need it most.”
According to the indictment, Maria Kokolis, 45, of Williamsburg, owned and operated Pamisage, Inc., a center for integrative behavioral health and medicine, with a focus on weight management issues. Beginning in or about 2018, and continuing through February 2020, Kokolis executed a scheme to defraud and overbill various health care benefit programs and the Virginia Medical Assistance Program (Medicaid). She did so by charging 45 minutes to an hour of face-to-face psychotherapy services for noncomparable services like sending messages through the company’s smartphone app or monitoring a client’s data. Kokolis billed these psychotherapy services for times when she was out of the country on vacation and when the clients were out of state or sick in the hospital. The overbilling became so extensive, the indictment alleges, that on 332 separate occasions, Kokolis billed for services that exceeded 24 hours in a single day.
According to the indictment, Kokolis used the names, Medicaid ID numbers, and other identifying information of her clients in submitting these false claims to the health care benefit programs. Kokolis received a total of at least $2,189,342 in fraudulent health care benefit program reimbursements, a portion of which came from the U.S. government.
Kokolis is charged with health care fraud and aggravated identity theft. If convicted, she faces a maximum of ten years in prison for each health care fraud count, and a mandatory sentence of two years in prison for each aggravated identity theft count. 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, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mark R. Herring, Attorney General of Virginia, made the announcement.
Assistant U.S. Attorneys Joseph L. Kosky and Clare P. Wuerker 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-55.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
EDVA Commemorates Asian American and Pacific Islander Heritage MonthRead the Press Release
ALEXANDRIA, Va. – In the month of May, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) honors the rich traditions, history, and cultures that are recognized during Asian American and Pacific Islander (AAPI) Heritage Month.
“Asian Americans and Pacific Islanders have enriched our Office, our communities, and our Nation with their enduring leadership, vibrant cultures, and extensive contributions to all aspects of our society,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and the first Indian American and person of color to serve as EDVA’s chief federal law enforcement official. “While showing steadfast resilience in the face of great hardship, they have helped shape our country’s history for the better, including protecting the Nation during times of war, serving the American people at all levels of government, and spearheading innovations in the law, science, education, commerce, and the arts, among many other fields. As a proud member of the AAPI community, I am honored to continue EDVA’s commitment to celebrating the rich heritage of Asian Americans and Pacific Islanders, and furthering our collective efforts to promote equality, diversity, and inclusion in everything we do.”
The Asian American and Pacific Islander heritage encompasses a diverse group of nations and cultures from the entire Asian continent and the Pacific islands of Melanesia, Micronesia, and Polynesia, which includes Native Hawaiians. At present, there are over 20 million Asian Americans and Pacific Islanders in the United States, and more than 300,000 living veterans from the AAPI community.
The national theme for this year’s observance is “Advancing Leaders Through Purpose-Driven Service.” The month of May was chosen to commemorate the immigration of the first Japanese to the United States on May 7, 1843, and to mark the anniversary of the May 10, 1869 completion of the transcontinental railroad, which was built primarily by Chinese immigrant workers.
This year’s AAPI commemoration comes at a time of heightened fear and pain for Asian Americans and Pacific Islanders in our country. “Hate crimes and discrimination against anyone, including Asian Americans and Pacific Islanders, are reprehensible acts that are contrary to the ideals of our Nation and have no place in our society,” said Acting U.S. Attorney Parekh in a recent statement condemning acts of violence against Asian Americans. “I reaffirm our Office’s unwavering commitment to ensuring that those who perpetrate federal crimes fueled by hate are held accountable, and EDVA stands united with our law enforcement partners in combating these injustices.”
During the 2021 AAPI Heritage Month celebration, EDVA will host office-wide virtual events, including a virtual fireside chat with Vanita Gupta, a lifelong civil rights lawyer who recently became the first woman of color to serve as the Associate Attorney General of the United States, and discussions involving the prosecution of hate crimes in partnership with the Justice Department’s Civil Rights Division. Recently, EDVA hosted virtual events with Aloke Chakravarty, a former Assistant U.S. Attorney who prosecuted the Boston Marathon bombings case, and Chief Judge Sri Srinivasan of the U.S. Court of Appeals for the D.C. Circuit, the first South Asian American federal appellate court judge in the United States.
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 today to multiple life sentences for his role in a gang-related racketeering conspiracy that engaged in multiple murders, attempted murders, and drug trafficking.
“As the evidence demonstrated during a seven-week trial, the defendant’s actions displayed a chilling neglect for human life, safety, and the rule of law,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office is grateful to our law enforcement partners and trial team, who worked for years to bring the defendant and his co-conspirators to justice and stop them from further threatening our communities with violence.”
According to court documents, Martin L Hunt, 24, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between March and June 2015. On April 6, 2015, Hunt and three other members of the 36th Street Bang Squad drew firearms and began shooting at people outside a Newport News home. Two teenagers were killed during this incident.
Casings collected from the April 2015 double-murder scene matched a 9 mm firearm that Hunt had obtained from a family member in March 2015. Those casings also matched the gun used during a March 15, 2015 shooting of P.D. and A.J. in Newport News. That shooting left both victims with serious and life-threatening injuries. Hunt bragged afterwards to other gang members that he had gone “op shopping,” which meant shooting at rival gang members.
On June 5, 2015, Hunt and co-conspirators Shaquone Ford, 26, of Newport News, Jamaree Green, 24, of Hampton, and Corey Sweetenburg, 24, of Newport News, drove to a Hampton high school looking for a rival gang member suspected of murdering a 36th Street Bang Squad member two days prior. 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 defendants and other gang members and associates chased him into an apartment complex. The defendants carried loaded firearms and planned to kill the target if he was found, which he was not.
According to court documents, Hunt used social media to taunt rival gang members, acquire firearms, and brag about the exploits of the 36th Street Bang Squad.
On December 10, 2019, after a seven-week jury trial, Hunt was convicted on eleven counts of crimes in aid of racketeering, including two murders, three attempted murders, and using a firearm in each crime. He was sentenced today to life in prison, followed by two consecutive life sentences and an additional twenty-five years.
In addition to Hunt, six co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those six co-defendants currently are scheduled for sentencing in the next three months from June 10 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 U.S. District Judge Mark S. Davis.
Assistant U.S. Attorneys Howard J. Zlotnick and Brian Samuels 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.
Former Atomwaffen Division Leader Sentenced for Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former leader of the Atomwaffen Division in Texas, a racially motivated violent extremist group, was sentenced today to 41 months in prison for his role in a conspiracy that conducted multiple swatting events targeting journalists, a Virginia university, a former U.S. Cabinet member, a historic African American church, an Islamic Center in Arlington, Texas, and members of various minority groups and communities across the United States.
