Eastern District of Virginia
Press releases recorded for this federal judicial district.
Former Vice President of Construction Management Company Sentenced for Corporate Accounting Fraud SchemeRead the Press Release
RICHMOND, Va. – A former corporate executive of a construction management company was sentenced today to 27 months in prison for his role in a corporate accounting scheme that concealed millions of dollars in debt owed by the company.
“Over a five-year period, Patrick Lindsey served an integral role in a large-scale corporate accounting fraud scheme designed to conceal the fact that MGT Construction was more than $20 million in debt,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “That deceit not only maintained the defendant’s job and padded his annual compensation package, but it also proved devastating to the individuals who worked on MGT Construction projects and were left holding the bag after the fraud scheme was uncovered and the company subsequently collapsed. This Office is committed to working with our law enforcement partners to combat corporate malfeasance and hold accountable executives who manipulate others for personal gain.”
According to court documents, Patrick Lindsey, 43, of Midlothian, was the Vice President of Preconstruction Services at MGT Construction, a Richmond-based construction company offering preconstruction planning and construction management services. From 2011 through November 2016, MGT Construction engaged in a fraudulent accounting scheme that sought to conceal MGT’s true financial position through job-cost manipulations within the company’s accounting software system.
Lindsey had primary day-to-day management of the accounting scheme, which involved the regular movement of job-cost invoices from nearly finished projects to more recent construction projects. This cost-shifting falsely inflated profit margins and concealed losses, which generated a wholly inaccurate picture of MGT’s profitability. MGT and its parent company submitted the products of these fraudulent accounting manipulations as part of MGT’s application packages to banks and insurance companies for lines of credit and bonding coverage.
During the conspiracy, Lindsey moved or deleted thousands of job cost invoices, concealing the fact that, by the time the scheme was uncovered in November 2016, MGT Construction was over $20 million in debt. When the accounting fraud was exposed, MGT Construction owed millions of dollars in outstanding invoices that it could not pay to dozens of contractors, subcontractors, and vendors who had provided their services or products to MGT Construction. As a result, MGT filed for Chapter 7 bankruptcy in early 2018.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond 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 M. Hannah Lauck.
Assistant U.S. Attorney Thomas A. Garnett 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-22.
New Jersey Man Sentenced for Transporting Women to Virginia for ProstitutionRead the Press Release
NORFOLK, Va. – A Stratford, New Jersey man was sentenced today to two years in prison for transporting two women across state lines for the purpose of engaging in prostitution.
According to court documents, in April 2020, Rockwell Woodrow Pohlig, 30, transported two women to the Eastern District of Virginia, after having convinced one of the women that she was in a relationship with him and that they would open a business together. Pohlig also told the other woman that she was indebted to Pohlig because he had recently paid the funeral expenses for her family member. Once the women were in Virginia, Pohlig told them that they needed to earn money by engaging in commercial sex, and he directed one of them to advertise online their services for prostitution. Pohlig then paid for a third woman to fly to Virginia to engage in prostitution.
At the time of this conduct, Pohlig was being supervised in New Jersey for an unrelated offense.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Paul Nudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Megan Montoya 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-63.
Former U.S. Air Force Member Sentenced for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Virginia man who was dishonorably discharged from the U.S. Air Force was sentenced today to seven years in prison for receiving images of child sexual abuse and failing to maintain his sex offender registration as required.
“Bryson Miller not only accessed and retained thousands of videos and images of child sexual abuse from the dark web, but he also failed to update his sex offender registration while employed in a position in which he interacted with children,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Protecting society’s most vulnerable and innocent members—including children—is a top priority for EDVA and the Department of Justice.”
According to court documents, Bryson McNeal Miller, 40, of Alexandria, received a substantial amount of child pornography over the course of several years by accessing sites on the “dark web.” Miller retained thousands of these videos and images of child sexual abuse on various electronic devices in his possession. Additionally, Miller failed to maintain an accurate record of his employment with the Virginia sex offender registry, in that Miller failed to inform authorities that he was employed at a northern Virginia martial arts studio where some of his students were children. Miller was required to register as a sex offender due to a 2006 conviction for possession of child pornography while Miller was serving in the U.S. Air Force.
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 Claude M. Hilton.
Assistant U.S. Attorney Seth Schlessinger prosecuted the case.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state, and federal partners, investigated 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-200.
Two Former Bureau of Prisons Officials Plead Guilty to Bribery Scheme at Federal Prison in PetersburgRead the Press Release
RICHMOND, Va. – A North Carolina man, formerly employed by the Bureau of Prisons at Federal Correctional Institution (FCI) Petersburg, pleaded guilty today to taking bribes to allow for the introduction of contraband into the prison. Today’s guilty plea follows a former correctional officer’s plea last week for taking bribes as part of the same scheme.
“Stephen Taylor and Shanice Bullock flagrantly violated their positions of trust as federal prison officials by engaging in a bribery scheme inside FCI Petersburg instead of safeguarding the security of the facility and protecting its inmates,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office will continue to seek equal justice under the law and hold accountable government officials who corrupt their oaths and betray the public’s trust.”
According to court documents, Stephen Taylor, 48, then a case manager at FCI Petersburg, received over $17,000 in Walmart-2-Walmart transfers from an inmate’s mother from March 2018 to March 2019. In return, Taylor permitted the introduction of contraband items into the prison—namely Suboxone, marijuana, cellular telephones, and tobacco. In addition, Taylor received contraband and sums of cash from the inmate’s girlfriend.
In addition to Taylor, former correctional officer Shanice Bullock, 28, of South Hill, Va., pleaded guilty on February 9 for her role in the same prison bribery scheme. Specifically, Bullock took bribes from the same inmate’s mother to facilitate the introduction of Suboxone, marijuana, heroin, cigarettes, and cellular telephones into FCI Petersburg.
Taylor is scheduled to be sentenced on August 6, and he faces a maximum penalty of 15 years in prison. Bullock will be sentenced on August 11 and faces a maximum penalty of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Russell W. Cunningham, Special Agent in Charge, Department of Justice Office of the Inspector General, Washington Field Office, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Kenneth Simon Jr. and Michael C. Moore 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. 3:20-cr-125.
Nigerian National Sentenced to Prison for $11 Million Global Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Nigerian national was sentenced today to 10 years in prison for his involvement in a computer-based intrusion fraud scheme that caused approximately $11 million in known losses to his victims.
“Through subterfuge and impersonation, Obinwanne Okeke engaged in a multi-year global business email and computer hacking scheme that caused a staggering $11 million in losses to his victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Today’s sentence further demonstrates EDVA’s and FBI’s worldwide reach in vigorously pursuing justice on behalf of American victims and others and holding international cybercriminals accountable, no matter where they commit their crimes.”
According to court documents, Obinwanne Okeke, 33, operated a group of companies known as the Invictus Group based in Nigeria and elsewhere. From approximately 2015 to 2019, Okeke and others engaged in a conspiracy to conduct various computer-based frauds. The conspirators obtained and compiled the credentials of hundreds of victims, including victims in the Eastern District of Virginia.
As part of the scheme, Okeke and other conspirators engaged in an email compromise scheme targeting Unatrac Holding Limited, the export sales office for Caterpillar heavy industrial and farm equipment. In April 2018, a Unatrac executive fell prey to a phishing email that allowed conspirators to capture login credentials. The conspirators sent fraudulent wire transfer requests and attached fake invoices. Okeke participated in the effort to victimize Unatrac through fraudulent wire transfers totaling nearly $11 million, which was transferred overseas. Additionally, Okeke engaged in other forms of cyberfraud, including sending phishing emails to capture email credentials, creating fraudulent web pages, and causing other losses to numerous victims.
“The FBI will not allow cyber criminals free reign in the digital world to prey on U.S. companies,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “This sentencing demonstrates the FBI’s commitment to working with our partners at the Department of Justice and our foreign counterparts to locate cyber criminals across the globe and bring them to the United States to be held accountable.”
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Brian Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-84.
Man Pleads Guilty to $1.3 Million Fraud Schemes and Receipt of Child PornographyRead the Press Release
RICHMOND, Va. – A Glen Allen man pleaded guilty today to wire fraud, engaging in an unlawful monetary transaction using fraud proceeds, and receipt of child pornography.
“Gordon Miller’s extensive fraudulent scheme exacted a heavy financial and emotional toll on his victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In addition, Miller undermined the federal procurement process, and even more appalling, he further victimized the vulnerable children depicted in hundreds of images and videos of child sexual abuse by inexcusably receiving those materials online and collecting them at his home.”
According to court documents, Gordon G. Miller III, 56, was the sole owner and operator of G3 Systems, Inc., a software engineering company, and G3i Ventures, LLC, purportedly a venture capital company. Starting around 2017, Miller began to engage in overlapping fraud schemes to prevent his companies from going out of business and to maintain his lifestyle in the absence of legitimate income.
One scheme involved the solicitation of contacts in an online question-and-answer forum, where Miller falsely represented himself as an entrepreneur with a significant net worth, multiple advanced degrees, and expertise investing in technology companies. Between 2017 and 2018, through various misrepresentations, Miller fraudulently obtained approximately $1 million from at least ten individuals through this scheme.
Another fraud entailed the diversion of a federal subcontract to G3 Systems, which he obtained using misrepresentations regarding his educational experience. Once he secured the subcontract, Miller submitted fraudulent timesheets and invoices to obtain more than $300,000 in payments from the prime contractor. Between 2018 and 2019, Miller took checks he received from the contractor to a check-cashing store in Richmond to convert the proceeds of the contract-fraud scheme to cash.
During the investigation of the above-described fraud schemes, federal agents obtained a search warrant for Miller’s residence. During the preliminary examination of devices seized from Miller’s home, agents discovered child sexual abuse material. After the execution of a search warrant targeting such material, agents discovered more than 700 images or videos constituting child pornography, including images or videos Miller obtained between August 2017 and September 2020.
Miller is scheduled to be sentenced on June 14. For the wire fraud and unlawful monetary transaction offenses, he faces maximum penalties of 20 years and 10 years in prison, respectively. For the receipt of child pornography offense, he faces a five-year mandatory minimum and a maximum term 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; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorneys Katherine Lee Martin and Kevin Elliker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-109.
Doctor Pleads Guilty to Not Paying Employment TaxesRead the Press Release
ALEXANDRIA, Va. – A doctor, formerly of Great Falls, Virginia, pleaded guilty today to willful failure to pay employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting United States Attorney Raj Parekh for the Eastern District of Virginia.
According to court documents, from 2011 through 2018, Arshad Pervez Cheema owned and operated Walk-In Medical Center, PC, a medical practice located in Falls Church and Herndon, Virginia. Cheema was responsible for collecting and paying to the IRS payroll taxes, which consisted of Social Security, Medicare, and income taxes that had been withheld from his employees’ wages, as well as an employer portion. Over a four-year period from 2012 to 2016, Cheema willfully did not pay over $500,000 in payroll taxes. Instead, he used some of the withheld funds for other business ventures, including to open and run a restaurant in Washington, D.C. In addition, Cheema did not pay corporate taxes for Walk-In Medical Center, PC, nor did he pay employment taxes for another doctor’s office, Falls Church Family Care PC, which he operated. In total, Cheema did not pay over $2 million in employment and corporate taxes.
