Eastern District of Virginia
Press releases recorded for this federal judicial district.
Former Tidewater Businessman Sentenced for Tax and Fraud CrimesRead the Press Release
NEWPORT NEWS, Va. – A North Carolina man was sentenced today to more than 12 years in prison for conspiracy to defraud the United States, tax fraud related to a fraudulent tax shelter, mail and wire fraud and money laundering.
According to court records and evidence presented at trial, Byron Hale Delavan, 63, of Asheville, engaged in a fraudulent tax and investment fraud scheme from approximately 2011 to 2017 that resulted to individual victims of over $1.1 million and a separate tax loss to the United States of over $400,000.”
“Delavan’s crimes were not a rash or foolhardy act of someone that could not appreciate the consequences of his actions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Delavan operated sophisticated and comprehensive fraud schemes, including a Ponzi-type investment scheme and tax fraud that resulted in losses of over $1.5 million.”
The evidence at trial revealed that Delavan offered a fraudulent tax program to various individuals in the Tidewater area and elsewhere whereby individuals paid Delavan between $10,000 and $12,500 in order to obtain fraudulent losses to offset income on their tax returns. In doing so, Delavan purported to deduct business bad debts from non-operational entities he controlled, passing through these losses to client returns as if the clients were actually involved in these entities. Furthermore, Delavan solicited business loans and investments from some of the same and additional clients that he falsely represented would be used for business purposes. Contrary to this, Delavan used such funds for personal use, including the repayment of prior clients and personal expenses, such as private school tuition. Finally, Delavan purported to sell gold to certain clients, but made false representations related to the value or existence of the gold or the purpose of the funds obtained.
“Delavan realized today that crime does not pay,” said Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI). “Delavan not only evaded paying his fair share of taxes to the IRS, but betrayed the public trust by bilking over a million dollars out of victims.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
The U.S. Postal Inspection Service provided assistance through the Newport News Financial Crimes Task Force. Also, the Virginia State Corporation Commission (SCC) staff cooperated with federal authorities regarding this matter.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-23.
Men Sentenced to 17 Years in Prison for Drug and Gun CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to more than 17 years in prison for drug trafficking and discharging a firearm.
According to court documents, Aaron Robinson, 28, and his co-defendant Rodrick Greene, 31, participated in a heroin, cocaine base and cocaine trafficking conspiracy in the Hampton Roads area from September 2017 to March 2018. In December 2017, Robinson discharged a firearm during a drug trafficking crime at the Budget Lodge Motel in Newport News, where one individual was shot in the stomach and leg. Both men were arrested in March 2018, after conducting a cocaine transaction and Greene was found in possession of a firearm used in furtherance of the cocaine sale.
Greene previously pleaded guilty and was sentenced on July 1 to over seven years in prison for his role in the drug trafficking conspiracy and possessing a firearm in furtherance of a drug trafficking crime.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration Washington Field Division, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Robert E. Bradenham 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 is 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-5.
Former State Delegate Sentenced for Role in Defrauding United StatesRead the Press Release
NORFOLK, Va. – A former member of the Virginia General Assembly was sentenced today to two and a half years in prison for his role in a conspiracy that resulted in the fraudulent award of over $80 million in government contracts.
According to court documents, Ronald A. Villanueva, 49, participated in a nine-year conspiracy involving over $80 million in fraudulently obtained government contracts. More specifically, Villanueva conspired with others to help two Virginia Beach companies secure Small Business Administration contracts that had been set aside for minority-owned businesses. Villanueva began working for one company, SEK Solutions, in or about 2005. When that company’s 8(a) status was set to expire in 2010, Villanueva and his co-conspirators set up a new company, Karda Systems, which on paper was run by Villanueva’s brother-in-law. However, in reality Karda’s contracting business was managed by Villanueva and others associated with SEK.
As part of the conspiracy, Villanueva and others misrepresented whether SEK and Karda were eligible for government contracts under the 8(a) program. In fact, neither company was eligible to participate in the program, yet Villanueva and his co-conspirators made numerous false statements and certifications to the contrary. During part of the conspiracy, Villanueva was a member of the Virginia General Assembly, and in one instance used his House of Delegates letterhead to send a letter to the SBA in support of Karda’s application to participate in the 8(a) program, knowing that it contained false and misleading statements about who actually operated the company. As a result of the fraud, the two companies were awarded over $80 million dollars in government contracts for which they were not eligible.
As part of the sentence, Villanueva was ordered to pay $524,533 in restitution.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Carol Fortine Ochoa, Inspector General, General Services Administration (GSA), Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), and Glen A. Fine, Acting Inspector General, Department of Defense (DoD), made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorneys Alan Salsbury and Daniel Young 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-2.
Hopewell City Employee Sentenced to Prison for Fraud ConspiracyRead the Press Release
RICHMOND, Va. – A Richmond woman was sentenced today to two years in prison for her role in a conspiracy to defraud the City of Hopewell of funds intended for at-risk school children, and filing false tax returns.
According to court documents, Jamillah Karriem, 45, was employed by the City of Hopewell as the City’s Comprehensive Services Act (CSA) Coordinator. The Commonwealth of Virginia utilizes the CSA to provide state funding for services to high-risk children across the Commonwealth, and provides those state funds to localities, such as Hopewell. As the city’s CSA Coordinator, Karriem was responsible for directing CSA-funded contracts to service providers for at-risk school children in Hopewell.
In October 2011, Karriem directed a friend to form a business, A World of Possibilities (“WOP”), for the ostensible purpose of providing mentoring and counseling services to at-risk students at public schools in Hopewell. Karriem thereafter steered a CSA counseling services contract to WOP, and between November 2011 and June 2015, WOP billed the City of Hopewell for more than $480,000 worth of counseling services purportedly provided to a number of public school students. WOP did not actually provide any services to those students, however, and Karriem and her co-conspirator split the fraudulent proceeds. From 2012 to 2015, Karriem also filed four false tax returns, significantly under-reporting her income each year. Karriem’s total criminal tax loss amounts to at least $133,602.
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, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin Cooke 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-58.
Convicted Felon Pleads Guilty to Illegally Reentering the U.S.Read the Press Release
NORFOLK, Va. – A Mexican citizen pleaded guilty today to illegally reentering the United States.
According to court documents, Marcos Gonzalez-Granillo, 40, originally illegally entered the United States in 1997. In 2002, he was convicted in state court in North Carolina of attempted second-degree rape and first-degree burglary, an aggravated felony. He was removed from the country at taxpayer expense in 2007 after serving his state prison sentence. Gonzalez-Granillo was next encountered by law enforcement authorities in Norfolk in 2019, when he was arrested for failure to register as a sex offender under Virginia law.
Gonzalez-Granillo pleaded guilty to illegal reentry by a removed alien and faces a maximum penalty of 20 years in prison when sentenced on October 4. 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 Lyle A. Boelens, 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 U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorneys Daniel P. Shean and Elizabeth M. Yusi are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-75.
Religion Instructor Sentenced for Illegal Sexual Conduct with Minor StudentRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 10 years in prison for enticing a minor to engage in sexual conduct and transferring obscene matter to a minor.
According to court documents, Seitu Sulayman Kokayi, 30, was a content developer at the University of Maryland University College campus and a Quran instructor at a mosque in Washington, D.C. from 2009 until his arrest in August 2018. The victim was 15 years of age and was a student of Kokayi until the time of his arrest. Over a three week period in August 2018, Kokayi and the victim communicated by phone on 256 occasions for over 32 hours. They also had 43 FaceTime sessions. Kokayi engaged the minor victim in sexually explicit conversations, proceeding to entice the child to disrobe and engage in sexual acts over FaceTime. Kokayi also exposed himself to the victim, masturbating on FaceTime with the victim on multiple occasions. Also according to court records, Kokayi promoted support for the Islamic State and other violent activity by sending videos and other jihadist propaganda to his students, family members and friends.
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, and John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Kellen S. Dwyer, Dennis M. Fitzpatrick and Department of Justice Trial Attorney Joseph Attias 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. 1:18-cr-410.
Nigerian Man Sentenced to Prison for Defrauding the IRSRead the Press Release
ALEXANDRIA, Va. – A Nigerian man who formerly resided in Herndon was sentenced today to one year in prison for his involvement in stealing income tax refunds in 2015 and laundering the proceeds of his crimes.
According to court documents, Odewale Abraham, 50, pleaded guilty to two counts of theft of government money and to two counts of money laundering. Abraham controlled three bank accounts into which income tax refunds were wired. The tax returns were filed electronically in the names of actual taxpayers, but their refunds were fraudulently directed to bank accounts controlled by Abraham.
Abraham would then make cash withdrawals or use debit cards to purchase multiple Money Gram money orders in denominations of $990 or $995 at a Walmart in Vienna. Most of the Money Gram orders were made payable to Odewale Abraham, but were purchased with a debit card from an account that had been fraudulently opened in another person’s name. The purchase of the money orders was designed in whole or in part to conceal the nature and source of the proceeds of the specified unlawful activity.
G. Zachary Terwilliger, 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 Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Special Assistant U.S. Attorney Russell L. Carlberg 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. 1:18-cr-167.
Man Sentenced for Fraud Conspiracy and Identity TheftRead the Press Release
ALEXANDRIA, Va. – A New York man was sentenced today to four and a half years in prison for acquiring and using stolen personal information, including thousands of payment card numbers.
According to court documents, from October 2016 through September 2018, Merlin Laguerre, 31, and his co-conspirators, committed various acts of fraud that resulted in at least $1.3 million in real or intended loss. Members of the conspiracy acquired thousands of stolen payment card numbers, primarily transmitting this account information via email and text messages. Laguerre and members of the conspiracy enriched themselves by using the stolen payment card numbers to make fraudulent purchases, and, at times, did so via the contactless payment features of smartphones. Some of the items fraudulently purchased during the conspiracy included merchandise at retail stores located within the Eastern District of Virginia.
Court documents also indicate that Laguerre tried to aid further acts of fraud even after he was taken into federal custody. In particular, Laguerre used a telephone while detained to provide another person with assistance in navigating websites dedicated to trafficking stolen payment card information.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, and M. Jay Farr, Chief of Police, Arlington County Police Department, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Alexander P. Berrang and Laura Fong prosecuted the case.
The Henrico County Police Department provided significant assistance during this investigation.
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 is 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-15.
Armed Drug Dealer Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – A Temple Hills man was sentenced today to 15 years in prison for his role in a cocaine distribution conspiracy and possession of a firearm in furtherance of a drug trafficking crime.
“Armed drug and opioid dealers represent a toxic and deadly double threat,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “They might be targeting the people of the Eastern District of Virginia, but we are targeting them and we will hold those apprehended and prosecuted to the fullest extent of the law.”