“The reprehensible conduct in this case terrorized communities across our Nation, as innocent Americans simply tried to attend school, practice their faith, and exercise their First Amendment rights,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendants caused irreversible trauma to the victims of these hate-based crimes. This case sends an unmistakable message that those who target individuals because of their race, religion, or any other form of bias, will be identified, apprehended, and brought to justice.”
According to court documents, John Cameron Denton, 27, of Montgomery, Texas, participated in a conspiracy that conducted swatting attacks on at least 134 different locations across the United States between October 2018 and February 2019. Swatting is a harassment tactic that involves deceiving emergency dispatchers into believing that a person or persons are in imminent danger of death or bodily harm and causing the dispatchers to send police and emergency services to an unwitting third party’s address. Many of the conspirators, including Denton, chose targets because they were motivated by racial animus.
“Denton’s swatting activities were not harmless pranks; he carefully chose his targets to antagonize and harass religious and racial communities, journalists, and others against whom he held a bias or grievance,” said Timothy Thibault, acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “Today’s sentence demonstrates the FBI’s commitment to holding accountable anyone who terrorizes communities and threatens public safety by diverting emergency resources, which puts innocent people and first responders at risk.”
Conspirators targeted multiple locations in the Eastern District of Virginia, including a then-sitting U.S. Cabinet official living in northern Virginia on January 27, 2019; Old Dominion University on November 29 and December 4, 2018; and the Alfred Street Baptist Church in Old Town Alexandria on November 3, 2018. In each instance, conspirators selected the targets and called emergency dispatchers with false claims of pipe bombs, hostage takings, or other violent activity occurring at the targeted locations. As a result of these swatting calls, police were dispatched to Old Dominion University and the Alfred Street Baptist Church, and individuals in each location were required to shelter in place while the bomb threats were investigated. According to court documents, a conspirator admitted to choosing the Alfred Street Baptist Church as a target because its congregation is predominantly African American.
Additionally, Denton personally chose at least two targets to “swat”: the New York City office of ProPublica, a non-profit newsroom that produces investigative journalism; and an investigative journalist who produced materials for ProPublica. Denton chose these two targets because he was angry with ProPublica and the investigative journalist for publishing Denton’s identity and discussing his role in the Atomwaffen Division, a U.S.-based violent extremist group with cells in multiple states. The group’s targets have included racial minorities, the Jewish community, the LGBTQ community, the U.S. government, journalists, and critical infrastructure.
During the investigation, Denton unknowingly met with an undercover law enforcement officer and told the undercover officer about his role in the swatting conspiracy. Denton stated that he used a voice changer when he made swatting calls and admitted that he swatted the offices of ProPublica and the investigative journalist. Denton also stated that it would be good if he was “raided” for the swatting because it would be viewed as a top-tier crime, and he felt that his arrest could benefit the Atomwaffen Division.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Timothy Thibault, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorney Carina A. Cuellar 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-154.
Man Sentenced for Producing Images of Child Sexual AbuseRead the Press Release
NEWPORT NEWS, Va. – A Mathews County man was sentenced today to life in prison for engaging in a conspiracy to produce child pornography in connection with a purported “teen modeling” endeavor.
“As the evidence at trial demonstrated, the defendant preyed on, manipulated, and abused defenseless young girls,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its gratitude to the trial and law enforcement team for their relentless efforts in bringing the defendant to justice and holding him accountable for repeatedly victimizing children.”
According to court documents and evidence presented at trial, William Wellington Hooper, Jr., 54, conspired with Jennifer Hutchens, 54, of Gloucester, to produce images of child sexual abuse of Jane Doe #1, a 15-year-old girl, and her 14-year-old friend, Jane Doe #2. During the months of April and May 2019, Hooper and Hutchens coerced Jane Doe #1 to engage in sexually explicit conduct in Gloucester County and Mathews County.
“Every case involving child sexual exploitation is difficult, but the level of manipulation and abuse carried out in this case is especially disturbing,” said Special Agent in Charge Raymond Villanueva for the HSI Washington, D.C. Field Office. “This individual deserved nothing less than a life sentence and HSI will continue to diligently investigate these crimes against children and rid our communities of these atrocious offenders.”
Hutchens, at the request of Hooper, also recruited other minor girls to pose for sexually explicit photographs in what Hooper called a “teen modeling” endeavor. Hooper promised these children, whose families were struggling financially, that they would be compensated. He specifically promised that Jane Doe #1 could make almost $3 million if she obeyed him completely. Hooper also asked Hutchens to find younger children for his photographs. In explaining his request, Hooper said that “[l]egal doesn’t matter” and suggested that Hutchens could get access to younger children by running a daycare, for which she could “[s]pecialize in problem[] girls between the ages of 8 and 12.”
A jury convicted Hooper at trial of conspiracy to produce child pornography, production of child pornography, and coercion and enticement of a child. Hutchens previously pleaded guilty to producing child pornography and was sentenced to 23 years’ imprisonment on October 13, 2020.
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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; L. Mark Barrick, Mathews County Sheriff; Darrell W. Warren, Jr., Gloucester County Sheriff; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Lisa R. McKeel, Howard J. Zlotnick, and Brittany M. Fisher 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-18.
Jury Convicts Former Virginia Beach Investment Advisor and Williamsburg Attorney of $25 Million Nationwide Investment FraudRead the Press Release
NORFOLK, Va. – A federal jury convicted two individuals today for their roles in a nationwide investment fraud scheme that resulted in over $25 million in losses to more than 300 victims, most of whom were elderly.
“As proven during a five-week trial, these defendants and their co-conspirators defrauded hundreds of unsuspecting investors out of over $25 million, draining their retirement accounts and leaving a trail of financial and emotional devastation for the victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The jury’s verdicts bring us one step closer to securing justice for the victims of these damaging, manipulative, and life-altering schemes. Our Office is deeply appreciative to the trial team and our law enforcement partners for their tireless work in unraveling this complex fraud and ensuring these defendants are held accountable."
According to court records and evidence presented at trial, Daryl Bank, 51, of Port St. Lucie, Florida, ran an investment fraud scheme from approximately January 2012 through July 2017, based in the Tidewater area and Port St. Lucie, and operating across the country. Bank and his co-conspirators—including attorney Billy Seabolt, 56, Raeann Gibson, 49, of Florida, and Roger Hudspeth 51, of Suffolk—deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by convincing them to invest in companies owned and controlled by Bank. At Bank’s direction, co-conspirators stole significant portions of investment contributions to fund their criminal enterprise and Bank’s lavish lifestyle.
