Eastern District of Virginia
Press releases recorded for this federal judicial district.
Dominican Woman Sentenced to Prison on Drug ChargesRead the Press Release
RICHMOND, Va. – A Dominican woman was sentenced today to two years in prison for possession with intent to distribute heroin.
According to court documents, in December 1997, Ninorka Sencion, 45, pleaded guilty to traveling on a bus from New York to Richmond for the purpose of delivering over 300 grams of heroin. After pleading guilty she was released on a bond. At that time, Sencion fled to the Dominican Republic and failed to appear for her originally scheduled sentencing hearing in March 1998. She was arrested in the Dominican Republic in August 2018 on an outstanding arrest warrant and extradited to the United States for sentencing on this charge.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Mathieson, U.S. Marshal 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 Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:97-cr-329.
Convicted Felon Pleads Guilty to Firearms ChargesRead the Press Release
RICHMOND, Va. – A Chesterfield man pleaded guilty today to possession of a firearm by a convicted felon.
According to court documents, Carlos Azucar Menjivar, 21, was encountered by Chesterfield County police officers after they observed his vehicle parked at a construction site after hours. Officers approached the vehicle and noticed that it was missing tags. As officers were speaking with him, they observed a license plate in the front windshield, and when officers ran that tag, it came back to another vehicle. During this interaction, one officer observed the magazine well of a firearm as well as a box of ammunition in plain view in Menjivar’s vehicle.
Officers then had Menjivar, who was previously convicted for attempted robbery in 2015, exit the vehicle and searched the vehicle to retrieve the firearm. In a backpack in the rear of the vehicle, officers found a total of three, individually packaged firearms with prices written on the outside of the packaging. Another firearm was located in the glove compartment of the vehicle.
Menjivar pleaded guilty to possession of a firearm by a convicted felon and faces a maximum penalty of 10 years in prison when sentenced on June 25. 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, 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 John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney Heather H. Mansfield 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 is 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-10.
Man Sentenced to Prison for Heroin and Cocaine TraffickingRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to more than 10 years in prison for conspiring to manufacture, distribute, and possess heroin, cocaine, and crack cocaine.
According to court documents, William Jerome Peele, 45, was part of a massive drug-trafficking operation in Hampton Roads. As part of that conspiracy, Peele personally distributed more than 15 kilograms of cocaine, more than 2 kilograms of crack, and more than 100 grams of heroin. Last year, DEA conducted five controlled purchases of cocaine from Peele, totaling roughly 200 grams. Investigators arrested Peele just before a sixth scheduled buy. He was caught with 90 grams of cocaine, marijuana, $1200 in cash, and four cell phones. He told the investigators that he was planning to “cook” much of that cocaine into crack before police showed up. Police recovered even more cocaine from Peele’s home while executing a search warrant.
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, Col. K.L. Wright, Chief of Chesapeake Police, and Angela Greene, Interim Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney William B. Jackson prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Promotional Deceit. 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.
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. 2:18-cr-175.
Man Pleads Guilty to Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty yesterday to producing child pornography.
According to court documents, Benjamin Taylor White, 34, produced an image of a 12-year old minor child completely nude in a shower. The image was uncovered on White’s cell phone, which also contained over 2,600 photos or videos of suspected or supported child exploitation or pornographic materials obtained by White via a peer-to-peer file sharing network in 2018. A forensic examination of White’s laptop computer further revealed that White searched for and accessed images of child pornography dating as far back as 2008.
White pleaded guilty to one count of producing child pornography and faces a mandatory minimum sentence of 15 years and a maximum of 30 years in prison when sentenced on June 21. 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 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, James A. Cervera, Chief of Virginia Beach Police, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorneys Daniel 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 is 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-17.
Man Pleads Guilty for Possessing a Firearm with Altered Serial NumberRead the Press Release
ALEXANDRIA, Va. – A Waldorf man pleaded guilty today to possessing a firearm with an altered serial number.
According to court documents, in October 2018, Albert Lyles, 29, was pulled over for speeding by Military Police at Marine Corps Base Quantico. Military Police noticed the smell of marijuana inside the vehicle and upon inspection discovered approximately one ounce of marijuana and a firearm with an altered serial number.
Lyles pleaded guilty to possessing a firearm with an altered serial number and faces a maximum penalty of 5 years in prison when sentenced on May 21. 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 Claude M. Hilton accepted the plea. Special Assistant U.S. Attorney Evan Clark 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 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-72.
Jury Convicts Narcotics Trafficker Involved in Multi-Million Dollar DealRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a narcotics trafficker from the Dominican Republic yesterday who was involved in a multi-million dollar deal to obtain a large quantity of cocaine.
According to court records and evidence presented at trial, Luis M. Liriano-Toribio, 32, traveled from New York to Northern Virginia last October to assist Luis Rafael Tavarez and Manny Lizardo with a drug trafficking operation. Tavarez sought 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.
The government presented evidence showing that Liriano-Toribio and Tavarez spoke via telephone and FaceTime on 66 separate occasions within a nine-day period preceding the deal, including 16 separate occasions on the day of their arrest. Evidence presented at trial also included a photograph of Lizardo holding large stacks of cash, and text messages in which Liriano-Toribio and Tavarez discussed meeting late at night in the weeks leading up to the massive drug transaction.
Tavarez, who pleaded guilty on February 27, served as the leader and organizer of the operation and was arrested at a hotel in Vienna in possession of over $1 million in cash. Lizardo, who pleaded guilty on March 11, was arrested with Liriano-Toribio in a parking garage in Fairfax while both men were attempting to take possession of the cocaine with the intent to distribute it.
The jury convicted Liriano-Toribio of attempted possession with the intent to distribute cocaine. He faces a mandatory minimum term of 5 years in prison and a maximum penalty of 40 years in prison when sentenced on June 21. 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, 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., 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. Attorney Raj Parekh 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 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-426.
Former State Delegate Pleads Guilty to Defrauding United StatesRead the Press Release
NORFOLK, Va. – A former member of the Virginia General Assembly pleaded guilty today to 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, 48, 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, and Villanueva received over $1 million in income from the companies.
Villanueva faces a maximum penalty of five years in prison when sentenced on July 2. 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, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Carol Fortine Ochoa, Inspector General, General Services Administration (GSA), Glenn A. Fine, Acting Inspector General, Department of Defense (DoD), and Hannibal “Mike” Ware, Inspector General, Small Business Administration, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorneys Alan M. Salsbury and Daniel T. Young 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 No. 2:19-cr-2.
Convicted Felon Sent to Prison for Possessing FirearmRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to nearly four years in prison for being a felon in possession of a firearm.
“A convicted felon in possession of a firearm poses a serious risk to the safety of our community,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Slaughter has an extensive criminal record that includes assault and battery on a family member and assault on a law enforcement officer. In this case, he attempted to evade police and possessed a loaded handgun that he threw into a public parking lot. We will continue to prosecute these cases at every opportunity and remove violent felons like Slaughter from our communities.”
According to court documents, on March 16, 2018, Newport News Police Department responded to the Happy Shopper store on Marshall Avenue in reference to two males in possession of firearms. Officers made contact with the two suspects, Carl A. Slaughter, 24, and another male. One officer observed a firearm magazine sticking out of Slaughter’s waistband and asked if Slaughter had a concealed carry permit. Slaughter immediately ran from the store through a parking lot, and officers pursued Slaughter on foot. Officers observed Slaughter throw a firearm during the chase. Slaughter was apprehended and the firearm, a Taurus 9 mm with an extended capacity magazine containing 28 rounds with one round chambered, was recovered.
Slaughter had previously been convicted of assault and battery on a law enforcement officer and was on supervised probation at the time of this offense. His assault and battery on a law enforcement officer conviction resulted from a March 6, 2017 traffic stop in Newport News. Slaughter resisted law enforcement during the interaction, and one officer was hospitalized with a major knee injury and another officer sustained knee and elbow abrasions. Slaughter has also previously been convicted of assault and battery on a family member, violation of a protective order, contributing to the delinquency of a minor, violation of probation, receiving stolen goods, and failure to appear.
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 Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Megan M. Cowles 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. 4:18-cr-84.
Local Virginia Business Settles Claim It Violated Servicemember’s RightsRead the Press Release
The Department of Justice and the U.S. Attorney’s office of the Eastern District of Virginia today announced a settlement with Lawn Doctor of Stafford-Culpepper (doing business as Beck I LLC). The settlement resolves claims that the business and its owners violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by suspending and terminating a U.S. Army Reserve soldier following his return from active duty military service.
“Men and women who serve in the national guard and reserve should never have to worry whether their civilian jobs will be waiting when they return from active duty service to our country,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice is firmly committed to protecting our servicemembers’ employment rights are while they defend our rights.”
“Military reservists make tremendous sacrifices when they are called to active duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Such service should never be a detriment to their livelihood. We are committed to ensuring that these men and women are honored, not disadvantaged, for their military service, and will continue to hold employers who violate the rights of our servicemembers accountable.”
The case stems from a servicemember complaint that the U.S. Department of Labor referred to the Department of Justice following an investigation by the DOL’s Veterans’ Employment and Training Service. The complaint concerned a servicemember who was suspended and then terminated from his job as a landscaper because he reported for active duty service with his U.S. Army Reserve unit for the period Oct. 30, 2017, through Nov. 3, 2017. The case was handled by Assistant U.S. Attorney Deirdre G. Brou in collaboration with Andrew Braniff, Assistant Director of the Department of Justice’s Servicemembers and Veterans Initiative.
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to reemploy servicemembers when they return from military service.
Additional information about USERRA can be found on the Justice Department website, the Civil Rights Division website, and the DOL’s website.
The civil claims settled are allegations only. There has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Local Business Settles Claims it Violated Servicemember’s RightsRead the Press Release
ALEXANDRIA, Va. – Lawn Doctor of Stafford-Culpepper, doing business as Beck I, LLC, has agreed to settle claims that the business and its owners violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by suspending and terminating a U.S. Army Reserve soldier following his return from active duty military service.
“Military reservists make tremendous sacrifices when they are called to active duty,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Such service should never be a detriment to their livelihood. We are committed to ensuring that these men and women are honored, not disadvantaged, for their military service, and will continue to hold employers who violate the rights of our servicemembers accountable.”
The U.S. Attorney’s Office’s involvement in this matter began with a complaint that was referred to the Department of Justice by the Department of Labor concerning a servicemember who worked as a landscaper for Lawn Doctor of Stafford-Culpeper in Fredericksburg. The servicemember alleged that on Oct. 26, 2017, he received orders for active duty service with his U.S. Army Reserve unit from Oct. 30, 2017, through Nov. 3, 2017. The servicemember alleged that he promptly informed his supervisor of his upcoming military duty and was told that failure to appear for work would be considered job abandonment. The servicemember returned to work on Nov. 6, 2017, and was immediately suspended, pending termination. On Nov. 8, 2017, Lawn Doctor of Stafford-Culpeper terminated the servicemember’s employment. The servicemember complained that as a result of the termination due to his military service, the servicemember lost income.
“Men and women who serve in the national guard and reserve should never have to worry whether their civilian jobs will be waiting when they return from active duty service to our country,” said Eric S. Dreiband, Assistant Attorney General of the Civil Rights Division. “The Department of Justice is firmly committed to protecting our servicemembers’ employment rights are while they defend our rights.”
