Eastern District of Virginia
Press releases recorded for this federal judicial district.
Virginia Beach Woman Sentenced for Defrauding Nearly 1,700 Victims in $1 Million Small Business Loan ScamRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to five years in prison for her role in an internet-based loan scam that defrauded nearly 1,700 owners and prospective owners of small businesses out of $1,076,000.
According to court documents, Terri Beth Miller, 53, along with her husband, Ronald A. Smith, 60, set up an internet-based company, Business Development Group, that offered, in exchange for an advance fee, assistance to individuals in preparing applications to obtain loans guaranteed by the Small Business Administration (SBA). From August 2012 through February 2018, Miller and Smith solicited potential customers on the basis of false, fraudulent, and misleading statements and representations, including that the company was headquartered at the Trump Building in New York City with additional offices in Las Vegas, that it was affiliated with the SBA, that it had favorable relationships with banks across the nation, and had assisted well-known large companies in obtaining SBA loans. They offered a money-back guarantee, but in fact employed various fraudulent methods to deny refunds. Miller ran the day-to-day operations of the company with the knowledge that it was a fraudulent enterprise.
“Miller and Smith’s brazen scheme resulted in over a million dollars in losses and inflicted serious financial and emotional hardship to many of their nearly 1,700 victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “For those who seek to deprive our hardworking community members from receiving crucial financial assistance, you will be held accountable in EDVA and brought to justice.”
Miller and Smith solicited 1,669 customers, who paid an aggregate sum of about $1,076,000 in advance fees. Most of these customers did not receive an SBA-guaranteed loan.
Smith and Miller were previously convicted of criminal conduct before they executed this scheme. In 2006, Smith was prosecuted in the Eastern District of Virginia for nearly the identical advance-fee scam. In 2008, Miller was prosecuted in the Western District of Pennsylvania for malicious destruction of property by fire after she set fire to a business to obtain the insurance proceeds.
Miller pleaded guilty on October 23, 2020 to wire fraud and engaging in monetary transactions in criminally derived property. On April 9, 2021, Smith was sentenced to 10 years in prison for his role in the advance-fee scheme and other fraudulent conduct relating to COVID-19 unemployment benefits.
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; Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General; and Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA’s Office of Inspector General, Eastern Region, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
The investigation was jointly conducted by the FBI, U.S. Postal Inspection Service, Small Business Administration, and Department of Labor Office of Inspector General.
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-69.
Six Individuals Sentenced for Nearly $8 Million Health Care Fraud Involving Northern Virginia PharmaciesRead the Press Release
ALEXANDRIA, Va. – The last of six defendants were sentenced today for participating in multiple health care fraud conspiracies involving kickbacks and fraudulent billings that resulted in nearly $8 million in losses to federal, state, and private health care benefit programs.
“Health insurance programs, and the American public, rely on pharmacy professionals to safeguard the system from harmful kickback schemes, and to make truthful representations about the services they provide,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendants betrayed their duties as health care professionals, performed illegal kickbacks, and defrauded essential benefit programs out of millions of dollars. EDVA is committed to prosecuting those who exploit taxpayers and engage in the unacceptable fleecing of these important public institutions and programs.”
According to court documents, Mohamed Abdalla, 48, of Allendale, New Jersey, owned multiple pharmacies in northern Virginia, including Medex Health Pharmacy in Falls Church and Royal Care Pharmacy in Fairfax. As the owner of these pharmacies, Abdalla oversaw and executed two related schemes to defraud health care benefit programs. One scheme involved the payment or receipt of unlawful kickbacks for expensive drugs and devices in violation of the federal Anti-Kickback Statute. Another scheme involved billing federal, state, and private health care benefit programs for numerous expensive drugs and devices that were not medically necessary, not prescribed by a physician, or were not received by a beneficiary.
“Health care professionals who use fraud and deceit to steal funds and scam the system will be held accountable for their actions,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “These individuals, who are supposed to be trusted by the American public, were fueled by greed and their own interests to exploit their profession and pad their pockets. The FBI and our law enforcement partners will continue to root out fraud in the health care industry and protect the public from their illegal schemes.”
From at least January 2014 through at least the end of 2018, Abdalla participated in several schemes to pay kickbacks for the referral of prescriptions for compound medications and for an expensive naloxone auto-injector device used to treat opioid emergencies. Abdalla and his conspirators then billed federal health care benefit programs, including Medicare and TRICARE, which is the Department of Defense’s health care program, in violation of the Anti-Kickback Statute. Abdalla obtained over $2 million from these schemes.
“This investigation is a prime example of how kickback schemes undermine the integrity of the U.S. military healthcare system, and degrade the acquisition process,” said Christopher Dillard, Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “These sentencings should send a clear warning that DCIS and its investigative partners will vigorously pursue fraudsters intent on lining their pockets with tax dollars earmarked for the care of our Warfighters.”
In addition, Abdalla and employees at his pharmacies conspired to defraud federal, state, and private health care benefit programs by engaging in numerous other schemes, including billing for prescriptions in the names of themselves, family members, and other pharmacy employees that were not medically necessary and/or not prescribed by a licensed physician, and billing for prescriptions for pharmacy customers that were never filled. These additional schemes resulted in a loss to these health care benefit programs of approximately $6,216,434.39.
“Health care providers are trusted to recommend and provide prescription medications that their patients need,” said Maureen R. Dixon, Special Agent in Charge, HHS Office of Inspector General, Philadelphia Regional Office. “Today’s sentencing shows individuals who commit fraud and pay kickbacks will be held responsible for their illegal actions. HHS-OIG and our law enforcement partners will continue to work together to investigate allegations of health care fraud and ensure the integrity of Federal programs.”
On March 19, Abdalla was sentenced to four years in prison for his role in the conspiracies. Five additional defendants have pleaded guilty and been sentenced for their respective roles in conspiring to pay kickbacks and defraud health insurance providers:
Onkur Lal, 30, of Alexandria, worked for Abdalla as a pharmacy technician and pharmacy intern before ultimately working as a licensed pharmacist. From approximately January 2014 to April 2019, Lal engaged in numerous health care fraud schemes resulting in millions of dollars in losses. At times, Lal used his specialized knowledge to circumvent audits and investigations by third parties, who were investigating fraud on behalf of health benefit programs. On March 5, Lal was sentenced to three years in prison.
Mohammed Tariq Amin, 35, of Fairfax, worked for Abdalla as a pharmacy technician and was the general manager of Royal Care for almost two years. From approximately January 2015 to November 2018, Amin conspired with Abdalla and others to pay kickbacks for the referral of prescriptions of an expensive naloxone auto-injector device. He also engaged in numerous other schemes that defrauded health care benefit programs and used his specialized knowledge to circumvent audits and investigations. Amin was sentenced today to two years in prison.
Daniel Tyler Walker, 51, of Lewes, Delaware, worked as a pharmaceutical sales specialist for a pharmaceutical company and was responsible for marketing an expensive naloxone auto-injector device used to treat opioid emergencies. From approximately August 2015 to April 2017, Walker accepted kickbacks from Abdalla and Amin for the referral of prescriptions for this device, which were then billed to federal health care programs. Walker was sentenced today to 15 months in prison.
Seth Michael Myers, 53, of Crystal Lake, Illinois, from approximately spring of 2013 to mid-2016, conspired with Abdalla, another individual who was a licensed physician, and others to accept kickbacks for the referral of expensive compound medications that were billed to federal health care benefit programs. A company that was created by Myers and the licensed physician was paid over $2.5 million during the scheme. On March 19, Myers was sentenced to two years in prison.
Michael Beatty, 53, of Finksburg, Maryland, worked as a licensed pharmacist at Fallston Pharmacy in Fallston, Maryland. From approximately the summer of 2013 to the fall of 2014, Beatty conspired with Myers and a licensed physician to pay kickbacks for the referral of expensive compound medications, which were billed to federal health care benefit programs. On March 5, Beatty was sentenced to one year and one day in prison.
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; Chris Dillard, Special Agent in Charge for the Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Maureen R. Dixon, Special Agent in Charge, HHS Office of Inspector General, Philadelphia Regional Office; Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, U.S. Office of Personnel Management, Office of the Inspector General; and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Monika Moore, Carina Cuellar, and Jamar Walker prosecuted the cases.
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-250.
EDVA Reminds Community Partners That the Americans with Disabilities Act Applies to COVID-19 Related ServicesRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today that it will be providing the attached
Dear Colleague Letter reminding community partners that are involved in the COVID-19 pandemic response that the Americans with Disabilities Act (“ADA”) applies to their services.“The COVID-19 pandemic has had a severe and distressing impact on people with disabilities, who, through no fault of their own, have faced additional barriers due to the public health crisis,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will vigorously pursue justice on behalf of those who are not provided equal access because of their disability. It is absolutely critical that COVID-19 resources, including vaccines and testing, are implemented in a manner that ensures individuals with disabilities are not subjected to discrimination and are able to access those services.”
The Dear Colleague Letter explains that ADA “considerations may include: whether registration systems and websites are available to individuals who have vision or hearing disabilities; whether facilities selected as vaccine or COVID-19 testing sites are accessible to people with mobility disabilities; and whether there is effective communication for people with disabilities in conveying information about such services.”
The Dear Colleague Letter includes links to numerous federal publications that provide a detailed discussion of the ADA’s requirements, including publications on ADA.gov. The U.S. Department of Justice has issued a technical assistance document titled “ADA Checklist for Polling Places,” which may serve as a helpful guide to states and municipalities in selecting vaccination sites, as well as providing temporary remedies to ensure that vaccination programs are accessible to people with disabilities. Like polling places, vaccination sites often have another primary use (such as a gym or community center), so the considerations for their selection and the methods used for ensuring their accessibility are applicable. The Dear Colleague Letter also includes links to additional resources and publications provided by the U.S. Department of Health and Human Services and the Federal Emergency Management Agency.
The U.S. Attorney’s Office for the Eastern District of Virginia, through its Civil Rights Enforcement (“CRE”) Unit, in partnership with the Justice Department’s Civil Rights Division, vigorously enforces a variety of federal statutes that prohibit discrimination, including the ADA, the Civil Rights Act of 1964, the Civil Rights of Institutionalized Persons Act, and the Equal Educational Opportunities Act of 1974. EDVA’s CRE Unit also enforces the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act of 1994.
For more information on the ADA, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY).
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.
EDVA Dear Colleague Letter (COVID-19 ADA)
Inmate Sentenced for Leading Drug and Sex Trafficking Ring from California Prison CellRead the Press Release
NORFOLK, Va. – A California man was sentenced today to 24 years in prison for organizing and running a methamphetamine trafficking conspiracy and commercial sex trafficking ring from his state prison cell.
“While already imprisoned for a sexual exploitation offense, the defendant organized and led a drug and sex trafficking conspiracy that placed profits over the lives and well-being of vulnerable victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution serves as a reminder that those who exploit and inflict harm on our community members, from behind bars or elsewhere, will be brought to justice.”
According to court documents, Foster Shane Gaines, 44, was serving an eight-year sentence in the California Department of Corrections and Rehabilitation for engaging in the prostitution of an adult woman. Beginning in approximately 2016, Gaines launched a drug trafficking organization that distributed methamphetamine from a source of supply in California to co-conspirators in the Tidewater region of Virginia. Using cellphones smuggled into prison, Gaines directed co-conspirators in California, Nevada, and elsewhere to mail parcels of methamphetamine to co-conspirators in Chesapeake, Virginia Beach, Norfolk, Petersburg, and elsewhere. Once the methamphetamine was distributed to customers during transactions that Gaines, at times, personally arranged using his contraband cellphones, the co-conspirators returned the proceeds from the sales to Gaines and his confederates by way of prepaid stored value cards or bulk cash sent through the mail.
“Gaines’s actions exemplify someone with a complete disregard for our laws and for the welfare of American citizens and deserves to be prosecuted to the fullest extent,” said Raymond Villanueva, Special Agent in Charge for the Homeland Security Investigations (HSI) Washington, D.C. field office. “Sex and drug trafficking are both transnational issues and occur within nearly every region of the United States. HSI is proudly charged with preventing these types of crimes from happening and thwarting criminal networks that capitalize on them.”
In addition to his methamphetamine trafficking, Gaines also organized and led a commercial sex trafficking ring that at times involved approximately ten adult females and two juvenile girls. Again, using his smuggled cellphones, Gaines recruited women and girls to work as prostitutes by contacting them over various social media platforms. In exchange for 40 to 50 percent of their commercial sex proceeds, Gaines created online advertisements for commercial sex, rented hotel and motel rooms, communicated with customers, organized transportation, and otherwise managed their commercial sex activities. Gaines also arranged for a professional photographer to take sexually suggestive photographs of some women for use in the commercial sex advertisements he created for them, and he frequently directed his co-conspirators to provide cocaine, methamphetamine, marijuana, and other drugs to the women and girls. As with the proceeds from the methamphetamine sales, Gaines directed that the women and girls transmit their commercial sex proceeds to him through bulk cash mailings or prepaid stored value cards.
On October 11, 2019, Gaines pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, commonly known as “ice,” and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and conspiracy to engage in sex trafficking of a child.