U.S. District Judge Anthony J. Trenga scheduled sentencing for June 23, 2021. At sentencing, Cheema faces a maximum sentence of five years’ imprisonment. Cheema also faces a period of supervised release, restitution, and a fine.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Parekh commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Casey S. Smith and Assistant U.S. Attorney Russell L. Carlberg, who 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-13.
Chesapeake Man Charged with Attempted Murder for Shooting Security Guard at Social Security BuildingRead the Press Release
NORFOLK, Va. – A criminal complaint was filed in the U.S. District Court for the Eastern District of Virginia today charging a Chesapeake man with multiple federal crimes, including attempted murder, related to his alleged attack on a security guard at a Social Security Administration building.
According to court documents, William Douglas Rankin, 44, is alleged to have entered the Social Security Administration building in Norfolk on February 8, armed with a .380 firearm, a 9 millimeter rifle, and approximately 600 rounds of ammunition, including three fully loaded extended 9mm magazines.
After a brief verbal interaction with the security guard on duty, Rankin allegedly raised his .380 handgun and fired a series of bullets at the guard, who suffered non-fatal injuries. The security guard was shot in the arm, shoulder, both legs, and chest area. A ballistic vest stopped the shots to the guard’s chest, and he returned fire and struck Rankin.
Approximately 150 people, including 68 federal employees and a number of Administrative Law Judges, work at the Social Security building on Lake Herbert Drive in Norfolk. Due to the ongoing COVID-19 pandemic, the majority of them were not present at the time Rankin entered the building.
Rankin was charged with the following federal crimes: 1) attempted murder of a person assisting an officer or employee of the U.S. government; 2) possession and discharge of a firearm in furtherance of a crime of violence; 3) assault of a person assisting an officer or employee of the U.S. government; 4) possession of firearms in a federal facility; and 5) felon in possession of a firearm and ammunition.
Based on the charges in the criminal complaint, if convicted, Rankin faces a mandatory minimum penalty of 10 years’ imprisonment and a maximum 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; L. Eric Patterson, Director of the Federal Protective Service; and Larry D. Boone, Chief of Norfolk Police, made the announcement.
Assistant U.S. Attorneys John F. Butler and E. Rebecca Gantt are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-mj-52.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Dark Web Trafficker Pleads Guilty to Distributing OpioidsRead the Press Release
ALEXANDRIA, Va. – A Florida man pleaded guilty today to unlawfully distributing thousands of prescription opioid pills in exchange for over half a million dollars through the “dark web.”
According to court documents, between 2012 and 2020, Daren James Reid, 35, of Fort Lauderdale, used the dark web to distribute oxycodone. Under the monikers “Oxyflight” and “Imperial Royalty,” Reid sold over 12,000 oxycodone pills, the sales of which yielded a profit of over $500,000. Reid used dark web sites such as Silk Road, Wall Street, and Apollon to advertise and sell oxycodone pills of various strengths and prices. Reid utilized the U.S. Postal Service to illegally mail the pills to his customers across the U.S. in exchange for Bitcoin payments. Reid also possessed over one kilogram of oxycodone, morphine, and other pills in a storage facility in Florida.
“Reid preyed upon the vulnerabilities of others by illegally distributing over half a million dollars of highly addictive opioids through dark web markets,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA, along with its law enforcement partners, will continue to investigate and hold accountable individuals who pose a significant danger to our communities by placing profits over lives.”
Reid pleaded guilty to unlawful distribution and possession with the intent to distribute oxycodone. He is scheduled to be sentenced on June 1 and faces a maximum penalty of 20 years in prison for each of the counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Antonio J. Gomez, Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea.
Special Assistant U.S. Attorney Karolina Klyuchnikova is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-6.
U.S. Attorney’s Office in EDVA Recovers $242 Million in 2020 for Victims and in Criminal and Civil MattersRead the Press Release
ALEXANDRIA, Va. – Acting U.S. Attorney Raj Parekh announced today that the United States Attorney’s Office for the Eastern District of Virginia (EDVA) collected approximately $242,000,000 in criminal, civil, and asset forfeiture actions in Fiscal Year 2020 on behalf of private and government victims.
“It is an honor to serve with my colleagues in the Eastern District of Virginia, all of whom have supported each other with tremendous resolve as we face the many challenges of the ongoing pandemic together,” said Acting U.S. Attorney Raj Parekh. “Our criminal and civil recovery teams worked tirelessly during a very difficult year to make crime victims whole, use asset forfeiture to reclaim the illicit proceeds of crimes, and protect the public fisc. We will continue our firm commitment to preserving the principles of equality, equity, and justice for all as we uphold victims’ rights and protect our communities throughout 2021 and beyond.”
During FY2020, EDVA recovered approximately $242 million in criminal matters on behalf of crime victims and in civil matters where federal money was at stake. Of these recoveries, $22.3 million involved restitution for victims within EDVA’s criminal cases, and $41.1 million was collected through civil actions and settlements where the federal government was a victim, such as defense procurement fraud, healthcare fraud, and qui tam (whistleblower) cases, as well as the collection of agency debts and other related civil enforcement matters. The remaining $167.9 million was recouped civilly in joint matters with EDVA and the Justice Department’s Civil Division or various Department litigating components, working with other U.S. Attorneys’ Offices and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit.
Working with DOJ partner agencies and divisions, EDVA also collected a total of approximately $10.6 million through asset forfeiture in FY2020. Of that amount, EDVA deposited over $8.3 million into the Justice Department’s Assets Forfeiture Fund in FY2020, while the other approximately $2.3 million was restored or remitted to victims. EDVA also used asset forfeiture statutes and processes to restrain an additional $13.6 million, which was ultimately returned directly to victims in lieu of forfeiture.
In addition to a team of legal support staff and contractors, EDVA’s asset recovery efforts are led by Deputy Chief of the Asset Recovery Unit for Financial Litigation Laura M. Grimes, Deputy Chief of the Asset Recovery Unit for Asset Forfeiture Kevin P. Hudson, Chief of the Asset Recovery Unit Jessica D. Aber, and Assistant U.S. Attorneys Janet Jin Ah Lee, Ron Fiorillo, and Annie Zanobini.
Civil recoveries are the result of litigation and debt collection efforts by attorneys, analysts, and contractors supporting the Affirmative Civil Enforcement (ACE) and Civil Rights Enforcement Units. Those efforts are led by ACE Unit Supervisor Gerard Mene and Assistant U.S. Attorneys Ilene Albala, Krista Anderson, Deirdre G. Brou, Robert Coulter, Steve Gordon, Garry Hartlieb, William Hochul, Robert P. McIntosh, Lauren F. Oberheim, Kristin S. Starr, and Clare P. Wuerker.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the federal government and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim; criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which then distributes the funds collected to federal and state victim compensation and assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected civil penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights, drug diversion, or environmental laws. In addition, civil debts were collected on behalf of various federal agencies, including the U.S. Department of Housing and Urban Development, Veterans Affairs, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
The Justice Department, as a whole, collected more than $15.9 billion in civil and criminal actions in 2020. This amount is more than five times the approximately $3.2 billion appropriated budget for all 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It also includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states, and other designated recipients.
Fentanyl Trafficker Responsible for Overdose Death Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 11 years in prison for his role in a fentanyl and heroin distribution ring that led to multiple overdoses and at least one death.
According to court documents, Deshawn Jones, 29, dealt heroin and fentanyl as part of a Hampton Roads-based group that sold powerful narcotics to individuals from South Hampton Roads and the Outer Banks region of North Carolina. On November 23, 2018, Jones sold a mixture of fentanyl and heroin to C.H., who used the drugs, overdosed, and died as a result. Jones continued to sell narcotics after learning of C.H.’s death, and when police executed a search warrant at his Portsmouth home in June 2019, they found fentanyl, heroin, and a loaded semi-automatic handgun with an extended magazine.
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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; J. Phillip Webster, Chief of the Nags Head Police Department; and Kelvin L. Wright, Chief of the Chesapeake Police Department, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Andrew Bosse and William B. Jackson 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-163.
CEO Pleads Guilty to Defrauding Multiple Federal AgenciesRead the Press Release
ALEXANDRIA, Va. – An Arlington businessman pleaded guilty today to making false statements to multiple federal agencies in order to fraudulently obtain multimillion-dollar government contracts, COVID-19 emergency relief loans, and undeserved military service benefits.
According to court documents, Robert S. Stewart, Jr., 35, was the owner and president of Federal Government Experts (FGE) LLC, an Arlington-based company that purported to provide various services to the U.S. government. In this capacity, Stewart made false statements to the Federal Emergency Management Agency (FEMA) and the Department of Veterans Affairs (VA) in order to obtain lucrative contracts to provide COVID-19 personal protective equipment (PPE). In addition, Stewart fraudulently obtained loans under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program, and he also defrauded the VA by falsely claiming to be entitled to veteran’s benefits for serving in the U.S. Marine Corps when, in fact, he never served in the Marines.
“Stewart’s fraudulent conduct during a critical time in our Nation’s fight against COVID-19 undermined the government’s ability to provide much needed PPE to the community, including to the front-line health care workers serving our military veterans,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In addition, by fraudulently obtaining government-backed loans intended to be lifelines to keep businesses afloat, Stewart unlawfully took and misused resources devoted to help struggling Americans.”
As part of his PPE scheme, Stewart falsely stated to procurement officials from FEMA and the VA that he was in possession of large quantities of PPE, including N95 masks. Based on Stewart’s false statements, the VA and FEMA awarded FGE contracts valued at $35,000,000 and $3,510,000, respectively. The VA intended to use the PPE purchased from FGE to protect employees and patients at various Veterans Health Administration facilities, which serve the medical needs of over nine million veterans each year. FGE failed to supply any PPE to the VA and FEMA. The U.S. government suffered no financial loss because the contract called for payment upon delivery and inspection of the goods.
“Exploiting COVID-19 relief efforts for personal gain, to receive lucrative contracts with no intention of fulfilling them, is unconscionable,” said DHS Inspector General Joseph V. Cuffari. “I am proud of everyone at DHS OIG who worked on this case. I am also thankful to our law enforcement partners who helped us bring a swift end to this scheme.”
Stewart also applied for various loans on behalf of FGE under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. These programs were designed to provide emergency financial assistance to the millions of people suffering the economic effects of the COVID-19 pandemic. The loan applications submitted by Stewart falsely overstated the number of FGE employees and the amount of FGE’s payroll, two factors that were important in determining loan eligibility and the proper amount of the loan. In addition, Stewart used some of the loan proceeds for personal expenditures rather than to pay employees or for other appropriate business expenses. The loss to the U.S. government from this fraud is approximately $261,500.