In 2010, Bank, then a registered securities broker, was barred from the securities industry by the Financial Industry Regulatory Authority (FINRA). Undeterred, Bank created a private equity company called Dominion Private Client Group (Dominion) and continued to sell unregistered securities on his own and through insurance salesmen across the country. Billy Seabolt served as Dominion’s legal counsel and was involved in the development of many of the fraudulent investments and corporations.
The conspirators made material misrepresentations and omissions to sell illiquid, highly speculative investment vehicles. Based on these fraudulent representations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest in Bank’s investment vehicles, without knowing that Bank immediately transferred 20%–70% of the investors’ funds to companies that he controlled in the form of purported “fees.” As a result of this investment fraud scheme, the victims suffered losses in excess of $25 million.
Bank was convicted of conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering. He faces a maximum penalty of over 300 years in prison when sentenced on September 20. Seabolt was convicted of conspiracy and mail fraud, and he faces a maximum penalty of 75 years in prison when sentenced on September 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.
Gibson pleaded guilty to conspiracy and was sentenced to 10 years in prison in February 2020. Hudspeth pleaded guilty to investment advisor fraud and money laundering and was sentenced to over 12 years in prison in May 2018.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Raymond A. Jackson accepted the verdicts. The U.S. Attorney’s Office extends its appreciation to the Virginia State Corporation Commission’s Division of Securities.
Assistant U.S. Attorneys Melissa E. O’Boyle, Elizabeth M. Yusi, and Andrew Bosse prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-126.
Virginia Beach Couple Pleads Guilty to $31 Million Coupon Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach couple pleaded guilty this week to perpetrating a counterfeit coupon fraud scheme that cost retailers and manufacturers over $31 million in losses.
“These defendants orchestrated a nationwide scheme to make and sell counterfeit coupons, which defrauded businesses out of more than $31 million,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Counterfeiting coupons harms the entire retail industry and causes financial loss to consumers, businesses, and the economy. As this case demonstrates, those who use illegal get-rich-quick schemes to deceive others will be brought to justice.”
According to court documents, from approximately April 2017 through May 2020, Lori Ann Talens, 41, operated a complex scheme using social media sites and apps such as Facebook and Telegram to find groups of coupon enthusiasts and sell them counterfeit coupons. Lori Ann Talens, who operated online under the moniker “MasterChef,” used a computer to design, create, and produce a wide variety of counterfeit coupons in her Virginia Beach home. These counterfeit coupons were virtually indistinguishable from authentic coupons and were often created with inflated values, far in excess of what an authentic coupon would offer, in order to receive items from retail for free or for a greatly reduced price.
“Whenever someone uses the U.S. Mail to send counterfeit, illegal or improper items, Postal Inspectors will find them and bring them to justice,” said Peter R. Rendina, Postal Inspector in Charge, Washington Division of the U.S. Postal Inspection Service. “We remain committed to keeping the mail safe for our customers and our employees.”
As part of the scheme, Lori Ann Talens would ship the counterfeit coupons throughout the United States using the U.S. Postal Service and other commercial parcel delivery services. She accepted payment for the counterfeit coupons through a variety of online payment methods, including Bitcoin and Paypal. Lori Ann’s husband, Pacifico Talens, 43, was aware of the counterfeit coupon scheme, profited from it, and assisted in the operation by shipping packages of counterfeit coupons and performing other administrative tasks at the direction of his wife.
The scheme was discovered when one of the Talens’s customers reported them to the Coupon Information Center (CIC), a coalition of consumer product manufacturers dedicated to coupon integrity. The CIC purchased coupons from the Talens, confirmed they were counterfeit, and contacted the U.S. Postal Inspection Service for further investigation.
After identifying the defendants as the source of the counterfeit coupons, federal law enforcement executed a search warrant on their residence. During the search, agents seized nearly $1 million worth of counterfeit coupons from the residence. Furthermore, a review of the Talens’s computer revealed images for over 13,000 separate and distinct counterfeit coupon designs. The CIC reviewed these images and compared them to the known counterfeit coupons in circulation. The analysis concluded that coupon redemptions using the 13,000 counterfeit designs on the couple’s computer had caused approximately $31,817,997 million in losses to retailers and manufacturers.
In a separate scheme, from approximately November 2015 through February 2020, Lori Ann Talens defrauded Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Lori Ann Talens applied for benefits for each of these programs and failed to disclose either her husband Pacifico’s legitimate employment income, or their own illegitimate counterfeit coupon income. Had she disclosed this income, the Talens would not have been eligible for these benefits. The total loss to Medicaid and SNAP was approximately $43,000.
Both defendants pleaded guilty to mail fraud. Lori Ann Talens also pleaded guilty to wire fraud and health care fraud. Lori Ann Talens is scheduled to be sentenced on August 31, and she faces a maximum penalty of 50 years in prison. Pacifico Talens is scheduled to be sentenced on August 19, and 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; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Assistant U.S. Attorney Joseph Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-39.
Virginia Attorney Charged with Sex Trafficking Minors and Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging an Arlington man with sex trafficking of minors, production of child pornography, and other commercial sexual exploitation offenses involving young adults.
“The defendant allegedly used his money and power to sexually exploit minors,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We remain steadfast in our commitment to holding accountable those who prey on and victimize children, and to seeking justice for society’s most vulnerable members.”
“Erausquin allegedly exploited and abused underage girls without regard for the impact on his victims,” said Albert Murray III, acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI is committed to stopping and holding accountable anyone who engages in the sexual exploitation of children. Together with our partners on the Child Exploitation and Human Trafficking Task Force, we are dedicated to investigating and bringing federal charges against those who commit these crimes.”
As alleged in court documents, Matthew Erausquin, 46, was a frequent commercial sex customer of six underage girls and three other young adults from June 2017 through at least August 2020. Erausquin met some of the girls on a “sugar daddy” website and a dating app, and in at least one instance pretended to be an 18 or 19-year-old teenager. Erausquin lured the girls into commercial sex arrangements, paying the girls between $500 to $800 each per sexual encounter and offering to pay at least $1,000 for threesome sexual activity. In addition to these payments, Erausquin gave the girls marijuana and expensive gifts, such as Tiffany’s purses.
As alleged in court documents, Erausquin secretly recorded some of the underage girls while he engaged in sexual activity with them. He also continued to engage in commercial sex with some of the girls after they turned 18 years old. After one victim moved out of state, he flew her back to Virginia for the holidays and paid her for sex.