According to court documents, Roger Vincent, 42, conspired with others to distribute cocaine and heroin in the Washington D.C. metropolitan area. While residing in Maryland, Vincent maintained a “stash” location in Washington, D.C., where law enforcement recovered cocaine, heroin, drug paraphernalia and a handgun that had been modified to fire fully automatically. Months later, Vincent negotiated the purchase of 10 kilograms of cocaine. Vincent was arrested in October 2018, after attempting to purchasing two kilograms of cocaine, which he intended to sell to generate the funds to purchase additional kilograms of cocaine. Upon his arrest, law enforcement recovered two firearms hidden in Vincent’s vehicle, including an AK-style pistol.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Michael Ben’Ary and Special Assistant U.S. Attorney and Virginia Assistant Attorney General Lena Munasifi 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. 1:18-cr-440.
Man Sentenced Prison for Drug and Firearm CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to seven years in prison for possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, Thomas Jarrell Mays, 30, was at home in Newport News when law enforcement executed a search warrant based on complaints of drug trafficking from the residence that were confirmed by police surveillance. In addition to the arrest of Mays, the search yielded a loaded Glock 22 .40 caliber handgun with an additional high-capacity drum magazine loaded with 50 cartridges of ammunition; cooking paraphernalia coated with residue; multiple boxes of baking soda; narcotics packaging materials; multiple digital scales; approximately 5.8 grams of cocaine base; and more than 40 grams of cocaine that Mays unsuccessfully attempted to flush down a toilet when law enforcement entered his home.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Peter Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-10.
Former Senior Official Pleads Guilty to Stealing Government MoneyRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to stealing over $40,000 in government money during 2018, while he was employed as a senior government official at the U.S. Agency for Global Media (USAGM) in Washington, D.C.
According to court documents, Haroon K. Ullah, 41, admitted that he fraudulently obtained thousands of dollars in government funds by submitting falsified hotel invoices, falsified and inflated taxi and Uber receipts, and by billing the government for personal travel and for travel that had already been paid by third parties.
Additionally, Ullah admitted that he created a falsified letter from a real medical doctor purportedly claiming that Ullah needed to fly in business class at government expense because of a sore knee. By submitting the forged letter from the doctor, Ullah fraudulently obtained costly business class upgrades at government expense, including on lengthy international flights. Ullah admitted to creating many of the false documents on his government-issued laptop computer. As part of the plea, Ullah also admitted that he submitted falsified invoices and repair estimates to an insurance company regarding a claim for repairs to his home in Alexandria.
A former employee of the U.S. Department of State, Ullah became a member of the Senior Executive Service when he joined USAGM as its Chief Strategy Officer (CSO). Ullah committed his crime from February through October 2018, while serving as CSO. Ullah is no longer employed with USAGM.
Ullah pleaded guilty to theft of government money and faces a maximum penalty of 10 years in prison when sentenced on October 11. 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 Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge T.S. Ellis, III, accepted the plea. Special Assistant U.S. Attorney Russell L. Carlberg 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. 1:19-cr-183.
Convicted Felon Sentenced to Prison for Firearm and Cocaine PossessionRead the Press Release
RICHMOND, Va. – A Petersburg man was sentenced today to more than seven years in prison for possessing two firearms as a convicted felon and cocaine during a high-speed pursuit with the U.S. Marshal’s Fugitive Task Force.
According to court documents, Kevin Godette, 39, was wanted by the Colonial Heights Police Department and the Petersburg Bureau of Police for outstanding probation violations. In December 2017, in an effort to arrest Godette on these warrants, the U.S. Marshal’s Fugitive Task Force conducted surveillance on an apartment suspected of harboring Godette. Upon seeing Godette leave the apartment and get into a vehicle with a backpack, members of the U.S. Marshal’s Task Force attempted a traffic stop on his vehicle. Godette engaged law enforcement in a high-speed chase through both Colonial Heights and Petersburg, where he bailed out of the vehicle and fled on foot.
U.S. Marshal Task Force members arrested Godette a short time later in a wooded area. While Godette was arrested, authorities revealed more than $160 in U.S. currency and multiple plastic baggies containing distribution amounts of cocaine. A search of Godette’s vehicle revealed the backpack previously possessed by Godette contained two loaded semi-automatic pistols. At the time of Godette’s possession of the two firearms, he was a convicted felon, and thus prohibited from possessing any firearm.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Nick Proffitt, U.S. Marshal for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Erik 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. 3:18-cr-133.
Armed Drug Dealer Pleads Guilty to Drug and Firearm ChargesRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today to distributing cocaine and heroin while having a firearm.
According to court documents, Lorenzo Golden, 35, admitted that he had agreed to distribute and distributed more than five kilograms of cocaine and more than a kilogram of heroin, including two heroin sales to law enforcement in February and March, 2018. Golden took over a residence in the 400 block of East Pembroke Avenue and used the residence to distribute cocaine and heroin. In July 2018, law enforcement executed search warrants on the residence and a storage unit connected to Golden. They recovered scales, cellular phones, five firearms, ammunition, packaging materials and other items used in the sale of drugs.
Golden pleaded guilty to conspiracy, distribution, and possession of cocaine and heroin, and possession of a firearm in furtherance of a drug trafficking crime, and faces a mandatory minimum of 15 years and up to life in prison when sentenced on October 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Terry L. Sult, Chief of Hampton Police Division, and Anton Bell, Hampton Commonwealth Attorney, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Special Assistant U.S. Attorney Amy Cross 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. 4:18-cr-90.
Man Sentenced to Prison for Selling FirearmsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to five years in prison for selling firearms to a resident of another state.
“Trafficking firearms poses a real danger to the safety of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern of Virginia. “We will continue to prosecute these types of cases and take illegally sold guns off of our streets and out of the hands of potential criminals.”
According to court documents, Brian Samuels, 21, sold 39 firearms to an undercover agent over the course of approximately four months in 2018. Prior to making controlled purchases of the firearms from Samuels, law enforcement learned that Samuels was searching for a new buyer for his firearms after his original buyer was arrested. As a result, law enforcement introduced an undercover agent to make purchases from Samuels from August through January 2019.
Over the course of those four months, Samuels recruited straw purchasers to acquire firearms he would sell to the undercover agent. He also would seek assistance from others to help complete the sales to the undercover agent by delivering the firearms. These firearms included multiple AK pistols, AR pistols, extended magazines with 30-60 round capacities, and stolen firearms. In February, ATF and other assisting law enforcement agencies executed a search warrant at Samuels’s home and located an additional 14 firearms, bringing the total to 53. As a part of the criminal sentencing, Samuels forfeited all 53 firearms to the United States.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Stephen E. Anthony and Janet Jin Ah Lee 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-34.
Virginia Tax Lobbyist Pleads Guilty to Filing a False Tax ReturnRead the Press Release
An Alexandria, Virginia, tax lobbyist pleaded guilty today to willfully filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to court documents, attorney James F. Miller, 67, underreported his gross income on his 2010 through 2014 tax returns by approximately $2,215,587. Miller, a tax policy lobbyist and former employee of the Justice Department’s Tax Division, filed multiple false tax returns with the Internal Revenue Service (IRS). These returns omitted substantial portions of the partnership income he received from two law firms he worked at and the gross receipts of his own lobbying firm. The total tax loss resulting from Miller’s fraudulent conduct was approximately $735,933.
Sentencing is scheduled for Sept. 27, 2019. Miller faces a maximum sentence of three years in prison, a term of supervised release, and monetary penalties. In addition, Miller agreed to pay $735,933 restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger thanked agents of IRS-Criminal Investigation, who conducted the investigation, and AUSA Ryan S. Faulconer and Trial Attorney Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two Men Sentenced for $2.5 Million Narcotics Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – An international narcotics trafficker from the Dominican Republic and a narcotics trafficker from New York City were sentenced today to a combined 17 years in prison for their respective roles in a multi-million dollar conspiracy to purchase 100 kilograms of cocaine.
According to court documents and evidence presented at a related trial, Luis Rafael Tavarez, aka “El Primo,” 37, traveled from New York to Northern Virginia in October 2018 with co-defendants Manny Lizardo, 24, and Luis Liriano-Toribio, 32, to obtain 100 kilograms of cocaine in exchange for $2.5 million in cash. Law enforcement seized over $1.15 million in cash at the time of the arrests.
Tavarez was sentenced to ten and a half years in prison, while Lizardo was sentenced to six and a half years. Liriano-Toribio was convicted by a federal jury on March 18 and will be sentenced on June 28.
On several occasions in September and October 2018, Tavarez reaffirmed his desire to travel to Virginia to conduct a large drug transaction whereby he would pay $25,000 per kilogram of cocaine. In connection with this multi-million dollar deal, Tavarez sought an additional vehicle, known to narcotics traffickers as a “trap vehicle,” to split large amounts of cocaine into separate cars in order to minimize the risk of potentially losing the entire shipment in the event that law enforcement stopped one of the vehicles. In furtherance of the conspiracy, Tavarez used multiple telephones, an alias, and encrypted communication platforms, including with Lizardo and Liriano-Toribio, because he believed those measures would minimize the risk of law enforcement detection.
Tavarez previously admitted that Lizardo and Liriano-Toribio traveled to Northern Virginia to assist him in trafficking and/or transporting the large shipment of cocaine back to New York. Tavarez served as the leader and organizer of the operation, and was arrested at a hotel in Vienna in possession of over $1 million dollars in cash. Lizardo and Liriano-Toribio were arrested in a parking garage in Fairfax while both men were attempting to take possession of the cocaine.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, and Colonel James Morris, Vienna Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Raj Parekh 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. 1:18-cr-426.
Lobbyist Pleads Guilty to Filing A False Tax ReturnRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to willfully filing a false tax return.
According to court documents, James F. Miller, 67, underreported his gross income on his 2010 through 2014 tax returns by approximately $2,215,587. Miller, a tax policy lobbyist and former employee of the Justice Department’s Tax Division, filed multiple false tax returns with the Internal Revenue Service (IRS). These returns omitted substantial portions of the partnership income he received from two law firms he worked at and the gross receipts of his own lobbying firm. The total tax loss resulting from Miller’s fraudulent conduct was approximately $735,933.
Miller pleaded guilty to willfully filing a false tax return and faces a maximum penalty of three years in prison when sentenced on September 27. In addition, Miller agreed to pay $753,933 restitution to the IRS. 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, Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI) made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Ryan S. Faulconer and Trial Attorney Terri-Lei O’Malley of the Justice Department’s Tax Division are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-178.
Former Kiddar Capital CEO Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to six and a half years in prison for orchestrating multiple fraud schemes that resulted in total losses of approximately $20 million.
According to court documents, Todd Elliott Hitt, 54, solicited approximately $30 million from investors for a variety of real estate and venture capital investments in the Washington, D.C. area from 2014 through August 2018. The investments included Hitt’s solicitation of approximately $17 million from investors in order to purchase a five-story office building adjacent to a planned future stop on the Silver Line in Herndon. Hitt made false statements and material omissions to investors by failing to disclose that a significant portion of the monies raised were commingled with other unrelated investment projects, used for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors in a Ponzi-like scheme. Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Mark D. Lytle 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-43.
Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
ALEXANDRIA, Va. – Walmart Inc. (Walmart), a U.S.-based multinational retailer and one of the world’s largest corporations, and its wholly owned Brazilian subsidiary, WMT Brasilia S.a.r.l. (WMT Brasilia), have agreed to pay a combined criminal penalty of $137 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA). WMT Brasilia pleaded guilty today in connection with the resolution.
“Walmart violated the Foreign Corrupt Practices Act because it failed to implement the internal controls necessary to ferret out corrupt conduct,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “For more than a decade, Walmart experienced exponential international growth but failed to create safeguards to protect against corruption risks in various countries. This resolution is the result of several years of steadfast work by the prosecutors and our law enforcement partners at the FBI and IRS-CI.”
According to Walmart’s admissions, from 2000 until 2011, certain Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption were aware of certain failures involving these controls, including relating to potentially improper payments to government officials in certain Walmart foreign subsidiaries, but nevertheless failed to implement sufficient controls that, among other things, would have ensured: (a) that sufficient anti-corruption-related due diligence was conducted on all third-party intermediaries (TPIs) who interacted with foreign officials; (b) that sufficient anti-corruption-related internal accounting controls concerning payments to TPIs existed; (c) that proof was required that TPIs had performed services before Walmart paid them; (d) that TPIs had written contracts that included anti-corruption clauses; (e) that donations ostensibly made to foreign government agencies were not converted to personal use by foreign officials; and (f) that policies covering gifts, travel and entertainment sufficiently addressed giving things of value to foreign officials and were implemented. Even though senior Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption knew of these issues, Walmart did not begin to change its internal accounting controls related to anti-corruption to comply with U.S. criminal laws until 2011.
“Walmart profited from rapid international expansion, but in doing so chose not to take necessary steps to avoid corruption,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “In numerous instances, senior Walmart employees knew of failures of its anti-corruption-related internal controls involving foreign subsidiaries, and yet Walmart failed for years to implement sufficient controls comporting with U.S. criminal laws. As today’s resolution shows, even the largest of U.S. companies operating abroad are bound by U.S. laws, and the Department of Justice will continue to aggressively investigate and prosecute foreign corruption.”
The internal controls failures allowed Walmart foreign subsidiaries in Mexico, India, Brazil and China to hire TPIs without establishing sufficient controls to prevent those TPIs from making improper payments to government officials in order to obtain store permits and licenses. In a number of instances, insufficiencies in Walmart’s anti-corruption-related internal accounting controls in these foreign subsidiaries were reported to senior Walmart employees and executives. The internal control failures allowed the foreign subsidiaries in Mexico, India, Brazil and China to open stores faster than they would have with sufficient internal accounting controls related to anti-corruption. Consequently, Walmart earned additional profits through these subsidiaries by opening some of its stores faster.
“The FBI will hold corporations responsible when they turn a blind eye to corruption," said Robert Johnson, Assistant Director of the FBI’s Criminal Investigative Division. "If there is evidence of violations of FCPA, we will investigate. No corporation, no matter how large, is above the law."
In Mexico, a former attorney for Walmart’s local subsidiary reported to Walmart in 2005 that he had overseen a scheme for several years prior in which TPIs made improper payments to government officials to obtain permits and licenses for the subsidiary and that several executives at the subsidiary knew of and approved of the scheme. Most of the TPI invoices included a code specifying why the subsidiary had made the improper payment, including: (1) avoiding a requirement; (2) influence, control or knowledge of privileged information known by the government official; and (3) payments to eliminate fines.
“Walmart’s guilty plea is another step in IRS-CI’s ongoing effort to pursue corporations that engage in corruption that prevents fair competition around the world,” said Kelly Jackson, Special Agent in Charge of IRS Criminal Investigations’ (IRS-CI) Washington, D.C. Office. “Through our efforts, we delved through layers of transactions and uncovered the bribery of foreign officials. Today’s announcement is a statement that no company, even one as large as Walmart, is above the law.”
In India, because of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption, from 2009 until 2011, Walmart’s operations there were able to retain TPIs that made improper payments to government officials in order to obtain store operating permits and licenses. These improper payments were then falsely recorded in Walmart’s joint venture’s books and records with vague descriptions like “misc fees,” “miscellaneous,” “professional fees,” “incidental” and “government fee.”
In Brazil, as a result of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption at its subsidiary, Walmart Brazil, an entity majority-owned by WMT Brasilia, despite repeated findings in internal audit reports that such controls were lacking, Walmart Brazil continued to retain and renew contracts with TPIs without conducting the required due diligence. Improper payments were in fact paid by some of these TPIs, including a construction company that made improper payments to government officials in connection with the construction of two Walmart Brazil stores in 2009 without the knowledge of Walmart Brazil. Walmart Brazil indirectly hired a TPI whose ability to obtain licenses and permits quickly earned her the nickname “sorceress” or “genie” within Walmart Brazil. Walmart Brazil employees, including a Walmart Brazil executive, knew they could not hire the intermediary directly because of several red flags. In 2009, the TPI made improper payments to government inspectors in connection with the construction of a Walmart Brazil store without the knowledge of Walmart Brazil. WMT Brasilia was a wholly-owned subsidiary of Walmart and was a majority-owner of Walmart Brazil.
In China, Walmart’s local subsidiary’s internal audit team flagged numerous weaknesses in internal accounting controls related to anti-corruption at the subsidiary between 2003 and 2011, sometimes repeatedly, but many of these weaknesses were not addressed. In fact, from 2007 until early 2010, Walmart and the subsidiary failed to address nearly all of the anti-corruption-related internal controls audit findings.
Walmart entered into a three-year non-prosecution agreement and agreed to retain an independent corporate compliance monitor for two years. The $137 million penalty reflects a 20 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the portion of the penalty applicable to conduct in Mexico and 25 percent for the portion applicable to the conduct in Brazil, China and India. Walmart fully cooperated with the investigation in Brazil, China and India. Walmart cooperated with the investigation in Mexico, but did not timely provide documents and information to the government and did not de-conflict with the government’s request to interview one witness before Walmart interviewed that witness. Walmart did not voluntarily disclose the conduct in Mexico and only disclosed the conduct in Brazil, China and India after the government had already begun investigating the Mexico conduct. The $137 million penalty includes forfeiture of $3.6 million and a fine of $724,898 from WMT Brasilia.
In a related resolution with the U.S. Securities and Exchange Commission (SEC), Walmart agreed to disgorge $144 million in profits.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Robert Johnson, Assistant Director of the FBI’s Criminal Investigative Division, and Kelly Jackson, Special Agent in Charge of IRS Criminal Investigations’ (IRS-CI) Washington, D.C. Office, made the announcement.
The FBI’s International Corruption Squad in Washington, D.C. and IRS-CI are investigating the case. Assistant Chiefs Tarek Helou and Lorinda Laryea and Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia are prosecuting the case.
The Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Mexico and India.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. 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-192.
Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
Walmart Inc. (Walmart), a U.S.-based multinational retailer and its wholly owned Brazilian subsidiary, WMT Brasilia S.a.r.l. (WMT Brasilia), have agreed to pay a combined criminal penalty of $137 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA). WMT Brasilia pleaded guilty today in connection with the resolution.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Kelly Jackson of IRS Criminal Investigation’s (IRS-CI) Washington, D.C. office made the announcement.
“Walmart profited from rapid international expansion, but in doing so chose not to take necessary steps to avoid corruption,” said Assistant Attorney General Benczkowski. “In numerous instances, senior Walmart employees knew of failures of its anti-corruption-related internal controls involving foreign subsidiaries, and yet Walmart failed for years to implement sufficient controls comporting with U.S. criminal laws. As today’s resolution shows, even the largest of U.S. companies operating abroad are bound by U.S. laws, and the Department of Justice will continue to aggressively investigate and prosecute foreign corruption.”
“Walmart violated the Foreign Corrupt Practices Act because it failed to implement the internal controls necessary to ferret out corrupt conduct,” said U.S. Attorney Terwilliger. “For more than a decade, Walmart experienced exponential international growth but failed to create safeguards to protect against corruption risks in various countries. This resolution is the result of several years of steadfast work by the prosecutors and our law enforcement partners at the FBI and IRS-CI.”
“The FBI will hold corporations responsible when they turn a blind eye to corruption," said FBI Assistant Director Johnson. "If there is evidence of violations of FCPA, we will investigate. No corporation, no matter how large, is above the law."
“Walmart’s guilty plea is another step in IRS-CI’s ongoing effort to pursue corporations that engage in corruption that prevents fair competition around the world,” said IRS-CI Special Agent in Charge Jackson. “Through our efforts, we delved through layers of transactions and uncovered the bribery of foreign officials. Today’s announcement is a statement that no company, even one as large as Walmart, is above the law.”
According to Walmart’s admissions, from 2000 until 2011, certain Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption were aware of certain failures involving these controls, including relating to potentially improper payments to government officials in certain Walmart foreign subsidiaries, but nevertheless failed to implement sufficient controls that, among other things, would have ensured: (a) that sufficient anti-corruption-related due diligence was conducted on all third-party intermediaries (TPIs) who interacted with foreign officials; (b) that sufficient anti-corruption-related internal accounting controls concerning payments to TPIs existed; (c) that proof was required that TPIs had performed services before Walmart paid them; (d) that TPIs had written contracts that included anti-corruption clauses; (e) that donations ostensibly made to foreign government agencies were not converted to personal use by foreign officials; and (f) that policies covering gifts, travel and entertainment sufficiently addressed giving things of value to foreign officials and were implemented. Even though senior Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption knew of these issues, Walmart did not begin to change its internal accounting controls related to anti-corruption to comply with U.S. criminal laws until 2011.
The internal controls failures allowed Walmart foreign subsidiaries in Mexico, India, Brazil and China to hire TPIs without establishing sufficient controls to prevent those TPIs from making improper payments to government officials in order to obtain store permits and licenses. In a number of instances, insufficiencies in Walmart’s anti-corruption-related internal accounting controls in these foreign subsidiaries were reported to senior Walmart employees and executives. The internal control failures allowed the foreign subsidiaries in Mexico, India, Brazil and China to open stores faster than they would have with sufficient internal accounting controls related to anti-corruption. Consequently, Walmart earned additional profits through these subsidiaries by opening some of its stores faster.
In Mexico, a former attorney for Walmart’s local subsidiary reported to Walmart in 2005 that he had overseen a scheme for several years prior in which TPIs made improper payments to government officials to obtain permits and licenses for the subsidiary and that several executives at the subsidiary knew of and approved of the scheme. Most of the TPI invoices included a code specifying why the subsidiary had made the improper payment, including: (1) avoiding a requirement; (2) influence, control or knowledge of privileged information known by the government official; and (3) payments to eliminate fines.