USERRA protects the rights of members of the uniformed services to retain their civilian employment following absences due to military service obligations, and expressly requires employers to reemploy servicemembers when they return from military service.
This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service. The case was handled by Assistant U.S. Attorney Deirdre G. Brou in collaboration with Andrew Braniff, Assistant Director of the Department of Justice’s Servicemembers and Veterans Initiative, who works with DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website and the division website, as well as on the DOL’s website.
The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Justice Department Obtains Largest Ever Settlement Against Property Management Company for Alleged Violations of Servicemembers Civil Relief ActRead the Press Release
ALEXANDRIA, Va. – PRG Real Estate Management and several related entities have agreed to pay up to $1.59 million to resolve allegations of violations of the Servicemembers Civil Relief Act for obtaining unlawful court judgments against military tenants and by charging improper lease termination fees.
“The incredible sacrifices our servicemembers make when they deploy and move frequently should never create financial or legal hardships for them,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This settlement helps ensure that these men and women are honored for, not disadvantaged by, their military service, and that servicemembers’ rights are protected going forward.”
This settlement is the largest ever obtained by the Department against a landlord or property management company for violations of the SCRA.
“When landlords violate the SCRA, it causes disruption in the lives of servicemembers and their families. Our men and women in uniform deserve all the protections the SCRA provides them against civil lawsuits while they are defending our nation,” said Assistant Attorney General Eric Dreiband. “We thank PRG for its cooperation in this case. This substantial settlement clearly sends the message that the Department of Justice is committed to the vigorous enforcement of federal laws that protect servicemembers.”
Under the settlement, PRG will pay up to $1.49 million to compensate 127 servicemembers who had 152 unlawful default judgments entered against them and nearly $35,000 to compensate 10 servicemembers who were charged early lease termination fees in violation of the SCRA. PRG will also pay a civil penalty of approximately $62,000 to the United States. The settlement also requires PRG to repair the credit of affected servicemembers, provide SCRA training to its employees and develop new policies and procedures consistent with the SCRA.
The Department launched its investigation after Navy legal assistance attorneys in Norfolk reported that PRG had obtained eviction and money judgments against servicemember-tenants in Virginia state courts by filing affidavits that failed to accurately disclose the tenants’ military status. Under the SCRA, if a landlord files a civil lawsuit against a tenant and the tenant does not appear, the landlord must file an affidavit with the court stating whether the tenant is in the military before seeking a judgment. If the tenant is in military service, the court typically cannot enter judgment until it appoints an attorney to represent the tenant and the court must postpone the proceedings for at least 90 days.
In a complaint filed in the U.S. District Court for the Eastern District of Virginia, the Department alleged that from 2006 to 2017, PRG obtained at least 152 default judgments against 127 SCRA-protected servicemembers by failing to disclose their military service to the court or by falsely stating that they were not in the military. Landlords and lenders can verify an individual’s military status by searching the Defense Manpower Data Center’s free publicly available website or by reviewing their files to see if there are applications, military leave and earnings statements, or military orders indicating military status.
The complaint further alleged that PRG imposed unlawful charges against servicemember-tenants who attempted to terminate their leases early in order to comply with military orders. The SCRA allows military tenants to terminate a residential lease early if the servicemember receives deployment or permanent change of station orders or enters military service during the term of the lease. If a tenant terminates a lease pursuant to the SCRA, the landlord may not impose any early termination fee.
The servicemembers who will receive compensation under this settlement were tenants at the following properties:
• Linkhorn Bay Apartments – Virginia Beach
• The Courtyards of Chanticleer – Virginia Beach;
• Hilton Village Townhomes – Newport News;
• Heritage Trace Apartments – Newport News;
• Hyde Park Apartments – Chester; and
• Ashton Creek – Chester.
An independent settlement administrator will contact the servicemembers to be compensated through this settlement in the upcoming months. The independent administrator will locate victims and distribute payments at no cost to servicemembers.
The matter was investigated by Assistant U.S. Attorney Deirdre G. Brou of the U.S. Attorney’s Office for the Eastern District of Virginia, and the Justice Department’s Civil Rights Division’s Housing and Civil Enforcement Section.
Since 2011, the Department has obtained over $470 million in monetary relief for over 119,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Justice Department Obtains Its Largest Ever Settlement Against Property Management Company for Alleged Violations of the Servicemembers Civil Relief ActRead the Press Release
The Justice Department today announced that PRG Real Estate Management and several related entities have agreed to pay up to $1,590,000 to resolve allegations that they violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against military tenants and by charging improper lease termination fees. This settlement is the largest ever obtained by the Department against a landlord or property management company for violations of the SCRA.
Under the settlement, PRG will pay up to $1,490,000 million to compensate 127 servicemembers who had 152 unlawful default judgments entered against them and $34,920.39 to compensate 10 servicemembers who were charged early lease termination fees in violation of the SCRA. PRG will also pay a civil penalty of $62,029 to the United States. The settlement also requires PRG to repair the credit of affected servicemembers, provide SCRA training to its employees and develop new policies and procedures consistent with the SCRA.
“When landlords violate the SCRA, it causes disruption in the lives of servicemembers and their families. Our men and women in uniform deserve all the protections the SCRA provides them against civil lawsuits while they are defending our nation,” said Assistant Attorney General Eric Dreiband. “We thank PRG for its cooperation in this case. This substantial settlement clearly sends the message that the Department of Justice is committed to the vigorous enforcement of federal laws that protect servicemembers.”
“The incredible sacrifices our servicemembers make when they deploy and move frequently should never create financial or legal hardships for them,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This settlement helps ensure that these men and women are honored for, not disadvantaged by, their military service, and that servicemembers’ rights are protected going forward.”
The Department launched its investigation after Navy legal assistance attorneys in Norfolk, Virginia, reported that PRG had obtained eviction and money judgments against servicemember-tenants in Virginia state courts by filing affidavits that failed to accurately disclose the tenants’ military status. Under the SCRA, if a landlord files a civil lawsuit against a tenant and the tenant does not appear, the landlord must file an affidavit with the court stating whether the tenant is in the military before seeking a judgment. If the tenant is in military service, the court typically cannot enter judgment until it appoints an attorney to represent the tenant and the court must postpone the proceedings for at least 90 days.
In a complaint filed in the United States District Court for the Eastern District of Virginia, the Department alleged that from 2006 to 2017, PRG obtained at least 152 default judgments against 127 SCRA-protected servicemembers by failing to disclose their military service to the court or by falsely stating that they were not in the military. Landlords and lenders can verify an individual’s military status by searching the Defense Manpower Data Center’s free publicly available website or by reviewing their files to see if there are applications, military leave and earnings statements, or military orders indicating military status.
The complaint further alleged that PRG imposed unlawful charges against servicemember-tenants who attempted to terminate their leases early in order to comply with military orders. The SCRA allows military tenants to terminate a residential lease early if the servicemember receives deployment or permanent change of station orders or enters military service during the term of the lease. If a tenant terminates a lease pursuant to the SCRA, the landlord may not impose any early termination fee.
The servicemembers who will receive compensation under this settlement were tenants at the following properties:
- Linkhorn Bay Apartments – Virginia Beach, Virginia;
- The Courtyards of Chanticleer – Virginia Beach, Virginia;
- Hilton Village Townhomes – Newport News, Virginia;
- Heritage Trace Apartments – Newport News, Virginia;
- Hyde Park Apartments – Chester, Virginia; and
- Ashton Creek – Chester, Virginia.
An independent settlement administrator will contact the servicemembers to be compensated through this settlement in the upcoming months. The independent administrator will locate victims and distribute payments at no cost to servicemembers.
This matter was handled jointly by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Eastern District of Virginia. Since 2011, the Department has obtained over $470 million in monetary relief for over 119,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
The civil claims settled are allegations only; there has been no determination of civil liability.
Drug Dealer Sentenced to Prison for Drug and Gun CrimesRead the Press Release
ALEXANDRIA, Va. – A Springfield man was sentenced today to 20 years in prison for distributing more than 5 kilograms of cocaine and brandishing a firearm in furtherance of his drug dealing.
According to court documents, Aidriss Saydi, 36, was one of the largest drug dealers in the Northern Virginia area over the past decade. Saydi frequently traveled to other states with hundreds of thousands of dollars in cash to purchase narcotics that were later shipped to him.
Over the course of the conspiracy, Saydi used dozens of people to receive drug shipments on his behalf. When shipments became more difficult given the quantity of drugs he was distributing, Saydi purchased his own plane to carry drugs to Virginia. In April of 2018, after fear that law enforcement was closing in on him, Saydi ordered a co-conspirator to hide close to a kilogram of cocaine, 30 pounds of marijuana, and a stolen handgun, all of which were later found by law enforcement. When the buried contraband could not be found, Saydi repeatedly beat his co-conspirator with another weapon, fearing that his co-conspirator had stolen them from him. As part of his sentence, Saydi agreed to forfeit $1 million and multiple vehicles.
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 Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Christopher Grieco and Assistant U.S. Attorney Whitney Dougherty Russell 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. 1:18-cr-394.
Businessman Sentenced to Prison for Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A local businessman was sentenced today to 2 1/2 years in prison for orchestrating a $1.3 million Ponzi scheme that caused losses to more than 40 victims.
According to court documents, Amrit Jaswant Singh Chahal, 31, of Fairfax, operated an investment fraud scheme through The Kane Capital Investment Group, LLC (Kane Capital), a company he established and operated. Chahal held out Kane Capital as a private capital investment group that sought to earn profits and investment returns on behalf of its clients by purchasing, trading, or otherwise investing in commodities for future delivery and other financial instruments. Chahal executed this fraud through falsely representing that Kane Capital had earned returns of roughly 28 to 34 percent annually, when in fact, Chahal had suffered substantial losses in managing investors’ funds. Chahal also created falsified brokerage statements to conceal the losses he had sustained and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items. When investors asked for returns on their investment, Chahal frequently used money from newer investors to pay disbursements to older investors, without disclosing this fact to his investors. In addition, Chahal opened an unauthorized bank account in the name of one of his investors to further divert funds to his personal use.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker prosecuted the case.
The Virginia State Corporation Commission provided significant assistance with 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. 1:18-cr-152.
Woman Sentenced to 30 Years for Supplying Fentanyl that Resulted in DeathRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to 30 years in prison for her role in a heroin and fentanyl distribution conspiracy that resulted in an overdose death.
“The callousness of Michelle Best is hard to overstate considering her knowledge of the death she helped cause and her desire to continue ‘business as usual,’” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “As a high-level regional supplier, she was attributed with enough fentanyl to supply 20,000 potentially lethal doses. The sentence in this case should serve as a reminder of what can happen to those who make it their business to exploit and profit by spreading poison in our communities. We will remain relentless in our efforts to hold drug dealers accountable.”