Erausquin is charged with six counts of sex trafficking of minors, one count of production of child pornography, one count of transporting a person across state lines for purposes of prostitution, and three counts of coercion and enticement to travel in interstate commerce for prostitution. If convicted, Erausquin faces a mandatory minimum sentence of fifteen years in prison and a maximum penalty of life. 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; Albert Murray III, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement.
Assistant U.S. Attorney Maureen C. Cain and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from Northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance in this matter was provided by the Fairfax County Police Department.
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-49.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Previously Convicted Felon Sentenced for Possession of Firearm During Traffic Stop That Resulted in Death of Newport News Police OfficerRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to ten years in prison for being a previously convicted felon in possession of a firearm and felony possession of a controlled substance. Both charges stem from the defendant’s involvement in a January 2020 traffic stop that allegedly led to the death of Newport News Police Officer Katie Thyne.
According to court documents and statements made in court, on January 23, 2020, Vernon Evander Green II, 38, encountered Newport News Police at the Monitor Merrimac Overlook. Police responded to the area after reports of a vehicle with two occupants who appeared to be smoking marijuana. The officers found Green in the driver’s seat and asked him to exit the vehicle. He failed to comply with the officers’ requests and instead fled the scene in his vehicle.
A later search resulted in the recovery of marijuana in the vehicle, along with a soft cooler bag containing a firearm with Green’s fingerprint on the magazine. Green admitted he had previously been convicted of a felony and was not allowed to possess a firearm.
Today’s sentence in federal court consisted of ten years in prison for being a felon in possession of a firearm and two years in prison for the felony controlled substance offense, with both prison terms to run concurrently to each other. The Court, however, ordered that the federal sentence run consecutively to any sentence that may be imposed in the future for Green’s separate pending charges involving felony homicide in Newport News and bank robbery in North Carolina. With regards to the pending Newport News matter, Green has been charged under Virginia state law with felony homicide, in connection with the death of Officer Thyne, in the Newport News Criminal General District Court. The defendant is presumed innocent of the pending state charges until proven guilty.
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 Arenda Wright Allen.
Assistant U.S. Attorneys Howard J. Zlotnick and Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-35.
Skilled Nursing Facility Operators Agree to Settle Americans with Disabilities Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Brookside Rehabilitation and Nursing Center (BRNC), located in Warrenton, has agreed to pay compensatory damages and a civil penalty, as well as enact remedial actions for residents with disabilities, to settle allegations that it violated the Americans with Disabilities Act (ADA).
The settlement agreement between the United States Attorney’s Office and BRNC resolves allegations that BRNC had denied admission to an individual who is deaf because she would need sign language interpreting services. The ADA prohibits covered entities from excluding individuals with disabilities from their services because they require auxiliary aid or services, such as a sign language interpreter.
“We are firmly committed to safeguarding the rights of individuals with disabilities and ensuring that they have equal opportunity and equal access to essential health or medical services,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through the protections enshrined in the Americans with Disabilities Act, EDVA will continue to uphold the civil rights of every member of our community, irrespective of disability, by taking action to eliminate injustices and remove barriers in public services and accommodations.”
Abraham A. Gutnicki and Judy Kushner, who manage BRNC and are parties to the settlement agreement, have an interest in seven other nursing facilities located in Virginia, Maryland, Michigan, and New Jersey. The remedial action agreed upon is to be implemented at those facilities.
To resolve this complaint, BRNC agreed to adopt new ADA policies that will make their services accessible to individuals with communication disabilities, including those who require the services of a sign language interpreter; designate an ADA Administrator, who will be responsible for ensuring each facilities’ compliance with the ADA; enter into agreements with sign language interpreting service providers to provide services to individuals who need them; and provide training for its personnel on the ADA’s effective communication requirements. The agreement covers eight of the nursing facilities in which Gutnicki and Kushner have an interest: (1) BRNC; (2) Cranford Rehab & Nursing Center; (3) Lynwood Manor Health Center; (4) Mystic Meadows Rehab & Nursing Center; (5) Oakwood Care Center; (6) Rehab at Rivers Edge; (7) Skyview Springs Rehab and Nursing Center; and (8) Wellspring at Amelia.
In addition to making changes to the policies and procedures at their nursing facilities, BRNC agreed to pay $40,000 to the resident to whom it denied admission and a $50,000 civil penalty.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office.
The civil claims settled by this ADA agreement are allegations only; there has been no determination of civil liability.
For more information on the ADA and to access helpful compliance-related publications, visit ADA.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY). ADA complaints may be filed online at https://civilrights.justice.gov/report/.
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.
Newport News Trafficker Pleads Guilty to Receiving over 200 Kilograms of CocaineRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to conspiring with members of an international drug trafficking organization to possess and distribute more than 200 kilograms of cocaine.
According to court documents, Darrell King, II, 45, was a kilogram dealer of cocaine in the Tidewater area. Between June and October 2016, King received four deliveries of cocaine that arrived in hidden compartments of tractor-trailers driven cross-country from California. During this time, King and his co-conspirators used various locations, including an auto-repair garage operated by a co-conspirator in Newport News, to receive deliveries and provide money for the purchase of multi-kilogram quantities of cocaine. King or his co-conspirators attended the unloading of cocaine from the tractor-trailers and brought King’s money, which they had counted and vacuum sealed, to be sent back to their California suppliers.
In June 2016, King received a delivery of 70 kilograms of cocaine at his home in Hayes, Virginia. In August 2016, he received two additional deliveries, totaling 105 kilograms of cocaine, at the Newport News garage. On October 20, 2016, King was scheduled to receive a fourth shipment of cocaine at the garage. That day, law enforcement executed search warrants and seized approximately 54 kilograms of cocaine and almost $1 million of King’s money, which was intended to pay for the cocaine being delivered.
King pleaded guilty to conspiracy to distribute and possess with the intent to distribute more than five kilograms of cocaine. King is scheduled to be sentenced on September 8, and he faces a mandatory minimum sentence of 10 years in prison and a maximum penalty of life. 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.
Five of King’s co-conspirators—Marvin O’Neal Carter, 50, Michael Stephen Kuna, 42, of Canada, brothers Hilario Rodriguez, 50, and Daniel Rodriguez, 49, both of California, and Christopher Passione, 34, of Pennsylvania—were sentenced previously in 2017 to terms ranging from 9 to 27 years in prison based on their roles in the conspiracy.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Kenneth Ferguson, Acting Chief of Hampton Police Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Special Assistant U.S. Attorney Amy Cross and Assistant U.S. Attorneys Bibeane Metsch and Brian Samuels are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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 Nos. 4:19-cr-77, 4:16-cr-76, and 4:18-cr-44.