In a separate fraudulent scheme, Stewart, an Air Force veteran, submitted an application for benefits to the VA. The application was fraudulent in that Stewart falsely claimed that he also served in the U.S. Marine Corps. Stewart created fraudulent documents that stated he attained the rank of Corporal in the Marine Corps and was honorably discharged after receiving several awards and commendations, including the Rifle Expert Badge, Pistol Expert Badge, Meritorious Mast, National Defense Service Medal, Sea Service Deployment Ribbon, Southwest Asia Service Medal, Certificate of Appreciation, and the Kuwaiti Liberation Medal. Stewart, in fact, never served in the Marines. Based on his fraudulent application, he received excess benefits in the amount of $73,722.45.
“By falsely claiming to have served in the U.S. Marine Corps to unlawfully increase his veteran’s benefits, Stewart stole money dedicated to providing resources and services to American military veterans and their families. This was an affront to those who honorably served,” said Acting U.S. Attorney Parekh. “We thank our law enforcement partners for bringing Stewart to justice.”
Stewart pleaded guilty to making false statements, wire fraud, and theft of government funds and is scheduled to be sentenced on June 16, 2021. He faces a maximum penalty of 35 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS); and Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
Assistant U.S. Attorney William Fitzpatrick is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-5.
EDVA Commemorates Black History MonthRead the Press Release
ALEXANDRIA, Va. – As part of a long-standing tradition spanning more than 25 years, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will honor the contributions and history of the African American community during this year’s Black History Month.
“Our Office will continue to recognize the proud traditions and rich history of the African American community, while also acknowledging the challenging realities, both past and present, that Black Americans have experienced here in Virginia and across our Nation,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As it is inscribed on the walls of the U.S. Department of Justice Building, ‘the place of Justice is a hallowed place,’ and we are deeply committed in EDVA to ensuring that all participants in the legal process—including victims, parties, and members of the Bench and Bar—are treated with respect and dignity as we seek equal justice under the law. As part of that commitment, we are dedicated to furthering our collective efforts to promote diversity and inclusion in all forms through our hiring, advancement, and community outreach practices.”
The annual tradition of Black History Month in February is commemorated by the Association for the Study of African American Life and History, which establishes a national theme for each year. The theme for 2021 is “The Black Family: Representation, Identity, and Diversity.” For over 25 years, EDVA has hosted events based on the national theme, or closely related topics, with speakers and performers appearing during programs held at EDVA’s offices. Those speakers have included prominent members of the legal community—such as judges, prosecutors, defense attorneys, Justice Department leadership, and law professors—as well as scholars, historians, and performing artists.
Notable examples of memorable Black History Month programs held in EDVA have included a 2014 panel with members of the 1971 T.C. Williams High School Football Team, who inspired the 2000 film Remember the Titans; Deval L. Patrick, then-Assistant Attorney General for DOJ’s Civil Rights Division (1995); John W. Marshall, then-U.S. Marshal for EDVA (1998); Eric H. Holder, Jr., then-Deputy Attorney General (2000); Lt. General Daniel James III, then-Director of the Air National Guard (2005); Virginia Supreme Court Justice S. Bernard Goodwyn (2016); U.S. District Judge Raymond A. Jackson (2018); and representatives of the renowned National Museum of African American History and Culture in Washington, D.C. (2017, 2019).
EDVA’s tradition of hosting annual Black History Month celebrations began in 1994 and has been led by EDVA’s Black Affairs Special Emphasis Program Manager, Sabrina A. Black, since inception. The Diversity Committee was established in 2010 and includes a cross-section of EDVA’s administrative staff, legal support, and attorneys, and it has been instrumental in tackling key issues such as work/life balance, training and retention of existing employees, and diversity and inclusion in EDVA’s recruitment and hiring practices. Over time, EDVA has increased the diversity of its senior management ranks, with half of the current senior management team consisting of women and racial minorities, including Acting U.S. Attorney Parekh, the first person of color to lead the Office.
“We extend our deepest appreciation to the members of EDVA’s Black History Month and Diversity committees for their leadership and commitment in spearheading our diversity and inclusion-oriented programs for the benefit of the entire Office,” said Acting U.S. Attorney Parekh. “EDVA’s dedicated and selfless workforce is, and will always be, the heart and soul of our Office.”
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Sinaloa Cartel-Linked Fentanyl and Heroin Traffickers Plead Guilty, Sentenced in Operation CookoutRead the Press Release
NEWPORT NEWS, Va. – The mastermind behind an extensive drug trafficking ring entered a guilty plea this week, and four other defendants either entered pleas or were sentenced recently to substantial terms in prison for distributing large amounts of fentanyl, heroin, and cocaine in Newport News and North Carolina.
“Fentanyl and heroin have inflicted immeasurable amounts of pain and brought devastation to families across the United States and in EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Due to their tenacity and commitment, our federal, state, and local law enforcement partners seized 24 illegal firearms, 30 kilograms of heroin, and enough fentanyl to kill over 14 million people, saving our communities from significant loss of life and destruction.”
According to court documents, Ramiro Ramirez-Barreto, 44, from the Mexican State of Morelos, operated a continuing criminal enterprise with ties to Virginia, North Carolina, Texas, and California. Ramirez-Barreto was linked to the Sinaloa Cartel in Mexico, as were his drug sources, and his operation supplied cocaine, heroin, and fentanyl to numerous drug trafficking organizations in Newport News, Virginia and in Henderson and Greensboro, North Carolina. According to one of Ramirez-Barreto’s many North Carolina customers, Ramirez-Barreto supplied him with 60 kilograms of heroin from early 2018 to mid-2019. Another one of Ramirez-Barreto’s customers was an inmate in federal prison operating a drug trafficking organization in Henderson, NC using a bootleg mobile phone.
Ramirez-Barreto entered his guilty plea on January 25, 2021, and he is scheduled to be sentenced on July 12, 2021, by U.S. District Judge David J. Novak. Ramirez-Barreto’s residence—where law enforcement found 19 kilograms of heroin and over $600,000 in cash—is being forfeited in connection with this case. In addition, he faces a mandatory minimum term of 20 years in prison and a maximum term of life in prison.
In addition to Ramirez-Barreto, four additional defendants either entered guilty pleas or were sentenced this week by Judge Novak for their role in the drug trafficking conspiracy described above:
- Tangynika Johnson, 44, of Henderson, NC, assisted co-defendant Cory Bullock, an inmate in a West Virginia federal prison, in getting drug proceeds delivered to Ramirez-Barreto. Johnson pleaded guilty on January 29, 2021, to using a communication facility in furtherance of drug trafficking. She is scheduled to be sentenced on July 12, 2021, and faces a maximum penalty of four years in prison.
- James Noyes, 55, of Newport News, was a mid-level heroin distributor within co-conspirator Damarcus Mackie’s drug trafficking organization. Noyes was sentenced to 10 years in prison on January 29, 2021.
- Keith A. Brownson, 42, of Henderson, NC, was a cocaine and heroin dealer who arranged drop-offs of drugs and drug proceeds with Ramirez-Barreto. Brownson pleaded guilty on January 29, 2021, to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. He is scheduled to be sentenced on July 21, 2021, and faces a mandatory minimum of five years and a maximum penalty of 40 years in prison.
- Russell P. Johnson, 50, of Suffolk, VA, was sentenced to 140 months in prison on January 25, 2021, for conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 500 grams or more of cocaine.
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.
Background on Operation Cookout
In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina, and Texas executed a major operation, known as Operation Cookout, which resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.
“This operation shows our resolve, along with our area law enforcement partners, to never stop working—even throughout a global pandemic—to protect the communities we serve from these deadly drugs,” said Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division. “Operation Cookout successfully removed a number of violent drug organizations from the streets, and will enable these communities to focus on what matters most right now—the health and safety of their loved ones.”
“Operation Cookout demonstrates the extraordinary results that can be achieved when local and federal law enforcement work together to combat drug trafficking,” said Raymond Villanueva, Special Agent in Charge for the Homeland Security Investigations (HSI) Washington, D.C. field office. “Drug trafficking is a transnational problem and coordination like what we’ve seen here is the best way to combat and disrupt these trafficking networks.”
To date, 45 total defendants have been charged in Operation Cookout. Of those, 42 have admitted their criminal conduct and pleaded guilty. Thus far, 30 defendants have been sentenced, with the majority being sentenced to prisons terms ranging from two to ten years, and three defendants sentenced between 15 to 25 years in prison.
These prosecutions are 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington D.C.; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Terry L. Sult, Chief of Hampton Police Division; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth’s Attorney Anton A. Bell made the announcement.
Assistant U.S. Attorneys Peter G. Osyf and Kevin Hudson and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals Service, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina, and Texas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
- Tangynika Johnson, 44, of Henderson, NC, assisted co-defendant Cory Bullock, an inmate in a West Virginia federal prison, in getting drug proceeds delivered to Ramirez-Barreto. Johnson pleaded guilty on January 29, 2021, to using a communication facility in furtherance of drug trafficking. She is scheduled to be sentenced on July 12, 2021, and faces a maximum penalty of four years in prison.
Fraudster Sentenced for $400,000 Motorized Surfboard ScamRead the Press Release
ALEXANDRIA, Va. – A Palm Bay, Florida man was sentenced today to six years in prison for an investment fraud scheme involving the supposed production and sale of motorized surfboards.
According to court documents, Roberto Clark, 50, previously a resident of Bethesda, Maryland, operated a scheme to defraud small investors in Virginia, Maryland, and the District of Columbia. As part of the scheme, Clark falsely promised that the investments made with Clark’s company, KRM Services, would go toward manufacturing “Jetboards” for resale to third parties at substantial profits. Instead, Clark spent the money on maintaining his lavish lifestyle.
To execute the scheme, Clark falsified sales contracts with cruise lines and water sports companies; forged signatures and notary stamps; fabricated emails from supposed buyers of the Jetboards; and falsified a patent report so that it would appear he could obtain a patent on the Jetboard. He provided all of this false information to investors to convince them to invest in KRM Services. In reality, Clark had purchased a Chinese-made motorized surfboard that had serious mechanical and design problems and never properly functioned. Clark never sold a single surfboard to any buyer.
Clark primarily defrauded small investors, including people he met socially in local restaurants and bars. He maxed out one victim’s personal credit card on Christmas Eve so that she could not buy her daughter a present or travel to see family. According to court documents, Clark stole more than $400,000 from 14 victims between 2016 and 2019, causing substantial financial hardship to a number of them.
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; Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. The Fairfax County Police Department and the Securities and Exchange Commission also provided assistance in the investigation.
Assistant U.S. Attorneys Russell L. Carlberg and Kimberly Riley Pedersen 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-332.