According to court documents, Michelle Renee Best, aka Michelle Smith, 44, served as a regional wholesale supplier of fentanyl, heroin, and cocaine for over a year and half, and she did so from the comfort of her beachfront Croatan neighborhood. Even after learning that her drugs killed a young woman, she told a co-conspirator to keep the news of the death to himself and that it would be “business as usual.” On March 13, 2018, a Virginia Beach SWAT team executed a search warrant on Best’s house and recovered a commercial money counter, nearly $42,000 in cash, 1.85 kilograms of cocaine, 1.12 kilograms of marijuana, 382 grams of heroin laced with fentanyl, 207 pieces of jewelry, a drug ledger, and devices used for drug manufacturing. Officers also recovered four firearms at her home, including an AR-15 rifle. Additionally, when she was arrested, officers seized a fifth gun from her purse—a .380 Kel-Tec handgun. Best was a previously convicted felon for having run a dog fighting ring and was thus prohibited from possessing a firearm.
“Fentanyl is uniquely dangerous because it is so deadly and so profitable,” said Mark R. Herring, Virginia Attorney General. “We’ve made stemming the supply of fentanyl a real priority because it has been a primary driver in the surge of fatal overdoses in Virginia and around the country. Hampton Roads is safer with this operation out of business.”
After her arrest, she attempted to obstruct the investigation by instructing others to interfere with a co-defendant and another individual whom she believed to be a confidential informant, telling another individual that the person she believed was a confidential informant “needs to be taken care of before [he/she] disappears.”
“The Washington Metropolitan Area has some of the highest opioid overdose rates in the nation,” said Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division. “This sentencing is a prime example of the extent the Drug Enforcement Administration, and our law enforcement counterparts, will go to bring to justice those organizations and individuals, who seek to illegally profit from our communities and citizens without any regard for human life.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department reinvigorated PSN in 2017 as part of a renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys John F. Butler and Andrew Bosse prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is 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-147.
Two Men Indicted for Racketeering Conspiracy Involving MurderRead the Press Release
NORFOLK, Va. – Two Portsmouth men were arrested today for their alleged roles in a racketeering conspiracy that included the murder of 23-year-old Delante Eley.
A federal grand jury returned a 13-count indictment on March 6, charging Rashaun Taylor, aka “Diablo”, 31, and Timothy Sawyer-House, aka “Trouble”, 28, with racketeering conspiracy, attempted robbery, felon in possession of a firearm, and distribution of heroin and fentanyl. Taylor was also charged with the capital-eligible offense of murder in aid of racketeering and use of a firearm resulting in death.
According to the indictment, the two men allegedly were members of a Portsmouth-based “set” of the Nine Trey Gangsters (NTG), a gang affiliated with the United Blood Nation. The indictment alleges that on March 11, 2014, after a series of incidents between Delante Eley and members of Taylor’s gang, Taylor and Sawyer-House followed Eley to his home, where Taylor shot and killed Eley. Two days later, Taylor, Sawyer-House, and others attempted to rob a drug dealer of cash, heroin, cocaine, and marijuana while armed with a high powered Romanian-made semi-automatic rifle.
The indictment also alleges that Taylor and Sawyer-House sold heroin and fentanyl.
If convicted of the charged murder, Taylor would be eligible for the death penalty or a mandatory life sentence. If Sawyer-House is convicted, he faces a mandatory minimum of 15 years and a maximum of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Billy Club. 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.
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, and Tonya D. Chapman, Chief of Portsmouth Police, made the announcement following the arrest of both men. Assistant U.S. Attorneys John F. Butler and Andrew C. Bosse 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 No. 2:19-cr-36.
Jury Convicts East Coast Leader of Nationwide Methamphetamine ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a New York man today on charges of 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.”
Multiple witnesses testified that May traveled from his home in New York to the Washington, DC area every week for the purpose of selling methamphetamine. He did so because the Washington, DC area is one of the most lucrative methamphetamine markets in the country.
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.
May faces a mandatory minimum of 10 years in prison when sentenced on June 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. District Judge Leonie M. Brinkema accepted the verdict. Assistant U.S. Attorneys David A. Peters and Katherine E. Rumbaugh 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 No. 1:19-cr-7.
Former DoD Employee Sentenced to Prison for $1.4 Million Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Matthews woman was sentenced today to four years in prison for computer fraud and theft of government property in connection with an extensive timekeeping fraud that resulted in losses of over $1.4 million, which she was ordered to pay in restitution.
According to court documents, Michelle M. Holt, 52, was previously employed as a federal employee for the Department of Defense. Holt worked as a secretary for U.S. Air Force, Air Combat Command, Communication Support Squadron, at Joint Base Langley-Eustis. Holt was a salaried employee on the General Schedule (GS) grade for the federal civilian workforce. As such, she was entitled to overtime pay if authorized by her employer, was also entitled to other forms of holiday and annual leave, and premium pay for any federal holidays worked.
A law enforcement investigation determined that from December 2001 to July 2018, Holt falsely claimed over 42,000 hours in unauthorized overtime for hours she did not work, as well as other amounts of unauthorized holiday leave, sick leave and annual leave, all amounting to losses to the United States of more than $1.4 million. In recent years, Holt’s overtime pay was over double that of her regular salary. Holt accomplished the fraud by making manual retroactive adjustments to protected computer time and attendance systems to add overtime, reverse leave taken and reverse holiday leave. In doing so, Holt used another employee’s log-in information without that employee’s knowledge or authorization.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, and Colonel Kirk B. Stabler, Commander of the Air Force Office of Special Investigations, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is 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-93.
Former Congressional Candidate Sentenced for Fraud ConspiracyRead the Press Release
NORFOLK, Va. – A Hampton woman was sentenced today to three years in prison and one year of home detention for conspiracy to commit wire fraud and causing false records, wire fraud, and theft of government funds.
“Brown lied about feeding needy children in our community in hopes of making a financial gain for herself,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to thoroughly investigate those who lie and steal from taxpayers and the federal government. I want to thank our trial team and investigative partners for their incredible work on this important case.”
According to court documents and evidence presented at trial, Shaun Brown, 60, defrauded the USDA’s summer food service program (SFSP) aimed at feeding low income children. Brown and her mother ran a non-profit company, JOBS Community Development Corporation, which served as a sponsor for the SFSP. Over the course of the 2012 Summer, Brown inflated the number of meals JOBS purportedly served to low-income children and submitted fraudulent claims for reimbursement based on the inflated numbers. Brown also orchestrated a massive scheme to falsify hundreds of documents to support her fraudulently inflated meal count numbers and ordered excessive amounts of food and milk products which she was well aware would never be used to feed needy children. At her direction, Brown’s employees disposed of this food and milk, purchased with federal funds, in large mounds behind buildings in Newport News, as well as a pig farm in Southern Virginia. As a result of her fraudulent actions, the USDA paid JOBS over $800,000 in federal funds.
Brown ran as the Democratic candidate for the 2nd Congressional District for the U.S. House of Representatives in 2016. Brown attempted to run again as an independent candidate in the 2018 election, but was removed from the ballot due to other fraudulent actions by Brown and others.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael C. Westfall, State Inspector General of Virginia, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorneys Elizabeth M. Yusi and Melissa E. O’Boyle 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. 2:17-cr-169.
Suffolk Man Sentenced to Prison for Distributing FentanylRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to more than 11 years in prison for his role in a heroin and fentanyl distribution conspiracy that resulted in an overdose death.
According to court documents, Christopher Allen Bardall, 34, sold at least 550 grams of fentanyl, which could translate to approximately 5,500 individual doses. He did so as a part of conspiracy with Michelle Best, whose drugs killed one young woman, K.R., and caused several other non-fatal overdoses. Best was sentenced on March 14 to 30 years in prison.
Bardall was a street dealer who distributed fentanyl, supplied by Best, directly to K.R. Bardall knew the fentanyl he was dealing was strong and that it had resulted in multiple overdoses by clients of his who used it. On Dec. 17, 2017, within hours of K.R.’s coma and death, officers from the Virginia Beach Police Department located Bardall and arrested him after a vehicle and foot pursuit.
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 James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys John F. Butler and Andrew C. Bosse prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is 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-147-3.
Lumber Liquidators Enters into Corporate Resolution for Securities Fraud and Agrees to Pay $33 Million PenaltyRead the Press Release
Lumber Liquidators Holdings Inc. (Lumber Liquidators) has agreed to pay a total penalty of $33 million for filing a materially false and misleading statement to investors regarding the sale of its laminate flooring from China to its customers in the United States.
Lumber Liquidators, a public corporation headquartered in Toano, Virginia, and one of the largest retailers of flooring products in the United States, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Eastern District of Virginia charging the company with securities fraud. The case was primarily focused on the fact that Lumber Liquidators knowingly filed a false and misleading statement to investors broadly denying the allegations featured in a March 2015 episode of 60 Minutes, and affirming that the company complied with California Air Resources Board (CARB) regulations.
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, Special Agent in Charge David W. Archey of the FBI’s Richmond Field Office, Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office and Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service Washington Division, made the announcement.
“Lumber Liquidators lied to investors and to the public about its compliance with formaldehyde regulations for the flooring it sold – all to protect its stock price,” said Assistant Attorney General Benczkowski. “False and misleading financial reports undermine the integrity of our securities markets and harm investors. The Department and our law enforcement partners are committed to doing everything we can to ensure that those who commit securities fraud are held accountable.”
“This resolution holds Lumber Liquidators accountable for misleading the investing public,” said U.S. Attorney Terwilliger. “It also recognizes that the company has cooperated with the government's investigation, completely replaced its senior executive team, and installed experienced executives who have displayed a commitment to building an ethical corporate culture. We will continue to ensure that market participants can trust information communicated by public companies when making investment decisions. My thanks to our prosecutorial team and our investigative partners for their outstanding work on this case.”
“This penalty should serve as a warning to other corporations who seek to mislead investors,” said FBI Special Agent in Charge Archey. “FBI Richmond is grateful for the commitment to this case of its partners at the U.S. Attorney’s Office, the Justice Department’s Fraud Section, the IRS Criminal Investigation and the U.S. Postal Inspection Service.”
“Lumber Liquidators knowingly deceived the shareholders they were entrusted to serve,” said IRS-CI Special Agent in Charge Jackson. “IRS-CI will continue to work diligently with our federal law enforcement partners to ensure that the punishment for such crimes matches the seriousness of the offense.”
“Those seeking to maximize profits while misleading investors should expect to pay a heavy price,” said U.S. Postal Inspector in Charge Rendina. “The U.S. Postal Inspection Service has investigated these kind of deceptive practices for years to protect investors and the integrity of the market place. Postal Inspectors work tirelessly to identify and hold accountable any company who uses the U.S. mail to defraud American citizens.”
According to court documents filed as part of the DPA, Lumber Liquidators was subject to various laws that regulated the chemicals used in wood products, including laminate flooring. Specifically, CARB enforced limits on formaldehyde emissions from composite wood products. In September 2013, CARB announced that it intended to use deconstructive testing to determine whether finished flooring products contained CARB compliant cores. In 2013 and 2014, CARB informed Lumber Liquidators that flooring samples collected from its California stores failed deconstructive testing for formaldehyde emissions. Lumber Liquidators’ own deconstructive tests of the same products yielded similar results.