In India, because of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption, from 2009 until 2011, Walmart’s operations there were able to retain TPIs that made improper payments to government officials in order to obtain store operating permits and licenses. These improper payments were then falsely recorded in Walmart’s joint venture’s books and records with vague descriptions like “misc fees,” “miscellaneous,” “professional fees,” “incidental” and “government fee.”
In Brazil, as a result of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption at its subsidiary, Walmart Brazil, despite repeated findings in internal audit reports that such controls were lacking, Walmart Brazil continued to retain and renew contracts with TPIs without conducting the required due diligence. Improper payments were in fact paid by some of these TPIs, including a construction company that made improper payments to government officials in connection with the construction of two Walmart Brazil stores in 2009 without the knowledge of Walmart Brazil. Walmart Brazil indirectly hired a TPI whose ability to obtain licenses and permits quickly earned her the nickname “sorceress” or “genie” within Walmart Brazil. Walmart Brazil employees, including a Walmart Brazil executive, knew they could not hire the intermediary directly because of several red flags. In 2009, the TPI made improper payments to government inspectors in connection with the construction of a Walmart Brazil store without the knowledge of Walmart Brazil. WMT Brasilia was a wholly-owned subsidiary of Walmart and was a majority-owner of Walmart Brazil, Walmart’s wholly-owned subsidiary in Brazil, and the majority-owner of retail stores operating as Walmart Brazil.
In China, Walmart’s local subsidiary’s internal audit team flagged numerous weaknesses in internal accounting controls related to anti-corruption at the subsidiary between 2003 and 2011, sometimes repeatedly, but many of these weaknesses were not addressed. In fact, from 2007 until early 2010, Walmart and the subsidiary failed to address nearly all of the anti-corruption-related internal controls audit findings.
Walmart entered into a three-year non-prosecution agreement and agreed to retain an independent corporate compliance monitor for two years. The $137 million penalty reflects a 20 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the portion of the penalty applicable to conduct in Mexico and 25 percent for the portion applicable to the conduct in Brazil, China and India. Walmart fully cooperated with the investigation in Brazil, China and India. Walmart cooperated with the investigation in Mexico, but did not timely provide documents and information to the government and did not de-conflict with the government’s request to interview one witness before Walmart interviewed that witness. Walmart did not voluntarily disclose the conduct in Mexico and only disclosed the conduct in Brazil, China and India after the government had already begun investigating the Mexico conduct. The $137 million penalty includes forfeiture of $3.6 million and a fine of $724,898 from WMT Brasilia.
In a related resolution with the U.S. Securities and Exchange Commission (SEC), Walmart agreed to disgorge $144 million in profits.
The FBI’s International Corruption Squad in Washington, D.C. and IRS-CI are investigating the case. Assistant Chiefs Tarek Helou and Lorinda Laryea and Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia are prosecuting the case.
The Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Mexico and India.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
EDVA Combats Elder Abuse and Financial ExploitationRead the Press Release
ALEXANDRIA, Va. – In recognition of World Elder Abuse Awareness Day, the U.S. Attorney’s Office for Eastern District of Virginia (EDVA) has recently participated in several community outreach and education events on elder abuse and financial exploitation.
“The financial and emotional harm these scams cause elderly victims and their family members can be utterly devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Combatting elder abuse and financial fraud targeted at seniors remains a key priority for EDVA. We will not tolerate this criminal activity and will continue to prosecute these cases federally.”
Here in EDVA, Elder Justice efforts are being led by Assistant U.S. Attorney Kaitlin G. Cooke who today participated as an invited panelist at an Elder Abuse Workshop hosted by the Peninsula Agency on Aging in Williamsburg.
On June 12, Terwilliger was joined by Cooke and an Elder Justice representative from the U.S. Attorney’s Office for the District of Columbia at Alfred Street Baptist Church in Alexandria for a presentation to over 100 senior citizens on elder abuse.
In addition to educating the community on elder abuse, EDVA actively seeks to identify and prosecute elder abuse crimes. This year, our office joined the Peninsula Elder Abuse Forensic Center, an enhanced multidisciplinary task force focused on combatting elder abuse and neglect across several counties. Cooke joins law enforcement officers, commonwealth attorneys, certified public accounts, emergency responders, medical providers, adult protective services, and local agencies on aging twice a month to review cases of elder abuse and neglect.
As noted by Attorney General William P. Barr last week, fraud against the elderly is on the rise.
“One of the most significant and pernicious causes for this increase is foreign-based fraud schemes,” said Attorney General Barr.
To address the issue, the Department has created the Transnational Elder Fraud Strike Force.
“The Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
Below are summaries of several noteworthy elder abuse cases recently prosecuted in EDVA. For more information on a particular case, please click the link for the full press release on our website.
- United States v. Edward Lee Moody, Jr. - Moody owned and operated an investment firm in Virginia Beach, CM Capital Management LLC, through which he solicited investors. In reality, Moody was running a Ponzi scheme. Over a 13-year period, he solicited and collected approximately $6.1 million from 53 investors, at least 13 of whom were elderly persons who liquidated assets from their existing, legitimate retirement accounts in order to provide funds to Moody that they expected him to invest on their behalf. Moody diverted investor moneys for his own benefit, buying property, traveling, and investing on his own behalf. Moody also used investor money to lull earlier investors and provided investors with fraudulent monthly account statements falsely indicating investments and earned returns. Moody was sentenced on February 5 to 13 years in prison and was ordered to pay over $4.8 million in restitution.
- United States v. Sandra Payne - Payne pleaded guilty to aggravated identity theft based on her theft of over $22,000 from an elderly victim. Payne was employed by the victim to provide home health care to the victim’s spouse. Over a five-month period, Payne used the victim’s credit and debit cards to make unauthorized purchases of personal goods at various retailers. Payne was sentenced on June 18 two years in prison for her crime.
- United States v. John Michael Gatchell – Gatchell pleaded guilty on April 18 to exploiting an elderly man’s diminished mental capacity to defraud him of nearly $157,000. Gatchell facilitated a marriage between the elderly man and a woman with whom Gatchell had a long-term relationship in order to gain access to the elderly man’s money and property. Gatchell induced the elderly man to make a down payment on a Jaguar that Gatchell and a family member drove for about 10 months before it was repossessed by the lender when the loan went into default. Gatchell also induced the elderly man to obtain two mortgage loans and then diverted most of the proceeds to the benefit of himself and others. He subsequently induced the elderly man to sell the property that secured the loans and again diverted most of the proceeds to himself and others. Gatchell used these fraudulently diverted monies to purchase concert series tickets, pay delinquent bills, and make a security deposit and advance rent payments for a house he leased, among other things. Gatchell faces a maximum penalty of 20 years in prison when sentenced on September 6.
- United States v. Nena Kerny Kochuga - Kochuga executed a Jamaican lottery scheme that targeted elderly victims, who she and conspirators would contact by phone. Kochuga told victims that they had won the lottery and were required to pay purported taxes and fees to claim the winnings. She directed victims to mail and wire money to her residential and post office box addresses in Virginia. Kochuga then sent money to conspirators in Jamaica and Ghana via Western Union wire transfers, keeping a portion for herself. Through this conduct, Kochuga and her conspirators defrauded numerous victims of at least $50,000. According to local media coverage, Kochuga has targeted elderly victims with similar lottery scams for most of the past decade. She has prior convictions in Virginia Beach Circuit Court and Colorado in connection with these schemes, and faces up to 20 years in prison when sentenced on September 30.
For information and resources on elder abuse or to report abuse, please visit DOJ’s Elder Justice Initiative website at: https://www.justice.gov/elderjustice.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Woman Sentenced to Prison for Role in Armed RobberiesRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman was sentenced today to approximately 15 years in prison for conspiring with others to commit armed robberies of businesses throughout southeastern Virginia in December 2014.
According to court documents, Aquilla Jones, 29, worked together with several individuals to rob businesses at gun point. Jones and her co-conspirators would drive around southeastern Virginia in an attempt to identify businesses to be robbed. Once the victim business was identified, Jones would drive her co-conspirators to the business and serve as a look-out while others went inside. The co-conspirators who entered the businesses brandished handguns as money was demanded from the employees. Jones participated in the robbery of eight businesses located in Fredericksburg, Newport News, Chesapeake, Yorktown and Virginia Beach.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney 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. 4:18-cr-27.
In-Home Caregiver Sentenced to Prison for Elder FraudRead the Press Release
NEWPORT NEWS, Va. – A Hampton woman was sentenced today to two years in prison for stealing over $21,000 from an elderly client and her family.
“The financial and emotional harm these deceitful and illegal acts can cause victims and their family members cannot be overstated,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The victims in this case entrusted Payne to take care of their elderly family member. Instead, she used that trust to steal over $21,000 from them. I would like to commend the U.S. Postal Inspection Service for their terrific work investigating this case.”
According to court documents, Sandra Payne, 58, was employed to provide in-home care for an elderly client in Newport News. During the course of her employment at that residence, Payne gained access to credit and debit card account numbers belonging to the family of her client. She used that data, without lawful authority or the knowledge and consent of the account owners, to purchase goods and services in excess of $21,000 at various merchants in the Tidewater area.
“Criminals who use the U.S. Mail to commit identity theft and fraud not only jeopardizes people’s trust in the U.S. postal system, their activities threaten the overall financial health of our communities,” said Postal Inspector in Charge Peter Rendina, U.S. Postal Inspection Service - Washington Division. “We will continue to investigate and work with the United States Attorney’s offices to bring individuals engaged in these criminal activities to justice.”
In 2018, the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than a 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
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 sentencing by U.S. District Judge Robert G. Doumar. Special Assistant U.S. Attorney Jeremy Franker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-98.
“Scramble” Dealer Sentenced to 20 Years in PrisonRead the Press Release
RICHMOND, Va. – A Caroline County man was sentenced today to 20 years in prison for distribution of “scramble”, a mixture of fentanyl and heroin, the use of which resulted in an overdose.
“In spite of nearly killing his best friend and the overdose of his wife, Rosie continued to sell dangerously strong drugs,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The type of drug that Rosie pushed is at the center of the opioid crisis in this country, which has no boundaries and affects the young and the old, the rich and the poor, all races, all genders. It is destroying generations of Americans and illicit fentanyl is leading the charge.”
According to court documents and statements made in court, Gregory Kenneth Rosie, 43, was a distributor of scramble starting before August 2017 and continuing through the time of his arrest on Aug. 22, 2018. In November 2017, Rosie distributed a quantity of scramble to his friend who used the substance and overdosed. Rosie and Marcus Watson loaded the man into a vehicle and dropped him off at the Ladysmith Volunteer Fire Department, where the man was resuscitated. Approximately two weeks later, Rosie’s wife, Elizabeth Rosie, died in their Caroline County home of an overdose.