American Contractor Sentenced for Theft of Government Equipment on U.S. Military Base in AfghanistanRead the Press Release
ALEXANDRIA, Va. – An American military contractor was sentenced today to 51 months in prison for her role in a theft ring on a military installation in Kandahar, Afghanistan.
“This defendant exploited her position of trust as a security supervisor by facilitating the theft and movement of government equipment from a U.S. military base in Afghanistan into the hands of unknown and unvetted individuals,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendant, along with her co-conspirators, helped orchestrate and execute the scheme to circumvent the military base’s security protocols for their own financial gain. We will continue to hold accountable those who compromise the safety of the courageous women and men protecting us overseas.”
According to court documents, Varita V. Quincy, 35, of Snellville, Georgia, admitted that, between April 2015 and July 2015, she and others conspired to steal property from the Kandahar military installation, including generators, a truck, and other items worth over $150,000. Larry Green, one of Quincy’s co-conspirators, negotiated the sale of the stolen property with a third-country national middleman, who in turn facilitated the sale of the items to unknown persons in Kandahar.
Quincy further admitted that, to effectuate the theft of the generators and other property, she used her position as a security badging and escort pass supervisor to create, or cause to be made, false official documents. The false documents facilitated both the entry of unknown and unvetted Afghan nationals and their vehicles onto the military installation and effectuated the removal of the stolen property from the installation. The falsified documents were used to deceive security officers and gate guards and compromised the security of U.S. military and civilian personnel on the military installation. Leading up to today’s hearing, Quincy engaged in additional fraudulent conduct by submitting altered documents to the Court in aid of sentencing.
Quincy pleaded guilty on Oct. 13, 2020 to one count of conspiracy to defraud the United States and commit theft of property of value to the United States, and one count of making false statements. As part of her sentencing today, Quincy also was ordered to pay restitution in the amount of $179,708.
Green pleaded guilty to one count of conspiracy to defraud the United States and commit theft of property of value to the United States; one count of theft of property of value to the United States; and one count of aiding and abetting the submission of false statements. Green was sentenced on Nov. 19, 2020 to 41 months in prison and ordered to pay $179,708 in restitution.
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 Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
SIGAR investigated the case with help from the U.S. Army’s Criminal Investigation Command (CID) and the 939th Military Police Detachment of the Indiana Army National Guard.
Assistant U.S. Attorney Joseph Kosky of the Eastern District of Virginia, and Trial Attorneys Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section and Rosaleen O’Gara of the Criminal Division’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 Nos. 2:20-cr-55 and 2:20-cr-46.
American Contractor Sentenced for Theft of Government Equipment on U.S. Military Base in AfghanistanRead the Press Release
An American military contractor was sentenced today to 51 months in prison for her role in a theft ring on a military installation in Kandahar, Afghanistan.
Varita V. Quincy, 35, of Snellville, Georgia pleaded guilty on Oct. 13, 2020, to one count of conspiracy to defraud the United States and commit theft of property of value to the United States and one count of making false statements. According to court documents, Quincy admitted that, between April 2015 and July 2015, she and others conspired to and did steal property of value to the United States including generators, a truck, and other items worth over $150,000. Larry Green, one of her co-conspirators, negotiated the sale of the stolen property with a third-country national middleman, who in turn facilitated the sale of the items to unknown persons in Kandahar.
Quincy further admitted that, to effectuate the theft of the generators, she used her position as a security badging and escort pass supervisor to create or cause to be made false official documents. The false official documents facilitated both the entry of unknown and unvetted Afghan nationals and their vehicles on to the military installation and effectuated the removal of the stolen property from the installation. The falsified documents were used to deceive security officers and gate guards and compromised the security of U.S. military and civilian personnel on the military installation.
Green pleaded guilty to one count of conspiracy to defraud the United States and commit theft of property of value to the United States; one count of theft of property of value to the United States; and one count of aiding and abetting the submission of false statements, and was sentenced on Nov. 19, 2020, to 41 months in prison and ordered to pay $179,708 in restitution.
Quincy also was ordered to pay restitution in the amount of $179,708. Further, Quincy’s sentence reflected her fraudulent post-trial conduct of submitting altered documents to the court on her behalf in advance of sentencing.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; and Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
SIGAR investigated the case with help from Army Criminal Investigation Command (CID) and the 939th Military Police Detachment of the Indiana Army National Guard.
Trial Attorneys Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section, Rosaleen O’Gara of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Joseph Kosky of the Eastern District of Virginia are prosecuting the case.
Convicted Felon Sentenced for Flying Airplane Without a Pilot’s LicenseRead the Press Release
ALEXANDRIA, Va. – A five-time previously convicted felon was sentenced today to 14 months in prison for flying an airplane without a pilot’s license.
According to court documents, on September 27, 2018, Ryan Guy Parker, 31, of Fredericksburg, took an airplane at Shannon Airport in Fredericksburg for a joyride. Parker, who named his business “Outlaw Aviation,” was employed by the airplane’s owner to assemble the plane but had not yet completed the job. At the time of the flight, the airplane had a caster rear wheel, a plastic bicycle water bottle for radiator overflow, and duct tape on key parts of the aircraft.
Despite poor weather conditions, Parker flew just above Shannon Airport’s fuel tanks and twice crossed the airspace used by aircraft on approach to Shannon Airport’s main runway. He flew around the airport for 10 to 15 minutes at a dangerous altitude of around 500 feet. Parker did not possess a pilot’s license at the time of the flight.
According to court documents, the defendant has a lengthy criminal history with five prior felony convictions, including a previous conviction involving unlawful activity pertaining to aircraft. In that case, the defendant was found guilty in the Stafford County Circuit Court for destruction of property and unauthorized use of a vehicle in connection with a separate September 2018 incident that occurred at the Stafford Regional Airport.
On January 22, Parker pleaded guilty to serving as an airman without an airman’s certificate.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; and Jamie Mazzone, Mid-Atlantic Region Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis, III.
Special Assistant U.S. Attorney Michael Lebowitz and Assistant U.S. Attorney Tony Roberts prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-78.
Six Language Recruiters Indicted for Recruiting Unqualified Linguists for Deployment with U.S. Armed Forces in AfghanistanRead the Press Release
UPDATE
The indictment described in the press release below was dismissed without prejudice by U.S. District Court Judge Leonie M. Brinkema on June 23, 2021.