Also in 2014, foreign and domestic flooring suppliers alerted Lumber Liquidators of CARB compliance concerns related to the company’s Chinese laminate products. In February 2014, Lumber Liquidators’ Chinese laminate suppliers requested a price increase citing concerns about the increased cost of CARB compliant cores and their ability to pass deconstructive testing for formaldehyde emissions. Approximately one month later, a U.S. laminate supplier informed Lumber Liquidators that it tested a Chinese laminate sample purchased from one of Lumber Liquidators’ stores in the United States and that the sample emitted high levels of formaldehyde. Lumber Liquidators took only limited steps to determine the validity of the suppliers’ concerns, and instead sought to generate support for its position that deconstructive testing was not a valid test method, the company admitted.
To that end, Lumber Liquidators visited two Chinese laminate suppliers in August 2014 to collect and test samples. While collecting samples from Supplier A, a then-Lumber Liquidators employee noticed a pallet of laminate flooring that factory workers indicated was Lumber Liquidators’ product, but the label on the pallet indicated that it contained non-CARB compliant cores. The former employee took samples from this suspect pallet for testing along with other samples manufactured in his and other employees’ presence. Laboratory A later provided Lumber Liquidators with test results that undermined the company’s criticisms of deconstructive testing. All but one of the products manufactured in front of the Lumber Liquidators employees passed deconstructive testing. But the samples from the suspect pallet, manufactured before employees arrived, failed deconstructive testing.
Lumber Liquidators representatives again visited Supplier A in September 2014 and January 2015. Following these visits, Lumber Liquidators concluded that Supplier A had numerous recordkeeping anomalies, refused to implement CARB-related corrective action requests made by the company, and could not reliably demonstrate that its laminate flooring contained CARB compliant cores. Accordingly, in January 2015, the company’s former senior management team decided to discontinue its relationship with Supplier A due to CARB compliance concerns. Nevertheless, that same day, Lumber Liquidators admitted it ordered more laminate flooring from Supplier A.
In Fall 2014, Lumber Liquidators learned that the CBS news program, 60 Minutes, also retained Laboratory A to conduct deconstructive testing of Lumber Liquidators’ products. Shortly thereafter, Laboratory A secretly notified Lumber Liquidators that the deconstructive tests commissioned by 60 Minutes yielded significant test failures. The lab then allowed a former Lumber Liquidators employee to review and take pictures of these test results. In December 2014, the lab owner told former Lumber Liquidators employees that a high deconstructive test failure was a strong indicator that the product was not CARB compliant, the company admitted.
On Feb. 25, 2015, Lumber Liquidators learned that 60 Minutes obtained undercover videos from three of its Chinese laminate suppliers, including Supplier A, in which the suppliers admitted that the laminates they made for Lumber Liquidators were not CARB compliant. Lumber Liquidators’ former senior management team retained outside counsel from Law Firm B to interview the suppliers in the undercover videos. On Feb. 28, 2015, Law Firm B informed former Lumber Liquidators executives that it recorded one person from each of the three factories in the undercover videos saying that the product they sold Lumber Liquidators was CARB compliant. Nevertheless, Law Firm B told these former executives that they had limited confidence in the suppliers’ statements because, among other things, a former Lumber Liquidators inspector alleged that suppliers offered bribes to him and other company employees, the company admitted.
On March 1, 2015, 60 Minutes aired a segment alleging that laminate flooring sold by Lumber Liquidators in the United States did not meet CARB emission standards for formaldehyde. The episode featured the undercover videos and test results previously shown to Lumber Liquidators.
The next morning, March 2, 2015, the New York Stock Exchange halted trading of the company’s stock, with the expectation that Lumber Liquidators intended to issue a statement responding to the 60 Minutes episode. Later that morning, Lumber Liquidators, through its employees, knowingly filed a false and misleading Securities and Exchange Commission (SEC) Form 8-K broadly denying the allegations in the 60 Minutes episode and affirming Lumber Liquidators complied with CARB regulations, the company admitted. Specifically, Lumber Liquidators omitted material facts from investors, including CARB’s investigation of the company’s Chinese laminate products; its own deconstructive test results; the company’s decision to discontinue sourcing from Supplier A due to CARB compliance concerns; and evidence that undermined the suppliers’ statements that all products provided to Lumber Liquidators were CARB compliant.
Pursuant to its agreement with the Department of Justice, Lumber Liquidators agreed to pay a total criminal penalty of $33 million to the United States, including a criminal fine of approximately $19 million, and approximately $14 million in forfeiture. This amount represents the company’s net profits from the sale of 100 percent of its Chinese laminate from approximately Jan. 16, 2015 through May 7, 2015.
Lumber Liquidators also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals. Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of three years to allow Lumber Liquidators to demonstrate good conduct.
The SEC announced a separate settlement with Lumber Liquidators in connection with related, parallel proceedings. Under the terms of its resolution with the SEC, Lumber Liquidators agreed to a total of $6,097,298.42 in disgorgement of profits and prejudgment interest. The Department of Justice agreed to credit the amount paid to the SEC in disgorgement as part of its agreement. Thus, the combined total amount of criminal and regulatory penalties paid by Lumber Liquidators will be $33 million.
This penalty reflects the nature and seriousness of the conduct, as well as Lumber Liquidators’ ongoing cooperation with the United States and the company’s extensive efforts at remediation. Among other remedial efforts, Lumber Liquidators suspended the sale of all laminate flooring from China in May 2015; offered consumers in-home testing for already installed flooring; and implemented new policies and procedures regarding compliance with CARB emission standards and other environmental regulations, sourcing of flooring products, financial reporting and internal controls. The employees involved in wrongdoing either were terminated or resigned from Lumber Liquidators, and the company replaced its executive management team with experienced executives who have displayed a commitment to building an ethical corporate culture.
Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Katherine Lee Martin and Uzo E. Asonye of the Eastern District of Virginia prosecuted the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Lumber Liquidators Agrees to $33 Million Penalty for Securities FraudRead the Press Release
RICHMOND, Va. – Lumber Liquidators Holdings, Inc. has agreed to pay a total penalty of $33 million for filing a materially false and misleading statement to investors regarding the sale of its laminate flooring from China to its customers in the United States.
“This resolution holds Lumber Liquidators accountable for misleading the investing public,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “It also recognizes that the company has cooperated with the government's investigation, completely replaced its senior executive team, and installed experienced executives who have displayed a commitment to building an ethical corporate culture. We will continue to ensure that market participants can trust information communicated by public companies when making investment decisions. My thanks to our prosecutorial team and our investigative partners for their outstanding work on this case.”
Lumber Liquidators, a public corporation headquartered in Toano and one of the largest retailers of flooring products in the United States, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today charging the company with securities fraud. The case was primarily focused on the fact that Lumber Liquidators knowingly filed a false and misleading statement to investors broadly denying the allegations featured in a March 2015 episode of 60 Minutes, and affirming that the company complied with California Air Resources Board (CARB) regulations.
“Lumber Liquidators lied to investors and to the public about its compliance with formaldehyde regulations for the flooring it sold – all to protect its stock price,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “False and misleading financial reports undermine the integrity of our securities markets and harm investors. The Department and our law enforcement partners are committed to doing everything we can to ensure that those who commit securities fraud are held accountable.”
According to court documents filed as part of the DPA, Lumber Liquidators was subject to various laws that regulated the chemicals used in wood products, including laminate flooring. Specifically, CARB enforced limits on formaldehyde emissions from composite wood products. In September 2013, CARB announced that it intended to use deconstructive testing to determine whether finished flooring products contained CARB compliant cores. In 2013 and 2014, CARB informed Lumber Liquidators that flooring samples collected from its California stores failed deconstructive testing for formaldehyde emissions. Lumber Liquidators own deconstructive tests of the same products yielded similar results.
“This penalty should serve as a warning to other corporations who seek to mislead investors,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office. “FBI Richmond is grateful for the commitment to this case of its partners at the U.S. Attorney’s Office, the Justice Department’s Fraud Section, IRS Criminal Investigations and the U.S. Postal Inspection Service.”
Also in 2014, foreign and domestic flooring suppliers alerted Lumber Liquidators of CARB compliance concerns related to the company’s Chinese laminate products. In February 2014, Lumber Liquidators’ Chinese laminate suppliers requested a price increase citing concerns about the increased cost of CARB compliant cores and their ability to pass deconstructive testing for formaldehyde emissions. Approximately one month later, a United States laminate supplier informed Lumber Liquidators that it tested a Chinese laminate sample purchased from one of Lumber Liquidators’ stores in the United States and that the sample emitted high levels of formaldehyde. Lumber Liquidators took only limited steps to determine the validity of the suppliers’ concerns, and instead sought to generate support for its position that deconstructive testing was not a valid test method.
“Lumber Liquidators knowingly deceived the shareholders they were entrusted to serve,” said Kelly R. Jackson, Special Agent in Charge of IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office. “IRS-CI will continue to work diligently with our federal law enforcement partners to ensure that the punishment for such crimes matches the seriousness of the offense.”
To that end, Lumber Liquidators visited two Chinese laminate suppliers in August 2014 to collect and test samples. While collecting samples from Supplier A, a former Lumber Liquidators employee noticed a pallet of laminate flooring that factory workers indicated was Lumber Liquidators’ product, but the label on the pallet indicated that it contained non-CARB compliant cores. The former employee took samples from this suspect pallet for testing along with other samples manufactured in his and other employees’ presence. Laboratory A later provided Lumber Liquidators with test results that undermined the company’s criticisms of deconstructive testing. All but one of the products manufactured in front of the Lumber Liquidators’ employees passed deconstructive testing. But the samples from the suspect pallet, manufactured before employees arrived, failed deconstructive testing.
“Those seeking to maximize profits while misleading investors should expect to pay a heavy price,” said Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service has investigated these kinds of deceptive practices for years to protect investors and the integrity of the marketplace. Postal Inspectors work tirelessly to identify and hold accountable any company who uses the U.S. mail to defraud American citizens.”
Lumber Liquidators again visited Supplier A in September 2014 and January 2015. Following these visits, Lumber Liquidators concluded that Supplier A had numerous recordkeeping anomalies, refused to implement CARB-related corrective action requests made by the company, and could not reliably demonstrate that its laminate flooring contained CARB compliant cores. Accordingly, in January 2015, the company’s former senior management team decided to discontinue its relationship with Supplier A due to CARB compliance concerns. Nevertheless, that same day, Lumber Liquidators ordered more laminate flooring from Supplier A.
In Fall 2014, Lumber Liquidators learned that the CBS news program, 60 Minutes, also retained Laboratory A to conduct deconstructive testing of Lumber Liquidators’ products. Shortly thereafter, Laboratory A secretly notified Lumber Liquidators that the deconstructive tests commissioned by 60 Minutes yielded significant test failures. The lab then allowed a former Lumber Liquidators employee to review and take pictures of these test results. In December 2014, the lab owner told former Lumber Liquidators employees that a high deconstructive test failure was a strong indicator that the product was not CARB compliant.