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.; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Paul Neudigate, Chief of Virginia Beach Police; Col. K.L. Wright, Chief of Chesapeake Police; Larry D. Boone, Chief of Norfolk Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-143.
Three Members of Transnational Money Laundering Network Pleaded Guilty to Aiding Foreign Drug Trafficking OrganizationsRead the Press Release
ALEXANDRIA, Va. – Within the last week, three individuals pleaded guilty to their involvement in a conspiracy to launder at least $30 million of drug proceeds combined throughout the United States on behalf of foreign drug trafficking organizations (DTOs). These guilty pleas are the result of a nearly four-year investigation into the relationship between foreign drug trafficking organizations and Asian money laundering networks in the United States, China, Mexico, and elsewhere.
“These defendants were involved in a wide-ranging conspiracy to launder millions of dollars of drug proceeds throughout the United States to aid foreign drug trafficking organizations,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through their tenacity and indefatigable investigative efforts, our law enforcement partners unraveled the complex money laundering scheme, which involved the use of casinos, front companies, foreign and domestic bank accounts, and bulk cash smuggling. This prosecution demonstrates our continued commitment to dismantle and bring to justice transnational criminal organizations that threaten the safety of our communities.”
“For years, these defendants participated in a sophisticated money laundering system to help drug cartels line their pockets with the ill-gotten gains of drug trafficking, while profiting considerably, themselves,” said Wendy Woolcock, Special Agent in Charge for the DEA Special Operations Division. “Money laundering is not a victimless crime – the actions of these individuals routed millions of dollars in drug proceeds back to the cartels, allowing these criminal organizations to further their activities, flooding our communities with dangerous drugs, causing devastating addictions and death. The apprehension and prosecution of these individuals is a significant success for the DEA, and we thank our countless partners for their work in this transnational effort to battle money laundering and other related crimes at the highest levels.”
“The dedicated men and women of the Drug Enforcement Administration will go to great lengths to ensure those who profit off of the poisoning of our communities are ultimately brought to justice,” said Special Agent in Charge Todd Scott, head of DEA’s Louisville Division. “I’m very proud of the work done by our folks, along with our law enforcement counterparts in this complex investigation.”
According to court records, the defendants participated in a years’ long conspiracy to use casinos, front companies, foreign and domestic bank accounts, and bulk cash smuggling to launder money on behalf of transnational drug trafficking organizations, whose main trafficking activities involved cocaine. The DTOs issued “contracts” to the defendants to collect money generated by drug trafficking activities in the United States, and members of the conspiracy engaged in financial transactions that were designed to conceal the illicit source of the original proceeds, in return for the payment of commissions.
To facilitate the scheme, the defendants used several methodologies, including transporting, or causing others to transport, drug proceeds across the United States and in the Eastern District of Virginia. The defendants also converted drug proceeds into Chinese and Mexican currency through a variety of methods, including “mirror transfers” in which financial transactions in the United States are used to trigger the release of equivalent funds into bank accounts in China, with those funds then being used to purchase Chinese goods that are subsequently sold by merchants in Latin American countries, including Mexico.
As part of a guilty plea entered on April 9, Jiayu Chen, 46, of Brooklyn, New York, admitted to his participation in the drug trafficking and money laundering network. Chen received drug proceeds from couriers in New York City and then delivered this cash to other individuals who conducted additional financial transactions with the money to hide its source. Chen kept detailed ledgers of the money he received totaling approximately $2.8 million. During this period, Chen was a mail carrier for the U.S. Postal Service (USPS), and he received drug proceeds from, and paid commissions to, couriers as compensation for their role in transporting drug proceeds. On at least one occasion, Chen accepted bulk drug proceeds while wearing his USPS uniform.
As part of a guilty plea entered today, Tao Liu, 46, of Hong Kong, admitted that he worked with his co-defendants to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of co-defendant Xizhi Li, which he later deposited into bank accounts that Xizhi Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Tao himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.
As part of a guilty plea entered today, Jingyuan Li, 49, of San Gabriel, California, admitted that he used a California-based seafood import/export business, known as “Shuoyu USA Inc.” (Shuoyu), in connection with the above-described money laundering scheme. Specifically, Li used the proceeds of drug trafficking to purchase goods through Shuoyu, which he later had shipped to China and Hong Kong for sale. This enabled the conspiracy to pay back the DTOs who gave the conspiracy the contracts to launder their money. Additionally, Li organized and participated in the delivery of drug cash within the United States. In all, Li’s activities resulted in the laundering of at least $3.8 million of drug proceeds.
Jiayu Chen pleaded guilty to conspiracy to commit money laundering, and he faces a maximum penalty of 20 years in prison when he is sentenced on July 20, 2021. Tao Liu pleaded guilty to conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison, and bribery of a public official, which carries a maximum penalty of 15 years in prison, when he is sentenced on July 13, 2021. Jingyuan Li pleaded guilty to conspiracy to commit money laundering, and he faces a maximum penalty of 20 years in prison when he is sentenced on July 13, 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.
In addition to the three defendants referenced above, two other defendants, Xizhi Li, 45, and Eric Yong Woo, 43, previously were charged in the superseding indictment for their alleged involvement in the scheme. Li and Woo have pleaded not guilty and are presumed innocent unless and until they are proven guilty at trial, which currently is scheduled for August 23, 2021. In addition, Jianxing Chen, 40, was charged in the superseding indictment for his alleged involvement, and he remains a fugitive.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation Dark Castle and Taishan Triangle. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Wendy C. Woolcock, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Special Operations Division; J. Todd Scott, Special Agent in Charge for the DEA-Louisville; Raymond P. Donovan, Special Agent in Charge for the DEA-New York; Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service (DSS); and Angie M. Salazar, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Chicago, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the pleas.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.
Significant assistance was provided by the Australian Criminal Intelligence Commission and the Australian Federal Police, the Mexican Federal Police, Australia Department of Home Affairs, the Guatemalan National Civil Police (PNC), and the New Zealand Police.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-334.
Man Pleads Guilty to Counterfeit COVID-19 Stimulus Checks SchemeRead the Press Release
ALEXANDRIA, Va. – A Reston man pleaded guilty today to bank fraud and aggravated identity theft in connection with a scheme to create counterfeit Economic Impact Payments (also known as COVID-19 stimulus checks), and for attempting to conduct a series of fraudulent financial transactions.
“The defendant illegally obtained the personal identifiers and financial information of more than 150 individuals in EDVA by stealing their mail, which he then used to conduct fraudulent transactions and create counterfeit COVID-19 stimulus checks,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are firmly committed to holding accountable fraudsters who engage in identity theft and exploit a national economic crisis for personal gain at the expense of hardworking members of our communities.”
According to court documents, Jonathan Drew, 38, stole U.S. mail addressed to more than 150 individuals in Fairfax County between approximately December 2019 and August 2020. The mail Drew stole included bank statements, credit cards, credit card statements, W-2 forms, and more than $700,000 in checks, including a COVID-19 stimulus payment and checks Drew used to create counterfeit checks.
According to court documents, Drew used the stolen stimulus check to create counterfeit stimulus checks ranging from $1,200 to $2,400, and he negotiated his own authentically issued stimulus check twice. Drew also used the personally identifiable information of several individuals without authorization to lease an apartment, open bank accounts, and attempt to conduct fraudulent transactions through counterfeit checks, forged checks, unauthorized use of credit cards, and wire transfers.
Drew is scheduled to be sentenced on August 25. He faces a maximum penalty of 32 years in prison, including a mandatory minimum of two years. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; J. Russell George, Treasury Inspector General for Tax Administration; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Special Assistant U.S. Attorney Roberta O. Roberts and Assistant U.S. Attorney Russell L. Carlberg are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-71.
Hampton Roads Tax Preparer Sentenced for FraudRead the Press Release
NORFOLK, Va. – A Norfolk woman was sentenced today to 33 months in prison for wire fraud and participating in the preparation of over 30 fraudulent income tax returns while she served as the co-owner of a tax preparation service with multiple offices in the Hampton Roads area.
“As the evidence demonstrated at trial, the defendant repeatedly violated her trusted position as a tax preparer and ran a business based on deceptive and duplicitous practices in order to enrich herself,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Tax fraud schemes are serious offenses that deprive our communities of necessary resources, and those who engage in this conduct will be held accountable in EDVA.”
According to court documents and the evidence presented at trial, Nikia Tull, 44, was the co-owner, operator, and manager of YT Phoenix Enterprises, Inc., aka Phoenix Financial Tax Service, a tax preparation service based in Virginia Beach, Chesapeake, and Suffolk. Between 2014 and 2018, Tull willfully participated in preparing and submitting 33 federal income tax returns to the IRS containing numerous false and fraudulent items. In 2019, Tull continued her fraud by submitting forged and fraudulently altered bank statements to a private lending company in support of loan applications for $70,000.
According to court documents, Tull included a variety of false and fraudulent items on the income tax returns of her clients without their knowledge or consent. Some of the fraudulent items Tull included were residential energy credits, unreimbursed employee expenses, charitable contributions, and business losses. Tull charged her clients based on the number of separate forms filed with each return, so she was able to collect more fees for herself by including the false items and amounts. As a result of Tull’s fraudulent conduct, the IRS suffered a total loss of approximately $230,000.
In addition to defrauding the IRS, Tull also devised a wire fraud scheme aimed at a small business lender in which she submitted materially false and fraudulently altered bank statements in support of online applications for loans of $20,000 and $50,000 for her business.
After a seven-day trial, a federal jury convicted Tull on November 12, 2020 on five counts of wire fraud and 33 counts of aiding and assisting in the preparation of false and fraudulent income tax returns. As part of her sentencing today, Tull was ordered to pay restitution in the amount of $162,460.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorneys Daniel P. Shean and Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-9.
Man Sentenced for Defrauding Nearly 1,700 Victims in $1 Million Small Business Loan ScamRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 10 years in prison for his role in an internet-based loan scam that defrauded nearly 1,700 owners and prospective owners of small businesses out of $1,076,000, and for fraudulently collecting unemployment benefits during the COVID-19 pandemic.
According to court documents, Ronald A. Smith, 60, and his co-defendant and wife, Terri Beth Miller, 53, set up an internet-based company, Business Development Group, that offered, in exchange for an advance fee, assistance to individuals in preparing applications to obtain loans guaranteed by the Small Business Administration. From August 2012 through February 2018, Smith and Miller solicited potential customers on the basis of false, fraudulent, and misleading statements and representations, including that the company was headquartered at the Trump Building in New York City with additional offices in Las Vegas, that it was affiliated with the SBA, that it had favorable relationships with banks across the nation, and had assisted well-known large companies in obtaining SBA loans. They offered a money-back guarantee, but in fact employed various fraudulent methods to deny refunds.
“Smith’s brazen scheme resulted in over a million dollars in losses and inflicted serious financial and emotional hardship to many of his nearly 1,700 victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “For those who seek to deprive our hardworking community members from receiving crucial financial assistance, you will be held accountable in EDVA and brought to justice.”
“This kind of fraud reaches deep into the community by striking at struggling businesses and people trying to hold onto their livelihoods. It is unconscionable that anyone would attempt to steal from the community using the SBA loan program to line their own pockets,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI is committed to rooting out this kind of fraud. Anyone with information on SBA loan program and other COVID-19 related fraud is asked to submit a tip to the FBI at tips.fbi.gov.”
“Ronald A. Smith submitted a fraudulent unemployment insurance claim with the Virginia Employment Commission, thereby stealing federal pandemic unemployment compensation benefits intended to help unemployed workers,” said Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General. “Today’s sentence demonstrates the Office of Inspector General’s commitment to combating fraud against the unemployment insurance program. We will continue to work with our law enforcement and state workforce agency partners to hold accountable those who seek to exploit unemployment insurance benefit programs to unlawfully enrich themselves.”
“Defrauding small business owners who are trying to launch, expand, or support their businesses is unacceptable,” said Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration, Office of Inspector General’s Eastern Region. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Smith and Miller solicited 1,669 customers, who paid an aggregate sum of about $1,076,000 in advance fees. Most of these customers did not receive an SBA-guaranteed loan.
Smith was prosecuted in the Eastern District of Virginia for nearly the identical advance-fee scam in 2006 and received a seven-year prison sentence.
As part of the current case, Smith also committed fraud in connection with emergency benefits by submitting a fraudulent application with the Virginia Employment Commission for unemployment compensation, including $600 per week in federal pandemic unemployment compensation authorized under the CARES Act. As a result, Smith obtained $9,600 in federal pandemic unemployment compensation to which he was not entitled.
On October 9, 2020, Smith pleaded guilty to wire fraud, engaging in monetary transactions in criminally derived property, and fraud in connection with emergency benefits. Miller pleaded guilty on October 23, 2020 to wire fraud and engaging in monetary transactions in criminally derived property, and she will be sentenced on April 16, 2021.
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; Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General; Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA’s Office of Inspector General, Eastern Region, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
The investigation was jointly conducted by the FBI, the U.S. Postal Inspection Service, the Small Business Administration, and the Department of Labor Office of Inspector General.
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-69.