New Hampshire Businessman Pleads Guilty to Spice Distribution That Resulted in Fatal OverdoseRead the Press Release
ALEXANDRIA, Va. – A Seabrook, New Hampshire man pleaded guilty today to his role in a nationwide conspiracy to distribute synthetic cannabinoids, commonly known as “spice” or “K2.”
According to court documents, William Walsh, 56, operated two shops in Seabrook—“Up N Smoke” and “The Smoking Monkey”—from which he sold retail quantities of spice, along with smoking paraphernalia such as rolling papers and glass pipes. Walsh ordered the spice that he sold in his stores from a California-based wholesale spice manufacturing and distribution operation.
At times during the conspiracy, Walsh ordered thousands of dollars of spice per week from his California-based co-conspirators, whose illicit business held itself out as Aroma Superstore. The spice was sold in packages bearing the label “Not For Human Consumption” in an attempt to avoid law enforcement scrutiny, and Walsh instructed his employees not to discuss the fact that the spice was smoked or otherwise used as a drug. The products were, in reality, intended to be consumed and induce a “high” similar to other controlled substances. The spice connected to this conspiracy caused one of the defendant’s customers, referred to in court documents as J.S., to fatally overdose.
In November 2019, law enforcement searched Up N Smoke, The Smoking Monkey, and Walsh’s residence. In the course of executing the search warrants, agents seized approximately 12 kilograms of synthetic cannabinoids packaged for distribution, and a total of more than $676,000 in cash.
Walsh pleaded guilty to one count of conspiracy to distribute Schedule I controlled substances, and he is scheduled to appear at a status hearing on March 31, 2021. 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.
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.
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; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; Robert P. Mosier, Fauquier County Sheriff; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Bibeane Metsch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-76.
Man Pleads Guilty to $2.5 Million Coronavirus FraudRead the Press Release
ALEXANDRIA, Va. – A Leesburg man pleaded guilty today to fraudulently obtaining two loans for over $2.5 million under the Paycheck Protection Program (“PPP”).
“At a time when countless families and business owners nationwide are struggling to make ends meet during the ongoing pandemic, Didier Kindambu committed a multimillion-dollar bank fraud by misappropriating COVID-19 taxpayer relief funds to pay for his lavish lifestyle,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Together with our law enforcement partners, this Office will continue to prosecute and bring to justice those who seek to exploit essential pandemic recovery programs and profit from the misfortunes of others for personal gain.”
According to court documents, Didier K. Kindambu, 49, fraudulently obtained two PPP loans under a program instituted by the U.S. Congress to help businesses affected by the coronavirus pandemic continue to pay salary or wages to their employees. Kindambu carried out the scheme in connection with two businesses that he owns by creating fraudulent payroll documentation for each business, and then submitting that documentation in support of the PPP loan applications. The fraudulent documentation represented that Kindambu’s businesses had dozens of employees with millions of dollars in payroll expenses, when in fact they had few, if any, employees.
In total, Kindambu fraudulently obtained approximately $2,501,753 in loan proceeds, and he then spent those funds, in part, on items unrelated to any legitimate PPP-related expense. Those items included a Lexus automobile and Cessna aircraft; Kindambu’s personal taxes, the down-payment on a luxury residence in Leesburg, and his day-to-day living expenses; and various purchases of jewelry, clothing, accessories, and shoes.
Kindambu pleaded guilty to bank fraud and is scheduled to be sentenced on August 4, 2021. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement after U.S. District Judge Rossie D. Alston accepted the plea.
Assistant U.S. Attorney Matthew Burke is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-260.
Colombian Nationals Plead Guilty to Smuggling Nearly 1,500 Kilos of Cocaine in International WatersRead the Press Release
NEWPORT NEWS, Va. – Three Colombian nationals pleaded guilty today to possessing with the intent to distribute nearly 1,500 kilograms of cocaine when they were interdicted in an unregistered vessel on the Pacific Ocean.
According to court documents, on August 6, 2020, Eliovar Pineda, 45, Jenuar Angulo, 40, and Marcial Cuero, 68, were intercepted with 1,479 kilograms of cocaine, while traveling in international waters of the eastern Pacific Ocean. The street value of the cocaine in Newport News is between $45-55 million. Pineda, Angulo, and Cuero were caught aboard a “Go Fast” vessel, which had no indicia or markings of nationality.
While on routine patrol in international waters, the United States Coast Guard Cutter (USCGC) Hamilton was dispatched to intercept a go-fast-vessel that had been located approximately 90 nautical miles southwest of Coiba Island, Panama. The USCGC Hamilton subsequently launched a helicopter, which was able to come in contact with the go-fast-vessel. The go-fast-vessel then became disabled and a subsequent boarding resulted in the detainment of the three smugglers while still in international waters. Members of the Coast Guard boarding team subsequently seized approximately 1,479 kilograms of cocaine.
Pineda, Angulo, and Cuero are scheduled to be sentenced on July 12, 2021. Pineda faces up to twenty years in prison while Angulo and Cuero face up to 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.
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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after U.S. District Judge David J. Novak accepted the pleas.
Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
This investigation was conducted by DEA’s Hampton Post of Duty and the U.S. Coast Guard, with assistance from the Hampton Police Department, Newport News Police Department, Newport News Sheriff’s Office, and York-Poquoson Sheriff’s Office.
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-66.
Man Sentenced for Multimillion-Dollar Cross-Country Cocaine ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Camp Springs, Maryland man was sentenced today to 140 months in prison for conspiracy to distribute five kilograms or more of cocaine, which led to the seizure of over $1 million in cash, approximately 45 kilograms of cocaine, over $240,000 worth of jewelry, four firearms, and body armor-piercing ammunition.
According to court documents, between May 2019 and February 2020, Romaine Anthony Dixon, 32, conspired to distribute cocaine. Beginning in and around July 2019, Dixon traveled to California approximately every three to four weeks to purchase cocaine. On average, Dixon would transport $500,000 to California to pay his source of supply. Dixon and his co-conspirators would then ship cocaine from California in large crates to the Eastern District of Virginia.
Dixon was arrested in his vehicle in February 2020 in possession of approximately 25 kilograms of cocaine and $11,268 in cash. One of Dixon’s co-conspirators also was arrested that day in possession of 20 kilograms of cocaine and one-and-a-half kilograms of heroin.
After the execution of search warrants at Dixon’s residence, law enforcement seized approximately $1,044,451 in cash, jewelry valued at approximately $244,125, one kilogram of cocaine, one kilogram of fentanyl, three firearms, and body armor-piercing ammunition, among other items. At another location associated with Dixon, law enforcement found kilogram wrappings and an AK-47.
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.
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; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Michael P. Ben’Ary and Bibeane Metsch 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-156.
International Gun Trafficker Sentenced for Illegal Straw Purchase SchemeRead the Press Release
NORFOLK, Va. – A New Jersey resident and citizen of the Dominican Republic was sentenced today to almost five years in prison for participating in the illegal straw purchase of at least 25 firearms, which he shipped to the Dominican Republic.
According to court documents, Greilin Eurinio Santana-Munoz, 31, a carnival worker and convicted felon, used several straw purchasers to obtain at least 25 handguns from federally licensed gun stores in Virginia and Georgia. Santana-Munoz then shipped the firearms out of the country to the Dominican Republic.
Santana-Munoz used one associate to straw purchase ten handguns from Virginia gun stores in Chantilly, Manassas, and Virginia Beach. He was arrested in Georgia after ATF agents watched another straw purchaser buy four handguns at a gun store and deliver them to Santana-Munoz while he was waiting outside the store in his boss’s vehicle.
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 Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney William B. Jackson 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-29.
Former Federal Contractor Sentenced for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Polish citizen, who was employed as a federal contractor for the U.S. Naval Research Laboratory, was sentenced today to five years in prison for receiving images of child sexual abuse.
According to court documents, Michal Piotrowicz, 40, while living in Alexandria, used a peer-to-peer file-sharing program to receive and possess over 1,000 images of child pornography, featuring the sexual exploitation of young girls. While he was under investigation, Piotrowicz was intercepted and arrested at Dulles International Airport as he attempted to leave the country.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Melissa L. Chong 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-211.
Virginia Man Pleads Guilty to Defrauding Export-Import Bank of U.S. of $1.6 millionRead the Press Release
RICHMOND, Va. – A Glen Allen man pleaded guilty today to committing wire fraud and making false statements to a federally insured bank during a two-year scheme to defraud both a Pennsylvania-based bank and the Export-Import Bank of the United States in connection with a $1.6 million loan.
According to court documents, Tae Il Lee, 41, was the Managing Director of New World Group, a Richmond-based company engaged in the business of exporting American snacks and other food stuffs to international buyers (typically South Korean companies). In April 2016, Lee sought what eventually became a $1.6 million loan from First National Bank of Pennsylvania, relying on the “Working Capital Program” offered by the Export-Import Bank of the United States (EXIM Bank). Under the program, EXIM guaranteed to provide financial backing for the loan in the event that New World Group defaulted.
Over the next two years, Lee regularly provided First National Bank, and the bank’s auditing firm, with financial documents that purported to show New World Group’s accounts receivable, banking statements, and financial statements. These documents reflected that New World Group was a growing, thriving export company, grossing more than $6 million in export sales in 2017 and another $6.3 million in just the first few months of 2018. Lee admitted in court today that those documents were false.
According to court documents, Lee had created fictitious accounts receivable and financial statements, and doctored New World Group’s actual bank statements to show non-existent, high-dollar transactions that never took place. During the course of his fraud scheme, Lee also created a fictitious intermediary—a purported employee of New World Group—in order to account for delays in Lee’s communications with First National Bank.
In the spring of 2018, First National Bank issued a demand letter for the $1.6 million loan to New World Group. New World Group never completed any payments to First National Bank, which requested that EXIM cover the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee is scheduled to be sentenced on May 12, 2021. He faces a maximum penalty of 20 years in prison for wire fraud and 30 years in prison for making false statements to a federally insured bank. 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 Jennifer Fain, Acting Inspector General for the Export-Import Bank of the United States, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin G. Cooke are prosecuting the case.
This matter was investigated by the EXIM Office of Inspector General (OIG). EXIM is the official export credit agency of the United States and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to EXIM programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
A copy of this press release is located on the website of the 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-2.
EDVA and FBI Affirm Commitment to Ensuring Peaceful InaugurationRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia and the FBI affirmed their commitment today to holding accountable anyone who, in connection with tomorrow’s presidential inauguration, commits acts of violence or otherwise violates federal law in the Eastern District of Virginia, including at the Virginia State Capitol in Richmond.
“While the First Amendment protects the right of individuals to assemble peaceably, it does not provide safe harbor to those who engage in repugnant and destructive behavior to violently attack our Nation’s democracy,” said Raj Parekh, Acting United States Attorney for the Eastern District of Virginia. “Our office—in partnership with federal, state, and local law enforcement—will thoroughly investigate and prosecute those who commit violence, destroy property, or threaten others in violation of federal law. For anyone who is contemplating traveling from EDVA to D.C. to engage in criminal acts during tomorrow’s inauguration events, know that we stand united and will assist our counterparts in the District of Columbia to ensure a peaceful inauguration. Likewise, for those considering traveling to the Virginia State Capitol to engage in criminal activity, EDVA, the FBI, and our law enforcement partners will act quickly to seek justice and hold you accountable.”