On Feb. 25, 2015, Lumber Liquidators learned that 60 Minutes obtained undercover videos from three of its Chinese laminate suppliers, including Supplier A, in which the suppliers admitted that the laminates they made for Lumber Liquidators were not CARB compliant. Lumber Liquidators’ former senior management team retained outside counsel from Law Firm B to interview the suppliers in the undercover videos. On Feb. 28, 2015, Law Firm B informed former Lumber Liquidators executives that it recorded one person from each of the three factories in the undercover videos saying that the product they sold Lumber Liquidators was CARB compliant. Nevertheless, Law Firm B told these former executives that they had limited confidence in the suppliers’ statements because, among other things, a former Lumber Liquidators inspector alleged that suppliers offered bribes to him and other company employees.
On March 1, 2015, 60 Minutes aired a segment alleging that laminate flooring sold by Lumber Liquidators in the United States did not meet CARB emission standards for formaldehyde. The episode featured the undercover videos and test results previously shown to Lumber Liquidators.
The next morning, March 2, 2015, the New York Stock Exchange halted trading of the company’s stock, with the expectation that Lumber Liquidators intended to issue a statement responding to the 60 Minutes episode. Later that morning, Lumber Liquidators, through its employees, knowingly filed a false and misleading SEC Form 8-K broadly denying the allegations in the 60 Minutes episode and affirming Lumber Liquidators complied with CARB regulations. Specifically, Lumber Liquidators omitted material facts from investors, including: CARB’s investigation of the company’s Chinese laminate products; its own deconstructive test results; the company’s decision to discontinue sourcing from Supplier A due to CARB compliance concerns; and evidence that undermined the suppliers’ statements that all products provided to Lumber Liquidators were CARB compliant.
Pursuant to its agreement with the Department of Justice, Lumber Liquidators agreed to pay a total criminal penalty of $33 million to the United States, including a criminal fine of approximately $19 million, and approximately $14 million in forfeiture. This amount represents the company’s net profits from the sale of 100 percent of its Chinese laminate from on or about Jan. 16, 2015 through on or about May 7, 2015.
Lumber Liquidators also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals. Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of three years to allow Lumber Liquidators to demonstrate good conduct.
The U.S. Securities and Exchange Commission (SEC) announced a separate settlement with Lumber Liquidators in connection with related parallel proceedings. Under the terms of its resolution with the SEC, Lumber Liquidators agreed to a total of $6,097,298.42 in disgorgement of profits and prejudgment interest. The Department of Justice agreed to credit the amount paid to the SEC in disgorgement as part of its agreement. Thus, the combined total amount of criminal and regulatory penalties paid by Lumber Liquidators will be $33 million.
This penalty reflects the nature and seriousness of the conduct, as well as Lumber Liquidators’ ongoing cooperation with the United States and the company’s extensive efforts at remediation. Among other remedial efforts, Lumber Liquidators suspended the sale of all laminate flooring from China in May 2015; offered consumers in-home testing for already installed flooring; and implemented new policies and procedures regarding compliance with California Air Resources Board (CARB) emission standards and other environmental regulations, sourcing of flooring products, financial reporting and internal controls. The employees involved in wrongdoing either were terminated or resigned from Lumber Liquidators, and the company replaced its executive management team with experienced executives who have displayed a commitment to building an ethical corporate culture.
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; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorneys Katherine Lee Martin and Uzo Asonye, and Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. X:XX-cr-XXX.
Jury Convicts Two Men of Heroin Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted two men late yesterday on charges of conspiracy to distribute heroin, crack cocaine, and fentanyl, and possession with intent to distribute heroin.
“Armed drug traffickers pose serious threats to the safety of our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The tactical acumen and flexible execution demonstrated by the joint task force in this case is testament to its keen leadership and depth of experience. Through quick thinking, decisive action and fluid coordination, a simple surveillance operation suddenly escalated into an unexpected but successful vehicle interdiction and drug trafficking arrest. This investigation and prosecution would not have been possible absent the critical partnerships we have formed with our local and federal law enforcement partners. My thanks to Homeland Security Investigations, and the Hampton and Newport News Police Departments for their outstanding work on this case.”
According to court records and evidence presented at trial, Terrence Dennis 37, of Norfolk, and Michael Guess, 36, of Newport News, caught the attention of law enforcement when they walked into an ongoing surveillance operation by a Homeland Security Investigations Task Force. After the tactical decision was made to observe Guess (driver) and Dennis (passenger), Guess failed to obey a stop sign, and agents attempted a traffic stop for the minor infraction. Guess accelerated and led the task force on a dangerous high-speed pursuit through Hampton and Newport News while his co-conspirator Dennis threw a loaded firearm and 33 grams of heroin out of the passenger window. Once detained, additional controlled substances and evidence of narcotics distribution was seized. The loaded firearm and heroin jettisoned during the chase were also recovered.
“Narcotics. Guns. A high-speed chase. This case had all the makings of a suspenseful movie plot. Unfortunately, it wasn’t part of a fictional storyline; it is the grim reality our agents and task force officers face right here in Hampton Roads,” said Michael K. Lamonea, Assistant Special Agent in Charge of Homeland Security Investigations’ Norfolk and Richmond offices. “I commend the task force for its quick actions. The arrests of these two individuals helped law enforcement remove lethal narcotics, as well as a firearm from our community.”
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.
Dennis, who was also convicted of being a felon in possession of a firearm, faces a mandatory minimum sentence of five years to life imprisonment consecutive to any additional sentence imposed for his multiple convictions when sentenced on June 19. Guess faces a maximum penalty of 20 years in prison when sentenced on June 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Terry L. Sult, Chief of Hampton Police Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after Chief U.S. District Judge Mark S. Davis accepted the verdict. Assistant U.S. Attorneys Howard J. Zlotnick and Peter G. Osyf 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 No. 4:18-cr-72.
Federal Inmate Pleads Guilty to Possessing a Controlled SubstanceRead the Press Release
RICHMOND, Va. – A Maryland man pleaded guilty today to possessing suboxone, a Schedule III controlled substance, while in federal prison.
According to court documents, James Pixley, 29, of Leonardtown, was in the visiting area of the Petersburg Federal Correctional Institution in July 2018 when he received 35 12mg suboxone strips from a visitor. Suboxone is a controlled substance that is available only by prescription. Prison officials recovered the suboxone from Pixley immediately after the visit.
Pixley pleaded guilty to possession of a prohibited object by a federal inmate and faces a maximum penalty of 5 years in prison when sentenced on April 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, David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, and John I. Dixon III, Chief of Petersburg Police, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorney Angela Mastandrea-Miller 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 is 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-011.
Repeat Offender Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Springfield man was sentenced today to total of 16 years in prison and a lifetime of supervised release for receipt of child pornography and a supervised release violation.
According to court documents, William Hemphill, 39, admitted that he downloaded thousands of images and videos of child pornography in February and March 2018. Hemphill, who is currently serving a term of federal supervised release as part of his sentence for an earlier 2006 conviction for possession of child pornography, fled from supervision in Virginia in February 2018. He was arrested in Utah aboard a California-bound train in March 2018, in possession of cocaine and several electronic devices, including a laptop computer. A subsequent forensic examination of these devices revealed that Hemphill had used multiple anonymous Internet services to download and view large quantities of child pornography while on the run in Virginia and elsewhere.
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, Robert Mathieson, U.S. Marshal for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney William G. Clayman prosecuted the case.
This case was initiated and investigated by the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI Agents, along with Detectives from the Washington Metropolitan Police Department, Fairfax County Police, Arlington County Police, Prince William County Police, Alexandria City Police, Loudoun County Sheriff’s Department, Leesburg Police Department, USMS and other federal Offices of Inspector Generals. Additional assistance in this case was provided by the FBI’s Salt Lake Field Office, the United States Marshal’s Office, and the United States Probation and Pretrial Services in the District of Utah.
The U.S. Attorney’s Office for the District of Utah provided significant assistance.
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-414.
Man Sentenced for Importing and Selling Parts of Endangered SpeciesRead the Press Release
ALEXANDRIA, Va. – An Upperville man was sentenced today to 30 days in prison and one year of supervised release for selling endangered species and other wildlife parts that were illegally imported into the United States.
According to court documents, Keith R. Foster, 60, is a golf course architect who also operated a store in Middleburg known as “the Outpost.” Between 2014 and 2018, Foster imported at least 35 separate shipments of merchandise for resale at the Outpost, some of which contained wildlife and wildlife parts, but he failed to declare any of the wildlife within those shipments to the U.S. Fish and Wildlife Service upon import, as required by law. To conceal the existence of wildlife pieces in the shipments and evade detection by the U.S. Fish and Wildlife Service, he caused many pieces to be labeled in a manner that obscured their true nature. Foster then sold at his store the wildlife pieces that he illegally imported.
During the five-year period in question, Foster sold nearly $400,000 worth of items that constituted or contained parts of endangered species and other wildlife that he illegally imported into the United States. These items included Endangered Species Act items such as sawfish blades, crocodile skin bags, wallets and flasks, and handicrafts made of sea turtle shell.
In a telephone call with a customer in January 2017, Foster admitted that he should not be importing sawfish blades. Foster stated, “Rest assured, I’m gonna bring more in, ‘cause I’m the only fool in the States that probably wants to risk it.”
In December 2018, Foster was ordered to perform 50 hours of community service, forfeit scores of individual pieces of wildlife and wildlife parts, and ordered to forfeit $275,000.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Edward Grace, Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Gordon D. Kromberg 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. 1:18-cr-456.
Honduran Man Pleads Guilty to Cocaine and Firearm TraffickingRead the Press Release
ALEXANDRIA, Va. – A Honduran national pleaded guilty today to multiple cocaine and firearms trafficking charges.
According to court documents, Reyes Barrera Alachan, 38, sold a total of about 3/4 of a kilogram of cocaine to undercover law enforcement over the course of about six months. Alachan traveled from his residence in Maryland to North Carolina at least every other weekend to meet his sources of supply and obtain cocaine, which he redistributed to his customers in the greater Washington, DC metropolitan area. Alachan and his co-conspirators used coded language to communicate about drugs, such as the word “tires” to refer to cocaine, and “fajitas” to refer to methamphetamine.
In addition to his involvement in distributing cocaine, Alachan was also involved in illegal distribution of firearms, and sold a total of six firearms, as well as magazines and ammunition, to undercover law enforcement. The firearms he sold included semi-automatic weapons capable of carrying large-capacity magazines. When Alachan was arrested, law enforcement found him in possession of 5 ounces of cocaine, 4 grams of methamphetamine, drug paraphernalia, and gun ammunition.
Alachan pleaded guilty to conspiracy to distribute 500 grams or more of cocaine, distribution of cocaine, and one count of engaging in the business of dealing firearms without a license. He faces a mandatory minimum sentence of five years in prison when sentenced on June 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Tomb Stone. 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), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of a renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge of the Criminal Division at the Washington Field Office, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Barry M. Barnard, Chief of Prince William County Police, made the announcement after U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys Katherine E. Rumbaugh and James P. Gillis are prosecuting the case.
This investigation was led by FBI Washington Field Office’s Safe Streets/HIDTA Task Force. The Task Force is composed of FBI Agents along with investigators from the Prince William County Police, the Fairfax County Police, the Loudoun County Sheriff’s Office, Leesburg Police Department, Alexandria City Police, Vienna Police, Herndon Police and ICE. Significant assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, FBI’s Charlotte Field Office, DEA’s Greensboro Resident Agency, and the Police Departments of Sanford, North Carolina and Fayetteville, North Carolina.