ALEXANDRIA, Va. – A federal grand jury in the Eastern District of Virginia returned an indictment Wednesday charging six former employees of a government contractor for their role in a conspiracy to commit wire fraud in connection with a U.S. government contract to recruit and deploy qualified linguists to Afghanistan where they would provide language services in Dari and Pashto to the U.S. military, including interacting with Afghan civilians and military forces.
According to court documents, Mezghan N. Anwari, 41, of Centerville, Virginia, Abdul Q. Latifi, 45, of Irvine, California, Mahjoba Raofi, 47, of San Diego, California, Laila Anwari, 54, of Fredericksburg, Virginia, Rafi M. Anwari, 54, of Centerville, Virginia, and Zarghona Alizai, 48, of Annandale, Virginia, were employed as linguist recruiters for the Arlington, Virginia-based government contractor, which performed subcontract services such as recruiting linguists to serve in support of U.S. military operations, pursuant to a U.S. government prime contract valued in excess of $700 million.
“As alleged in the indictment, the defendants exploited the trust placed in them by the U.S. military and recruited unqualified linguists to be deployed to Afghanistan,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who undermine the integrity of the procurement process and potentially jeopardize the United States’ mission overseas.”
The indictment alleges, among other things, that the defendants knowingly recruited linguists who lacked the minimum language proficiency in Dari or Pashto. The defendants arranged for other individuals with stronger language skills to fraudulently impersonate the unqualified linguist candidates during oral proficiency interviews, which were tests independently conducted by another government contractor to ensure that candidates identified by the defendants met minimum proficiency standards. In so doing, the defendants sought to make it appear that the linguist candidates possessed stronger language skills than was the case and to ensure that their unqualified linguist candidates would receive passing scores. At times, the defendants themselves fraudulently impersonated candidates during interviews. During the scheme, the defendants received a base salary plus a series of incentive-based bonuses determined by how far through a multi-step vetting process a recruited candidate progressed.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves at the expense of American soldiers and military operations in Afghanistan,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Fraud and abuse of U.S. government contracts paid for by the American taxpayer, and designed to support our men and women uniform, will not be tolerated.”
“This indictment alleges serious crimes that threatened to put American troops at greater risk in a combat zone,” said John F. Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR). “I’m proud that SIGAR special agents and their investigative partners got to the bottom of this alleged scheme. We remain committed to protecting our country’s investment in Afghanistan reconstruction, and to pursuing justice anytime that investment is put at risk.”
“The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Department of Defense’s procurement system” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for DCIS. “The special agents of DCIS along with our investigative partners will vigorously investigate contractors who attempt to rig the system for their own ill-gotten gain. Illicit conduct of this sort deprives our military forces of crucial services and cheats the American taxpayer. We remain steadfast in our mission to root out fraud against U.S. Department of Defense and bring those responsible to justice.”
Mezghan Anwari is charged with conspiracy to commit wire fraud and six counts of wire fraud. Latifi is charged with conspiracy to commit wire fraud and five counts of wire fraud. Raofi is charged with conspiracy to commit wire fraud and two counts of wire fraud. Laila Anwari is charged with conspiracy to commit wire fraud and two counts of wire fraud. Rafi Anwari is charged with conspiracy to commit wire fraud and three counts of wire fraud. Alizai is charged with conspiracy to commit wire fraud and two counts of wire fraud.
The defendants are scheduled for arraignment on May 5, before U.S. District Court Judge Anthony J. Trenga in the Eastern District of Virginia. If convicted, each of the defendants face a maximum of 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Special Inspector General for Afghanistan Reconstruction (SIGAR), the U.S. Army Criminal Investigation Command, and DCIS are investigating the case.
Assistant U.S. Attorney Matthew Burke and Trial Attorneys Michael McCarthy and Matthew Kahn of the Criminal Division’s Fraud 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. 1:21-cr-85.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Six Language Recruiters Indicted for Recruiting Unqualified Linguists for Deployment with U.S. Armed Forces in AfghanistanRead the Press Release
UPDATE
The indictment described in the press release below was dismissed without prejudice by U.S. District Court Judge Leonie M. Brinkema on June 23, 2021.
A federal grand jury in the Eastern District of Virginia returned an indictment Wednesday charging six former employees of a government contractor for their role in a conspiracy to commit wire fraud in connection with a U.S. government contract to recruit and deploy qualified linguists to Afghanistan where they would provide language services in Dari and Pashto to the U.S. military, including interacting with Afghan civilians and military forces.
According to court documents, Mezghan N. Anwari, 41, of Centerville, Virginia, Abdul Q. Latifi, 45, of Irvine, California, Mahjoba Raofi, 47, of San Diego, California, Laila Anwari, 54, of Fredericksburg, Virginia, Rafi M. Anwari, 54, of Centerville, Virginia, and Zarghona Alizai, 48, of Annandale, Virginia, were employed as linguist recruiters for the Arlington, Virginia-based government contractor, which performed subcontract services such as recruiting linguists to serve in support of U.S. military operations, pursuant to a U.S. government prime contract valued in excess of $700 million.
The indictment alleges, among other things, that the defendants knowingly recruited linguists who lacked the minimum language proficiency in Dari or Pashto. The defendants arranged for other individuals with stronger language skills to fraudulently impersonate the unqualified linguist candidates during oral proficiency interviews, which were tests independently conducted by another government contractor to ensure that candidates identified by the defendants met minimum proficiency standards. In so doing, the defendants sought to make it appear that the linguist candidates possessed stronger language skills than was the case and to ensure that their unqualified linguist candidates would receive passing scores. At times, the defendants themselves fraudulently impersonated candidates during interviews. During the scheme, the defendants received a base salary plus a series of incentive-based bonuses determined by how far through a multi-step vetting process a recruited candidate progressed.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves at the expense of American soldiers and military operations in Afghanistan,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Fraud and abuse of U.S. government contracts paid for by the American taxpayer, and designed to support our men and women uniform, will not be tolerated.”
“As alleged in the indictment, the defendants exploited the trust placed in them by the U.S. military and recruited unqualified linguists to be deployed to Afghanistan,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who undermine the integrity of the procurement process and potentially jeopardize the United States’ mission overseas.”
“This indictment alleges serious crimes that threatened to put American troops at greater risk in a combat zone,” said John F. Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR). “I’m proud that SIGAR special agents and their investigative partners got to the bottom of this alleged scheme. We remain committed to protecting our country’s investment in Afghanistan reconstruction, and to pursuing justice anytime that investment is put at risk.”
“The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Department of Defense's procurement system” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for DCIS. “The special agents of DCIS along with our investigative partners will vigorously investigate contractors who attempt to rig the system for their own ill-gotten gain. Illicit conduct of this sort deprives our military forces of crucial services and cheats the American taxpayer. We remain steadfast in our mission to root out fraud against U.S. Department of Defense and bring those responsible to justice.”