Marcus Watson, 43, of Fredericksburg, was sentenced on June 6 to more than three years in prison for his role in Rosie’s drug trafficking activities.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, Tony Lippa, Caroline County Sheriff, and Steve F. Dempsey, King George County Sheriff, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-90.
Man Pleads Guilty to Defrauding State and Local GovernmentsRead the Press Release
ALEXANDRIA, Va. – A Ohio man pleaded guilty today to conspiring to defraud state and local governments of millions of dollars.
According to court documents, Robert Mutua Muli, 59, of Carrollton, conspired with others to defraud state and local governments by fraudulently pretending to be legitimate government vendors. Using sham email addresses, the conspirators sent government entities bogus vendor payment information that caused government entities to make large payments to bank accounts controlled by Muli. Muli then quickly transferred the fraudulently obtained funds to himself and to his co-conspirators, some of whom were located in Kenya. During the conspiracy, Muli intended to steal over $2 million from the victim government entities.
For example, on Aug. 6, 2018, Victim 1, a Virginia county government that had an agreement with Dell Marketing LP (Dell) to purchase computer hardware for its public schools, received an email from an account falsely claiming to be a Dell employee. The fraudulent email account was very similar to a Dell employee’s true email address and contained revised banking information for Dell. The revised banking information changed payment information to an account controlled by Muli. As a result, between Aug. 8 and Sept. 10, 2018, Victim 1 sent 28 payments totaling approximately $1.3 million for public school computing needs to an account controlled by Muli, which Muli later distributed among himself and his co-conspirators. In addition to Victim 1, during the scheme Muli and his co-conspirators defrauded the City of Detroit, City of Philadelphia, and State of Vermont.
Muli pleaded guilty to one count of conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison when sentenced on October 4. 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 Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Uzo Asonye and Special Assistant U.S. Attorney Anthony W. Mariano are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-186.
Media Advisory – Peninsula Violent Crime SummitRead the Press Release
WHAT: Federal, state, and local law enforcement and community partners will hold the Peninsula Violent Crime Summit on Monday, June 17, at NASA’s Langley Research Center in Hampton.
WHERE: NASA Langley Research Center, 2 Langley Blvd, Hampton, VA
WHEN: Arrive at NASA June 17 at 3:45 p.m.
DETAILS: Members of the media are invited to attend the final wrap-up of the event from approximately 4:00 p.m. to 4:30 p.m. Photography and B-Roll videography will be permitted inside of the event hall only.
Following the wrap-up, co-hosts of the summit will hold a press conference and take questions. After the press conference, select law enforcement officials will be available for one-on-one interviews. Community partners may also be available for one-on-one interviews.
RSVP: Please RSVP by Noon on June 17 to Joshua Stueve at: [email protected]. If you do not RSVP, you will NOT be permitted to enter the facility. No exceptions.
CO-HOSTS: U.S. Attorney G. Zachary Terwilliger; Chief Terry Sult, Hampton Police Division; Chief Steve Drew, Newport News Police; Commonwealth’s Attorney Howard Gwynn, Newport News Commonwealth’s Attorney’s Office; Deputy Commonwealth’s Attorney Sheree Konstantinou, Hampton Commonwealth’s Attorney’s Office.
LAW ENFORCEMENT PARTNERS: Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF); U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Gloucester Sheriff’s Office; Virginia State Police; James City County Police; York-Poquoson Sheriff's Office; York County Commonwealth’s Attorney’s Office.
COMMUNITY PARTNERS: Newport News City Council; Ministers to the Queens Plaza Community; Newport News Youth Gang Outreach Unit; CBC World Ministry; Newport News Police Homicide Support Group; Catalyst Effect; Phantom Eagle Engineering; Newport News Citizens United for Action; Hawkins, Burcher & Boester; others.
Woman Pleads Guilty to Fraud and Drug ChargesRead the Press Release
ALEXANDRIA, Va. – A Burke woman pleaded guilty today to bank fraud, aggravated identity theft, and possession with intent to distribute methamphetamine.
According to court documents, Shawnirah M. Mickens, 35, acquired stolen personal identification information (PII) of more than 300 people who lived throughout the United States. Mickens used the stolen PII to open multiple bank accounts and would subsequently fund those accounts with minimal cash deposits and large counterfeit corporate checks. The bank would immediately make available a portion of the deposited checks. Mickens would then quickly withdraw cash, make point of sale purchases, or conduct wire transfers of the floated funds before the bank could determine that the accounts were fraudulent and the checks were worthless. Once the bank learned of the fraud it would close the account and Mickens would move on to the next account and the next victim. The loss amount is in the $250,000 to $550,000 range.
Additionally, during the course of the investigation, agents recovered a package containing approximately 120 grams of methamphetamine being mailed to P.O. Box rented by Mickens and used to further the bank fraud scheme. When Mickens was arrested in May, agents conducted a search of her residence and recovered evidence relating to the bank fraud as well as another 150 grams of methamphetamine.
Mickens pleaded guilty to one count of bank fraud, one count of aggravated identity theft, and one count of possession with intent to distribute methamphetamine. Mickens faces a maximum penalty of 30 years in prison for the bank fraud, two additional years in prison for the aggravated identity theft, and a mandatory minimum of 5 years but not more than 40 years in prison for possession with intent to distribute methamphetamine when sentenced on September 6. 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, Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney William Fitzpatrick and Special Assistant U.S. Attorney Brendan P. Geary are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Transnational Organized Crime Task Force, which is composed of FBI Agents and domestic and international law enforcement partners.
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-184.
Man Convicted for Role in Gas Station RobberiesRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Washington, D.C. man today for his participation in a string of armed robberies.
According to court records and evidence presented at trial, Kenya Preston Williams, 37, participated in the armed robbery of an Exxon gas station in Alexandria and two different armed robberies of the same Shell gas station in Falls Church. Williams’ co-conspirator, Steven Oneil Houston, 26, of Oxon Hill, Maryland, previously pleaded guilty to charges of brandishing a firearm during and in relation to a crime of violence.
“Williams is a violent criminal who engaged in a series of attempted robberies with a firearm,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Removing violent criminals off our streets is critical to ensuring that all have the opportunity to feel safe and secure where they live, go to school, and raise their families. My thanks to our local and federal law enforcement partners who assisted in this investigation and whose outstanding work allowed us to achieve this conviction.”
Williams was convicted of conspiring to obstruct commerce by robbery, obstructing commerce by robbery, brandishing a firearm during and in relation to a crime of violence, and unlawful possession of a firearm by a convicted felon. He faces up to life in prison and a mandatory minimum of 21 years in prison when sentenced on September 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
“Through our partnerships and WFO’s Safe Streets Violent Crime Task Force, we continue our commitment to investigate violent crime,” said Charles Dayoub, Acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “We will work together to keep our communities safe and bring justice to those who endanger the public.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys Alexander E. Blanchard and Nicholas U. Murphy II are prosecuting the case.
The Alexandria City Police Department, Prince George’s County Police Department, and Metropolitan Police Department all provided significant assistance with this investigation.
This case was investigated by the FBI’s Washington Field Office Safe Streets Violent Crime Task Force, which is composed of FBI agents and law enforcement partners within the National Capital 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 is 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-29.
Man Sentenced for Straw-Purchasing Firearms for Gang Members and FelonsRead the Press Release
NORFOLK, Va. – A Franklin man was sentenced today to almost four years in prison for straw-purchasing several guns for fellow Crip gang members, including felons and others planning to engage in gang-related shootouts.
“Straw purchasing firearms is a very serious crime,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Convicted felons have forfeited their Second Amendment right to bear arms, and those who choose to straw purchase firearms will be investigated, prosecuted, and held accountable for their dangerous conduct. We will continue to aggressively pursue these cases, seek to obtain felony convictions, and work with local federally licensed firearms dealers and our partners at the ATF to stop the flow of illegally purchased firearms from hitting the street.”
According to court documents, Larry Donnell Parrish III, 24, was the hub of a Franklin based straw-purchasing conspiracy involving a subset of the Crips violent street gang, the 00 Gang. Parrish, a 00 Gang member with no criminal record, purchased at least seven guns from federally licensed gun stores for other gang members who could not purchase the firearms themselves because they were felons.
“ATF is committed to keeping firearms out of the hands of gang members and those intent on committing violent crimes,” said Ashan Benedict, Special Agent in Charge of the ATF Washington Field Division. “Firearms trafficking is a serious offense. This investigation highlights ATF’s commitment to protecting the public and keeping our communities safe. If you lie and buy firearms, ATF will work with our law enforcement partners across the region to ensure that you are held accountable for your crimes.”
Parrish also purchased guns for gang members who could legally buy the guns, but did not want to because they planned to commit violent crimes with the guns. Three of the guns Parrish had straw-purchased were later recovered by law enforcement while investigating other crimes, and one of the guns was recovered in Washington, D.C. only 10 days after Parrish had bought the gun.
“This individual illegally obtained firearms to commit further, potentially violent, criminal activity with fellow Crip gang members,” said Michael K. Lamonea, Assistant Special Agent in Charge of Homeland Security Investigations Norfolk. “There’s a reason straw-purchasing is not permitted, and that’s because weapons end up in the hands of dangerous criminals. Thanks to the quick actions of our federal and local partners, we’ve taken a source for violent crime off the streets.”
As a known drug-user, Parrish is prohibited from possessing a gun. After he straw-purchased the guns, police caught him with yet another gun, an extended magazine, and marijuana.
“Participation with our federal partners through task force endeavors such as Project Safe Neighborhoods has enabled our agency to address numerous concerns,” said Robert Porti, Deputy Chief of Franklin Police. “Joint investigations such as this, involving Mr. Parrish, have been successful in apprehending and prosecuting criminals as well as those that support and enable criminal operations. We appreciate and look forward to continuing joint investigations aimed at further reducing crime within our city and enhancing the quality of life for our residents.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Robert Porti, Deputy Chief of Franklin Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. 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. 2:18-cr-150.
Convicted Felon Sentenced for Trafficking Heroin and Possessing FirearmRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to 15 years in prison for trafficking over 200 grams of heroin and for possessing a firearm as a convicted felon.
“Drug traffickers in possession of firearms pose a significant threat to our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting heroin and fentanyl trafficking crimes is a top priority of this office as we continue to battle this deadly epidemic. We are committed to our mission of public safety and will continue to aggressively pursue those who choose to endanger the safety of the communities we serve.”
According to court documents, Mervin Turner, 37, distributed heroin and fentanyl to a confidential source from his Henrico County residence on two separate occasions in 2018. In August 2018, law enforcement executed a search warrant at Turner’s residence and recovered a semi-automatic pistol loaded with a 100-round drum magazine, more than 200 grams of heroin, two stand-up shop presses used to package heroin, marijuana, digital scales, and more than $9,000.