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. 1:18-cr-380 and 1:19-cr-73.
Convicted Felon Arrested for Fraud Scheme Involving Local NewspaperRead the Press Release
ALEXANDRIA, Va. – A previously convicted felon was arrested last night on charges related to defrauding investors of a local newspaper, unlawful possession of firearms by a previously convicted felon, and making false statements to the FBI.
According to allegations in the indictments, 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. As alleged in that indictment, 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 allegedly 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, understated the amount of debt owed by the company to other investors, and materially overstated the amount of money held by the company in its bank accounts.
The indictment further alleges 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. According to the indictment, 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.
A second indictment charges Reynolds, who is a convicted felon, with unlawfully possessing eight firearms and associated ammunition, and with making false statements to the FBI regarding his use of firearms.
Reynolds is charged with 11 counts of wire fraud, one count of unlawful possession of firearms by a convicted felon, and one count of making false statements. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud, a maximum penalty of 10 years in prison for the unlawful possession of firearms, and a maximum penalty of 5 years in prison for making false statements. 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 Matthew J. DeSarno, 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.
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.
Law Enforcement Executes Federal Gun and Drug Sting in PetersburgRead the Press Release
RICHMOND, Va. – Over 150 law enforcement agents and officers executed a coordinated takedown this morning in Petersburg, arresting seven individuals on various drug and firearms charges including heroin, fentanyl, and cocaine distribution and possession of a firearm by a convicted felon. An eighth individual was arrested in Texas and a ninth individual was already in custody on state charges.
“This operation represents our commitment to public safety in Petersburg,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Illegal firearms and drugs are often driving forces behind the violent crime that we are addressing in communities across the Eastern District. The actions taken today reflect the coordinated, skilled and brave work of law enforcement, and I want to thank the ATF and the Petersburg Bureau of Police for their partnership and commitment to reducing violent crime in Petersburg. These are serious allegations and each defendant is presumed to be innocent until and unless proven guilty in court.”
“What we see today is the fruit of the strong partnership between ATF and the Petersburg Bureau of Police,” said Ashan Benedict, Special Agent in Charge of the ATF’s Washington Field Division. “Going forward, ATF will continue to stand alongside the City of Petersburg and stay committed to targeting those who commit violent crimes and illegally possess firearms.”
“Today is a great day for our city,” said Kenneth Miller, Chief of Petersburg Bureau of Police. “The Petersburg Bureau of Police is committed to keeping our streets safe and making the City of Petersburg a better place to live. I’m extremely appreciative of our strong relationship with the ATF and our federal partners, and I look forward to continuing to work together to target those who choose to break the law. Today’s enforcement activity is a great example of our strategic approach going forward.”
Below is a table which lists the name, age, hometown, and respective charge(s) each defendant faces.
Name, Age
Hometown
Charge(s)
Armon Lee, 26
Warfield
Sale or Disposal of a Firearm to a Convicted Felon; Distribution of Cocaine
Terrell Dean Johnson, 30
Petersburg
Distribution of Cocaine
Titus Maurice Lee, 44
Petersburg
Distribution of Cocaine; Distribution of Heroin and/or Fentanyl; Possession of a Firearm/Ammunition by a Convicted Felon; Sale or Disposal of a Firearm to a Convicted Felon
Autrelle Malik Waddell, 22
Petersburg
Distribution of Heroin and/or Fentanyl; Sale or Disposal of a Firearm to a Convicted Felon
Miles Owanga Johnson, 39
Petersburg
Distribution of Heroin and/or Fentanyl
Charles Lee Avery, 44
Petersburg
Possession of a Firearm/Ammunition by a Convicted Felon
Tyrell Jakahree Allen, 26
Prince George
Distribution of Cocaine
Vincent Edward Stewart, 29
Petersburg
Sale or Disposal of a Firearm to a Convicted Felon
Calvin Alphonso Turner, 32
Petersburg
Distribution of Cocaine
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 Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police, made the announcement. Assistant U.S. Attorneys Angela Mastandrea-Miller and Peter S. Duffey are prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
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.
Former State Department Contractor Pleads Guilty to Stealing ComputersRead the Press Release
ALEXANDRIA, Va. – A former federal contractor pleaded guilty today to theft and embezzlement of up to 16 government computers from the U.S. Department of State.
According to court documents, Andrew W. Cheveers, 31, of Bowie, Maryland, was an Information Technology contractor for the State Department’s Office of Inspector General. In this role, Cheveers held a security clearance that allowed him access to certain sensitive information, and he was responsible for configuring the computers prior to the devices being distributed to U.S. government personnel.
Through the course of his criminal conduct, Cheevers admitted to stealing up to 16 Microsoft Surface Pro laptop computers. Cheveers then sold the stolen computers on Internet websites such as Craigslist and eBay from approximately July 2016 through February 2017 in order to profit from his fraudulent scheme.
Cheveers faces a maximum penalty of 10 years in prison when sentenced on June 21. 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 Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Raj Parekh and Special Assistant U.S. Attorney Katherine Celeste 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 No. 1:19-cr-64.
FHA Program Landlord Agrees to False Claims Act SettlementRead the Press Release
RICHMOND, Va. – A real estate broker in Colonial Heights has agreed to settle allegations that he induced a low-income tenant to pay additional money for rent not permitted under a U.S. Department of Housing and Urban Development (HUD) rent subsidy program in which he was participating.
Harold Joseph Tyler, owner of Tyler Realty Group, participates in the federally-funded Housing Choice Voucher Program, a program for low-income individuals administered by HUD. In return for participating, Tyler receives a portion of the rent from housing assistance funds from HUD. The United States alleged that Mr. Tyler violated the federal False Claims Act (FCA) by certifying that he would not receive any payments in excess of the agreed rent. However, Tyler Realty Group, for a period of approximately 72 months, collected $190 per month from the tenant over and above the rent in the form of a monthly “non-refundable deposit.”
A qui tam action under the FCA is commenced by an individual, known as a “relator,” filing a complaint under seal in U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The relator in this case was the tenant who leased the residence and paid the excess amounts to Tyler Realty Group.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, and the Department of Housing and Urban Development, Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Convicted Felon Pleads Guilty to Trafficking Heroin and Possessing a FirearmRead the Press Release
RICHMOND, Va. – A Henrico man pleaded guilty today to 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. On August 28, 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 $9000.
Turner pleaded guilty to possession with the intent to distribute 100 grams or more of heroin. Turner faces a mandatory minimum of 5 years in prison and maximum penalty of 40 years in prison when sentenced on June 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.
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 U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorneys Erik S. Siebert and Kenneth Simon 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 No. 3:18-cr-158.
Former Navy Sailor Sentenced to Prison for Illegally Trafficking FirearmsRead the Press Release
NORFOLK, Va. – A former U.S. Navy sailor was sentenced today to two and a half years in prison for trafficking at least 60 firearms, including several firearms that ended up in the hands of prohibited persons.
“Pino used his military discount to illegally traffick at least 60 firearms,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This case is a prime example of our conscious effort to aggressively pursue this criminal conduct which puts illegally straw purchased firearms into the hands of prohibited persons. Together with our law enforcement partners we remain 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, Julio Fernando Pino, 26, used his military discount to purchase and resell firearms at a profit without a federal license to do so. From November 2015 to January 2017, Pino purchased at least 60 firearms and resold at least 23 firearms at a profit, despite being told by ATF agents multiple times to stop selling these firearms. Several of the firearms fell into the hands of prohibited persons, such as felon gang members and juveniles, and were later linked to violent crimes.
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 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-70.
Convicted Felon Sentenced to Prison for Firearms ConspiracyRead the Press Release
NORFOLK, Va. – A Franklin man was sentenced today to more than seven years in prison for his role in a conspiracy to straw-purchase firearms.
According to court documents, Khary Deshun Smith, 25, and several co-defendants were members of a conspiracy that straw-purchased at least seven firearms from federally licensed firearms dealers in Franklin.
Smith, who was prohibited from possessing firearms due to earlier federal felony convictions, illegally purchased a firearm with the assistance of his co-defendant, Larry Parrish, who straw-purchased the firearm from a federally licensed gun store. In another instance, Smith stole a firearm from his girlfriend, loaded it with an extended magazine, and used it in a firefight with enemy gang members. When law enforcement executed the arrest warrant issued in this case, they discovered a third firearm tucked under a chair cushion in Smith’s living room within arms’ reach of minors.
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 the City 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 is 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-150-2.
South American Couple Sentenced to Prison for Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A South American couple were each sentenced today to nearly two years in prison for conspiracy to commit wire and bank fraud.
According to court documents, Rodrigo Pardo, 46, of Argentina, and Lorena Medina, 46, of Ecuador, defrauded homeowners in Northern Virginia and mortgage lenders by promising the homeowners to assist them in obtaining loan modifications. As part of the scheme, Pardo and Medina agreed to negotiate with the homeowners’ lenders for a reduced monthly payment. Pardo and Medina then instructed clients who were current on their mortgages to stop making payments to their lenders as they had in the past, and instead make payments into accounts controlled by Medina, Pardo, or COFS, a company they controlled. At the same time, Pardo and Medina represented to their clients’ mortgage lenders that COFS was authorized to negotiate loan modifications, but concealed from the mortgage lenders that they were receiving mortgage payments from the victims. As a result, Pardo and Medina received over $140,000 in payments from their victims, which they used for personal expenses.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Robert Manchak, Acting Special Agent in Charge, Office of Inspector General for the Federal Housing Finance Agency, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Kimberly R. Pedersen and Special Assistant U.S. Attorney Charlie Divine 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. 1:18-cr-181.
Maryland Businessman Pleads Guilty to Defrauding International Labor UnionRead the Press Release
A Maryland contractor pleaded guilty today to defrauding a large, international labor union, announced 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, Inspector General Scott S. Dahl of the U.S. Department of Labor’s Office of the Inspector General and Director Arthur F. Rosenfeld of the U.S. Department of Labor’s Office of Labor-Management Standards.
Howard W. Janoske, 74, of Oakland, Maryland, pleaded guilty to one count of conspiracy to commit honest services wire fraud and theft and embezzlement of labor union funds before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. Sentencing is scheduled for July 12, 2019.
According to admissions made in connection with his plea, Janoske is the president and co-owner of a plumbing and heating, ventilation, and air conditioning contractor located in Maryland. For nearly two decades, Janoske’s company has provided maintenance services to an international labor union located in Herndon, Virginia. Between in or about May 2012 and at least in or about mid-2015, Janoske and his company provided the union’s facilities and real estate manager with tens of thousands of dollars in kickbacks in exchange for the awarding of the union’s service agreements and maintenance contracts. The benefits included a high-end outdoor kitchen and free HVAC and plumbing services for the union manager and a relative over a multi-year period. With the union manager’s knowledge, Janoske and his subordinates submitted inflated and fraudulent invoices to the union to recoup expenses for these personal benefits.
The Department of Labor’s Office of Inspector General and the Office of Labor-Management Standards investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section is prosecuting the case.
Illegal Alien Felon Sentenced to Prison for Illegal ReentryRead the Press Release
RICHMOND, Va. – A Guatemalan man was sentenced yesterday to two years in prison for illegally reentering the United States after being deported at taxpayer expense.