Mezghan Anwari is charged with conspiracy to commit wire fraud and six counts of wire fraud. Latifi is charged with conspiracy to commit wire fraud and five counts of wire fraud. Raofi is charged with conspiracy to commit wire fraud and two counts of wire fraud. Laila Anwari is charged with conspiracy to commit wire fraud and two counts of wire fraud. Rafi Anwari is charged with conspiracy to commit wire fraud and three counts of wire fraud. Alizai is charged with conspiracy to commit wire fraud and two counts of wire fraud. The defendants are scheduled for initial court appearances on May 5, before U.S. District Court Judge Anthony J. Trenga of the U.S. District Court for the Eastern District of Virginia. If convicted, each of the defendants face a maximum of 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
SIGAR, the U.S. Army Criminal Investigation Command, and DCIS are investigating the case.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption cases.
Trial Attorneys Michael McCarthy and Matthew Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Burke of the Eastern District of Virginia are prosecuting the case. Trial Attorney Daniel Butler of the Fraud Section contributed significantly to the investigation of this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
EDVA Encourages Participation in the 20th National Prescription Drug Take Back DayRead the Press Release
ALEXANDRIA – Acting U.S. Attorney Raj Parekh is encouraging community members in the Eastern District of Virginia to participate in DEA’s 20th National Prescription Drug Take Back Day, to be held at participating locations on Saturday, April 24, 2021.
For this year’s Take Back Day, Acting U.S. Attorney Parekh will be participating in a public event with senior leadership of the Drug Enforcement Administration (DEA), including Acting Administrator D. Christopher Evans and Washington Division Special Agent in Charge Jarod Forget. The event will also feature Acting Director Regina LaBelle of the Office of National Drug Control Policy (ONDCP) and the 2020 Miss America, Camille Schrier, who is currently pursuing a Doctor of Pharmacy Degree at Virginia Commonwealth University and serves as a prescription safety advocate. The event will take place on April 24 from 10 a.m. to 2 p.m. at the Fairfax County Police Department’s West Springfield District Station, which serves as a Take Back site for the community.
“Take Back Day allows our communities to safely dispose of unused and unwanted prescription drugs, which could save lives by reducing the chances that they will be misused and cause an overdose,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We must continue working together to raise awareness about the need for everyone to remain vigilant year-round in safely disposing of prescription drugs that are no longer needed. We fully support these vital efforts by DEA and all of our law enforcement partners as we stand united in combating the opioid crisis that has been ravaging our communities.”
National Prescription Drug Take Back Day is a bi-annual event that aims to provide a safe, convenient, and responsible means for disposing of prescription drugs, while also educating the general public about the potential for abuse of medications. This service is free and anonymous, with no questions asked of individuals who participate in the event.
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Recent statistics from the Centers for Disease Control and Prevention (CDC) show that opioid overdose deaths have increased during the COVID-19 pandemic. According to preliminary CDC data, 87,203 Americans died as a result of a drug overdose from Oct. 1, 2019 to Sept. 30, 2020, which is the most ever recorded within a one-year period and represents an approximately 27 percent increase in reported deaths year-over-year. The increase in drug overdose deaths appeared to begin prior to the COVID-19 pandemic, accelerating significantly during the first months of the public health crisis.
According to the Virginia Department of Health, fatal drug overdoses have been the leading cause of accidental or unnatural deaths in Virginia since 2013, and in the second and third quarters of 2020, the Commonwealth experienced a more than 62% increase in fatal drug overdoses compared to the same time periods in 2019.
Over the 10-year span of Take Back Day, DEA has brought in more than 6,800 tons of prescription drugs. DEA and its partners will collect tablets, capsules, patches, and other solid forms. Liquids, including intravenous solutions, syringes and other sharp objects, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at any of its drop-off locations, as long as the lithium batteries are removed.
To keep everyone safe, collection sites will follow local COVID-19 guidelines and regulations. In addition to Take Back Day, prescription drugs can be disposed of at any of the 11,000 authorized collectors at any time throughout the year. For more information about the event on April 24, or to locate a collection site near you, visit https://takebackday.dea.gov/ or call 1-800-882-9539.
Reston Man Sentenced for Distributing Fentanyl That Caused Fatal OverdoseRead the Press Release
ALEXANDRIA, Va. – A Reston man was sentenced today to 12 years in prison for selling fentanyl to an individual who later suffered a fatal overdose.
“The defendant’s fentanyl trafficking significantly endangered our communities and caused victim N.G. to suffer a tragic overdose,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no prosecution can bring victim N.G. back to his family and loved ones, we hope that this case has brought some measure of peace and closure to them, all of whom deserve justice and healing for their devastating loss.”
According to court documents, Peter Andrew Romm, 36, regularly traveled to Baltimore to buy heroin and fentanyl, which he then sold to customers in Northern Virginia. Romm sold the drugs in two forms: enclosed in small plastic capsules and folded in small slips of paper.
Romm’s customers included an individual identified in court documents as N.G. On October 7, 2019, Romm sold fentanyl to N.G. through a middleman, Tyler Huston. N.G. later consumed the fentanyl and fatally overdosed; he was found dead in his home the next morning. The Office of the Chief Medical Examiner determined that the cause of N.G.’s death was acute fentanyl poisoning. Text messages recovered from N.G.’s phone indicate that Huston had nonfatally overdosed on drugs obtained from Romm prior to the transaction that resulted in N.G.’s death.
As recently as February 2020, Romm was traveling to Baltimore regularly to buy fentanyl, sometimes with his girlfriend and co-conspirator, Donnetta Ferguson, who aided him in distributing narcotics. On February 11, 2020, Romm was arrested on his way back from Baltimore in possession of approximately 75 capsules of fentanyl. During a post-arrest interview with law enforcement, Romm admitted to selling fentanyl in Northern Virginia, including to N.G. through a middleman. Despite being informed by law enforcement during this interview that N.G. had died of a drug overdose, Romm was arrested again eight days later, along with Ferguson, on his way back from Baltimore with another 72 capsules of fentanyl in his vehicle.
On November 4, 2020, Romm pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and 400 grams or more of fentanyl, and one count of distribution of fentanyl. As part of his plea agreement, Romm admitted that the fentanyl he distributed caused N.G.’s death. Tyler Huston and Donnetta Ferguson also pleaded guilty to charges relating to their roles in the conspiracy.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh and former Special Assistant U.S. Attorney Karolina Klyuchnikova 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-176.