Four Individuals Indicted for Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison InmatesRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment yesterday charging four individuals with allegedly participating in a conspiracy to use the personal identifying information of 35 Virginia prison inmates in order to fraudulently obtain over $300,000 in pandemic-related unemployment benefits.
“As alleged in the indictment, the defendants deliberately stole funds intended for members of our community who have faced financial hardship and unemployment during the COVID-19 pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to work with our law enforcement partners to safeguard these critical taxpayer-funded resources and hold accountable those who unlawfully line their pockets at the expense of the American people.”
According to the indictment, Mary Benton, 38, of Portsmouth, and Angelica Cartwright-Powers, 35, of Norfolk, allegedly worked with two inmates at Virginia correctional institutions to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Benton allegedly submitted successful applications for Virginia unemployment benefits for 31 inmates across three Virginia correctional facilities. Cartwright-Powers allegedly submitted successful applications for four inmates at one correctional facility.
“Fraudulently exploiting COVID-19 relief funds for personal gain is unconscionable,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “Today’s indictment sends a clear message that DHS OIG will fully investigate fraud affecting FEMA funds and continue to work with our law enforcement partners to bring an end to these schemes.”
“Investigating fraud involving the Unemployment Insurance Program is an important part of the mission of the U.S. Department of Labor - Office of Inspector General, particularly during a time when our nation is providing billions of dollars in unemployment benefits to American workers in need of assistance due to the continuing economic effects of the ongoing COVID-19 pandemic,” said Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to vigorously investigate unemployment insurance fraud.”
According to the indictment, co-conspirator Michael Lee Lewis, Jr., 41, of Chesapeake, allegedly provided information for inmates at the Augusta Correctional Center, where he was incarcerated. Michael Anthony White, 38, of Chesapeake, allegedly provided information for inmates at the Lawrenceville Correctional Center, where he was incarcerated. The four individuals charged in this indictment, along with the prisoners whose information was used for the unemployment applications, allegedly shared the proceeds of their crimes, which amounted to approximately $334,667. Although the conspirators initially and allegedly obtained $436,834, the Virginia Employment Commission was able to reclaim some of the disbursed funds after discovering the fraud.
During the pandemic, both the federal government and the Virginia Employment Commission expanded unemployment benefits both by increasing the monetary amount, and by making benefits accessible for the self-employed, contractors, and gig workers, who have not historically qualified for unemployment. However, inmates remained ineligible for such benefits, and each application that Benton and Cartwright-Powers submitted allegedly contained numerous false statements that made the application successful, such as the inmates’ contact information and last employer, and that they were ready and willing to work.
Benton is charged with one count of conspiracy, three counts of fraud in connection with major disaster benefits, and three counts of mail fraud. Lewis and White are each charged with one count of conspiracy and two counts of mail fraud. Cartwright-Powers is charged with one count of conspiracy, one count of fraud in connection with major disaster benefits, and one count of mail fraud. If convicted, the conspirators face a maximum of five years in prison on the conspiracy count and thirty years in prison on each fraud 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; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included assistance from the U.S. Secret Service’s Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment Commission.
Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Richmond Assisted Living Facility Owner Charged with Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging the former owner of a Richmond-based assisted living facility with allegedly diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents.
“As alleged in the indictment, the defendant repeatedly left the residents of her assisted living facility in deplorable conditions while she diverted their essential benefits to pay for her gambling expenses in Atlantic City and Las Vegas, and to fund her personal debts, travel, and retail purchases,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will vigorously pursue justice on behalf of vulnerable members of our community to ensure that those entrusted to care for the elderly and infirm are held accountable if they exploit the critical trust placed in them.”
According to the indictment, Mable B. Jones, 77, of Richmond, owned and operated Jones & Jones, an assisted living facility complex that served primarily elderly and incapacitated adults. For residents who were legally incapable of managing their own funds, Jones & Jones served as a representative payee and regularly received state and federal benefits payments on behalf of those residents. Representative payees are required to use Social Security benefits to provide for the beneficiary’s needs, including food, clothing, housing, and medical care. Representative payees, moreover, are specifically prohibited from using Social Security benefits for anything other than the beneficiary’s needs. Similar requirements also apply to auxiliary grants issued by the Commonwealth of Virginia’s Department for Aging and Rehabilitative Services.
According to the indictment, beginning around December 2015 and continuing through the facility’s closure in 2019, Jones converted more than $800,000 of the residents’ federal and state benefits for her own personal use. As alleged in the indictment, Jones used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey and Las Vegas, Nevada.
According to the indictment, Jones’s diversion of resident benefits allegedly led to significant and persistent deficiencies in the facilities, care, and services provided to Jones & Jones residents, including deficiencies that allegedly endangered residents’ health and safety. These conditions ultimately prompted state and federal audits of the facility before its closure, during which Jones allegedly made false statements about her conversion and use of resident funds.
Jones is charged with wire fraud and making false statements. If convicted, she faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, made the announcement.
Assistant U.S. Attorneys Kaitlin G. Cooke and Shea Gibbons are prosecuting the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-30.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Pakistani National Indicted and Sanctioned for Human Smuggling ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a citizen of Pakistan for allegedly leading a scheme to smuggle undocumented individuals into the United States from Pakistan and Afghanistan.
According to court documents, between January 2015 and December 2020, Abid Ali Khan, 40, allegedly organized, led, and worked with others in his Pakistan-based smuggling network to facilitate the travel of undocumented individuals to the United States. Khan allegedly disregarded the fact that the individuals did not have prior authorization to enter the United States and that their entry into the United States would be illegal. Khan also allegedly encouraged, induced, and brought undocumented individuals to the United States for commercial advantage and financial gain.
“Khan allegedly led a global human smuggling operation that used fraudulent documents and international travel routes to facilitate the entry of unauthorized individuals into the United States,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are committed to holding accountable those who seek personal monetary gain by compromising and undermining the integrity of the immigration process.”
“Abid Ali Khan is alleged to have organized and led an international organization that, in exchange for monetary payment, facilitated the illegal smuggling of individuals through various countries to the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As this case demonstrates, the department continues to identify and prosecute those who seek to profit from conduct that undermines our system of legal immigration and imperils the lives of those being smuggled, often under dangerous conditions.”
“Homeland Security Investigations (HSI) Miami is committed to prosecuting individuals who pose a threat to national security and our critical infrastructure, including exploiting our global financial systems through their smuggling networks,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “A recent HSI-led investigation revealed the Pakistani-based Abid Khan human smuggling network, operating in the Middle East and southwest Asia, is allegedly exploiting systemic vulnerabilities in order to move people into the United States and elsewhere.”
“This outcome is a result of the outstanding dedication and commitment by case agents and the effective partnership between HSI and the Justice Department’s Human Rights and Special Prosecutions Section, including significant contributions made by CBP’s Counter Networks Division, members of the HSI Human Smuggling Unit and other partners,” said Chief Ramon Romo of the HSI Human Smuggling Unit. “Their collaborative efforts make our country a safer place.”
Khan allegedly accepted payment in exchange for planning and coordinating the international travel for foreign nationals to travel from Pakistan through multiple countries, to include Brazil and the United States, allegedly offered or provided false documents for foreign nationals to use for travel through multiple countries, and allegedly instructed foreign nationals that his co-conspirators would facilitate various parts of the travel between Pakistan and the United States.
In addition to the criminal charges filed against Khan, the Treasury Department’s Office of Foreign Assets Control (OFAC) also announced today that it has designated Khan, the Khan Transnational Criminal Organization (TCO), and several other members of his smuggling network in connection with their involvement in a global network of human smugglers and the smuggling of undocumented noncitizens to the United States. The Treasury Department’s sanctions require the blocking and reporting of all assets held by Khan, his associates, and the Khan TCO in the United States, or in the possession and control of U.S. persons. The sanctions also prohibit all dealings by U.S. persons, or persons within (or transiting) the United States, that involves any property or interests of Khan, his associates, or the Khan TCO.
The Department of Justice recognizes OFAC’s efforts to help stop Khan and his network from allegedly continuing to smuggle persons to the United States.
The case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit; U.S. Customs and Border Protection; Department of Homeland Security Homeland Identities, Targeting, and Exploitation Center (HITEC); HSI Biometric Identification Transnational Migration Alert Program; HSI Attaché Panama; and HSI Attaché Brasilia.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Assistant U.S. Attorney Ron Walutes of the Eastern District of Virginia and Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions 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-68.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pakistani National Indicted and Sanctioned for Human Smuggling ConspiracyRead the Press Release
A federal grand jury in the Eastern District of Virginia returned an indictment today charging a citizen of Pakistan for allegedly leading a scheme to smuggle undocumented individuals into the United States from Pakistan and Afghanistan.
According to court documents, between January 2015 and December 2020, Abid Ali Khan, 40, allegedly organized, led, and worked, with others in his Pakistan-based smuggling network to facilitate the travel of undocumented individuals to the United States. Khan allegedly disregarded the fact that the individuals did not have prior authorization to enter the United States and that their entry into the United States would be illegal. Khan also allegedly encouraged, induced, and brought undocumented individuals to the United States for commercial advantage and financial gain.
“Abid Ali Khan is alleged to have organized and led an international organization that, in exchange for monetary payment, facilitated the illegal smuggling of individuals through various countries to the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As this case demonstrates, the department continues to identify and prosecute those who seek to profit from conduct that undermines our system of legal immigration and imperils the lives of those being smuggled, often under dangerous conditions.”
“Khan allegedly led a global human smuggling operation that used fraudulent documents and international travel routes to facilitate the entry of unauthorized individuals into the United States,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We are committed to holding accountable those who seek personal monetary gain by compromising and undermining the integrity of the immigration process.”
“Homeland Security Investigations (HSI) Miami is committed to prosecuting individuals who pose a threat to national security and our critical infrastructure, including exploiting our global financial systems through their smuggling networks,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “A recent HSI-led investigation revealed the Pakistani-based Abid Khan human smuggling network, operating in the Middle East and southwest Asia, is allegedly exploiting systemic vulnerabilities in order to move people into the United States and elsewhere.”
“This outcome is a result of the outstanding dedication and commitment by case agents and the effective partnership between HSI and the Justice Department’s Human Rights and Special Prosecutions Section, including significant contributions made by CBP’s Counter Networks Division, members of the HSI Human Smuggling Unit and other partners,” said Chief Ramon Romo of the HSI Human Smuggling Unit. “Their collaborative efforts make our country a safer place.”
Khan allegedly accepted payment in exchange for planning and coordinating the international travel for foreign nationals to travel from Pakistan through multiple countries, to include Brazil and the United States, allegedly offered or provided false documents for foreign nationals to use for travel through multiple countries, and allegedly instructed foreign nationals that his co-conspirators would facilitate various parts of the travel between Pakistan and the United States.
In addition to the criminal charges filed against Khan, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced today that it has designated Khan, the Khan Transnational Criminal Organization (TCO), and several other members of his smuggling network in connection with their involvement in a global network of human smugglers and the smuggling of undocumented noncitizens to the United States. The Treasury Department’s sanctions require the blocking and reporting of all assets held by Khan, his associates, and the Khan TCO in the U.S., or in the possession and control of U.S. persons. The sanctions also prohibit all dealings by U.S. persons, or persons within (or transiting) the United States, that involve any property or interests of Khan, his associates or the Khan TCO.
The Department of Justice recognizes OFAC’s efforts to help stop Khan and his network from allegedly continuing to smuggle persons to the United States.
The case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit; U.S. Customs and Border Protection; Department of Homeland Security Homeland Identities, Targeting, and Exploitation Center (HITEC); HSI Biometric Identification Transnational Migration Alert Program; HSI Attaché Panama; and HSI Attaché Brasilia.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The case is being prosecuted by Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Ron Walutes of the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Washington, D.C. Man Sentenced for Armed Robbery SpreeRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to 21 years in prison in connection with a series of armed robberies that he conducted at multiple banks and a retail store in northern Virginia in 2018 and 2019.
According to court documents, Freddie Lee McRae, 35, committed a series of robberies in 2018 and 2019. On November 13, 2018, McRae robbed a Wells Fargo bank branch located in Alexandria. McRae handed a teller a note that demanded money, indicated he had a firearm, and threatened to “[k]ill [a]ll [b]ankers” if the teller did not comply. McRae pointed a firearm at two tellers before fleeing with approximately $8,750 in cash.
“This case involved a chilling armed robbery spree during which innocent community members were threatened with serious injury or death if they did not comply with repeated demands for money,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are thankful to our law enforcement partners for their thorough investigation across multiple jurisdictions to bring the defendant to justice, including apprehending him after he jumped out of a moving vehicle prior to it crashing and sinking into the Potomac River.”
“The FBI, along with our partners at every level of law enforcement, are committed to protecting the public from the most egregious and violent criminals who terrorize the community,” said James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “Today’s significant sentence demonstrates the seriousness and threat McRae posed to businesses and people in our community. The sentence is the result of teamwork among our partners to hold him accountable and prevent future violence.”
On December 10, 2018, McRae robbed a Burke & Herbert bank branch located in Alexandria. McRae approached a teller, who asked if he wanted to make a deposit. McRae responded, “gimmie your money,” before lifting up his shirt and pulling a pistol from his waistband, which he pointed at the teller. As the teller gathered money, McRae racked the slide on the pistol and demanded all large bills. McRae fled with approximately $1,366 in cash.