Operation California Dreamin was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal 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.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and William C. Smith, Interim Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Erik S. Siebert and Kenneth Simon 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-158.
Convicted Felon Pleads Guilty to Fraud Scheme Involving Local NewspaperRead the Press Release
ALEXANDRIA, Va. – A previously convicted felon pleaded guilty this morning to charges related to defrauding investors of a local newspaper and unlawful possession of firearms by a previously convicted felon.
According to court documents, Brian Thomas Reynolds, 52, of Leesburg, defrauded both investors and lenders to a company that he controlled that operates a local newspaper in Loudoun County. Reynolds made several materially false and fraudulent representations to actual and potential investors and lenders regarding the existence and value of advertising contracts held by the company, and created fake advertising contracts when no such agreements existed. Reynolds also made materially false and fraudulent representations regarding the company’s historical advertising revenues and the amount of money that Reynolds and others had invested in the company, falsely claimed that another individual had agreed to “match” the investments of certain investors, falsely claimed to at least one investor that the company lacked any debt, and materially overstated the amount of money held by the company in its bank accounts.
Court documents also state that Reynolds created altered loan documentation to defraud an individual who had lent money to the company by changing the language of the loan agreement to conditions that were materially more favorable to Reynolds and his company than had actually been agreed to by the lender. Reynolds also made materially false representations regarding the number of issues previously distributed by the newspaper, and falsely claimed that a prominent businessperson served on the company’s advisory board, when in fact that individual held no position on the board and played no role in the operation of the business.
Reynolds, who has four prior felony convictions and is prohibited from possessing firearms, also pleaded guilty to unlawfully possessing seven firearms and associated ammunition.
Reynolds pleaded guilty to one count of wire fraud and one count of unlawful possession of firearms by a previously convicted felon. He faces a maximum penalty of 20 years in prison for the wire fraud count and a maximum penalty of 10 years in prison for the firearms count when sentenced on September 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement. Assistant U.S. Attorney Matthew Burke and Special Assistant U.S. Attorney Russell L. Carlberg are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:19-cr-70 and 1:19-cr-71.
Two Men Plead Guilty to Firearms ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Washington, D.C. area men pleaded guilty this week to their roles in a conspiracy to transport with the intent to engage in unlawful interstate dealing in firearms.
“The illegal purchase, transportation and resale of firearms presents risks of violence and a serious danger to our communities and the law enforcement officers who keep us safe,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I would like to thank our local and federal law enforcement partners for their work in keeping illegal firearms off the streets and out of our communities.”
According to court documents, Daryl Antonio Pearce, 21, and his half-brother, Darius Antonio Giles, 22, conspired together to travel from Maryland and Washington, D.C.—where they resided—to Virginia to acquire firearms with the intent to engage in the business of dealing firearms. During the course of this conspiracy, Pearce and Giles purchased well over 33 firearms within the Eastern District of Virginia and elsewhere. After they purchased these firearms, they transported them from Virginia to Maryland and Washington, D.C., where Pearce and Giles resold the firearms to various individuals for profit. Several of the firearms have been recovered by law enforcement in Washington, D.C. and Maryland, including from a convicted felon. Giles was arrested in February following a controlled firearm buy with undercover ATF agents.
Pearce and Giles pleaded guilty to conspiracy to transport firearms interstate and to act with the intent to engage in interstate dealing in firearms. They both face a maximum penalty of five years in prison when sentenced on September 20. In addition, Giles pleaded guilty to being a felon in possession of a firearm, and faces an additional maximum penalty of 10 years in prison at sentencing. 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), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorney Joel H. Feil and Assistant U.S. Attorney Nicholas U. Murphy II are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-139.
Three Members of Virginia Family Arrested and Charged with Conspiring to Force Victim to Labor in Their Home for YearsRead the Press Release
An indictment was unsealed today in federal court following the arrests of Zahida Aman, 77, Mohammed Naumann Chaudhri, 51, and Mohammed Rehan Chaudhri, 45, all of Midlothian, Virginia. The indictment charges the defendants with conspiracy, forced labor, and document servitude. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney G. Zachary Terwilliger Eastern District of Virginia and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office made the announcement.
According to the allegations set forth in the indictment, between March 2002 and August 2014, the defendants conspired to force the victim, who had been married to Aman’s son, to provide labor and services at their Midlothian home, to include cleaning the house, painting the house, and mowing the lawn. The indictment further alleges that the defendants subjected the victim to physical, psychological, and verbal abuse, withheld her food, restricted her communications with family and neighbors, confiscated her immigration and identification documents, limited her access to her own children, and threatened to separate her from her children, among other coercive means.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty. If convicted of forced labor, the defendants face sentences of up to 20 years in prison, as well as mandatory restitution.
The case is being investigated by the FBI’s Richmond Division. It is being prosecuted by Assistant United States Attorney Heather Mansfield for the Eastern District of Virginia and Trial Attorneys Vasantha Rao and Maryam Zhuravitsky for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Man Sentenced for Leading Methamphetamine ConspiracyRead the Press Release
ALEXANDRIA, Va. – A New York man was sentenced today to 14 years in prison and ordered to forfeit $500,000 for his role in a conspiracy to distribute methamphetamine.
According to court records and evidence presented at trial, Kendesia Juinize May, 40, was a leader of a sprawling, nationwide methamphetamine distribution network with ties to California, New York, Washington, DC, and the Eastern District of Virginia. The network utilized pirated and fraudulent Federal Express accounts to ship pound quantities of California-sourced methamphetamine throughout the United States.
In late 2017, May negotiated to buy into the conspiracy and assume distribution responsibilities to its Washington, DC area customers, many of whom were themselves distributors of methamphetamine. According to evidence presented at trial, May “took over” methamphetamine distribution in the northern Virginia and Washington, DC area and aspired to become “the biggest drug dealer on the East Coast.”
The government presented evidence showing that the conspiracy sent nearly 400 FedEx packages containing either pound quantities of methamphetamine or thousands of dollars in proceeds of drug sales. On May 25, 2018, officers of the Maryland Transportation Authority Police stopped May while driving his Mercedez Benz vehicle, and a search of the vehicle led to the discovery of more than five pounds of pure methamphetamine, along with FedEx packaging, digital scales, and other drug paraphernalia.
This case was prosecuted as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Four Horsemen. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal 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.
This investigation was led by the DEA Washington Field Office, with significant assistance from the Arlington County Police Department, U.S. Postal Inspector Service, the DEA Baltimore District Office, and the Maryland Transportation Authority Police.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, M. Jay Farr, Arlington County Chief of Police, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys David A. Peters and 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-7.
Durable Medical Equipment Company Agrees to Settle ADA ComplaintRead the Press Release
ALEXANDRIA, Va. – Lincare, Inc., a durable medical equipment company which operates approximately 800 centers in 48 states, including 27 centers in Virginia, has agreed to settle an Americans with Disabilities Act (ADA) complaint that it failed to provide a sign language interpreter for an appointment with a patient who is deaf.
Lincare, which is headquartered in Florida, is a supplier of oxygen, durable medical equipment and other respiratory care products and related services.
The allegations involved a patient with sleep apnea, who lives in Fairfax County and is deaf. She requested that Lincare provide a sign language interpreter for an appointment at which she expected to rent a new Continuous Positive Airway Press (CPAP) device and learn about its operation, maintenance, payment options, and warranty. Lincare failed to provide the legally required auxiliary aids or services, and as a result has agreed to pay a total of $20,000 and take remedial action to resolve the complaint.
“When Congress passed the ADA, it recognized that discrimination against individuals with disabilities persisted in the provision of healthcare services,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This case demonstrates this office’s unwavering commitment to protecting the rights of those who are deaf or hard of hearing and ensuring that they are able to communicate with health care providers, including when patients receive critical information about life sustaining medical equipment. We are pleased that Lincare has agreed to take steps to ensure that all of its centers, nationwide, will provide appropriate auxiliary aids and services to individuals who are deaf or hard of hearing.”
To resolve this complaint, Lincare agreed to adopt nationwide policies that will make its services accessible; designate an ADA Administrator who will be responsible for ensuring Lincare’s compliance with the ADA; provide sign language interpreters and other auxiliary aids and services for patients and companions who need them; and provide training for its personnel on the ADA’s requirements. Lincare also agreed to pay $10,000 to the aggrieved individual, as well as a $10,000 civil penalty to the United States.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office. The civil claims settled by this Americans with Disabilities Act agreement are allegations only; there has been no determination of civil liability.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including “ADA Requirements: Effective Communication” and ADA Business BRIEF:
Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings.
For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383. ADA complaints may be filed by email to [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Couple Pleads Guilty to Straw Purchasing FirearmsRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg couple pleaded guilty late yesterday to straw purchasing firearms and unlawful possession of a firearm by an individual previously convicted of a misdemeanor crime of domestic violence.
“Every straw purchased firearm is a gun that can wind up in the hands of a prohibited person,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to use federal firearms laws to prosecute straw purchasers and hold them accountable for their role in trafficking illegally purchased firearms. I want to commend the ATF for their commitment to investigating these important cases.”
According to court documents, Tina Marie Cochran, 41, straw purchased several firearms on behalf of Brant Wilson Shorden, 43, who was prohibited from possessing or purchasing firearms as a result of three prior convictions of misdemeanor domestic violence here in Virginia. Following the purchase of these firearms, Shorden posted pictures and videos of himself and Cochran shooting and brandishing the firearms at their residence in Fredericksburg.
Shorden pleaded guilty to possessing firearms following a conviction of a misdemeanor crime of domestic violence and faces a maximum penalty of 10 years in prison. Cochran pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of 5 years in prison. Both will be sentenced on September 6. 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), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy II 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. 1:19-cr-138.
Bloods Gang Member Sentenced to Prison for Possessing FirearmRead the Press Release
NEWPORT NEWS, Va. – A James City County man was sentenced today to 10 years in prison for being a felon in possession of a firearm.
According to court documents, William Kasey, 43, was arrested in February 2017, following the execution of a search warrant at his home in James City County. The search revealed that Kasey was in possession of multiple firearms despite his prior convictions for armed robbery and assault and battery with a deadly weapon. The investigation identified Kasey as a long-time member of the Bloods street gang and his residence also contained gang related documents and materials.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney 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-62.
South Carolina Teacher Pleads Guilty to Distributing Child PornographyRead the Press Release
ALEXANDRIA, Va. – A South Carolina school teacher pleaded guilty yesterday to conspiring to distribute child pornography.
According to court documents, Eric Hartley, 37, of Fort Hill, used various internet applications, including Kik and Dropbox, to send and receive child pornography. One of the individuals with whom Hartley traded child pornography was Jeramy Routh, who pleaded guilty to conspiring to distribute child pornography in May. Routh and Hartley discussed trading exploitative images of children, including infants and toddlers, and did in fact exchange images and videos as well as access to cloud based accounts of child pornography.