The FBI is the lead federal agency for intelligence analysis and dissemination to law enforcement partners, counterterrorism, and crisis management for the inauguration. “FBI agents, analysts, and professional staff are working around the clock with our partners to identify, investigate, and respond to any threats that might arise in the National Capital Region,” said Steven M. D’Antuono, Assistant Director in Charge of the Washington Field Office. “While the FBI respects the rights of individuals to peacefully exercise their First Amendment rights, those who wish to use this freedom to instigate violent and destructive behavior will not be tolerated and will be held to account for their unlawful actions.”
If you have any information, tips, or digital media depicting rioting or violence at the U.S. Capitol Building or its surrounding area, please visit fbi.gov/USCapitol or call 1-800-CALL-FBI. If you have any information about unlawful activity in or around Virginia’s State Capitol Building, please contact FBI’s Richmond Field Office at 804-261-1161.
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, David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk 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.
Operator of Indian Robocall Scam Pleads Guilty to Defrauding over 4,000 U.S. Victims Out of More Than $8 MillionRead the Press Release
RICHMOND, Va. – An Indian national pleaded guilty today to conspiracy and identity theft in connection with his operation of an overseas robocall scam that defrauded thousands of mostly elderly victims of at least $8 million.
According to court documents, Shehzadkhan Pathan, 39, 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 officers 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 as initial installments for falsely promised loans.
In addition to operating the call center, Pathan recruited and supervised several money mules who he directed to receive money sent by victims. Pathan’s network of money mules was located in multiple states, including but not limited to Virginia, New Jersey, Minnesota, Texas, California, South Carolina, and Illinois. Pathan assigned various aliases to these individuals and supplied them with hundreds of counterfeit identification documents to facilitate their receipt of victim cash shipments and money transfers. Pathan then directed the money mules to send the money to himself and other conspirators through various means, including cash deposits into numerous bank accounts and via informal money transmitters known as Hawalas.
Pathan’s scams disproportionately targeted elderly victims, many of whom suffered substantial financial hardship. In total, Pathan is responsible for defrauding over 4,000 U.S. victims of at least $8 million.
Pathan is scheduled to be sentenced on May 14, 2021. He faces a maximum penalty of 20 years in prison for the conspiracy, along with a mandatory consecutive term of two years in prison for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
G. Zachary Terwilliger, 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 R. Hood and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.
Former DMV Program Manager Sentenced for Bribery ConspiracyRead the Press Release
RICHMOND, Va. – A former Virginia Department of Motor Vehicles (DMV) employee was sentenced today to 28 months in prison for his role in a seven-year bribery conspiracy involving the DMV’s Virginia Rider Training Program (VRTP).
According to court documents, Bruce A. Biondo, 64, of Mechanicsville, was the former Program Manager of the VRTP, and worked for the DMV from 1988 until 2018. Beginning in at least 2011 and continuing to March 2018, Biondo accepted bribes from outside contractors, including a $15,000 payment from the sham sale of a motorcycle in 2011, additional cash payments totaling over $74,000 between February 2014 and February 2018, as well as the use of a Ford F-450 pick-up truck for personal purposes. In exchange, Biondo performed official actions to benefit the preferred VRTP contractors who provided the bribes. In particular, Biondo used his official position to steer a lucrative contract and licenses to his conspirators.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Michael C. Westfall, Virginia State Inspector General; Colonel Gary T. Settle, Virginia State Police Superintendent; and Joseph Hill, DMV Assistant Commissioner for the Office of Enforcement and Compliance made the announcement after U.S. District Judge David J. Novak imposed the sentence.
Assistant U.S. Attorney Katherine Lee Martin and former Assistant U.S. Attorney David Maguire prosecuted 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. 3:20-cr-18.
Richmond Man Pleads Guilty to Attack on U.S. Postal WorkerRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to assaulting a longtime United States Postal Service city carrier who was delivering mail in the Gilpin Court neighborhood.
According to court documents, video surveillance captured Erriette Williams, 45, approach USPS city carrier J.B., grab a parcel key from him, and, after daring J.B. to pick up the parcel key, punch him in the face. The city carrier sustained lacerations to his face and later received medical attention.
Williams is scheduled to be sentenced on May 7, 2021. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorney Kenneth Simon, Jr. is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-79.
Man Sentenced for Illegally Straw Purchasing 17 FirearmsRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to one year and one day in prison for conspiring to illegally straw purchase 17 firearms.
According to court documents, Corey Randolph Harris, Jr., 27, conspired with an unnamed co-conspirator to knowingly make false statements with respect to the purchase of firearms. Between April 2019 and July 2019, Harris straw purchased 17 firearms in eight separate transactions, all from federal firearms licensees in the Eastern District of Virginia. In each transaction, Harris represented himself as the true buyer of the firearms when, in fact, he was purchasing them on behalf of the unnamed co-conspirator and selling them to the unnamed co-conspirator for a profit. The Metropolitan Police Department in Washington, D.C. recovered two of the firearms from individuals other than Harris and the unnamed co-conspirator.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
Assistant U.S. Attorney Natasha Smalky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-212.
U.S. Attorney G. Zachary Terwilliger Announces DepartureRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger today announced that he will step down from his post as U.S. Attorney for the Eastern District of Virginia (EDVA) effective 11:59 p.m. on January 15.
“It is with tremendous gratitude for the women and men of Team EDVA, our selfless federal, state, and local law enforcement partners, and my incredibly supportive family that I conclude my time in public service,” said Terwilliger. “It has been the honor of honors to be in the arena with so many dedicated individuals in the pursuit of justice, and I feel so fortunate to conclude my service as the United States Attorney in the district where it all began. To the people of the EDVA, thank you for the extraordinary opportunity to serve you. May you and your families have a safe, healthy, and productive 2021.”
Terwilliger’s tenure at EDVA will be remembered for his relentless efforts to increase public safety and security across the Commonwealth, as well as his commitment to the approximately 300 employees of the Eastern District whom he always referred to as “Team EDVA.”
Terwilliger directed significant resources towards combatting the opioid epidemic; developed a new illegal firearms trafficking initiative designed to thwart gun running in the DMV; worked tirelessly to further the District’s white-collar footprint by enhancing collaboration with DOJ’s Fraud Section; signed the first MOU with the new Special Inspector General for Pandemic Recovery; oversaw some of the most important national security cases in the country; was the embodiment of federal, state, and local law enforcement collaboration by regularly hosting and attending law enforcement roundtables and summits, including the Peninsula Violent Crime Summit in June 2019, and the Tri-Cities Violent Crime Summit in September 2019, where he oversaw transformational violent crime initiatives in both Richmond and the Tri-Cities (Petersburg, Colonial Heights, and Hopewell) areas; and frequently traveled the District to meet with police chiefs and sheriffs with a commitment to work hand and glove to provide support to their efforts.
Terwilliger began his career at EDVA as an intern in 1999, returned in 2005 as a summer law clerk, was appointed as a Special Assistant U.S. Attorney in 2008, and was hired as an Assistant U.S. Attorney in 2010. Terwilliger prosecuted numerous violent crime, fraud, organized crime, and human trafficking cases, and managed law enforcement task forces focusing on human trafficking and firearms. In addition to his prosecutorial duties, Terwilliger served as a counselor to former U.S. Attorney Neil H. MacBride, then served as a detailed AUSA and counsel to Senate Judiciary Chairman Senator Chuck Grassley. In January of 2017, Terwilliger, then a career prosecutor, was named co-lead of the Department of Justice Beachhead Team and helped to standup the Department during the first weeks of the new administration. Often working 20-hour days, Terwilliger provided critical support to components across the Justice Department as an Associate Deputy Attorney General in the Office of Deputy Attorney General (ODAG). He also supported the Attorney General, Deputy Attorney General, and had responsibility for oversight and collaboration with the Justice Department’s Criminal Division, as well as many other areas.
“I first met Zach when he arrived in the Deputy Attorney General’s office on January 20, 2017,” said Lee Lofthus, Assistant Attorney General for Administration, Department of Justice. “He hit the ground running and never stopped. Zach’s close work with Justice Department leadership and his teamwork with the Justice Management Division was outstanding.”
In May 2018, after nearly 18 months of service in ODAG including as Chief of Staff, Terwilliger was appointed as U.S. Attorney. With the support of Virginia’s two Democratic Senators, Mark Warner and Tim Kaine, Terwilliger was nominated by the President and in September 2018 was unanimously confirmed by the United States Senate as the 62nd United States Attorney for the Eastern District of Virginia.
In a joint statement, Senators Warner and Kaine said: “We were pleased to recommend Mr. Terwilliger to fill the role of U.S. Attorney for the Eastern District of Virginia. He has done critical work these past few years in the position, and we thank Mr. Terwilliger for his service to the Eastern District.”
Notably, Terwilliger supervised investigations into and secured charges or convictions in numerous internationally significant cases, including against two alleged ISIS militants charged with a hostage-taking scheme that led to multiple deaths of Americans in Syria; a Russian national charged with interfering in the U.S. political system; a former CIA officer convicted of espionage; MS-13 gang members charged in connection with multiple murders of juveniles; the extradition of a Senior Sinaloa Cartel leader to the U.S.; the trial conviction of a doctor who performed unnecessary and irreversible surgeries on women; a prolific firearms trafficker sentenced for illegally dealing over 200 guns; a former doctor sentenced for operating a pill mill that illegally distributed over 600,000 oxycodone pills; arrests of 35 defendants in Operation Cookout and recovery of enough fentanyl to potentially kill 14 million people; and corporate resolutions including an $850 million agreement with Petrobras, a $33 million agreement with Lumber Liquidators, a $46 million agreement with Hydro Extrusion Portland, Inc., a $137 million agreement with Walmart, and a $75 million agreement with Samsung Heavy Industries, among many others.
“On behalf of the women and men of ATF, I would like to express my sincerest appreciation to U.S. Attorney G. Zachary Terwilliger for his unwavering support of ATF’s mission – protecting the public from violence in our communities and enforcing federal firearms laws,” said Regina Lombardo, Deputy Director of ATF. “U.S. Attorney Terwilliger has been an active member of ATF’s Crime Gun Intelligence Governing Board; he understands the value of using technology and science to identify and prosecute criminals who use firearms to terrorize communities and kill innocent people. U.S. Attorney Terwilliger has been a driving force behind the Department of Justice’s Project Guardian initiative, promoting enhanced intelligence collection, information sharing, and coordinated responses necessary to address gun violence. As a United States Attorney, his work epitomizes true leadership and public service, and it was my honor to present him with the ATF Director’s Award this year. U.S. Attorney Terwilliger’s partnership with ATF’s Washington Field Division has been nothing short of extraordinary, and the Eastern District of Virginia is a safer place because of him. I sincerely wish him all the best in his next endeavor. He has my utmost respect.”