Senior NASA Employee Pleads Guilty to COVID-19 Related Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) pleaded guilty today to submitting fraudulent applications for over $350,000 in COVID-19 economic relief loans and benefits.
“Despite holding a senior executive position at NASA, the defendant applied for over $350,000 in fraudulent loans and benefits,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In doing so, he essentially treated COVID-19 relief programs as a personal piggy bank, using funds intended to provide pandemic relief for small businesses and the unemployed to pay down his credit card debt, pay off loans for a residential pool and minivan, and pay a dog-breeder, among other personal expenses. EDVA will continue to hold accountable individuals who exploit a national economic crisis in order to unlawfully enrich themselves at the expense of those in genuine need due to the pandemic.”
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 from Virginia, ostensibly for his mother-in-law, who was retired and did not qualify for the benefits (totaling $15,950). In support of the fraudulent PPP loan applications, Tezna submitted fabricated IRS tax returns and fraudulently claimed payroll expenses that did not exist.
“People’s greed, especially when it involves fraudulently obtaining funds meant to help those in need, is truly disappointing,” said Darrell J. Waldon, IRS-CI Acting Special Agent in Charge of the Washington D.C. Field Office. “We will continue to work with our agency counterparts to ensure all are held accountable.”
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, to pay off a personal loan for a minivan, to pay off personally incurred credit card debt, for a down payment on a new car, and to pay a dog-breeder. In addition, Tezna also admitted to filing a false Financial Disclosure Report with NASA.
“As a NASA senior executive, the Agency placed a great deal of trust in Tezna. Taking advantage of the CARES Act to fraudulently obtain PPP loans not only violated the Agency’s trust, but the trust of American people that sought assistance for the legitimate needs of their struggling businesses,” said Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office.
Tezna pleaded guilty to bank fraud and is scheduled to be sentenced on July 16. 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; Darrell J. Waldon, IRS-CI Acting Special Agent in Charge of the Washington D.C. Field Office, and Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:27-cr-77.
Portsmouth Woman Pleads Guilty to Fraud Schemes Targeting VeteransRead the Press Release
NEWPORT NEWS, Va. – A Portsmouth woman pleaded guilty today to wire fraud and aggravated identity theft in connection with a scheme to defraud veterans.
“This defendant has been brought to justice for orchestrating numerous fraudulent schemes against veterans who honorably served their country,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “For those who steal, misappropriate, and divert funds that belong to our country’s veterans, this case sends a strong message that you will be prosecuted and held accountable for your inexcusable conduct.”
According to court documents, Rita Copeland, 59, operated an entity known as “Veteran Services of the Commonwealth.” Copeland purported to provide caregiving, contracting, and rental assistance services to various veterans from 2016 through 2020. Copeland caused a number of victims to apply for Home Improvements and Structural Alterations (HISA) grants through the U.S. Department of Veterans Affairs. Such grant payments are to be used for certain designated improvements to the residences of veterans. Copeland failed to perform all of the promised work and used a portion of these payments to her own benefit, contrary to the designated purposes of the funds.
Copeland also diverted the income and retirement fund payments of another veteran to a bank account that she had opened. In addition, Copeland fraudulently obtained and diverted loan funds and used the credit and debit cards of this elderly victim. Finally, Copeland engaged in a rental fraud scheme, purporting to link veterans and others with landlords, but then diverting rental and security deposit payments to her own benefit.
Copeland pleaded guilty to one count of wire fraud and one count of aggravated identity theft, and she is scheduled to be sentenced on August 27. She faces a maximum penalty of 20 years for wire fraud and a mandatory consecutive term of two years for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorney Brian Samuels is prosecuting the case.
This case is being investigated by the FBI’s Norfolk Division’s Peninsula Resident Agency.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-63.
EDVA Commemorates the 40th Anniversary of National Crime Victims’ Rights WeekRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia joins communities nationwide in commemorating the 40th anniversary of National Crime Victims’ Rights Week (NCVRW) from April 18–24, 2021. This year’s theme, Support Victims. Build Trust. Engage Communities, emphasizes the importance of leveraging community support to help victims of crime.
“We are firmly committed to upholding victims’ rights as we protect the safety of our communities and pursue equal justice under the law in a broad range of criminal and civil matters across EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “From seeking justice for victims of terrorism, human trafficking, child exploitation, and other violent and white-collar crimes, to enforcing the Americans with Disabilities Act, vindicating the rights of military servicemembers and veterans, and securing restitution for the victims of financial fraud, we will stand with victims and ensure their voices are heard. This year’s theme for National Crime Victims’ Rights Week recognizes the importance of, and power in, all facets of the community—including stakeholders in the justice system, victim advocates, charitable organizations, faith-based groups, health care providers, and mental health professionals—standing together to ensure that victims of crime receive the services, healing, and justice they need and deserve.”
NCVRW is a time to renew our commitment to serving victims of crime, acknowledge achievements made in the victim services field, and remember crime victims and survivors. For more information about this year’s NCVRW and how to assist victims in your own community, please visit the National Crime Victims’ Rights Week website.
The Justice Department’s Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of NCVRW, during which victim advocacy organizations, community groups, and state, local, and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services.
In the Eastern District of Virginia, those events will include the following:
- A virtual training on Privacy, Protection, and Fairness: Why Crime Victims’ Rights Matter to Victims of Violence, hosted by the Virginia Department of Criminal Justice Services on April 20.
- The Unsung Heroes awards ceremony, hosted by the Virginia Office of the Attorney General on April 21 to recognize outstanding service and support to victims of crime in the Commonwealth. For more information about the event, please visit here.
- National Crime Victims’ Rights Candlelight Vigil & 2-Mile Walk, hosted by the Stafford Country Sheriff’s Office on April 23.
To commemorate the NCVRW this year, the U.S. Attorney’s Office for the Eastern District of Virginia is holding a clothing drive to donate garments and toiletries to a local non-profit organization that assists women and children in crisis. Additionally, among other initiatives led by the Victim-Witness Unit, EVDA is hosting speakers to raise awareness of victim issues.
On April 16, Acting U.S. Attorney Parekh hosted a virtual event in which Aloke Chakravarty, a former Assistant U.S. Attorney, discussed his experience prosecuting the Boston Marathon bombings case. The discussion also focused on the collaboration and coordination required to ensure that victims’ voices were heard during the investigation and resulting trial.
On April 23, Acting U.S. Attorney Parekh will host a virtual fireside chat with Tony West, who in his former role as the Justice Department’s Associate Attorney General (2012–2014) helped secure nearly $37 billion in fines and restitution for American victims in connection with the 2009 financial crisis.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.