On April 21, 2019, McRae robbed the Legend Kicks & Apparel store located in Arlington. McRae brandished a pistol and demanded that two store employees empty their pockets, which they did. McRae then ordered the employees to lie on the floor before taking approximately $2,160 in cash that belonged to the store. McRae fled the store on foot and the area by vehicle. When a law enforcement officer tried to pull over the vehicle, McRae stopped only briefly before leading law enforcement officers on a vehicle pursuit on the George Washington Memorial Parkway. McRae ultimately jumped out of his moving vehicle prior to it crashing and sinking into the Potomac River. McRae tried to flee law enforcement by jumping into the river, but officers pulled him out and placed him under arrest.
As part of his guilty plea, McRae also admitted to robbing a Bank of America branch in Springfield on October 27, 2018; a BB&T branch located in Alexandria on December 20, 2018; and a Capital One branch located in Bowie, Maryland, on January 2, 2019. McRae further admitted to attempting to rob a Capital One branch located in Arlington on February 11, 2019, and to obstructing justice following his apprehension.
The bank robberies that McRae admitted to committing were investigated by the FBI as part of the “Beltway Bank Bandit” series.
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; Acting Chief Andy Penn, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; 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 Leonie M. Brinkema.
This case was investigated by the FBI Washington Field Office’s Northern Virginia Violent Crime Safe Streets Task Force, which is composed of FBI Special Agents and Task Force Officers from northern Virginia law enforcement agencies. Significant investigative assistance in this case was provided by the Arlington County Police and the Fairfax County Police. The task force is charged with identifying, investigating, and disrupting the most egregious and violent criminal actors within northern Virginia.
Assistant U.S. Attorneys Natasha Smalky and Alexander E. Blanchard 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. 1:19-cr-268.
Former Intelligence Analyst Pleads Guilty to Disclosing Classified InformationRead the Press Release
A former intelligence analyst and former military servicemember pleaded guilty today to illegally obtaining classified national defense information and disclosing it to a reporter.
According to court records, Daniel Everette Hale, 31, of Nashville, Tennessee, served as an enlisted airman in the U.S. Air Force from July 2009 to July 2013. After receiving language and intelligence training, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the Air Force in July 2013, Hale was employed by a defense contractor and assigned to the NGA, where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret // Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
“Hale has now admitted what the evidence at trial would have conclusively shown: that he took classified documents from his work at the National Geospatial Intelligence Agency (NGA), documents he had no right to retain, and that he sent them to a reporter, knowing all along that what he was doing was against the law,” said Assistant Attorney General John C. Demers for the Justice Department's National Security Division. “This conduct undermined the efforts of our Intelligence Community to keep us safe. Hale’s plea is another step in the Department’s ongoing efforts to prosecute and deter leaks of classified information.”
“Those who are entrusted with classified information have a duty to safeguard that information in order to protect our Nation’s security,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As an analyst for the Intelligence Community, Daniel Hale knowingly took highly classified documents and disclosed them without authorization, thereby violating his solemn obligations to our country. We are firmly committed to seeking equal justice under the law and holding accountable those who betray their oath to safeguard national security information.”
According to court records, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and communicated with the reporter via phone, text message, email, and, at times, an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to court records, while employed as a cleared defense contractor for NGA, Hale printed 36 documents from his Top Secret computer, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.
According to court records, in August 2014, Hale’s cell phone contact list included contact information for the reporter. He also possessed a thumb drive that contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. In addition, Hale possessed on his home computer another document that he had stolen from NGA.
Hale pleaded guilty to retention and transmission of national defense information, and he faces a maximum penalty of 10 years in prison when sentenced on July 13, 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.
John C. Demers, Assistant Attorney General for National Security, Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office made the announcement after the plea was accepted by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case
Former Intelligence Analyst Pleads Guilty to Disclosing Classified InformationRead the Press Release
ALEXANDRIA, Va. – A former intelligence analyst and former military servicemember pleaded guilty today to illegally obtaining classified national defense information and disclosing it to a reporter.
“Those who are entrusted with classified information have a duty to safeguard that information in order to protect our Nation’s security,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As an analyst for the Intelligence Community, Daniel Hale knowingly took highly classified documents and disclosed them without authorization, thereby violating his solemn obligations to our country. We are firmly committed to seeking equal justice under the law and holding accountable those who betray their oath to safeguard national security information.”
According to court records, Daniel Everette Hale, 31, of Nashville, Tennessee, served as an enlisted airman in the U.S. Air Force from July 2009 to July 2013. After receiving language and intelligence training, Hale was assigned to work at the National Security Agency (NSA) and deployed to Afghanistan as an intelligence analyst. After leaving the Air Force in July 2013, Hale was employed by a defense contractor and assigned to the National Geospatial-Intelligence Agency (NGA), where he worked as a political geography analyst between December 2013 and August 2014. In connection with his active duty service and work for the NSA, and during his time at NGA, Hale held a Top Secret // Sensitive Compartmented Information (TS//SCI) security clearance and was entrusted with access to classified national defense information.
According to court records, beginning in April 2013, while enlisted in the U.S. Air Force and assigned to the NSA, Hale began communicating with a reporter. Hale met with the reporter in person on multiple occasions, and communicated with the reporter via phone, text message, email, and, at times, an encrypted messaging platform. Then, in February 2014, while working as a cleared defense contractor at NGA, Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.
According to court records, while employed as a cleared defense contractor for NGA, Hale printed 36 documents from his Top Secret computer, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.
According to court records, in August 2014, Hale’s cell phone contact list included contact information for the reporter. He also possessed a thumb drive that contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. In addition, Hale possessed on his home computer another document that he had stolen from NGA.
Hale pleaded guilty to retention and transmission of national defense information, and he faces a maximum penalty of 10 years in prison when sentenced on July 13, 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; John C. Demers, Assistant Attorney General for National Security; and Jennifer C. Boone, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control 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. 1:19-cr-59.
Former Government Contracting Officer Sentenced for Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme while she served as a contracting officer for the Broadcasting Board of Governors (BBG).
“The defendant sold out her position by receiving bribe payments in exchange for providing preferential treatment to a contracting firm that received millions of dollars in taxpayer money,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of our firm commitment to seeking equal justice under the law and holding accountable government officials who betray their oaths and violate the public’s trust.”
According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for the BBG’s International Broadcast Bureau, Office of Contracts until September 2017. Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.
In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for preferential treatment and the performance of official acts benefitting the firm.
Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments. Instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative, and Sturgis instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.
“When a public official accepts bribes during the government contracting process, it is a betrayal of the U.S. taxpayer and the principle of fairness in government contracting,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s sentencing is yet another example of the dedication and perseverance of the FBI and our partners to root out corruption and deceit. Sturgis defrauded the U.S. and taxpayers and will be held accountable for her unlawful and duplicitous actions.”
On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.
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; Special Agent in Charge Elisabeth Heller of the U.S. Department of State Office of Inspector General; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
The Department of State’s Office of Inspector General and the FBI investigated the case.
Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Public Integrity 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. 1:20-cr-158.
Former Contracting Officer Sentenced for Bribery ConspiracyRead the Press Release
A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme.
According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for in the International Broadcast Bureau, Office of Contracts, of the Broadcasting Board of Governors (the BBG) until September 2017. In that capacity, Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.
In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for Sturgis giving the firm preferential treatment.
Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments; instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative and instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.
On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.
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; Special Agent in Charge Elisabeth Heller of the U.S. Department of State Office of Inspector General; and Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The Department of State, Office of Inspector General and the FBI investigated the case.
Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted the case.
Former CEO and Founder of Technology Company Sentenced for his Role in Investment-Fraud SchemeRead the Press Release
A Virginia man was sentenced today to more than eight years in prison for his involvement in a fraud scheme resulting in millions of dollars of losses to investors.
Daniel Boice, 41, of Alexandria, pleaded guilty to one count of securities fraud and one count of wire fraud on Dec. 3, 2020. According to court documents, beginning in 2015, Boice fraudulently solicited investments in Trustify, an Arlington-based company that Boice promoted as the “Uber” of private investigator services. Boice raised more than $18 million from over 250 individual and corporate investors by, among other things, falsely overstating Trustify’s financial performance. To secure investor capital, Boice inflated Trustify’s monthly and annual revenues in detailed fraudulent financial statements and investor presentations, and he fabricated large corporate business relationships to support his false statements about Trustify’s growth. In addition, Boice created a fake email account to pose as a prominent potential investor, and he then used the account to send a fraudulent email to successfully convince an investment firm to invest nearly $2 million in Trustify.
Boice also made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit. Boice personally derived at least $3.7 million in proceeds from the fraud, including several million dollars in transfers from Trustify to bank accounts under his control and in personal charges on credit cards paid with Trustify funds. Boice diverted Trustify funds, for example, to secure the down payment on a $1.6 million house in Alexandria and a $1 million beach house in New Jersey, as well as to pay for a chauffeur, house manager, and various luxury items. Boice also used Trustify funds to pay for family vacations, private jet trips, and over $100,000 for premium seats at sporting events.
In 2019, faced with declining revenues and the consequences of Boice’s diversion of company assets for his personal expenditures, Trustify was placed into corporate receivership by the Delaware Chancery Court. The company’s collapse led to over $18 million in losses to investors and over $250,000 in unpaid wages and associated costs for Trustify’s employees.
Additionally, Boice was ordered to pay $18,131,742.21 in restitution and forfeit $3.7 million.
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 Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office Criminal Division made the announcement.
The FBI’s Washington Field Office investigated the case with assistance from the Virginia State Corporation Commission.
Trial Attorney Blake Goebel of the Justice Department’s Fraud Section and Assistant U.S. Attorney Russell L. Carlberg of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.
Former CEO and Founder of Tech Start-Up Sentenced for $18 Million Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – The CEO and co-founder of Trustify Inc., a privately-held technology start-up company that connected customers with private investigators, was sentenced to over eight years in prison today for conducting a fraudulent scheme that led to the company’s collapse and resulted in over $18 million in losses to more than 250 individual and corporate investors.
“By spinning an elaborate web of lies, Boice fraudulently induced victims to invest over $18 million in his company so that he could misappropriate millions of those dollars to fund his lavish lifestyle and personal aggrandizement,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case demonstrates that we will hold corporate executives accountable when they cast aside their fiduciary duties for personal financial gain.”
According to court documents, beginning in 2015, Daniel Boice, 41, of Alexandria, fraudulently solicited investments in Trustify, an Arlington-based company that Boice promoted as the “Uber” of private investigator services. Boice raised more than $18 million from over 250 individual and corporate investors by, among other things, falsely overstating Trustify’s financial performance. To secure investor capital, Boice inflated Trustify’s monthly and annual revenues in detailed fraudulent financial statements and investor presentations, and he fabricated large corporate business relationships to support his false statements about Trustify’s growth. In addition, Boice created a fake email account to pose as a prominent potential investor, and he then used the account to send a fraudulent email to successfully convince an investment firm to invest nearly $2 million in Trustify.
Boice also made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit. Boice personally derived at least $3.7 million in proceeds from the fraud, including several million dollars in transfers from Trustify to bank accounts under his control and in personal charges on credit cards paid with Trustify funds. Boice diverted Trustify funds, for example, to secure the down payment on a $1.6 million house in Alexandria and a $1 million beach house in New Jersey, as well as to pay for a chauffeur, house manager, and various luxury items. Boice also used Trustify funds to pay for family vacations, private jet trips, and over $100,000 for premium seats at sporting events.
In 2019, faced with declining revenues and the consequences of Boice’s diversion of company assets for his personal expenditures, Trustify was placed into corporate receivership by the Delaware Chancery Court. The company’s collapse led to over $18 million in losses to investors and over $250,000 in unpaid wages and associated costs for Trustify’s employees.
Boice was sentenced today to 97 months in prison, followed by three years of supervised release. In addition, he was ordered to pay $18,131,742.21 in restitution and $3.7 million in forfeiture.
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 sentencing by Senior U.S. District Judge T.S. Ellis, III.
Acting U.S. Attorney Parekh also commended the Philadelphia Regional Office of the Securities and Exchange Commission and the Virginia State Corporation Commission, which conducted a parallel civil investigation of Boice and Trustify.
Assistant U.S. Attorney Russell L. Carlberg and Trial Attorney Blake Goebel of the Justice Department’s Fraud Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-167.
EDVA Seizes Seven Websites Used to Collect Personal Information and Illegally Profit from the COVID-19 PandemicRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney's Office for the Eastern District of Virginia announced today the seizure of seven websites as part of ongoing efforts by Homeland Security Investigations (HSI) to combat online fraud schemes that seek to exploit the increased interest in vaccines, treatments, and employment opportunities associated with the COVID-19 pandemic.