“Perez-Augustin is a previously convicted felon who reentered the United States illegally and was ultimately arrested for aggravated sexual battery,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Individuals like Perez-Augustin represent a clear threat to the safety and security of our communities, and as such we will continue to prioritize criminal immigration enforcement cases across the Eastern District of Virginia.”
According to court documents, Hugo Perez-Augustin, 38, first illegally entered the United States in 2006 near Roma, Texas. At that time, he was removed to Guatemala. At some point after his 2006 removal, he reentered the United States illegally. Authorities discovered Perez-Augustin’s illegal presence in the United States in 2014, when he was arrested and convicted of aggravated sexual battery. Perez-Augustin will again be deported at taxpayer expense following his release from federal prison.
“This individual not only entered the country illegally on more than one occasion, but then proceeded to commit egregious crimes while in the U.S.,” said Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Washington, D.C. “ICE will continue to prioritize public safety threats who have no regard for the nation’s immigration laws.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-132.
Former High School Teacher Sentenced for “Celebgate” HackingRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to almost three years in prison for charges of unauthorized access to a protected computer and aggravated identity theft.
According to court documents, Christopher Brannan, 31, intentionally accessed without authorization Internet and email accounts, including Apple iCloud, Yahoo!, and Facebook accounts, and obtained complete iCloud backups, photographs, and other private information belonging to more than 200 victims, including both celebrities and non-celebrities. Brannan hacked email accounts by answering security questions that he could easily research by reviewing victims’ Facebook accounts.
Brannan also gained access to victims’ accounts by using phishing email accounts designed to look like legitimate security accounts from Apple. Because of the victims’ belief that the email had come from Apple, the victims would provide their usernames and passwords. Brannan would then access the victims’ email accounts, and search for personal information such as sensitive and private photographs and videos, including nude photographs. Authorities identified Brannan as a suspect during a California-based FBI investigation into hacked iCloud accounts commonly known as “Celebgate.”
As part of Brannan’s plea agreement, the United States made a non-binding recommendation to the Court that he be sentenced to 34 months in prison. At sentencing, Senior U.S. District Judge Henry E. Hudson accepted the government’s recommendation and imposed the agreed-upon sentence.
This matter stems from an investigation conducted by the FBI in Los Angeles into the leaks of photographs of numerous female celebrities in September 2014. The U.S. Attorney’s Office for the Central District of California, which is leading the prosecution, filed charges against Brannan in April, and the parties later agreed to transfer the case to the Eastern District of Virginia for further prosecution.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas M. Chadwick, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the sentencing hearing. Assistant U.S. Attorneys Brian R. Hood of the Eastern District of Virginia and Ryan White of the Central District of California 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-118.
Heroin and Fentanyl Dealer Pleads Guilty to Drug Trafficking ChargesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to conspiring to distribute heroin.
According to court documents and information before the court, Barry Jamel Alexander, 32, sold heroin mixed with fentanyl to an undercover police officer at a Norfolk 7-Eleven. He used his cousin as a middle man in an attempt to protect himself from criminal exposure, but the store security cameras caught him handing the drugs to his cousin and, soon after, receiving the drug money.
Earlier that month, Alexander sold heroin mixed with fentanyl to a customer who overdosed on the substance and had to be revived with Narcan. At the time Alexander sold the heroin to the undercover officer, he knew that a customer had previously overdosed on his product. Agents later interviewed some of Alexander’s customers, who reported that over a five-year period they had purchased more than two kilograms of heroin from Alexander.
Alexander pleaded guilty to conspiracy, distribution, and possession with intent to distribute controlled substances, and faces a maximum penalty of 40 years in prison when sentenced on June 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorneys William B. Jackson and John F. Butler 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 No. 2:19-cr-5.
Five Plead Guilty to Violent Grocery Store RobberiesRead the Press Release
NORFOLK, Va. – Five Hampton Roads-area individuals pleaded guilty this week to their respective roles in a series of violent grocery store robberies in Chesapeake and Virginia Beach.
According to court documents, the individuals worked in at least six-member teams, and conducted armed robberies of a Food Lion in Chesapeake on September 25, a Food Lion in Virginia Beach on September 29, and a Harris Teeter in Virginia Beach on October 3. The teams included inside and outside look-outs, getaway drivers, and two gunmen. The teams used police scanners to monitor law enforcement activity, encrypted applications, and earpieces to communicate with one another. The inside look-out would find and identify the grocery store manager, initiate the robbery, and communicate the position of the manager to masked members of the conspiracy who entered the stores with firearms. At each robbery the gunmen demanded the managers open the grocery store safe. In the final robbery at a Harris Teeter in Virginia Beach, one of the gunmen shot the store manager.
Please see below for a list of defendants who have pleaded guilty in this case.
Name, Age
Hometown
Pleaded Guilty To
Maximum Sentence
Cato M. Battle, 18
Virginia Beach
1 Count of Conspiracy;
1 Count of Robbery; 1 Count of Using a Firearm During a Crime of Violence
Mandatory Minimum 7 years; Maximum Life
Willey E. Brooks, Jr., aka “Wally”, 26
Chesapeake
1 Count of Conspiracy;
2 Counts of Robbery; 2 Counts of Using a Firearm During a Crime of Violence
Mandatory Minimum 14 years; Maximum Life
Monica Perkins, 29
Norfolk
1 Count of Conspiracy;
1 Count of Robbery;
1 Count of Using a Firearm During a Crime of Violence
Mandatory Minimum 7 years; Maximum Life
Brandon C. Tisdale, aka “Dot, GM”, 20
Virginia Beach
1 Count of Conspiracy;
2 Counts of Robbery;
2 Counts of Using a Firearm During a Crime of Violence
Mandatory Minimum 17 years; Maximum Life
Trevor L. Tisdale, aka “T”, 24
Virginia Beach
1 Count of Conspiracy;
2 Counts of Robbery; 2 Counts of Using a Firearm During a Crime of Violence
Mandatory Minimum 14 years; Maximum Life
Keonte K. Yorkshire, aka Tae, 21 of Virginia Beach, pleaded guilty to his role in the offense on February 5 and faces a mandatory minimum of 17 years and a maximum sentence of life.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Division, James A. Cervera, Chief of Virginia Beach Police, and Kelvin L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys John F. Butler and Andrew C. Bosse are prosecuting the case.
This case was investigated by the FBI’s Tidewater Violent Crime Task Force, in partnership with the Virginia Beach and Chesapeake Police Departments.
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. 2:18-cr-177.
Leader of Multi-Million Dollar Narcotics Trafficking Conspiracy Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – An international narcotics trafficker from the Dominican Republic pleaded guilty yesterday evening to leading and organizing a multi-million dollar conspiracy to purchase 100 kilograms of cocaine.
According to court documents, Luis Rafael Tavarez, aka El Primo, 36, traveled from New York to Northern Virginia on October 23, 2018 with co-conspirators Manny Lizardo and Luis Liriano-Toribio 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 Tavarez’s arrest.
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 or load of the drugs 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 because he believed those measures would minimize the risk of law enforcement detection.
Tavarez 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 attempting to take possession of the cocaine.
Tavarez faces a mandatory minimum term of 10 years in prison and a maximum penalty of life in prison when sentenced on May 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Raj Parekh 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 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-426.
Illegal Alien Pleads Guilty After Arrest on Drug, Assault and Firearm ChargesRead the Press Release
RICHMOND, Va. – A Mexican citizen pleaded guilty today to illegally reentering the United States after removal and committing further crimes that resulted in his arrest on drug, assault and firearm charges.
According to court documents, Mexican citizen Linaldo Martinez Hernandez, 30, first illegally entered the United States on the Texas border. In 2008, he was apprehended by immigration authorities in North Carolina and removed at taxpayer expense from the United States to Mexico. Thereafter, on an unknown date, Martinez Hernandez illegally reentered the United States a second time. On January 14, ICE learned Martinez Hernandez had been arrested in Richmond for drug, assault, and firearm charges.
Hernandez pleaded guilty to illegal reentry and faces a maximum penalty of two years in prison when sentenced on May 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, 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 David J. Novak accepted the plea. Assistant U.S. Attorney S. David Schiller 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 is 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-22.
Pastor Sentenced to Prison for Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria pastor was sentenced today to 8 years in prison for a $2 million fraud scheme that victimized members of his congregation, clergymen, and prospective investors in a Nigerian oil scheme.
“Millender preyed upon the religious beliefs and charitable desires of more than two dozen victims and has demonstrated little to no remorse for his actions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His rampant fraud scheme has exacted a heavy emotional, spiritual and financial toll on his victims, and today’s sentence reflects the seriousness of his crime. My thanks to the trial team and our investigative partners for their terrific work on this righteous case.”
According to court documents and trial testimony, Terry Wayne Millender, 54, the former senior pastor of Victorious Life Church in Alexandria, operated Micro-Enterprise Management Group (MEMG), a Virginia company that alleged to help poor people in developing countries by providing small, short-term loans to start or expand existing businesses by working with a network of established micro-finance institutions. Terry Millender served as chief executive officer of MEMG. Millender and his co-conspirators recruited investors, many of whom invested their retirement funds in a shell company called Equity Trust that investors were falsely led to believe was a third party entity. To recruit investors, Terry Millender emphasized MEMG’s Christian mission and use of the funds to help the poor, promising guaranteed rates of return, assuring investors that the loans’ principal was safe and backed by the assets of MEMG. Instead, the money Millender obtained from investors was used to conduct risky trading on the foreign exchange currency market and options trading, to make payments towards the purchase of a $1.75 million residence for Terry Millender and his wife, to purchase lavish furnishings for their home, and on other personal expenses. To conceal how they had actually used the money, Millender falsely assured investors that they would get their money back and blamed delays in repaying investors on the 2008 financial crisis, among other things.
After MEMG failed, Terry Millender created another entity called Kingdom Commodities Unlimited (KCU), which purportedly specialized in the brokering of Nigerian oil deals. Multiple victims entered into loan agreements with Millender, totaling over $450,000. Like MEMG, the KCU agreements lured prospective investors into giving the Millenders money by promising high rates of return and short term loans. The Millenders used the KCU lenders’ money to pay for their rent and golf trips, as well as a birthday party and other personal expenses.
Millender also failed to disclose any of the income he received from the MEMG and KCU fraud schemes on his income taxes. He was ordered to pay more than $2 million in restitution. This investigation was initiated after a victim of the MEMG scheme contacted authorities, including the Virginia State Corporation Commission.
“The fraudulent solicitation of investments through the US Mail not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Peter Rendina, U.S. Postal Inspection Service - Washington Division. “With our partner law enforcement agencies, Postal Inspectors will continue to aggressively investigate these crimes and continue to ensure our customers’ trust in the United States Postal Service.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Jamar K. Walker, Kimberly R. Pedersen, and Katherine L. Wong 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. 1:16-cr-239.
Man Sentenced to Prison for Distributing over 50 Kilos of MarijuanaRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to three years in prison for his involvement in a conspiracy to distribute 50 kilograms or more of marijuana from California to Virginia and his involvement in laundering the marijuana proceeds.