Hartley faces a mandatory minimum of five years in prison and a maximum penalty of 20 years when sentenced on September 27. 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 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 U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Whitney Dougherty Russell 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. 1:19-cr-170. Information on Jeramy Routh’s case can be located on PACER by searching for Case No. 1:19-cr-142.
Illegal Alien Pleads Guilty After Fourth Illegal Reentry into U.S.Read the Press Release
NEWPORT NEWS, Va. – A citizen of Honduras pleaded guilty today to illegal reentry into the United States.
According to court documents, Manuel Orellana-Alvarado, 51, has been removed from the United States at taxpayer expense on four different occasions, including in September 2011, March 2012, April 2013 and March 2017. Orellana-Alvarado is a native citizen of Honduras and is classified as an aggravated felon due to a prior conviction for possessing cocaine base for sale in California in 1991. After being removed from the United States in March of 2017, Orellana-Alvarado reentered the United States and was encountered by law enforcement in the Eastern District of Virginia in February 2018.
Orellana-Alvarado faces a maximum sentence of two years in prison. His sentencing has been set for September 9. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, 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 U.S. Magistrate Judge Douglas E. Miller accepted the plea. Special Assistant U.S. Attorney Jeremy Franker 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. 4:18-cr-97.
United States Reaches Settlement with Arlington Public Schools to Ensure Equal Opportunities for English Learner StudentsRead the Press Release
Today the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia announced a settlement agreement with Arlington Public Schools that will bolster English language services to the district’s approximately 5,000 students who are not proficient in English. The agreement, which stems from the United States’ investigation under the Equal Educational Opportunities Act of 1974, will ensure that these English Learner students receive the services they need to succeed in the district’s educational programs.
Under the agreement, the district will:
- Properly identify and place English Learner students when they enroll in the district’s 34 schools, and communicate with parents about program offerings and other essential information in a language they understand;
- Provide English as a Second Language instruction to all English Learner students, including students with disabilities, so that they can become proficient in English;
- Adequately train middle school core content teachers of English Learner students so that these students can meaningfully access grade-level curricula;
- Train secondary school principals on how to evaluate teachers of English Learner students and support effective teaching strategies;
- Ensure that English Learner students are timely and appropriately evaluated for special education services; and
- Properly monitor and evaluate the effectiveness of its English Learner programs over time.
“We commend the Arlington Public Schools for working with the Department of Justice to achieve this promising and positive result for the school district’s English Learners,” said Assistant Attorney General Eric Dreiband. “For the students who will benefit from the agreement, learning English is key to unlocking educational opportunities. We look forward to continuing to work cooperatively with the Arlington Public Schools to implement this agreement.”
“This settlement ensures that English Learner students in Arlington Public Schools receive the services they need,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “My office is committed to protecting the rights of all students, including those fighting to learn the English language or overcome disabilities, to receive the education and support they need to reach their full potential. As someone who personally struggles with dyslexia, if it were not for the protections afforded by civil rights statutes, especially the landmark Americans with Disabilities Act (ADA), my own educational journey would have been nearly impossible. EDVA’s work under the EEOA, the ADA, and other laws protecting students is critically important and a top priority.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
U.S. Reaches Settlement with Arlington Public Schools to Ensure Equal Opportunities for English Learner StudentsRead the Press Release
ALEXANDRIA, Va. – Today the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia announced a settlement agreement with Arlington Public Schools that will bolster English language services to the district’s approximately 5,000 students who are not proficient in English.
The agreement, which stems from the United States’ investigation under the Equal Educational Opportunities Act of 1974, will ensure that these English Learner students receive the services they need to succeed in the district’s educational programs.
“This settlement ensures that English Learner students in Arlington Public Schools receive the services they need,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “My office is committed to protecting the rights of all students, including those fighting to learn the English language or overcome disabilities, to receive the education and support they need to reach their full potential. As someone who personally struggles with dyslexia, if it were not for the protections afforded by civil rights statutes, especially the landmark Americans with Disabilities Act (ADA), my own educational journey would have been nearly impossible. EDVA’s work under the EEOA, the ADA, and other laws protecting students is critically important and a top priority.”
Under the agreement, the district will:
• Properly identify and place English Learner students when they enroll in the district’s 34 schools, and communicate with parents about program offerings and other essential information in a language they understand;
• Provide English as a Second Language instruction to all English Learner students, including students with disabilities, so that they can become proficient in English;
• Adequately train middle school core content teachers of English Learner students so that these students can meaningfully access grade-level curricula;
• Train secondary school principals on how to evaluate teachers of English Learner students and support effective teaching strategies;
• Ensure that English Learner students are timely and appropriately evaluated for special education services; and
• Properly monitor and evaluate the effectiveness of its English Learner programs over time.
“We commend the Arlington Public Schools for working with the Department of Justice to achieve this promising and positive result for the school district’s English Learners,” said Assistant Attorney General Eric Dreiband. “For the students who will benefit from the agreement, learning English is key to unlocking educational opportunities. We look forward to continuing to work cooperatively with the Arlington Public Schools to implement this agreement.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man Arrested for Transporting Images of Child Sexual AbuseRead the Press Release
ALEXANDRIA, Va. – A man with citizenship in Lebanon and the United States was arrested this morning after arriving at John F. Kennedy International Airport in New York on charges of transporting visual depictions of minors engaged in sexually explicit conduct.
According to court documents, George Aref Nader, 60, was charged by criminal complaint after he arrived at Washington-Dulles International Airport on Jan. 17, 2018 from Dubai in possession of a cell phone containing visual depictions of minors engaged in sexually explicit conduct. The charges were unsealed after his arrest this morning.
Nader previously pleaded guilty in the Eastern District of Virginia to the same charge in 1991.
If convicted, Nader faces a mandatory minimum of 15 years in prison and a maximum of 40 years. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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, and John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Jay V. Prabhu and Laura Fong are prosecuting the case.
This case is being investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state and federal partners.
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. 1:18-mj-196.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Father and Son Sentenced to Prison for Drug ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Guatemalan man was sentenced today to nearly three and a half years in prison for conspiracy to distribute cocaine.
According to court documents, Minor Peralta-Perez, aka Amilcar Lara, 44, and his son, Mynor Mejia Benitez, 25, distributed over half a kilogram of cocaine to a confidential source over a 14-month time period. Mejia Benitez was his father’s source of supply of cocaine. Peralta-Perez introduced the confidential source to Mejia Benitez during the summer of 2017, after the CS requested to purchase ounce-quantities of cocaine. For the majority of the transactions, Peralta Perez and the CS traveled to Mejia Benitez’s residence, in Dumfries, to conduct the cocaine transactions. During their first encounter, Mejia Benitez pulled a Smith and Wesson pistol from his waistband during the cocaine transaction. On other occasions, Mejia Benitez’s two minor children were in the residence during the sale of cocaine.
During the conspiracy, Peralta Perez was deported to Guatemala after a driving while intoxicated charge in Alexandria. Despite his deportation, Peralta Perez directed his associates based in the United States to maintain his drug operations and made his intentions known that he would re-enter the United States. In December 2018, Peralta Perez illegally reentered the United States at the Texas border and was subsequently prosecuted.
On March 15, Mejia Benitez was sentenced to 10 years in prison for his role in this conspiracy and possessing a firearm in furtherance of a drug trafficking crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Mark R. Herring, Attorney General of Virginia, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney and Virginia Assistant Attorney General Lena Munasifi 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-68.
California Man Sentenced to 14 Years in Prison for Sexually Exploiting a Minor He Met While Playing “Clash of Clans”Read the Press Release
A Fresno, California, man was sentenced today to 14 years in prison followed by seven years of supervised release for using the internet to coerce and entice a minor into producing child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Acting Assistant Director in Charge John P. Selleck of the FBI’s Washington Field Office made the announcement.
Emilio Morales, 29, was sentenced today before U.S. District Judge Liam O’Grady. According to admissions made in connection with his guilty plea, Morales met the 11-year-old victim while playing the online game “Clash of Clans.” In 2017, Morales began grooming the victim over Clash of Clans before proposing that he and the victim communicate privately over the online chatting application Kik Messenger. While communicating over Kik Messenger, Morales coerced and persuaded the victim to produce and send him sexually explicit images and videos. The conduct ceased when, despite Morales’s attempts at manipulation, the minor victim refused to participate in any further sexual activity.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force and the Prince William County Police Department, with substantial assistance from the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). The case was prosecuted by CEOS Trial Attorney Kyle P. Reynolds and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illegal Alien Sentenced After Sixth Illegal Entry into the U.S.Read the Press Release
ALEXANDRIA, Va. – A Guatemalan man who has illegally entered the United States six times, was sentenced today to prison for his second conviction for illegally entering the United States.
“Sanchez-Velasquez has illegally crossed the southern border of the United States six times in under two years,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Undeterred by numerous prior illegal reentry convictions, Sanchez-Velasquez has clearly demonstrated his total disregard for our nation’s laws and continues to break them time and time again.”
According to court documents, Alexis Leonel Sanchez-Velasquez, 26, reentered the United States after having been removed on five prior occasions. On April 7, 2013, Sanchez-Velasquez was apprehended by U.S. Border Patrol near La Joya, Texas, for illegally entering the United States. He was removed at taxpayers’ expense on April 12, 2013. On June 5, 2013, Sanchez-Velasquez was again encountered crossing the border near Loredo, Texas, not two months since being removed to Guatemala. He was again removed to Guatemala on June 17, 2013. He illegally returned again three months later and was subsequently removed to Guatemala on Sept. 24, 2013. Three months later, Sanchez-Velasquez was apprehended yet again for illegal reentry and removed on Dec. 27, 2013, for the fourth time. He was removed for a fifth time in July 2014 after illegally reentering a month prior.
He reentered the United States sometime after July 2014 and worked illegally for the past five years. On March 29, Sanchez-Velasquez was arrested for driving under the influence and was later convicted of that offense.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, 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 U.S. District Judge Liam O’Grady sentenced Sanchez-Velasquez to 60 days in prison. Assistant U.S. Attorney Carina A. Cuellar and Special Assistant U.S. Attorney Patrick D. Reid 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-004.
Drug User Sentenced to Prison for Possessing a FirearmRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg man was sentenced today to five years in prison for possessing a firearm while being a drug user.
According to court documents, John Johnson, 25, was arrested on Oct. 15, 2014 when Williamsburg Police responded to reports of a shooting. Johnson was located by responding officers and his firearm was recovered from an alleyway beside a local business when he threw it following the shooting. Johnson was also in possession of a backpack containing marijuana which he admitted was his for personal use.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. 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. 4:18-cr-92.