According to court records, the United States obtained court authorization to seize four domains that purported to be the legitimate websites of Pfizer, Inc. (“Pfizer”)—specifically, “pfizermx.com,” “pfizer-vaccines.com,” “pfizerstockrate.com,” and “pfizerksa.com.” In addition, the government seized three websites claiming to be associated with the United Nations International Children’s Emergency Fund (UNICEF)—specifically, “unicefcovid19relief.com,” “unicefeverychild.com,” and “unicefinternship.com.” Although each of the seized domains purported to be the legitimate websites of either Pfizer or UNICEF, the sites instead appeared to have been designed to obtain the personal information of website visitors for nefarious purposes, such as fraud or phishing attacks.
“The online fraud and phishing schemes that were embedded within these seven sham websites sought to capitalize on the misfortunes of others during the global pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We urge the public to safeguard your sensitive personal information at all times, including from these fraudulent COVID-19 schemes. EDVA and our law enforcement partners will continue to aggressively seek justice for vulnerable community members who are preyed upon by these scammers.”
“The COVID-19 pandemic has created significant opportunities for fraudsters to take advantage of individuals seeking information, cures, or vaccines to protect themselves and others. The websites seized in these cases are alleged to be simply masquerading as legitimate COVID-related sites to steal personal information for potentially nefarious purposes,” said Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office. “We urge the public to use extreme caution sharing any personal information online, especially in regards to COVID-19 vaccines, treatments, personal protective equipment or with unsolicited employment opportunities.”
According to the affidavits filed in support of these seizures, HSI identified and opened investigations into the seized domains between December 2020 and February 2021 after learning of their use in fraud schemes through notifications from the affected entities, and through an ongoing operation by HSI’s Cyber Crimes Center (C3) targeting malicious websites.
The domains “pfizermx.com,” “pfizerksa.com,” “pfizer-vaccines.com,” and “pfizerstockrate.com,” were used in websites that fraudulently displayed the registered trademarks of Pfizer and BioNTech SE (“BioNTech”) to facilitate apparent phishing schemes geared towards exploiting the increased interest in Pfizer and BioNTech-related products, including the Pfizer/BioNTech COVID-19 vaccine. The websites associated with pfizermx.com and pfizerksa.com presented themselves as Spanish and Arabic-language websites for Pfizer, respectively, and purported to facilitate orders of Pfizer products. Likewise, the website associated with “pfizer-vaccines.com” falsely presented itself as an online platform for obtaining information on the COVID-19 virus and Pfizer/BioNTech vaccine, while the website associated with “pfizersotckrate.com,” appeared to present itself as an online platform for advertising trading and stock options for Pfizer.
In reality, none of these websites appear to serve a legitimate purpose. Each instead used names, logos, and graphics of Pfizer and, in some instances BioNTech, as part of an apparent effort to trick visitors into submitting sensitive information. For instance, the websites using the domains pfizermx.com and pfizer-vaccines.com attempted to deceive individuals interested in obtaining information on the COVID-19 vaccine into contacting fraudulent phone numbers and email addresses that Pfizer did not control. The websites associated with the domains pfizerksa.com and pfizerstockrate.com similarly sought to trick visitors into submitting personal information to the perpetrators through the website, including bank account information through pfizerksa.com.
The websites associated with “unicefcovid19relief.com,” “unicefeverychild.com,” and “unicefintern ship.com” likewise leveraged the trademarks of UNICEF to facilitate apparent phishing schemes geared towards exploiting the increased interest in helping individuals who need assistance during the COVID-19 pandemic. Notably, the websites associated with each of these seized domains falsely claimed to offer employment opportunities associated with distributing COVID-19 relief funds, and the sites encouraged interested employees to submit personal information. According to the affidavit supporting the seizure warrant, each of these seized domains appeared to have been designed to collect the personal identifying information of website visitors for use in criminal schemes, such as fraud or phishing attacks, and to enlist unwitting victims in money laundering schemes.
The seizure of these seven domains by the government will prevent third parties from acquiring the names and using them to commit additional crimes. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government, and visitors will be redirected to another site for additional information.
Federal law enforcement agencies are united in their efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud, and additional information and resources are available from the Department of Justice and the U.S. Attorney’s Office (EDVA). If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721.
The seizure of the domain names was announced by Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.
Acting U.S. Attorney Parekh commended the HSI Cyber Crimes Center, HSI Intellectual Property Rights Center (IPRC), and the HSI Washington Field Office for their work in these investigations.
The government is represented by Special Assistant U.S. Attorney Aarash Haghighat in these matters.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
United States Seizes Websites Used by Foreign Terrorist OrganizationRead the Press Release
ALEXANDRIA, Va. – The United States has seized “r-m-n.net” and “Almaalomah.com,” two websites that were unlawfully utilized by Kata’ib Hizballah, a Specially Designated National and a Foreign Terrorist Organization.
“The internet must not be used as a recruitment tool for terrorist organizations to promote violent extremism and spread their hateful rhetoric,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We stand committed with our law enforcement partners to use all available resources to combat terrorism.”
“Special Agents with the Bureau of Industry and Security’s Office of Export Enforcement will use all of the tools at our disposal to protect American citizens, including our military service members, from terrorist acts of violence inspired and directed via online platforms,” said Kevin J. Kurland, who is performing the non-exclusive duties of the Assistant Secretary for Export Enforcement at the Bureau of Industry and Security. “We will continue to aggressively disrupt Foreign Terrorist Organizations such as Kata’ib Hizballah and their efforts to utilize U.S. cyber infrastructure to harm U.S. national security.”
On July 2, 2009, the U.S. Secretary of Treasury designated Kata’ib Hizballah, an Iran-backed terrorist group active in Iraq, as a Specially Designated National for committing, directing, supporting, and posing a significant risk of committing acts of violence against Coalition and Iraqi Security Forces. On the same day, the U.S. Department of State designated Kata’ib Hizballah as a Foreign Terrorist Organization for committing or posing a significant risk of committing acts of terrorism.
On Aug. 31, 2020, pursuant to a seizure warrant in the District of Arizona, the United States seized “Aletejahtv.com” and “Aletejahtv.org.” “Aletejahtv.com” and “Aletejahtv.org,” served as Kata’ib Hizballah’s media arm and published internet communications such as videos, articles, and photographs. Within weeks, federal agents located the content from “Aletejahtv.com” and “Aletejahtv.org” on “Aletejah.tv” and “kataibhezbollah.com,” including the Kata’ib Hizballah flag and the words “Islamic Resistance, Kataib Hizbollah.” The content even included false information about COVID-19 designed to damage the perception of the United States in the minds of Iraqi citizens and to destabilize the region to the benefit of Iran.
On Oct. 14, 2020, pursuant to a seizure warrant issued in the Eastern District of Virginia, the United States seized “Aletejah.tv” and “kataibhezbollah.com.”
On March 25, 2021, pursuant to a seizure warrant issued in the Eastern District of Virginia, the United States seized “Almaalomah.com” and “r-m-n.net.” Visitors to the site received the following message:
Federal law prohibits designated entities like Kata’ib Hizballah from obtaining or utilizing goods or services, including website and domain services, in the United States without a license from the Office of Foreign Assets Control. “Almaalomah.com” and “r-m-n.net” are domain names that are owned and operated by a U.S. company based in Reston, Virginia. Kata’ib Hizballah did not obtain a license from the Office of Foreign Assets Control prior to utilizing the domain names.
This seizure was investigated by the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Miami Field Office.
The U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s National Security Division prosecuted the seizure.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man Pleads Guilty to Embezzlement from Pentagon Law Enforcement UnionRead the Press Release
ALEXANDRIA, Va. – A Quantico man pleaded guilty today to wire fraud in connection with a scheme to embezzle over $380,000 from his former union, which represented federal law enforcement officers at the Pentagon.
“The defendant routinely embezzled money that belonged to a federal law enforcement union to fund his personal expenditures while vacationing in the Dominican Republic and to pay for his personal gambling at a casino,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to hold accountable those who steal and siphon off critical funds from our law enforcement partners.”
According to court documents, Arthur Penn, 64, served from 1999 through 2015 as the Chairman of the Fraternal Order of Police Defense Protective Service Labor Committee Pentagon, a local union that represented officers of the Pentagon Force Protection Agency. During his tenure, Penn routinely embezzled funds from the Union for his personal benefit, and spent the stolen funds on gambling, to pay for a personal trip to the Dominican Republic, and for his day-to-day living expenses.
“As alleged, for years Arthur Penn stole money from funds intended to benefit his fellow law enforcement colleagues and used the money for his own personal benefit and entertainment,” said James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI and our partners are dedicated to rooting out this type of opportunistic corruption and fraud, and ensuring those who commit these crimes are brought to justice.”
Penn sought to conceal and prevent the detection of his embezzlement by failing to make regular reports to Union members, by violating his obligation to file regular financial reports with the Department of Labor’s Office of Labor-Management Standards, and by siphoning off most of the embezzled funds through cash transactions, thereby avoiding the creation of financial records that would have revealed the fraud.
Penn is scheduled to be sentenced on July 2. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark Wheeler, District Director, Washington District Office, U.S. Department of Labor, Office of Labor-Management Standards; 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 Matthew Burke and Christopher Hood 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-251.
Man Pleads Guilty to the Sexual Exploitation of Two ChildrenRead the Press Release
ALEXANDRIA, Va. – A Mexican national pleaded guilty today to two counts of production of child pornography.
According to court documents, in March 2018, Abel Ambrocio, 54, of Alexandria, Virginia, developed an online relationship with a woman in Honduras over a social media platform. From around October 2018 through at least February 2019, Ambrocio instructed the woman to record and send him over 100 images of herself sexually abusing her two children—an approximately three-year-old boy and an approximately ten-year-old girl. Ambrocio instructed the mother to engage in specific sex acts with her children and record herself doing so on multiple occasions, even when she told Ambrocio that one of the children was in pain and crying from the previous sex act. Later, in March 2019, Ambrocio distributed images of the woman sexually abusing her three-year-old son over a social media platform.
“The defendant’s conduct, which caused the sexual abuse of two young children, is both horrific and heartbreaking” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The production of child pornography inflicts devastating and lifelong harm to society’s most vulnerable victims. EDVA is committed to working with our law enforcement partners to bring child sexual predators to justice.”
Ambrocio pleaded guilty to two counts of production of child pornography. He is scheduled to be sentenced on August 4 and faces a mandatory minimum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorney Jonathan S. Keim 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. Tips regarding child exploitation and human trafficking can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-135.
Acting U.S. Attorney Raj Parekh and FBI Leaders Condemn Acts of Violence and Discrimination Against Asian Americans and Pacific IslandersRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia and the FBI condemn all acts of violence, racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders across the nation and in our communities.
“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 Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will not stand still amid the horrific reports of racist and xenophobic acts of violence targeting Asian American and Pacific Islander individuals and communities nationwide. 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. Asian Americans and Pacific Islanders are our fellow Americans, and like all human beings, deserve dignity, respect, and the right to live without fear. As part of our collective responsibility to ensure equality and justice for all, I urge members of the community to report hate-based crimes to law enforcement to ensure that anyone who engages in this deplorable conduct can be brought to justice.”
“The Asian American and Pacific Islander community can trust that the FBI is dedicated to investigating hate crimes, which can have a devastating impact and bring fear to entire communities,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “A Core Value of the FBI is respecting the dignity of all those we protect. The FBI is committed to working with all communities to build trust and address the fears they experience due to hate and biased-based crimes, which have no place in our Nation.”
The U.S. Attorney’s Office for the Eastern District of Virginia urges the community to be vigilant and to report any suspected hate-based crime to the FBI by submitting an online tip at fbi.gov/tips, by calling 1-800-CALL-FBI, or by calling 911 in an emergency.
Federal law protects against discrimination based on race, gender, religion, national origin, sexual orientation, gender identity, disability, age, and citizenship in several important aspects of daily life, such as housing, employment, places of public accommodation, educational opportunities, and other areas. More information about these and other federal civil rights protections is available at https://civilrights.justice.gov/#your-rights.
Additional resources regarding hate crimes and bias incidents are available at https://www.fbi.gov/investigate/civil-rights/hate-crimes.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, and Christopher Derrickson, Acting Special Agent in Charge of the FBI’s Richmond 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.
Virginia Man Sentenced for Cyber “Sextortion” SchemeRead the Press Release
ALEXANDRIA, Va. – A Warrenton man was sentenced today to 31 years in prison for a years-long “sextortion” scheme running from 2016 to 2020 in which he coerced numerous preteen and teenage victims to create and send him electronic images of themselves engaged in sexually explicit conduct.
“The defendant manipulated, coerced, and tormented children across the country by using an arsenal of repulsive tactics, which subjected these vulnerable minors to trauma that will painfully stay with them and their families forever,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no amount of jail time can ever undo the devastating physical and emotional damage the defendant has caused, we hope that today’s sentence will provide some measure of justice for the victims.”
Filippo Parlagreco, 36, pleaded guilty to the production, distribution, and possession of child pornography on November 5, 2020. According to court documents, in summer 2017, Parlagreco—posing as a teenage girl on social media—began communicating with a 14-year-old girl and persuaded her to send him sexually explicit photographs of herself. After she did so, Parlagreco posted the explicit photographs to another social media application and demanded that she produce and send him additional explicit images if she wanted them removed. Despite the victim blocking him on social media and reporting the crimes to law enforcement, Parlagreco continued to contact her with demands for sexually explicit images over the course of three years.