Under Terwilliger’s leadership, EDVA saw an increase in the number of criminal defendants charged in 2018 and 2019, going from 924 in 2017 to 1,029 in 2018, and to 1,091 in 2019.
“Our approach was to fish with a spear, not a net,” said Terwilliger. “Meaning it was not about mass arrests, but about strategically using federal resources to arrest those repeat and violent offenders that commit a disproportionate amount of violent crime and who have already had multiple opportunities at the state level.”
Leveraging EDVA’s strong partnerships with federal, state, and local law enforcement, during Terwilliger’s first full fiscal year after being confirmed by the U.S. Senate in September 2018, EDVA increased by over 18 percent the number of defendants charged with public safety and violent crime offenses, including cases involving the Organized Crime and Drug Enforcement Task Force (OCDETF), Project Guardian, Project Safe Neighborhoods, Project Safe Childhood, and/or other violent crimes.
“U.S. Terwilliger showed extraordinary commitment as a partner in the efforts to rid the City of Petersburg of dangerous criminals and change the lives of our citizens who lived in constant fear,” said Travis Christian, Chief of Petersburg Bureau of Police. “His efforts were not just conversations from an office. He helped put actual boots on the ground here in Petersburg. He traveled to the city, walked the streets and met with citizens, and ensured them that he was committed to providing the city with the necessary resources to restore peace and comfort back into our communities. As a result, U.S. Attorney Terwilliger helped remove from the streets some of Petersburg’s most dangerous criminals and prevented them from continuing to bring harm and danger to our city. His effort is representative of the team of true professionals at EDVA that have proven to be invaluable to the safety of the citizens of the City of Petersburg, Commonwealth of Virginia, and the United States of America.”
Under Terwilliger’s leadership, the civil litigation practice in EDVA has achieved significant and numerous successes, including a final Judgement and Permanent Injunction against former CIA employee Edward Snowden; the Justice Department’s largest ever settlement against a property management company for Alleged Violations of Servicemembers Civil Relief Act; an Americans with Disabilities Act (ADA) settlement agreement with a durable medical equipment company which operates approximately 800 centers in 48 states; and the establishment of a new Civil Rights Enforcement Unit at EDVA, which is the first at a U.S. Attorney’s Office nationwide to have multiple Assistant U.S. Attorneys 100 percent dedicated to enforcing the rights of persons with disabilities under the Americans with Disabilities Act (ADA). For Terwilliger, who overcame severe dyslexia to become a successful student, the establishment of a unit focused on disability rights was a goal from Day One.
Terwilliger invested heavily in filling the attorney ranks across EDVA with accomplished and seasoned lawyers from a diversity of educational and familial backgrounds and welcomed nearly 60 Assistant U.S. Attorneys and long-term Special Assistant U.S. Attorneys in his approximately 32 months as U.S. Attorney. Terwilliger also showed a strong commitment to diversity across EDVA, building the most diverse supervisory team in EDVA history with unprecedented numbers of minorities and women serving in senior management.
“We are pleased to see Mr. Terwilliger’s commitment to pursuing diversity across the attorney ranks in EDVA, ensuring that the office reflects the communities they serve,” said Jane Reynolds, member of the Old Dominion Bar Association. “He has been a thoughtful and dedicated partner, and we are thankful for his continued support of ODBA. We wish Mr. Terwilliger and his family the very best.”
Upon Terwilliger’s departure, Raj Parekh, a career federal prosecutor and EDVA’s First Assistant U.S. Attorney, will serve as Acting U.S. Attorney. Parekh will become the first Indian-American and minority in the 232-year history of the Office to serve as EDVA’s U.S. Attorney (acting or otherwise).
“Lest there be any doubt, the accomplishments above are a credit to the amazing women and men of EDVA and our partner agencies,” said Terwilliger. “I am so humbled to have had the privilege to work alongside them.”
After a brief transition period and a few days off, Terwilliger will be joining Vinson & Elkins LLP as a partner in its Washington, D.C. office.
Terwilliger’s biography and high-resolution photo can be found here.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Cuban Credit Card Skimming Crew Sentenced to PrisonRead the Press Release
NORFOLK, Va. – Six Cuban nationals have been sentenced, including the leader of the crew, for conspiracy to commit bank fraud and aggravated identity theft.
According to court documents, the six conspirators placed skimming devices on gas pumps located in Northampton County within the Eastern District of Virginia. The skimming devices were capable of recording the credit and debit card numbers, along with their PINs, of the customers that used their cards at the gas pumps. In April and May 2018, using the stolen card information, the defendants traveled between Harris Teeter store locations, among other destinations, to withdraw money from the victims’ bank accounts and purchase prepaid gift cards.
In addition, many of the conspirators had significant criminal histories involving the same conduct and were known to travel the country perpetrating this scheme. The leader of the crew, Yasmani Granja Quijada, was found to be trading over 9,800 additional stolen credit card numbers using his email account over the past few years. The crew was attributed with aggregate losses of over $5,000,000 over several years. The FBI and U.S. Marshals Service seized numerous vehicles and other items that were purchased by the defendants with funds stolen through credit cards, including a 2006 Triton 2895CC Boat and trailer, a 2017 Ford F250 Super Cab truck, a 2016 Cruise Radiance Travel Trailer RV, a 2017 Ford Escape SUV, a 2017 Maserati Ghibli, and a 2013 Porsche Panamera. Several other conspirators remain at large and are believed to be living in Mexico.
Below is a table that lists the name, age, hometown, respective charge(s) for which each defendant was convicted, and the sentence he received:
Name (Age)
Hometown
Charge(s)
Sentence (Date)
Yasmani Granja Quijada (33)
South Miami, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
120 months (01/04/2021)
Luis Miguel Fernandez Cardente (29)
Miami, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
64 months (12/14/2020)
Jorge Bello Fuentes (31)
Homestead, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
60 months (07/17/2020)
Guillermo Bello Fuentes (34)
Miami, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
47 months (08/28/2020)
Pedro Emilio Duran (40)
Miami, FL
Conspiracy to Commit Bank Fraud
30 months (07/31/2020)
Yariel Monsibaez Ruiz (29)
Hialeah, FL
Conspiracy to Commit Bank Fraud
19 months (08/28/2020)
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David L. Doughty, Jr., Northampton County Sheriff; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.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. 2:19-cr-109.
Violent Felon and Sex Offender Pleads Guilty to Firearms ChargesRead the Press Release
NORFOLK, Va. – A man previously convicted of numerous violent felonies and who is a registered sex offender pleaded guilty today to being a felon in possession of a firearm and possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Edward Jamaal Taylor, 38, of Suffolk, was arrested based on evidence that he had allegedly assaulted and kidnapped at gunpoint a witness in a federal drug-trafficking case. Police officers then searched Taylor’s car and recovered a handgun equipped with a laser sight and loaded with a large-capacity magazine, which matched the victim’s description of the firearm used in the abduction. The officers also recovered eight ounces of marijuana and a double-bladed knife from the car. After his arrest, Taylor admitted to owning the gun, possessing the drugs with intent to distribute them, and “possibly hitting” the victim while “recklessly waiving his gun around” during an argument, after which he “assisted” the victim to two different locations.
Taylor has seven convictions for violent felonies, including two for robbery, two for possessing a firearm in connection with a felony offense, two for abduction, and one for rape.
Taylor is scheduled to be sentenced on April 16, 2021. He faces a mandatory minimum sentence of five years and a maximum 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Al Chandler, Interim Chief of Suffolk Police; and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Assistant U.S. Attorneys William B. Jackson and William D. Muhr are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-93.
Three Men Convicted for Roles in 2018 Fairfax MurderRead the Press Release
ALEXANDRIA, Va. – Three Virginia men have pleaded guilty to their respective roles in drug-related murder in 2018 in Fairfax.
Charles Anthony Forbes, 30, of Reston, pleaded guilty today to using a firearm to commit a drug-related murder. In March, Fredy Fabian Alfaro, 36, of Reston, and Jimmie Marcel McCray, 36, of Sterling, pleaded guilty to aiding and abetting the murder, and to conspiring to distribute marijuana.
According to court documents, from January through April of 2018, Alfaro had conspired with the victim, Michael Cooker, and others to ship marijuana from California and sell it in Northern Virginia. In April 2018, Alfaro and Cooker had a dispute over the conspiracy’s profits. On the night of April 17, 2018, Alfaro and Cooker continued their dispute through a series of electronic phone messages. In the early morning of April 18, 2018, Alfaro called McCray and offered him compensation to physically harm Cooker. Alfaro’s motive was his dispute with Cooker over the drug conspiracy. McCray then contacted Forbes and told him that Alfaro had offered remuneration to physically harm Cooker.
Around this same time, Cooker, McCray, Forbes, and another individual had been spending time together in Herndon. Around 6 a.m. on April 18, 2019, Cooker, McCray, Forbes, and the other individual drove in two separate vehicles to Chantilly. There, McCray provided Forbes with a Smith & Wesson revolver. Forbes and Cooker then left the area in one of the vehicles. Forbes drove Cooker to a wooded road in Fairfax Station. Around 6:30 a.m., Forbes pulled over to the side of the road and shot Cooker twice in the head, killing him. Forbes drove away, leaving Cooker’s body there.
On November 6, Alfaro was sentenced to a total of 21 years in prison, and McCray was sentenced to 20 years in prison. Forbes faces a maximum term of life in prison when he is sentenced on April 9, 2021.
G. Zachary Terwilliger, 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; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Michael P. Ben’Ary, Marc J. Birnbaum, and Rachael C. Tucker are prosecuting the case.
This case was investigated by the Fairfax County Police Department, in partnership with the FBI, Washington Field Office’s Northern Virginia Violent Crime Task Force. The task force, consisting of FBI Agents and Task Force Officers from Northern Virginia law enforcement departments, work to investigate, identify and seek prosecution against the most violent and egregious offenders in the region.
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-260.
Man Convicted of Carnal Knowledge of Child Sentenced for Illegal ReentryRead the Press Release
RICHMOND, Va. – A Montross man was sentenced today to two years in prison for illegally reentering the U.S. following removal due to an aggravated felony conviction of carnal knowledge of a child.
According to court documents, Jose Francisco Zepeda-Reyes, 31, lawfully entered the U.S. as the child of a lawful permanent resident. In 2011, at 20 years of age, Zepeda-Reyes was convicted in Essex County of carnal knowledge of a child between 13 and 15 years of age. He was sentenced to five years in prison, with four years and three months suspended, and deported after completing his active sentence. On an unknown date thereafter, Zepeda-Reyes illegally reentered the country and began residing in Montross.