WikiLeaks Founder Julian Assange Charged in 18-Count Superseding IndictmentRead the Press Release
A federal grand jury returned an 18-count superseding indictment today charging Julian P. Assange, 47, the founder of WikiLeaks, with offenses that relate to Assange’s alleged role in one of the largest compromises of classified information in the history of the United States. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Assistant Director John Brown of the FBI’s Counterintelligence Division and Acting Assistant Director in Charge Timothy Dunham of the FBI’s Washington Field Office made the announcement.
The superseding indictment alleges that Assange was complicit with Chelsea Manning, a former intelligence analyst in the U.S. Army, in unlawfully obtaining and disclosing classified documents related to the national defense. Specifically, the superseding indictment alleges that Assange conspired with Manning; obtained from Manning and aided and abetted her in obtaining classified information with reason to believe that the information was to be used to the injury of the United States or the advantage of a foreign nation; received and attempted to receive classified information having reason to believe that such materials would be obtained, taken, made, and disposed of by a person contrary to law; and aided and abetted Manning in communicating classified documents to Assange.
After agreeing to receive classified documents from Manning and aiding, abetting, and causing Manning to provide classified documents, the superseding indictment charges that Assange then published on WikiLeaks classified documents that contained the unredacted names of human sources who provided information to United States forces in Iraq and Afghanistan, and to U.S. State Department diplomats around the world. These human sources included local Afghans and Iraqis, journalists, religious leaders, human rights advocates, and political dissidents from repressive regimes. According to the superseding indictment, Assange’s actions risked serious harm to United States national security to the benefit of our adversaries and put the unredacted named human sources at a grave and imminent risk of serious physical harm and/or arbitrary detention.
The superseding indictment alleges that beginning in late 2009, Assange and WikiLeaks actively solicited United States classified information, including by publishing a list of “Most Wanted Leaks” that sought, among other things, classified documents. Manning responded to Assange’s solicitations by using access granted to her as an intelligence analyst to search for United States classified documents, and provided to Assange and WikiLeaks databases containing approximately 90,000 Afghanistan war-related significant activity reports, 400,000 Iraq war-related significant activities reports, 800 Guantanamo Bay detainee assessment briefs, and 250,000 U.S. Department of State cables.
Many of these documents were classified at the Secret level, meaning that their unauthorized disclosure could cause serious damage to United States national security. Manning also provided rules of engagement files for the Iraq war, most of which were also classified at the Secret level and which delineated the circumstances and limitations under which United States forces would initiate or conduct combat engagement with other forces.
The superseding indictment alleges that Manning and Assange engaged in real-time discussions regarding Manning’s transmission of classified records to Assange. The discussions also reflect that Assange actively encouraged Manning to provide more information and agreed to crack a password hash stored on U.S. Department of Defense computers connected to the Secret Internet Protocol Network (SIPRNet), a United States government network used for classified documents and communications. Assange is also charged with conspiracy to commit computer intrusion for agreeing to crack that password hash.
Assange is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, he faces a maximum penalty of 10 years in prison on each count except for conspiracy to commit computer intrusion, for which he faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
First Assistant U.S. Attorney Tracy Doherty-McCormick, Assistant U.S. Attorneys Kellen S. Dwyer, Thomas W. Traxler and Gordon D. Kromberg, and Trial Attorneys Matthew R. Walczewski and Nicholas O. Hunter of the Justice Department’s National Security Division are prosecuting the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
WikiLeaks Founder Charged in 18-Count Superseding IndictmentRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an 18-count superseding indictment today charging Julian P. Assange, 47, the founder of WikiLeaks, with offenses that relate to Assange’s alleged role in one of the largest compromises of classified information in the history of the United States.
The superseding indictment alleges that Assange was complicit with Chelsea Manning, a former intelligence analyst in the U.S. Army, in unlawfully obtaining and disclosing classified documents related to the national defense. Specifically, the superseding indictment alleges that Assange conspired with Manning; obtained from Manning and aided and abetted her in obtaining classified information with reason to believe that the information was to be used to the injury of the United States or the advantage of a foreign nation; received and attempted to receive classified information having reason to believe that such materials would be obtained, taken, made, and disposed of by a person contrary to law; and aided and abetted Manning in communicating classified documents to Assange.
After agreeing to receive classified documents from Manning and aiding, abetting, and causing Manning to provide classified documents, the superseding indictment charges that Assange then published on WikiLeaks classified documents that contained the unredacted names of human sources who provided information to United States forces in Iraq and Afghanistan, and to U.S. State Department diplomats around the world. These human sources included local Afghans and Iraqis, journalists, religious leaders, human rights advocates, and political dissidents from repressive regimes. According to the superseding indictment, Assange’s actions risked serious harm to United States national security to the benefit of our adversaries and put the unredacted named human sources at a grave and imminent risk of serious physical harm and/or arbitrary detention.
The superseding indictment alleges that beginning in late 2009, Assange and WikiLeaks actively solicited United States classified information, including by publishing a list of “Most Wanted Leaks” that sought, among other things, classified documents. Manning responded to Assange’s solicitations by using access granted to her as an intelligence analyst to search for United States classified documents, and provided to Assange and WikiLeaks databases containing approximately 90,000 Afghanistan war-related significant activity reports, 400,000 Iraq war-related significant activities reports, 800 Guantanamo Bay detainee assessment briefs, and 250,000 U.S. Department of State cables.
Many of these documents were classified at the Secret level, meaning that their unauthorized disclosure could cause serious damage to United States national security. Manning also provided rules of engagement files for the Iraq war, most of which were also classified at the Secret level and which delineated the circumstances and limitations under which United States forces would initiate or conduct combat engagement with other forces.
The superseding indictment alleges that Manning and Assange engaged in real-time discussions regarding Manning’s transmission of classified records to Assange. The discussions also reflect that Assange actively encouraged Manning to provide more information and agreed to crack a password hash stored on U.S. Department of Defense computers connected to the Secret Internet Protocol Network (SIPRNet), a United States government network used for classified documents and communications. Assange is also charged with conspiracy to commit computer intrusion for agreeing to crack that password hash.
Assange is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, he faces a maximum penalty of 10 years in prison on each count except for conspiracy to commit computer intrusion, for which he faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Timothy Dunham, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. First Assistant U.S. Attorney Tracy Doherty-McCormick, Assistant U.S. Attorneys Kellen S. Dwyer, Thomas W. Traxler and Gordon D. Kromberg, and Trial Attorneys Matthew R. Walczewski and Nicholas O. Hunter of the Justice Department’s National Security Division are prosecuting the case.
Assange is currently serving a sentence in the United Kingdom for failure to surrender to U.K. authorities in 2012. Assange’s extradition to the United States is being handled by the Department of Justice’s Office of International Affairs.
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. 1:18-cr-111.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Serial Fraudster Convicted of Participating in Lottery ScamRead the Press Release
NORFOLK, Va. – A woman with a criminal history that includes previously participating in a fake lottery scam, pleaded guilty today to fraud charges related to her role in a recent Jamaican lottery scam.
“Kochuga and her co-conspirators lied, cheated, and stole from their victims out of greed,” said G. Zachary Terwilliger, U.S. Attorney of the Eastern District of Virginia. “The financial and emotional harm these scams cause elderly victims and their family members can be utterly devastating. This prosecution should stand as a warning to others considering scamming vulnerable victims: We will not tolerate this criminal activity and will continue to prosecute these cases federally.”
According to court documents, Nena Kerny Kochuga, 44, of Virginia Beach, received tens of thousands of dollars from victims around the United States. These victims had been contacted over the phone and told by conspirators that they had won a multi-million dollar lottery. The conspirators would then tell the victims that, in order to receive their winnings, they had to mail or wire money for taxes to Kochuga in Virginia Beach. Kochuga would keep a portion of the money for herself, and wire the rest of the money to conspirators in Jamaica and other countries. Prior to this criminal conduct, Kochuga had been convicted for the same exact scheme in Virginia Beach Circuit Court.
“The U.S. Postal Inspection Service will continue to work tirelessly to ensure that the Postal Service is not used to perpetuate predatory schemes that target vulnerable victims,” said Peter R. Rendina, Inspector in Charge, U.S. Postal Inspection Service, Washington Division. “We are committed to protecting our customers from being defrauded of everything they’ve worked so hard to attain.”
Kochuga pleaded guilty to mail fraud and faces a maximum penalty of 20 years in prison when sentenced on September 30. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Robert G. Doumar accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi 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. 2:19-cr-22.
Red Terror Human Rights Abuser Sentenced for Naturalization FraudRead the Press Release
ALEXANDRIA, Va. – A naturalized U.S. citizen residing in Alexandria was sentenced today to 3 years in prison for having fraudulently obtained United States citizenship.
“Negussie hid his past atrocities as a human rights abuser and lied his way into the United States,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “United States citizenship and the protections and privileges that accompany it is not intended for those who persecute their fellow man. My thanks to the prosecutors and law enforcement agents and officers for their outstanding work on this case.”
According to court documents, Mergia Negussie Habteyes, 58, participated in the persecution of detainees at a makeshift prison from 1977 to 1978 during the “Red Terror,” a campaign of brutal violence during which Ethiopia’s ruling military council, the Derg, and its affiliates arrested, extra-judicially imprisoned, interrogated, and tortured tens of thousands of members, perceived members, and supporters of political opposition groups. Negussie tortured detainees on account of their political opinion by beating them with belts, rods, and other objects, causing in many instances permanent scarring and injury. During these beatings, Negussie questioned the detainees about their affiliation with the Ethiopian People’s Revolutionary Party (EPRP) and opposition activities of the EPRP, which was the Derg’s primary political opponent at the time.
Negussie came to the United States in 1999 after telling a series of lies to United States immigration officials in the course of obtaining authority to enter the United States as a refugee. He ultimately became a naturalized United States citizen in 2008. During his sworn naturalization interview, he falsely stated that he had never persecuted persons because of their political opinion, and he failed to disclose that he had committed a crime or offense for which he was not arrested. Additionally, Negussie falsely stated that he had never given false or misleading information to any United States government official while applying for any immigration benefit and that he had never lied to United States immigration officials to gain entry or admission into the United States.
Negussie’s materially false representations in sworn statements to U.S. immigration officials resulted in his procurement of naturalization contrary to law. In addition to sentencing Negussie to a period of incarceration, Negussie’s U.S. citizenship was also revoked.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. with the support of the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, or the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians, and analysts who direct the government’s broader enforcement efforts against these offenders. The HRVWCC comprises ICE HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Section, the FBI’s International Human Rights Unit, and the Justice Department’s Human Rights and Special Prosecutions Section (HRSP).
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of ICE HSI Washington, D.C., made the announcement after sentencing from Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Alexander E. Blanchard and HRSP Trial Attorney Jamie B. Perry prosecuted the case.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863, or through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-305.