“This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone and use sophisticated tactics to exploit the most vulnerable among us,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The defendant used an array of technology to target and torment innocent children for his own perverse pleasure, but as this prosecution shows, the Department of Justice will continue to marshal its resources to pursue these predators and combat this epidemic.”
“The Federal Bureau of Investigation and its local, state, and federal partners work tirelessly on a daily basis to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “With this sentencing, we have removed a dangerous child predator from the community, and sent a clear message that acts of sextortion against minors over the internet are taken seriously and will be investigated and brought to justice.”
Once law enforcement was able to identify Parlagreco, further investigation revealed that he had sexually exploited at least 13 other minor victims nationwide between 2016 and 2020 in a similar manner, including some as young as 11 years old. Parlagreco’s tactics ranged from false promises of confidentiality and misrepresentation of his identity to extortion and threats of prosecution. The evidence further showed that he traded child sexual abuse material with other offenders online, and that he possessed hundreds of images and dozens of videos of child sexual abuse in an encrypted portion of his phone.
Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia, Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
Assistant U.S. Attorney Jonathan Keim and Trial Attorneys Jessica Urban and Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
The FBI’s Washington Field Office investigated the case with assistance from local law enforcement throughout the country.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-243.
Man Sentenced to Prison for Sextorting Numerous Children Around the CountryRead the Press Release
A Virginia man was sentenced today to 31 years in prison for a years-long sextortion scheme in which he coerced numerous preteen and teenage victims to create and send him images of themselves engaged in sexually explicit conduct. The defendant was further sentenced to a lifetime of supervised release and ordered to pay restitution to the victims.
Filippo Parlagreco, 36, of Warrenton, pleaded guilty to production, distribution, and possession of child pornography on Nov. 5, 2020. According to court documents, the defendant — posing as a teenage girl on social media — began communicating with a 14-year-old girl and persuaded her to send him sexually explicit photographs of herself. After she did so, he posted the explicit photographs to another social media application and demanded that she produce and send him additional explicit images if she wanted them removed. Despite the victim blocking him on social media and reporting the crimes to law enforcement, the defendant continued to contact her with demands for sexually explicit images over the course of three years. Once law enforcement was able to identify the defendant, further investigation revealed that the defendant sexually exploited at least 13 other minor victims nationwide in a similar manner, including some as young as 11 years old; that he traded child sexual abuse material with other offenders online; and that he possessed hundreds of images and videos of child sexual abuse material in an encrypted portion of his phone.
“This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone and use sophisticated tactics to exploit the most vulnerable among us,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The defendant used an array of technology to target and manipulate children for his own perverse pleasure. As this prosecution shows, the Department will continue to marshal its resources to pursue child predators and hold them accountable for victimizing children.”
“The defendant manipulated, coerced, and tormented children across the country by using an arsenal of repulsive tactics, which subjected these vulnerable minors to trauma that will painfully stay with them and their families forever,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no amount of jail time can ever undo the devastating physical and emotional damage the defendant has caused, we hope that today’s sentence will provide some measure of justice for the victims.”
“The FBI and its local, state, and federal partners work tirelessly on a daily basis to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “With this sentencing, we have removed a dangerous child predator from the community and sent a clear message that acts of sextortion against minors over the internet are taken seriously and will be investigated and brought to justice.”
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI Agents, along with task force officers from federal, state, and local law enforcement agencies in Northern Virginia and the District of Columbia. Significant assistance was provided from local law enforcement throughout the country.
Trial Attorneys Jessica Urban and Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jonathan Keim of the Eastern District of Virginia prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Jury Convicts Bloods Gang Member of Murder, Robbery, and Drug Trafficking ChargesRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Washington, D.C. man today on charges of murder with a firearm, robbery, and conspiracy to possess and distribute cocaine.
According to court records and evidence presented at trial, on January 15, 2017, Dawhan Archible, 27, and his co-conspirators, murdered Luke Michael Dudley, 23, with a firearm in the aftermath of a drug deal. Archible is a self-proclaimed “bloods boss” and admitted he has been in the Bloods gang since he was 13 years old.
“Today’s verdict represents justice for victim Luke Dudley and his family, who will forever endure the unimaginable pain and heartache of losing him,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA remains steadfast in our fight against all forms of violence, and we are grateful to our prosecutors and law enforcement partners for their tireless commitment and dedication to this case.”
On the morning of the murder, Archible traded heroin for cocaine, which he then traded with Dudley for what he believed to be Percocet pills. Following the drug transaction, Archible learned that Dudley had provided him fake drugs instead of Percocet. In response, Archible and his co-conspirators broke into Dudley’s rooming house in Newport News and confronted him. Archible directed a co-conspirator to bring a firearm. Archible shot Dudley several times with a 9mm Glock pistol and then handed the gun to his co-conspirator, who also shot Dudley.
Later that afternoon, local law enforcement officers responded to a burglary call and found Dudley deceased from 17 gunshot wounds to the head, torso, and extremities. Archible’s DNA was linked to blood recovered from the scene.
Archible faces a maximum penalty of life imprisonment on the murder charge and 20 years on each of the remaining counts when sentenced on August 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Howard J. Zlotnick, Lisa R. McKeel, and Brian J. 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. 4:20-cr-15.
Portsmouth Man Sentenced for Solar Farm Fraud SchemeRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 31 months in prison for defrauding an elderly victim of over $228,000 based upon false promises to develop a solar farm on her rural North Carolina property.
“This defendant cruelly tricked a vulnerable widower out of her retirement income as a result of his elaborate lies and deception,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA, along with our law enforcement partners, will continue to vigorously investigate and prosecute fraud that impacts the elderly and other vulnerable members of our communities.”
According to court documents, David Pharr, 46, promised the victim—a retired teacher whose husband had recently passed away—that he would develop a solar farm on her rural property in Sampson County, North Carolina. The victim agreed to pay Pharr an initial investment amount in exchange for the right to receive a share of the profits of the project. Pharr never installed the solar farm on the victim’s property and never paid the victim any returns. Instead, from approximately March 2014 through May 2018, Pharr fraudulently induced the victim to mail, wire, and transfer him funds for purported expenses for the solar farm that he did not actually incur. The victim lost over $228,000 as a result of Pharr’s scheme.
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 Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Daniel P. Shean prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-72.
Settlement Agent Pleads Guilty to Misappropriating Closing FundsRead the Press Release
NORFOLK, Va. – The former president of an escrow and title company pleaded guilty today to misappropriating $715,000 of closing funds in connection with 48 real estate transactions for which she served as the settlement agent.
According to court documents, Tammy Hamrin, formerly known as Tammy A. Cheek, 57, of Virginia Beach, was a licensed title and settlement agent and was the president, secretary, and treasurer of Preferred Escrow and Title, Inc. During 48 real estate transactions, Hamrin misappropriated $715,000 of closing funds that had been deposited by various lenders and individual buyers into the company’s escrow account. She did so by making seven unauthorized wire transfers of funds from the escrow account to certain entities at the request of a person with whom Hamrin had an online personal relationship.
During this period, Hamrin partially replenished the funds that she had misappropriated by depositing approximately $199,000 of her own money into the escrow account, resulting in a remaining shortage of approximately $516,000. As a result, all 48 closings were affected. Among others, losses were sustained by sellers, buyers, business entities, financial institutions, various lienholders, municipal clerks of court and treasurer offices, and a title insurance company.
Hamrin pleaded guilty to wire fraud and is scheduled to be sentenced on July 26. 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, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorney Alan M. Salsbury 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-2.
Former Old Dominion University Student Sentenced for Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Vienna man was sentenced today to 33 months in prison for his role in a conspiracy that involved multiple swatting attacks targeting journalists, a Virginia university, a historic Virginia church, an Islamic Center in Arlington, Texas, and a former U.S. Cabinet member.“Swatting attacks are serious crimes that disrupt the operations of local emergency agencies, take first responders away from real emergencies, and place victims, community members, and law enforcement officers in grave danger,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to bring to justice those who threaten public safety with these menacing hoaxes, especially when those threats are motivated by racial or religious animus, which are intolerable and have no place in our society.”
According to court documents, John William Kirby Kelley, 20, conspired with John Cameron Denton, a former leader of the Atomwaffen Division in Texas, and others to conduct “swatting” calls. 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, thus causing the dispatchers to send police and emergency services to an unwitting third party’s address.
“Swatting is not only harassment, but these calls also waste resources and put innocent people and first responders in danger,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI and our law enforcement partners take all threats seriously and investigate instances of swatting. Law enforcement and first responders put their lives at risk every day, and swatting instances which increase that risk will not be tolerated.”
Kelley managed the online chatroom where conspirators chose targets and regularly coordinated the swatting calls. Many of the conspirators held white supremacist views and targeted individuals because they were motivated by racial animus. Kelley communicated with these white supremacists and used racial epithets.
Kelley is a former student at Old Dominion University. In early November 2018, he asked conspirators to swat Old Dominion University, which conspirators ultimately did on November 29 and December 4, 2018. In response to the bomb threat on November 29, 2018, university officials issued a shelter-in-place order and law enforcement officers were forced to search and clear every building on campus.
During the conspiracy, members placed at least 134 swatting calls to jurisdictions across the country. In addition to the swatting calls against Old Dominion University, conspirators conducted two additional swatting calls in the Eastern District of Virginia, including a call to the Alfred Street Baptist Church in November 2018, and to a former U.S. Cabinet member living in northern Virginia in January 2019.
During today’s sentencing, the Court applied both a hate crime and an official victim enhancement after finding that Kelley participated in a conspiracy that, in part, targeted individuals because of their race or status as government officials.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorney Carina A. Cuellar prosecuted the case. FBI’s Memphis Field Office provided significant assistance investigating this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-82.
Arizona Man Sentenced for Multimillion-Dollar Nationwide Investment Fraud SchemeRead the Press Release
NORFOLK, Va. – An Arizona man was sentenced today to 16 years in prison for his participation in a nationwide investment fraud conspiracy that cost victims over $23 million in total losses.
“This defendant made millions of dollars by deceiving innocent investors and perpetuating a scheme that defrauded vulnerable victims out of their hard-earned retirement funds,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Today’s sentence sends a strong message that anyone in the financial services industry who lies, manipulates, and steals their way to success acts at their own peril and risks substantial jail time if they do not operate their practices truthfully and with integrity.”
According to court documents, Kent Maerki, 78, of Scottsdale, the founder of Dental Support Plus Franchise, LLC, and Janus Spectrum, LLC, made a multitude of misrepresentations about those businesses in materials used to solicit investments, including during appearances on radio shows and in a presentation about investments in wireless spectrum he called “Money From Thin Air.”
As part of this scheme, Maerki and his conspirators controlled numerous entities that sold purported “franchises” and “private equity” opportunities through salesmen across the country. Through these salesmen, the defendants targeted individuals at or near retirement and made numerous material misrepresentations and omissions to sell them illiquid, highly speculative investment vehicles. Maerki, who had been barred by a federal court in 1984 from selling securities, continued to sell the investments without disclosing that the U.S. Securities and Exchange Commission, the Virginia State Corporation Commission, and the Arizona State Corporation Commission were investigating the conspirators for fraud.
Many of the victims targeted in this scheme were elderly. Unsuspecting investors cashed out 401(k) retirement plans and other retirement accounts to invest in companies founded by Maerki, without knowledge that significant portions of their money were being transferred to other companies controlled by members of the conspiracy. As a result, some individual investors—including investors who were blind, disabled, or otherwise unable to return to work—lost hundreds of thousands of dollars from their retirement savings. The total amount of victim losses from this scheme exceeded $23 million, and over $4 million of those fraudulently obtained funds went to Maerki.
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; Kelly R. Jackson, 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 sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorneys Melissa E. O’Boyle, Elizabeth M. Yusi, and Andrew Bosse prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-47.
Repeat Fraudster Sentenced for COVID-19 Loan Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon was sentenced today to 51 months in prison for engaging in a COVID-19 related loan fraud scheme with losses of nearly $200,000.
“During a global pandemic, the defendant took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office will continue to hold accountable individuals who exploit and disadvantage others in order to unlawfully enrich and advantage themselves.”
According to court documents, Joseph Cherry, 40, of Norfolk, engaged in a scheme to obtain COVID-related loan benefits through the Small Business Administration (SBA) and affiliated lenders. In addition to traditional SBA funding programs, the CARES Act, which was signed into law in March 2020, established several new temporary programs and provided for the expansion of others to address the COVID-19 outbreak. Such programs include the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).
“Exploiting programs meant to help businesses in need during a global pandemic is appalling. Today, Cherry learned his actions have repercussions,” said Kelly R. Jackson, IRS-CI Special Agent in Charge. “We will continue to prioritize COVID-19 fraud investigations on those who essentially rob struggling businesses of the assistance they truly need.”
In March and April 2020, Cherry submitted multiple applications for PPP and EIDL loans. Cherry provided false information on the loan applications related to his claimed businesses, income, employment, and criminal record. As a result of these false applications, Cherry fraudulently obtained $196,900 in loan proceeds from the U.S. Treasury. In a brief period of time in April 2020, Cherry withdrew over $100,000 in the form of cash and a cashier’s check and made various purchases inconsistent with the purposes of the PPP and EIDL programs.