In 2019, U.S. Immigration and Customs Enforcement (ICE) received information that Zepeda-Reyes had illegally returned to the U.S., which led to his arrest. After being prosecuted by authorities in Westmoreland County for failing to register as a sex offender, he was turned over to federal authorities for prosecution relating to the instant illegal reentry offense.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Shawn Byers, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorney Brian 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. 3:19-cr-142.
Gang Member Sentenced to over 12 Years for Drug and Gun CrimesRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 12 1/2 years in prison for distributing crack cocaine and possessing a firearm in furtherance of his distribution of heroin.
According to court documents, Baron Thomas, 35, a member of the Rollin’ 20s gang, was engaged in the distribution of cocaine, cocaine base, heroin and marijuana in Hampton and elsewhere on the Virginia Peninsula. While Thomas was dealing these narcotics, he was frequently in possession of firearms. Thomas and his co-defendant, Julian Rashko, would also distribute heroin and other narcotics from Thomas’ residence in Hampton.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Brim Reaper. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to the federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principle mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-80.
Drug Dealer Sentenced for Role in Fatal Fentanyl OverdoseRead the Press Release
ALEXANDRIA, Va. – A Clifton man was sentenced today to 28 months in prison for brokering a drug deal that resulted in a fatal overdose on fentanyl, a dangerous and potent synthetic opioid.
According to court documents, Tyler Lee Huston, 28, was a distributor of heroin and fentanyl, and had at least six customers in Northern Virginia. He bought drugs, both for redistribution and for personal use, from Peter Romm, a drug dealer in Reston. Huston profited by redistributing drugs from Romm at a markup. Huston also received free heroin or fentanyl from Romm for introducing customers to Romm and brokering drug transactions.
One such customer was N.G. On the night of Oct. 7, 2019, N.G. picked up Huston and drove to Romm’s residence, where Huston bought fentanyl from Romm to give to N.G. and to use himself. Later that night, N.G. consumed the fentanyl and fatally overdosed. The cause of N.G.’s death was ruled to be acute fentanyl poisoning.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh and Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-95.
Man Pleads Guilty to Conspiracy to Distribute Meth on the DarknetRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to conspiracy to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
According to court documents, from about May 2019 through about Nov. 4, 2019, Dat Nguyen, 35, conspired to distribute peach tablets advertised as Adderall, but in fact containing methamphetamine, nationwide through the U.S. mail. Nguyen used the moniker “addy4cheap” on darknet markets, the Empire Market and Cryptonia. Between August 2019 and December 2019, law enforcement agents conducted 20 controlled purchases from “addy4cheap” on both markets for a total of 767 peach tablets received weighing approximately 268 grams total.
On Dec. 9, 2019, search warrants were executed at co-conspirators’ residences including the home of Lien Kim Thi Phan and Tyler Pham and the home of Hon Lam Luk. In the home of Phan and Pham, agents found 95 peach tablets, and in Luk’s residence, investigators found over 6,000 peach tablets weighing approximately 2.2 kilograms, all of which resembled those advertised on “addy4cheap” and those received by law enforcement through controlled purchases.
As of Dec. 10, 2019, “addy4cheap” had completed 3,665 sales on the Empire Market and received 2,568 reviews. Based on these reviews, “addy4cheap” had received approximately $482,572.10 in sales for an approximate 44,872 pills sold. As of Nov. 7, 2019, “addy4cheap” had fulfilled 140 transactions on Cryptonia.
Nguyen’s five co-conspirators all previously entered guilty pleas in connection with the conspiracy. One co-conspirator remains a fugitive.
Nguyen is scheduled to be sentenced on March 23, 2021. He faces a mandatory minimum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, 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; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Bibeane Metsch and Jay V. Prabhu are prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-265, and related cases 1:20-cr-24, 1:20-cr-29, 1:20-cr-32, 1:20-cr-155, 1:20-cr- 266and 1:19-mj-548.
Illegal Alien Sentenced After Fourth Illegal Reentry into U.S.Read the Press Release
ALEXANDRIA, Va. – A citizen of El Salvador was sentenced today to 21 months in prison and 2 years of supervised release for illegal reentry into the U.S. after removal subsequent to a conviction for an aggravated felony.
According to court documents, Giovanni Omar Medrano-Urrutia, 41, reentered the U.S. after having been removed on four prior occasions between 2005 and 2018. Medrano-Urrutia’s criminal history spans two decades in the U.S. Notably, in January 2000, he was convicted of the aggravated felony of carnal knowledge of a child in Fairfax County. Additionally, on Jan. 28, 2008, and Jan. 12, 2018, respectively, Medrano-Urrutia was convicted of illegal reentry.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Shawn Byers, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Special Assistant U.S. Attorney Viviana Vasiu 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-179 and Case No. 1:17-cr-206.
Former D.C. Government Employee Sentenced for Distributing FentanylRead the Press Release
ALEXANDRIA, Va. – A former Washington, D.C. government employee with a prior murder conviction was sentenced today to 63 months in prison for distributing fentanyl and illegally possessing multiple firearms.
According to court documents, while employed in the Permitting Department of the D.C. Department of Consumer and Regulatory Affairs (DCRA) in Southwest D.C., Darrell Marcellus Pope, 51, of Clinton, Maryland, regularly sold fentanyl to customers in front of his office building. The DCRA is located within 1,000 feet of Amiden Bowen Elementary School. Over the course of the investigation, Pope sold a total of 87 grams of fentanyl—more than 43,000 potentially lethal doses—to an undercover law enforcement officer and a confidential source.
Pope had a broad network of customers, including several who lived in the Eastern District of Virginia. One of Pope’s customers, identified in court documents as A.D., regularly traveled from Woodbridge to buy heroin and fentanyl from Pope. On March 14, 2019, Pope sold drugs to A.D., who brought them back to Woodbridge. The drugs that Pope sold to A.D. ultimately contributed to the fatal overdose of a Lake Ridge woman.
When Pope was arrested in September 2019, law enforcement executed search warrants at his home and office. In his residence, agents seized three firearms, which Pope is prohibited from possessing because of his prior felony conviction. Also when he was arrested, law enforcement identified Pope’s fentanyl supplier, Ronald Gorham, whom Pope met when both Pope and Gorham were both serving prison sentences for unrelated murder convictions.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Jarad L. Phelps, Acting Chief of Prince William County Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Assistant U.S. Attorney Katherine E. Rumbaugh 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-355.
Man Sentenced for Producing Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Keswick man was sentenced today to 22 years in prison for his role in producing images of child sexual abuse and attempting to meet a minor for sex.
According to court documents, in 2019, Bryan Wesley Petitt, 33, engaged in sexually explicit communications with an undercover agent he believed to be a 14-year-old minor. Petitt drove from Charlottesville to military housing in Norfolk in order to engage in sex with the girl. Upon his arrest, law enforcement officers discovered images of child sexual abuse on his phone. Investigators later learned that Petitt produced one of the images.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
Special Assistant U.S. Attorney Matthew Heck 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-16.
Gang Member Pleads Guilty to Firearm CrimesRead the Press Release
NORFOLK, Va. – A Suffolk man pleaded guilty today to possessing a firearm while an unlawful user of controlled substances and possessing a firearm in furtherance of drug-trafficking crimes.
According to court documents, Antonio Lamon Jefferson, Jr., 25, is a member of the Suffolk-based street gang YNGI. YNGI members have been involved in a string of recent shootings. Jefferson has been arrested three times since April 2019 for possessing more than five pounds of marijuana, a rifle, multiple handguns, and about $35,000 in cash. Jefferson has been arrested twice at residences he used as drug premises—storing, packaging, and selling marijuana, hoarding drug proceeds, and arming himself at those locations to protect his drug trade. At one residence, he was armed with a handgun that had been reported stolen.
Jefferson is scheduled to be sentenced on April 2, 2021. He faces a mandatory minimum of five years in prison and a maximum 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department reinvigorated PSN in 2017 as part of a renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Al Chandler, Interim Chief of Suffolk Police; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge John A. Gibney Jr. accepted the plea.
Assistant U.S. Attorney William B. Jackson 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. 2:20-cr-65.
Former Police Officer Sentenced to Prison for Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A former Hampton police detective was sentenced today to six years in prison for conspiring to distribute more than 500 grams of cocaine.
According to court documents, Deangelo Freeman, 32, conspired with local drug dealers while he was a detective in the Special Investigations Unit of the Hampton Police Division. Specifically, Freeman was associated with a number of individuals who were selling large quantities of cocaine. These individuals included Alex Burnett who owned 9Rounds Gym in Hampton Town Center. Freeman admitted to providing information to Burnett about an ongoing federal criminal investigation. Freeman learned of this information while serving as a narcotics detective and participating in the investigation of Burnett. The information provided by Freeman included the identity of a confidential informant. Freeman provided the information to compromise the investigation and to help Burnett’s drug distribution activities.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-111.
U.S. Attorneys, DEA Launch Website to Combat Stigma of Substance Use DisorderRead the Press Release
ALEXANDRIA, Va. – Federal law enforcement leaders in the Commonwealth of Virginia today announced the launch of www.storiesoverstigma.com to fight back against the silent health epidemic of substance use disorder.
“Our hope is that through this website we will empower Virginians to share their buried stories of substance use disorder,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Unfortunately, the stigma that historically accompanies this disease often silences family and friends of the deceased. Those who succumb to substance use disorder are our loved ones: our parents, our sons and daughters, sisters and brothers, and friends. They deserve to have their stories told, free from shame and without stigma.”
Virginia’s Office of the Chief Medical Examiner reports that fatal drug overdose has been the leading method of unnatural death in Virginia since 2013.
“We must work together to do all we can to stem the flow of opioids in our communities and the addiction and death they can cause,” said Daniel P. Bubar, Acting U.S. Attorney for the Western District of Virginia. “This website is a major step toward encouraging individuals across Virginia to join together and tell their stories as we seek to remove the stigma of substance use disorder. I thank our colleagues in the Eastern District for inviting our participation in making sure these important stories are told.”
The website will allow those who have a family member whose life has been tragically cut short by substance use disorder, to share their story through the power of social media. Five families who lost their loved ones to substance use disorders have provided details about what happened in the hopes of turning those tragedies into life-saving conversations and lessons for others. The platform, in turn, allows others across Virginia to add to the story and let others know they are not alone in this ongoing fight to save lives.
The U.S. Attorney’s Offices in the Eastern and Western Districts of Virginia, together with the DEA and other law enforcement partners, is continuing to work with countless families and advocates to raise awareness and change the false narrative that substance use disorder is a choice. Through this joint effort, the federal partners and others behind this effort are hoping to change the conversation.
Towards that goal, #StoriesOverStigma is a social activation that allows people in recovery and family members who have lost a loved one to share their stories and change the conversation. The website is aimed at educating others about the dangers of substance use disorders, to start lifesaving conversations with our youths and loved ones, and emphasizes that there is hope for those who need help.