According to court documents, Jamel Stokes, 26, was involved with several co-conspirators in trafficking large quantities of marijuana from California to Virginia. Stokes would receive the shipments of marijuana from California at two Virginia Beach addresses, and then break down the shipments into smaller packages for further distribution in the Hampton Roads area. Stokes also participated in laundering the proceeds from the sale of the marijuana shipments by depositing proceeds into various bank accounts in Virginia, and on the same day someone in California would withdraw the money from those same accounts.
Stokes also participated in secreting money in boxes and shipping them to California. Stokes was apprehended when a large shipment of marijuana was interdicted at the post office. A delivery of the parcel was made to the address on the shipping label. When a co-conspirator picked the box up, he was arrested and told law enforcement that Stokes had been paying him to pick up boxes full of marijuana and to deliver them to various addresses.
Between the two Virginia Beach addresses Stokes used to take delivery of marijuana, a total of 47 parcels were delivered from Northern California with a total weight of 50 kilograms or more but less than 100 kilograms of marijuana.
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, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorneys William D. Muhr and Kevin Hudson 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. 2:18-cr-146.
Honduran Drug Trafficker Sentenced to 20 Years in PrisonRead the Press Release
RICHMOND, Va. – A Honduran man was sentenced today to 20 years in prison for his leadership role in the Los Cachrios drug trafficking organization (DTO), a large-scale Honduran cocaine trafficking group.
According to court documents, Willian Medina-Escobar, 34, conspired to distribute over 1,000 kilograms of cocaine on United States registered aircraft from 2011 to 2014. Medina-Escobar, who was extradited to the United States in September 2017, served in a managerial role for the Los Cachiros DTO. In this role, Medina-Escobar inspected aircraft, organized the transport of cocaine, identified clandestine airstrips, negotiated the purchase of cocaine with sources of supply, and coordinated the landing of cocaine-laden aircraft.
In July 2013, the Los Cachiros DTO purchased a Beechcraft King Air C-90 (King Air C-90) aircraft with United States registered tail number N92XXXX to transport cocaine from Venezuela to Honduras. In the summer of 2013, Medina-Escobar negotiated the purchase of 1,025 kilograms of cocaine from a Colombia source of supply on behalf of the Los Cachiros DTO. In October 2013, the King Air C-90 flew from Guatemala to Venezuela to load and transport the cocaine shipment. On October 27, 2013, the King Air C-90 departed from Apure, Venezuela and transported 1,025 kilograms of cocaine to a clandestine airstrip near Limon, Honduras. As part of this operation, Medina-Escobar was present on the clandestine airstrip, communicated with the pilots via radio, and assisted in the safe landing of the aircraft. Upon the King Air C-90’s arrival in Honduras, the 1,025 kilograms of cocaine were off-loaded and placed into the custody of the Los Cachiros DTO for further redistribution and sale.
Operation Strong Moon 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.
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 Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Colonel David R. Hines, Hanover County Sheriff’s Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert and Peter S. Duffey 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. 3:16-cr-91.
Two-Time Felon Sentenced for Illegally Reentering the U.S.Read the Press Release
ALEXANDRIA, Va. – A Salvadoran national was sentenced today to 18 months in prison for illegally reentering the United States.
“Guevara-Paz was twice convicted of felony offenses, and reentered within months after his deportation as an aggravated felon,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This is a serious issue of public safety and national security, and we remain committed to prioritizing criminal immigration enforcement.”
According to court documents, Jaime Amilcar Guevara-Paz, 42, illegally entered the United States and was deported in April 2008 as an aggravated felon after being convicted for kidnapping in the third degree in Texas, as well as another felony charge in California. Guevara-Paz was removed from the United States twice before his reentry spurring the instant prosecution.
Following his second removal in 2009, Guevara-Paz returned yet again under a fictitious name and was found to be in the country illegally in August 2018 following his arrest in Fairfax County on unrelated state charges.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. The case was prosecuted by Special Assistant U.S. Attorneys Heather Call and Evan Clark, as well as Assistant U.S. Attorney Kimberly R. Pedersen.
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-356.
Man Sentenced to Prison for Causing Opioid Overdose DeathsRead the Press Release
ALEXANDRIA, Va. – A Canadian man living in Leesburg was sentenced today to 21 years in prison for conspiring to distribute heroin and fentanyl that caused two deaths and one non-fatal overdose in 2016.
“Curry’s distribution of heroin and fentanyl in Leesburg carried grave consequences, causing at least three overdoses, including two overdose deaths,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The investigation and prosecution of opioid-related crimes continues to be a top priority for the Eastern District, and we remain steadfast in our pursuit of those who spread this poison in our communities.”
According to court documents, Joseph Riley Curry, 29, obtained heroin and fentanyl from sources of supply that he distributed to customers in Loudoun County. Drugs that Curry distributed killed two people in March 2016, and caused a third individual to experience an overdose that required medical intervention. In August 2017, Curry was arrested on a state felony distribution charge. While in custody, Curry ordered another individual to destroy evidence he thought might be used against him in a possible federal prosecution.
This matter was investigated by the Leesburg Police Department and the Washington Field Office’s Safe Streets/HIDTA Task Force – Northern Virginia which is composed of FBI Agents, and Task Force Officers from the Fairfax County, Loudoun County, Leesburg, Prince William County Police Departments, HSI, ATF, with assistance from the DEA Mid-Atlantic Regional Laboratory. This matter was brought to the attention of the task force by the Leesburg Police Department.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Michael L. Chapman, Loudoun County Sheriff, and Gregory C. Brown, Leesburg Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney David A. Peters 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. 1:18-cr-396.
Ex-Probation Officer Sentenced for Obstructing Federal InvestigationRead the Press Release
ALEXANDRIA, Va. – A former probation officer was sentenced today to nearly four years in prison for obstructing a federal grand jury investigation into armed drug traffickers and gang members.
According to court documents, Abass Conteh, 28, of Dumfries, served as a Virginia Department of Corrections Probation and Parole Officer working in Prince William County in 2017. As part of his duties, Conteh met with law enforcement officers and discussed ongoing criminal investigations, including with a Prince William County Police Department (PWCPD) gang detective. During the course of 2017, Conteh used his cell phone and social media accounts to convey confidential law enforcement information about ongoing federal investigations into drug traffickers and gang members. Conteh learned this information from the PWCPD detective and other sources. During these communications, Conteh provided advice to individuals under investigation on how to avoid being prosecuted.
For example, Conteh informed his cousin Nasiru Carew, a multi-time convicted felon who was sentenced to 16 years in federal prison in August 2018, that federal law enforcement were investigating the individuals who supplied local rappers with guns, money, and drugs. Conteh revealed further information to Carew which he learned from the PWCPD detective, including revealing the identities of several individuals who the "FEDS" were investigating, as well as the strategy of the investigation.
In March 2017, Conteh informed Carew that federal law enforcement were investigating Tarvell Vandiver, who was the leader of the Imperial Gangsta Blood gang. Carew later passed this information to Vandiver, who he had conspired with to distribute controlled substances. Vandiver was later sentenced to 20 years in federal prison.
In December 2017, the PWCPD Detective informed Conteh that federal law enforcement were investigating Alpha Kamara, who was later sentenced to five years in federal prison, and his sources of supply for narcotics. Shortly thereafter, Conteh revealed the information to Carew and later another individual. Conteh wrote, “[The PWCPD detective] brought All their names up. He never brought their names up until Alpha got womped. The feds goal is to find the supplier for the guns and drugs… They can’t do [expletive] to nobody if alpha [Kamara] don’t snitch”.
Conteh, Carew, Vandiver, and Kamara were prosecuted as part of Operation Tin Panda, which has resulted in 48 federal convictions and 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.
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, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Barry M. Barnard, Chief of Prince William County Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Uzo Asonye and Carina A. Cuellar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-367.
Man Sentenced to Prison for Multiple Armed RobberiesRead the Press Release
RICHMOND, Va. – A Chester man was sentenced today to 27 years for robbing four convenience stores and the attempted robbery of another convenience store.
According to court documents, Anthony Wilson Jr., and his co-defendants were involved in a string of armed robberies and an attempted robbery at various gas stations and convenience stores located in the areas of Chesterfield County and Richmond during March 2018. In each of the robberies and attempted robbery, Wilson entered the stores with a firearm, brandished the gun, and placed all of the store clerks in fear for their lives. In each of the robberies, Wilson made off with cash and other store items.
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 MaryJo Thomas, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by United States District Judge John A. Gibney, Jr. Assistant U.S. Attorney Peter S. Duffey 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-88.
MS-13 Gang Members Charged with Kidnapping and MurderRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging death-eligible offenses against 11 members of MS-13 for their role in the kidnapping and murder of two juveniles in 2016.
According to allegations in the indictment, in August and September 2016, Edenilson Misael Alfaro, aka “Lil Sicario,” originally from El Salvador and holding a high-ranking position in MS-13, authorized numerous lower-ranking members of MS-13’s Park View Locos Salvatrucha (PVLS) clique in Virginia to lure, kidnap, and murder two juveniles, E.E.E.M. and S.A.A.T.
According to the indictment, Alfaro was notified in August 2016 that E.E.E.M. posted a photograph of a masked man to his Facebook account with the number 666 superimposed above his head. Perceiving the Facebook post as evidence that E.E.E.M. was a member of the rival 18th Street gang, Alfaro authorized and directed members of the PVLS clique to kill E.E.E.M. Today’s indictment charges Alfaro and six other members and associates of the PVLS clique for their role in luring E.E.E.M. to Holmes Run Stream Valley Park in Fairfax County where E.E.E.M. was attacked and murdered. The indictment further alleges that the defendants videotaped E.E.E.M.’s murder to prove to gang leadership that the murder had been completed and that they were worthy of promotion within the gang.
According to the indictment, in September 2016, Elmer Zelaya Martinez, aka “Killer,” originally from El Salvador and holding a high-ranking position in the PVLS clique, reported to Alfaro his belief that S.A.A.T. was cooperating with law enforcement. Alfaro authorized and directed members of the PVLS clique to kill S.A.A.T. Today’s indictment charges all 11 defendants for their role in luring S.A.A.T. to Holmes Run Stream Valley Park, where S.A.A.T. was attacked and murdered. The indictment further alleges that the defendants videotaped S.A.A.T.’s murder as well to prove to gang leadership that the murder had been completed and that they were worthy of promotion in the gang.
The defendants are charged with conspiracy to commit kidnapping and murder in aid of racketeering activity, conspiracy to kidnap, murder in aid of racketeering activity, and kidnapping resulting in death. If convicted of the substantive counts, the defendants may face the death penalty. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was also investigated as part of the Organized Crime Drug Enforcement Task Force’s (OCDETF) Operation Devil’s Playground. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, 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 the indictment was returned. Assistant U.S. Attorneys Rebeca H. Bellows and Alexander E. Blanchard are prosecuting the case.
The U.S. Immigration and Customs Office’s Enforcement and Removal Operations, the Northern Virginia Gang Task Force, the United States Marshal's Service, Prince William County Police Department, Montgomery County Police Department, Prince George's County Police Department, Loudoun County Sheriff's Office, Alexandria Police Department, Leesburg Police Department, and Homeland Security Investigations 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. 1:18-cr-123.
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.