Cherry previously was convicted in the Eastern District of Virginia in 2009 for an extensive fraud, money laundering, and identity theft scheme involving losses of over $1.5 million. He has been convicted of over a dozen felony charges in federal and state courts since 2002, and he was under terms of supervision in both federal and state courts when he committed these additional fraud offenses in 2020.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Hannibal “Mike” Ware, Inspector General of the Small Business Administration; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-27.
Jury Convicts Richmond Man of Fentanyl TraffickingRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man today for distributing fentanyl on multiple occasions. According to court records and evidence presented at trial, Quotez Tyveck Pair, 33, a known drug trafficker operating in Mosby Court, a Richmond public housing community, engaged in two separate distributions of fentanyl to a law enforcement cooperator. “Fentanyl is 50 times more potent than heroin and is extremely lethal, especially when sold under false pretenses,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This type of conduct has unfortunately helped fuel the fires of the opioid crisis. EDVA will continue to hold accountable individuals who peddle this harmful substance in our communities for profit and risk the lives of our loved ones.”Between October 2019 and November 2019, Drug Enforcement Administration agents utilized a cooperator to execute two controlled drug purchases from Pair. The cooperator, working with law enforcement, purchased one ounce of heroin on October 30, 2019, and two ounces of heroin on November 12, 2019, from Pair. Upon inspection, both substances purchased from Pair were found to be fentanyl.
Pair was found guilty on two counts of unlawfully distributing more than 40 grams of a mixture and substance containing fentanyl. Pair faces a mandatory minimum of five years and a maximum of 40 years in prison when sentenced on May 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after Senior U.S. District Robert E. Payne accepted the verdict.
Assistant U.S. Attorney Olivia L. Norman 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. 3:20-cr-3.
Jury Convicts Richmond Fentanyl, Heroin, and Cocaine TraffickerRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man today for possessing with the intent to distribute a mixture of heroin, cocaine, and fentanyl.
“Synthetic opioids, including fentanyl, unfortunately continue to play a disproportionate role in drug overdoses and overdose deaths, inflicting devastation on families across the United States and in EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are grateful to our law enforcement partners who continue the fight to keep these lethal substances out of our communities and away from harming our loved ones.”
According to court records and evidence presented at trial, in May 2019, law enforcement initiated an investigation into certain heroin and cocaine trafficking activities in the Richmond metropolitan area. On September 26, 2019, a warrant was issued for the residence of Fernardo Lee Jordan, 67. Inside his home in Richmond, law enforcement agents discovered bags containing brown and white substances and $18,560 in U.S. currency. Agents also found a scale and packaging material, among other items associated with drug trafficking. The substances were later determined to be over a quarter of a kilogram of a mixture and substance containing heroin and fentanyl, over a quarter of a kilogram of cocaine powder, and several ounces of heroin, with a combined street value of over $40,000.
Jordan was convicted of possession with the intent to distribute controlled substances including over 100 grams of a mixture of heroin and fentanyl, a quantity of heroin, and a quantity of cocaine hydrochloride. Jordan faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison when sentenced on May 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; and Colonel Jeffrey S. Katz, Chesterfield County Police Department, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict.
Assistant U.S. Attorney Olivia L. Norman 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. 3:20-cr-31.
Richmond Man Sentenced for Role in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 97 months in prison for his role in an investment scheme that defrauded investors of $5.7 million.
According to court documents and evidence presented at trial, James Michael Johnson, 69, participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. Johnson was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering on October 30, 2020, after a four-day trial.
“For more than four years, the defendant and his co-conspirators stole over $5 million from victim investors, which included individuals, startup business entities, and a volunteer fire department,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the outstanding work of the trial team and our law enforcement partners, the defendant has been held accountable for inflicting significant economic harm on his victims and abusing their trust.”
From July 2014 to March 2019, the fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date, in exchange for an upfront advanced payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the conspirators’ promises had been kept.
Johnson and his co-conspirators stole approximately $5.7 million from their victims. Co-conspirator James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, and Stuart Jay Anderson, 54, of Alisa Viejo, California, was sentenced to four years in prison on December 3, 2020. Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment and is presumed innocent unless and until proven guilty.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Delany De Leon-Colón, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Judith Williams Jagdmann, Chair of the Virginia State Corporation Commission, made the announcement.
Assistant U.S. Attorney Michael C. Moore and Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-117.
Man Sentenced for Role in Investment-Fraud SchemeRead the Press Release
A Virginia man was sentenced today to over eight years in prison for his role in an investment-fraud scheme in which he and his co-conspirators stole at least $5.7 million from victim investors.
James Michael Johnson, 69, of Richmond, was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and money laundering on Oct. 30, 2020, after a four-day trial.
According to the evidence presented at trial, Johnson participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. The fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date in exchange for an up-front payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these documents were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the defendants’ promises had been kept. Johnson and his co-conspirators stole at least $5 million from their victims.
Co-defendant James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, 2021. Co-defendant Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment.
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; Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service Criminal Investigations Group; Acting Special Agent in Charge Christopher R. Derrickson of the FBI’s Richmond Field Office; and Chair of the Virginia State Corporation Commission Judith Williams Jagdmann made the announcement.
The U.S. Postal Inspection Service, FBI’s Richmond Field Office, and Virginia State Corporation Commission investigated the case.
Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia prosecuted the case.
Jury Convicts Newport News Mastermind of Armed Robbery SpreeRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Newport News man today on 20 counts relating to his participation during a series of more than 12 robberies of gas stations, convenience stores, and fast food restaurants stretching from Fredericksburg to Virginia Beach.
“As demonstrated during the trial, this defendant served as the mastermind of an armed robbery spree that was chilling in its nature and scope,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Today’s verdict sends a clear message that our Office, along with its law enforcement partners, will work tirelessly to seek justice on behalf of victims and hold accountable individuals who spread fear in our communities.”
According to court records and evidence presented at trial, between 2013 and 2014, Christopher Ray Robertson, 36, served as the mastermind behind a series of retail business robberies in the Eastern District of Virginia. In the fall of 2013, Robertson enlisted the help of convicted felon, Michael Ellison, 30, Newport News, to commit multiple robberies of retail businesses in central and southeast Virginia. Robertson selected the businesses, directed Ellison’s actions, and served as the lookout during the robberies. After robbing or attempting to rob four businesses in Fredericksburg and Spotsylvania from September 24 to October 13, 2013, Ellison and Robertson parted company for approximately one year to evade law enforcement detection.
Between November 2013 and the fall of 2014, Robertson was living in Durham, North Carolina, where he met Aquilla Jones, 31, Durham, North Carolina. Robertson and Jones began a relationship before moving back to Newport News in 2014. Robertson and Ellison then reconnected in Newport News and Robertson suggested they restart robbing businesses. In December 2014, Robertson, Jones, Ellison, and a juvenile robbed or attempted to rob eight businesses using a firearm provided by Robertson. Robertson provided instructions to his co-conspirators during these robberies, and he and Jones served as lookouts while Ellison and the juvenile entered the businesses wearing masks.
On December 13, 2014, during a Subway restaurant robbery, bystanders in the parking lot identified the vehicle driven by Ellison. This ultimately led to Ellison being arrested for the robbery in Spotsylvania County. Law enforcement identified Ellison as being associated with the robberies and further identified Robertson as a co-conspirator. Phone analysis showed Robertson’s phone in the immediate vicinity of all the robberies committed in 2014.
Jones and Ellison both pleaded guilty on February 6, 2019, and September 11, 2017, respectively, for their roles in the robberies.
Robertson was convicted of conspiracy to commit robbery, interference with commerce by robbery, and brandishing a firearm during a crime of violence. He faces a mandatory minimum of 42 years in prison and a maximum of life when sentenced on July 20. 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 verdict.
Assistant U.S. Attorneys Eric M. Hurt and Peter G. Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-27.
Ecuadorian Nationals Charged with Trafficking over 700 Kilograms of Cocaine on Unflagged BoatsRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment yesterday charging four Ecuadorian nationals after they were intercepted on the Pacific Ocean while traveling on unflagged vessels with over 700 kilograms of cocaine.
According to the indictment and to a criminal complaint filed earlier this year, Julio Luis Rosado Benitez, 47, Maunel Alexi Quijije Mero, 26, Oscar Arcenio Sanchez Garcia, 26, and Kevin Antonio Franco Bonilla, 24, were found traveling on unflagged go-fast vessels several hundred nautical miles off the coast of Mexico and Guatemala. A U.S. Coast Guard cutter intercepted the boats, and boarding teams recovered a total of over 700 kilograms of cocaine.
All four defendants are charged with possession with the intent to distribute more than five kilograms of cocaine onboard a vessel without nationality. If convicted, they face a mandatory minimum sentence of ten years and a maximum sentence of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Marty J. Martinez, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement.
Assistant U.S. Attorneys Eric M. Hurt and 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. 4:21-cr-4.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Man Convicted of Receiving, Soliciting, and Promoting Child PornographyRead the Press Release
A federal jury convicted a Virginia man today for downloading images and videos depicting children as young as four years old being sexually abused and for utilizing the Darknet to solicit and promote child pornography.
According to court documents and evidence presented at trial, Christopher Sueiro, 39, of Fairfax, used a peer-to-peer network to download images of child sexual abuse. Sueiro was also a member of a Darknet hidden service website dedicated to trafficking in child sexual abuse material of preteen boys, where he made posts promoting and soliciting images and videos of child sexual abuse and attempted to receive it from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to how to find child pornography online. He downloaded images and videos of child sexual abuse repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro was convicted of four counts: receipt; attempted receipt; possession; and solicitation of child pornography. He is scheduled to be sentenced on June 16, 2021, and faces a mandatory minimum penalty of five years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia; Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Colonel Erin Schaible, Chief of the City of Fairfax Police Department made the announcement.
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
CEOS Trial Attorney James E. Burke IV and Assistant U.S. Attorney Nathaniel Smith III of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jury Convicts Virginia Man of Receiving, Soliciting, and Promoting Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Fairfax man today for downloading images and videos depicting children as young as four years old being sexually abused and for utilizing the Darknet to solicit and promote child pornography.
“The evidence admitted at trial demonstrated that thousands of images and videos of child sexual abuse were found on the defendant's electronic devices,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The trafficking of child pornography causes incalculable and irreparable harm to society’s most vulnerable victims, which often continues long after the abuse has occurred. Thanks to the painstaking efforts of our law enforcement partners and prosecutors on this case, the defendant has been held accountable by a jury of his peers for his heinous criminal conduct.”
According to court records and evidence presented at trial, Christopher Sueiro, 39, used a peer-to-peer network to download images and videos of child sexual abuse. Sueiro also was a member of a Darknet hidden service website dedicated to trafficking in child sexual abuse material of preteen boys, where he made posts promoting and soliciting images and videos of child sexual abuse and attempted to receive it from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to finding child pornography online. The evidence showed that he downloaded images of child sexual abuse repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro was convicted of receipt of child pornography, possession of child pornography, attempted receipt of child pornography, and promotion and solicitation of child pornography. Sueiro faces a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years for each count of conviction when sentenced on June 16. 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.
Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Colonel Erin Schaible, Chief of the City of Fairfax Police Department, made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the verdict.
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Assistant U.S. Attorney Nathaniel Smith III and CEOS Trial Attorney James E. Burke IV are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-284.
Former USCIS Official Agrees to Pay Civil Penalties in Settlement of Conflict of Interest AllegationsRead the Press Release
ALEXANDRIA, Va. – A former U.S. government official agreed to pay $33,000 to resolve allegations that she had an improper conflict of interest with a company while she served as a division chief at U.S. Citizenship and Immigration Services (USCIS).
According to allegations of the United States, Sarah Fahden, of Fort Washington, Maryland, engaged in employment negotiations with eGlobaltech (“eGT”), a company that had a contract with USCIS, while Fahden was employed as the Division Chief of USCIS’s Identity, Records and National Security Division. While negotiating employment with eGT and after agreeing to an employment arrangement with eGT, Fahden is alleged to have participated personally and substantially on a modification to a contract between USCIS and eGT that added additional funding and positions for eGT on the contract. That contract modification allegedly was under Fahden’s official responsibility during her last year at USCIS.
After leaving her position at USCIS in July 2018 and becoming employed as a subcontractor to eGT, Fahden communicated with USCIS officials with the alleged intent of influencing those officials to approve Fahden and her colleague to fill contractor positions that were added through the modification of the USCIS contract.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Office of Inspector General for the Department of Homeland Security’s Major Frauds & Corruption Unit.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Joseph V. Cuffari, Inspector General for the Department of Homeland Security, made the announcement. The matter was investigated by Assistant U.S. Attorney Krista Anderson.
The civil penalty settled by this agreement are allegations only; there has been no determination of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Former Firefighter Sentenced for Attempted Coercion and Enticement of a MinorRead the Press Release
RICHMOND, Va. – A Pittsburgh man was sentenced today to 126 months in prison for conducting sexually explicit online communications and traveling to Virginia in an attempt to engage in a sexual relationship with a fictitious 10-year-old girl.