Visit www.storiesoverstigma.com to join the conversation and submit your story.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorneys, DEA Launch Website to Combat Stigma of Substance Use DisorderRead the Press Release
ALEXANDRIA, Va. – Federal law enforcement leaders in the Commonwealth of Virginia today announced the launch of www.storiesoverstigma.com to fight back against the silent health epidemic of substance use disorder.
“Our hope is that through this website we will empower Virginians to share their buried stories of substance use disorder,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Unfortunately, the stigma that historically accompanies this disease often silences family and friends of the deceased. Those who succumb to substance use disorder are our loved ones: our parents, our sons and daughters, sisters and brothers, and friends. They deserve to have their stories told, free from shame and without stigma.”
Virginia’s Office of the Chief Medical Examiner reports that fatal drug overdose has been the leading method of unnatural death in Virginia since 2013.
“We must work together to do all we can to stem the flow of opioids in our communities and the addiction and death they can cause,” said Daniel P. Bubar, Acting U.S. Attorney for the Western District of Virginia. “This website is a major step toward encouraging individuals across Virginia to join together and tell their stories as we seek to remove the stigma of substance use disorder. I thank our colleagues in the Eastern District for inviting our participation in making sure these important stories are told.”
The website will allow those who have a family member whose life has been tragically cut short by substance use disorder, to share their story through the power of social media. Five families who lost their loved ones to substance use disorders have provided details about what happened in the hopes of turning those tragedies into life-saving conversations and lessons for others. The platform, in turn, allows others across Virginia to add to the story and let others know they are not alone in this ongoing fight to save lives.
The U.S. Attorney’s Offices in the Eastern and Western Districts of Virginia, together with the DEA and other law enforcement partners, is continuing to work with countless families and advocates to raise awareness and change the false narrative that substance use disorder is a choice. Through this joint effort, the federal partners and others behind this effort are hoping to change the conversation.
Towards that goal, #StoriesOverStigma is a social activation that allows people in recovery and family members who have lost a loved one to share their stories and change the conversation. The website is aimed at educating others about the dangers of substance use disorders, to start lifesaving conversations with our youths and loved ones, and emphasizes that there is hope for those who need help.
Visit www.storiesoverstigma.com to join the conversation and submit your story.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Serial Fraudster Sentenced for Counterfeit Check SchemeRead the Press Release
NEWPORT NEWS, Va. – A transient man who formerly resided in various hotels across Virginia was sentenced today to 57 months in prison for defrauding a financial institution and possessing counterfeit business checks.
According to court documents, Michael Culpeper, 44, defrauded financial institutions and other businesses by creating and using counterfeit checks to obtain U.S. currency and buy goods and services. Culpeper has an extensive criminal history, encompassing numerous prior felony convictions, most of which involve similar conduct.
In January 2015, Culpeper rented a hotel room owned and operated by a Roanoke business. At the end of the rental period, the hotel refunded his security deposit with a check drawn on its business account. Culpeper subsequently used the names, addresses, and bank information from this refund check to create counterfeit and fraudulent checks. Between November 2015 and January 2017, Culpeper negotiated these counterfeit checks at least 16 times. At the time of his arrest, he had 141 more counterfeit checks.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorneys Howard J. Zlotnick and D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-44.
Man Sentenced to Prison for Mail Fraud and ID Theft SchemeRead the Press Release
NEWPORT NEWS, Va. – A New York man who formerly resided in Newport News was sentenced today to three years in prison for a mail fraud and identity theft scheme.
According to court documents, Christopher A. Phillips, 25, stole mail from unwitting victims and used personal information from that mail to open new bank accounts and lines of credit in their name. He next used mail-tracking services and techniques such as following mail routes to ensure he retrieved the new means of account access before the victims. Phillips then repeatedly purchased goods and services using the accounts he had opened in the victims’ names, resulting in a total loss of approximately $35,000.
As a result of Phillips’ scheme, investigators identified at least 12 victims of identity theft across Isle of Wight, Southampton, and Sussex Counties. At the time of his arrest, investigators recovered significant quantities of stolen mail and electronic devices with more suspected victims.
G. Zachary Terwilliger, 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; James R. Clarke, Jr., Sheriff, Isle of Wight County; Josh Wyche Sr., Sheriff, Southampton County; and Earnest L. Giles, Sheriff, Sussex County, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney D. Mack Coleman 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-30.
Former “First Lady” of Alexandria Church Pleads Guilty to Money LaunderingRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman pleaded guilty today to money laundering in connection with a scheme to defraud members of a Christian organization.
According to court documents, Brenda Millender, 60, was the wife of Pastor Terry Millender and the First Lady of Victorious Life Church in Alexandria. Terry Millender created a company called Kingdom Commodities Unlimited (KCU), which marketed itself as a Christian organization that was looking for investors to provide financing to help facilitate and broker Nigerian oil sales. Individual investors provided money to Terry Millender from 2013 to 2016 based on his false and fraudulent representations about how their money would be used, as well as material omissions about how funds would be disbursed.
Millender had access to various KCU bank accounts and she received cash from those accounts which had the effect of concealing the source and use of those funds. In some cases, checks written from KCU accounts had false and misleading descriptions on the memo lines, such as referencing the repayment of loans or office expenses, when in fact the person receiving the check had not loaned any money to KCU, was not an investor to KCU, and was not involved in KCU's operations.
Millender is scheduled to be sentenced on April 21, 2021. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; 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 U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Jamar K. Walker and Kimberly R. Pedersen 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. 1:16-cr-239.
Convicted Felon Sentenced for Possessing Firearms During Civil UnrestRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced today to 54 months in prison and 2 years supervised release for his possession of an assault rifle, handgun, ballistic vest, and eight magazines of ammunition after leaving the Robert E. Lee Monument during civil unrest here on June 12.
According to court documents, Matthew Lee Frezza, 37, of Chesterfield, possessed an assault rifle and handgun during the course of a traffic stop during civil unrest. The incident started when Richmond Police Department (RPD) officers observed a caravan of three trucks driving recklessly in the vicinity of the Robert E. Lee Monument. Based on this reckless driving, RPD officers executed a traffic stop on one of the pickup trucks at the intersection of Old Mill Road and Boatwright Road in the city of Richmond. Upon approaching the truck, RPD officers observed three occupants inside, with an individual later identified as Frezza in the front passenger seat of the truck. RPD officers further observed all three occupants of the truck armed with firearms, including assault rifles.
Based on the firearms and the vehicles prior presence at the Robert E. Lee Monument, RPD Officers requested the three occupants step out of the truck. As Frezza exited the truck, RPD officers took an assault rifle from his possession, removed a handgun and two clips from a holster on his thigh, and removed a ballistic vest from his body that contained six rifle magazines with ammunition. On the scene, RPD Officers determined that Frezza was a convicted felon and placed him under arrest. The firearm possessed by Frezza was a Taurus, Model G3, 9mm caliber, semi-automatic pistol. The assault rifle possessed by Frezza was later determined to be a homemade rifle without a serial number, which contained a loaded, high-capacity magazine.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; William C. Smith, Chief of Richmond Police; and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Eric S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-78.
Prince William County Man Sentenced for Selling FentanylRead the Press Release
ALEXANDRIA, Va. – A Prince William County man was sentenced today to 18 months in prison for selling fentanyl.
According to court documents, between February 2019 and May 2019, Keith Issiah Slade, 46, and a co-defendant, sold fentanyl in and around the Eastern District of Virginia. They would obtain the fentanyl in Baltimore, Maryland and traffic it into Virginia. One of their customers was Individual 1, to whom they sold at least 55 capsules containing heroin/fentanyl. In May 2019, Individual 1 consumed fentanyl provided to her by Slade and the co-defendant. She was later found deceased, and the cause of death was ruled to be mixed drug intoxication. Individual 1 had numerous substances in her system, including fentanyl.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston.
Special Assistant U.S. Attorney Karolina Klyuchnikova and Assistant U.S. Attorney Bibeane Metsch 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-224.
Man Pleads Guilty to Fraud Conspiracy Targeting Virginia ABC StoresRead the Press Release
NEWPORT NEWS, Va. – A Norfolk man 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 debit and credit card numbers.
According to court documents, Tyrell Jackson, 44, joined together with three other men to defraud Virginia ABC stores by using debit and credit cards re-encoded with the stolen financial information of identity theft victims. Investigators have identified 20 direct victims of identity theft from Jackson’s role in the conspiracy, and at least 82 victims of the broader conspiracy.
Jackson is scheduled to be sentenced on March 24, 2021. 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 two 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.
G. Zachary Terwilliger, 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 plea.
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.
Businessman Pleads Guilty to Paycheck Protection Program FraudRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to bank fraud by submitting a fraudulent application for a Paycheck Protection Program (PPP) loan, and then using the loan proceeds for his own personal benefit, including making large cash withdrawals and travel to Las Vegas.
According to court documents, Scott Suber, 39, submitted to Celtic Bank a fraudulent application for a loan under the PPP, a program instituted by Congress in an effort to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees. In the application, it was falsely represented that Suber’s business, Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000. In support of the fraudulent application, a false Form 941, Employer’s Quarterly Federal Tax Return was submitted, claiming that the business had quarterly wages of $420,000 and federal tax withholding of $36,620. These figures were completely false and fabricated. In addition, Suber submitted a bank statement with an altered date in support of the application.
Celtic Bank approved and funded a PPP loan for the business in the amount of $350,000 and transferred the funds to an account Suber maintained in the name of Debris or Not Debris Property Preservation, Inc. at Wells Fargo Bank. In the loan application, it was stated that Debris or Not Debris Property Preservation, Inc. would use the loan proceeds for business related purposes, such as the costs of payroll, lease, and utilities. Instead, Suber used the proceeds for his own personal benefit, including making large cash withdrawals and travel to Las Vegas, and making non-business related payments to a number of individuals.
Suber is scheduled to be sentenced on May 4, 2021. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard 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. 2:20-cr-110.
YouTube Video Leads to Prison Sentence for Convicted FelonRead the Press Release
ALEXANDRIA, Va. – A previously convicted felon was sentenced today to 18 months in prison and three years of supervised release after he appeared in a video posted to YouTube while in possession of a firearm.
According to court documents, Najee Lewis, 23, of Stafford, unlawfully possessed a stolen 9mm Ruger pistol while appearing in a music video. At the time, Lewis knew he was a convicted felon and was prohibited from possessing the firearm.
Lewis previously was convicted in Prince William Circuit Court of two separate felony robbery offenses that had occurred two days apart. He was subsequently sentenced at the same time for both offenses. In May 2018, Lewis was released from incarceration for these robbery convictions and began a 10-year term of supervised probation. Less than four months after his release from incarceration, while still on supervision in Virginia, the video showing Lewis with a firearm was posted to YouTube. In April 2018, the firearm was reported stolen, and it was later recovered in October 2019.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
Special Assistant U.S. Attorney Christian Levesque 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-128.