According to court documents, in November 2019, Brian Kosanovich, 58, then a firefighter in Pittsburgh, responded to a profile posted by an FBI undercover officer on a website that hosts a network of members interested in alternative forms of sexual relationships, including a variety of fetishes. The undercover officer’s profile indicated that she was a single mother with a 10-year-old daughter.
After establishing contact on the website, Kosanovich and the undercover officer began communicating via an instant messaging application. Kosanovich and the undercover officer engaged in extensive conversations of a sexually explicit nature for several months, much of which focused on Kosanovich engaging in a sexual relationship with who he believed to be a 10-year-old girl, as well as the mother. Over the period of the investigation, Kosanovich sent the undercover officer nude pictures and a prepaid credit card, so that the mother could buy certain items to use with the daughter.
Ultimately, in February 2020, Kosanovich drove from Pittsburgh to Richmond for the stated purpose of engaging in a sexual relationship with the mother and daughter, and he was arrested by FBI officials upon his arrival in Midlothian.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Brian R. Hood 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-103.
Businessman Indicted for Not Reporting Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Herndon man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS.
According to the indictment, Azizur Rahman, 70, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. For the years 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.
Rahman is also charged with filing a false “Streamlined Submission” in conjunction with the IRS Streamlined Domestic Offshore Procedures. Those procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS and to pay a reduced penalty if their conduct was non-willful. The indictment alleges that Rahman’s Streamlined Submission did not truthfully disclose all the foreign bank accounts in which he had an interest, and falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was non-willful.
If convicted, Rahman faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents. Rahman also faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR or filing a false FBAR. 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; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department's Tax Division; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement.
Assistant U.S. Attorney Jamar Walker and Trial Attorneys Sean Beaty and Brian Flanagan of the Justice Department’s Tax Division are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-22.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Businessman Indicted for Not Reporting Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
A federal grand jury in Alexandria, Virginia, returned an indictment on March 3, 2021, charging a Virginia man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS.
According to the indictment, Azizur Rahman of Herndon, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. From 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.
Rahman is also charged with filing a false “Streamlined Submission” in conjunction with the IRS Streamlined Domestic Offshore Procedures. Those procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS and to pay a reduced penalty if their conduct was non-willful. The indictment alleges that Rahman’s Streamlined Submission did not truthfully disclose all the foreign bank accounts in which he had an interest, and falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was non-willful.
If convicted, Rahman faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents. Rahman also faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR or filing a false FBAR.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia, and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation made the announcement.
IRS-Criminal Investigation conducted the investigation, and Assistant U.S. Attorney Jamar Walker and Trial Attorneys Sean Beaty and Brian Flanagan of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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 Commemorates Women’s History MonthRead the Press Release
ALEXANDRIA, Va. – During this year’s Women’s History Month, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) honors the achievements and invaluable contributions women have made over the course of American history and today.
“Women have made, and continue to make, immeasurable contributions to our Office,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Their unparalleled leadership and dedication have helped secure the safety of our Nation and have promoted equal justice for all. Our Office recognizes that these changes did not take place overnight, and we are deeply committed to ensuring that all participants in the legal process, no matter their race, gender, religion, national origin, sexual orientation, gender identity, disability, or citizenship, have equal opportunity and equal protection under the law. As a part of that commitment, EDVA is dedicated to furthering our collective efforts to promote diversity and inclusion in all forms through our hiring, advancement, and community outreach practices.”
During this year’s Women’s History Month celebration, EDVA will host multiple events, including a virtual discussion with Judge Cheryl Ann Krause of the U.S. Court of Appeals for the Third Circuit, and a virtual discussion with Principal Deputy Assistant Attorney General Pamela Karlan of the Justice Department’s Civil Rights Division.
Women’s History Month had its origins as a national celebration with a 1987 presidential proclamation. Since 1995, Presidents have issued a series of annual proclamations designating the month of March as “Women’s History Month.” These proclamations celebrate the achievements women have made over the course of American history in a variety of fields. The National Women’s History Alliance extended the theme, “Valiant Women of the Vote: Refusing to Be Silenced,” for the 2021 celebration.
In recent decades, women have held senior leadership positions in the Department of Justice, including as Attorney General, Deputy Attorney General, and throughout the country’s 94 U.S. Attorneys’ Offices—including EDVA.
Women serve an essential role in and contribute to every aspect of the Eastern District of Virginia’s mission. Over 60% of the more than 300 total staff members in EDVA, to include prosecutors, civil litigators, and support personnel, are women.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
North Carolina Man Sentenced for Mail and Bank Fraud ConspiracyRead the Press Release
RICHMOND, Va. – A Fayetteville, North Carolina man was sentenced today to 30 months in prison for participating in a scheme to steal, alter, and cash business checks from Richmond-area mailboxes.
Sammy Marquelle Bethea, 25, was convicted of conspiracy to commit mail and bank fraud following a four-day jury trial in October 2020. According to the government’s evidence at trial, in 2018, Bethea and his cousin, Lareese Mallety, 27, repeatedly traveled from their North Carolina homes to the Richmond area to steal business checks from mailboxes in and around industrial parks. The cousins would manually alter the checks using razorblades and a typewriter, after which they would add the name of a recruited homeless or indigent individual who would walk the check into a local Virginia bank to obtain cash. In 2018, members of the conspiracy successfully cashed more than $30,000 worth of stolen and counterfeit checks.
Law enforcement uncovered the scheme in October 2018, when Bethea and Mallety's vehicle was stopped by the Virginia State Police while traveling to Richmond. At that time, the officers discovered that Bethea and Mallety were in possession of a pry bar, typewriter, and razorblades, as well as stolen packages and nearly 50 checks stolen from more than 40 businesses worth over $120,000.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorneys Thomas A. Garnett and Kevin Elliker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-77.
Members of Identity Theft Ring Plead Guilty to Fraud Targeting Virginia ABC StoresRead the Press Release
NEWPORT NEWS, Va. – Two Norfolk men pleaded guilty today to conspiracy to commit wire fraud and aggravated identity theft as part of a scheme to purchase alcohol for resale from Virginia Alcoholic Beverage Control Authority (ABC) stores with stolen credit, debit, and pre-paid gift card numbers.
According to court documents, Dion Melton, 28, and Dominic Smith, 29, joined with two other men to defraud Virginia ABC stores by using credit, debit, and pre-paid gift cards re-encoded with the stolen financial information of identity theft victims. The conspirators obtained the stolen credit and debit card numbers by purchasing the numbers online, among other means. Investigators have identified 31 direct victims of identity theft from Smith’s role in the scheme and 18 direct victims of identity theft from Melton’s role in the scheme. There are at least 82 victims of the broader conspiracy.
Melton and Smith are scheduled to be sentenced on June 25. The conspiracy to commit wire fraud offense carries a maximum sentence of 30 years in prison, and the aggravated identity theft offense carries a mandatory consecutive term of two years in prison. Their codefendant, Tyrell Jackson, previously pleaded guilty to the same charges on December 9, 2020, and is scheduled to be sentenced on March 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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; Steve R. Drew, Chief of Newport News Police, and Tom Kirby, Chief of Virginia ABC’s Bureau of Law Enforcement, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the pleas.
Assistant U.S. Attorney Mack Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-45.
Multi-Kilogram Fentanyl Trafficker SentencedRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to 151 months in prison for participating in a conspiracy to distribute over seven kilograms of fentanyl.
According to court documents, Cornelius Frazier, 32, and others would press illicit pills containing fentanyl, among other substances, to resemble prescription pills such as Oxycodone, for illegal distribution and financial gain.
“As this case demonstrates, fentanyl is not only extremely dangerous because of its potency, but also because it may be hidden in counterfeit prescription pills,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are grateful to the numerous law enforcement agencies that worked with our Office on this investigation and prevented kilograms of fentanyl from poisoning our communities and harming our loved ones. Their tireless efforts are saving lives.”
A June 1, 2020 court-authorized search of Frazier’s residence resulted in the seizure of a blender containing approximately one kilogram of a mixture and substance containing fentanyl. Law enforcement also seized paraphernalia associated with prescription drug trafficking, including a hydraulic jack, two dust collectors with a large amount of residue, an inductor motor, various cutting agents, and pill presses with several insets containing markings consistent with those found on controlled prescription painkillers such as Oxycodone. In addition, law enforcement seized approximately $34,828 in U.S. currency and a loaded AK-47 with thirty bullets in the magazine. Additional ammunition for this semi-automatic weapon and other firearms was also found in the residence.
Additionally, a June 1, 2020 court-authorized search of one of Frazier’s vehicles resulted in the seizure of two brick-like packages weighing over 1.6 kilograms, which tested positive for the presence of fentanyl. The vehicle also contained 5,307 pills, which tested positive for fentanyl and weighed approximately 4.4 kilograms. In another vehicle owned by Frazier, two machines used to create kilogram packages of controlled substances were seized pursuant to a search warrant.
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; Mary Gavin, Chief of Falls Church Police; Acting Chief Andy Penn, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; and David Huchler, Chief of Police, Metropolitan Washington Airports Authority Police Department, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorney Bibeane Metsch and Special Assistant U.S. Attorney Rachel Roberts prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-207.
Virginia Beach Tax Preparer Sentenced for Filing Fraudulent ReturnsRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to two years in prison for aiding and assisting the filing of fraudulent and false tax returns.
According to court documents, from 2013 to 2016, Ryan Dalletezze, 42, prepared tax returns through a Virginia Beach company, D&D Tax Services LLC. Dalletezze was a “ghost preparer,” in that he received money as a paid preparer but failed to report or identify himself on his customers’ returns. Dalletezze routinely claimed exemptions on his customers’ returns that were false, such as education and business expenses, energy credits, and business losses.
Dalletezze’s customers had no knowledge of the fraud. Dalletezze personally received the resulting refunds and kept substantial portions for himself. The filing of these false and fraudulent returns resulted in a tax loss of over $291,000.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-12.
Two Men Plead Guilty in Multimillion-Dollar International Robocalls SchemeRead the Press Release
RICHMOND, Va. – Two Indian nationals pleaded guilty today to conspiracy charges relating to their involvement in an overseas-based robocalls scheme that defrauded thousands of victims out of millions of dollars.
“Pradipsinh Parmar crisscrossed the United States to collect nearly $6 million that was stolen from more than 4,000 victims in an international robocalls scam,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “By falsely impersonating representatives of the FBI, DEA, Social Security Administration, and other government agencies, members of this conspiracy preyed on thousands of unsuspecting victims, many of whom were elderly. This Office is committed to working with our law enforcement partners to combat international financial fraud and elder abuse schemes.”
According to court documents, Pradipsinh Parmar, 41, collected money on behalf of the robocall conspiracy that victims had sent either by a parcel delivery carrier or through a wire service. Upon receiving the victims’ money, Parmar deposited these funds into bank accounts as directed by the conspiracy’s leader, Shehzadkhan Pathan, 39, who previously pleaded guilty on January 15.
Pathan operated a call center in Ahmedabad, India, from which automated robocalls were made to victims in the United States. After establishing contact with victims through these automated calls, Pathan and other “closers” at his call center would coerce, cajole, and trick victims to send bulk cash through physical shipments and electronic money transfers.
Pathan and his conspirators used a variety of schemes to convince victims to send money, including impersonating law enforcement officials from the FBI and DEA, and representatives of other government agencies, such as the Social Security Administration, to threaten victims with severe legal and financial consequences. Conspirators also convinced victims to send money via wire transfer as initial installments for falsely promised loans. A significant number of victims who were tricked or coerced into sending bulk cash were elderly.
As part of his guilty plea, Parmar admitted that over a two-year period from March 2017 to April 2019, he traveled to 30 states and collected at least 4,358 wire transfers sent by victims via Western Union, MoneyGram, and Walmart2Walmart, with losses totaling at least $4,312,585. Additionally, Parmar, working for Pathan and another individual, received and attempted to receive at least 91 packages of bulk cash sent by victims from several states, including Virginia, via FedEx, UPS, or USPS, totaling at least $1,593,591. Parmar also received at least 549 counterfeit identification documents sent to him by Pathan for his use in retrieving these packages and wires sent by victims.
In addition to Parmar’s guilty plea today, Sumer Patel, 37, also pleaded guilty for his role in working for Pathan. As reflected in court documents accompanying his guilty plea, from October 2018 to March 2019, Patel retrieved over 250 individual wire transfers from 230 individual victims on behalf of Pathan. These wires totaled $219,520.98. Patel received these wires in the states of Virginia, Connecticut, and Rhode Island, and he deposited the funds as instructed by Pathan. While living in Chesterfield County, Virginia, Patel also received eight packages of cash sent by victims via FedEx. Four of the eight FedEx packages are known to have contained a total of $56,200 in cash.
Parmar and Patel are scheduled to be sentenced on June 18, 2021. Each defendant faces a maximum sentence of 20 years in prison for the conspiracy count, and Parmar faces an additional mandatory minimum sentence of two years on the 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, 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 Henry E. Hudson accepted the plea.
Assistant U.S. Attorneys Brian Hood and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.