Eastern District of Virginia
Press releases recorded for this federal judicial district.
New York Man Sentenced for Smuggling Contraband CigarettesRead the Press Release
RICHMOND, Va. – A New York man was sentenced today to 18 months in prison for his role in a conspiracy to traffic contraband cigarettes that resulted in a tax loss of more than $1.6 million.
Ki Hin Lee, 31, of Flushing, pleaded guilty on June 20, 2017. According to court documents, Lee participated in a cigarette trafficking conspiracy that spanned from January 2015 to November 2016. Lee and another New York City resident traveled from New York City to Fredericksburg and Springfield in order to purchase bulk quantities of Virginia tax-stamped cigarettes from a Fredericksburg gas station owner. After completing their purchases, the pair transported the cigarettes back north to Staten Island, where they were sold on the black market. Lee eventually took over the role of courier and facilitator, and thereafter made at least 46 solo trips – renting large SUVs in order to maximize his carrying capacity – from Staten Island to Virginia. During these trips, Lee handed over tens in thousands in cash to purchase quantities of cigarettes ranging between 600 and 900 cartons. Lee then smuggled the cigarettes back to the Staten Island home of his New York City co-conspirator. All told, Lee personally smuggled at least 276,000 packs of cigarettes from Virginia to New York City for illegal re-sale, resulting in a tax loss of more than $1.6 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Keith Krolczk, Chief of Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Investigative Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Thomas A. Garnett prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-73.
Jury Convicts Man of Child Pornography CrimesRead the Press Release
**UPDATE** On May 29, 2018, U.S. District Judge Anthony J. Trenga ordered that the jury's verdict finding the defendant guilty of counts one and two of the indictment be set aside, the judgment of conviction vacated, and the indictment dismissed. Original press release announcing the trial conviction is below.
ALEXANDRIA, Va. – A federal jury convicted a Sterling man today on charges of distributing and receiving images of child sexual abuse.
Jerry Dean Dillingham, 38, was convicted of distribution and receipt of child pornography. According to evidence presented at trial, Dillingham was found sharing child pornography files on a peer-to-peer network on the Internet. Agents executed a federal search warrant at Dillingham’s home, and Dillingham admitted he downloaded and shared child pornography on the Internet. Forensic review of Dillingham’s computer revealed child pornography images involving prepubescent children, including bondage and bestiality.
Dillingham faces a mandatory minimum of 5 years in prison when sentenced on Feb. 2, 2018. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney James E. Burke IV are prosecuting the case.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Washington D.C., and the High Technology Investigative Unit of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and 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.
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. 1:17-cr-184.
California Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to drug trafficking charges related to his role in a conspiracy to distribute large quantities of crystal meth.
According to court documents, Shawn Yaeger, 45, of West Hollywood, led a conspiracy to distribute crystal methamphetamine in several states, including Virginia, New Jersey, California, and Florida. Yaeger admitted to receiving large-scale quantities of crystal methamphetamine through various parcel services and providing it to co-conspirators for re-distribution. Yaeger also admitted to obtaining stolen personal identifying information and credit card information, which he used to commit access device fraud and bank fraud. Specifically, Yaeger produced numerous counterfeit and unauthorized credit and debit cards, and used stolen or otherwise fraudulent identities to open bank accounts and acquire access to credit.
Yaeger pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine and faces a mandatory minimum of 10 years and maximum penalty of life in prison when sentenced on Jan. 26, 2018. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and M. Jay Farr, Arlington County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Special Assistant U.S. Attorney David A. Peters and Assistant U.S. Attorney Colleen E. Garcia are prosecuting the case.
The case is part of the Organized Crime Drug Enforcement Task Forces (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.
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. 1:17-cr-241.
Government Contractor Pays $2.6M to Settle False Claims Act SuitRead the Press Release
ALEXANDRIA, Va. – Triple Canopy, Inc. (Triple Canopy), located in Reston, has agreed to pay $2.6 million to settle civil False Claims Act allegations that the company submitted false claims for payment to the Department of Defense for unqualified security guards stationed in Iraq.
“Contractors must be held accountable for their actions, especially when the safety of government personnel is at stake” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This settlement should remind contractors of the high value we place on safeguarding our personnel abroad.”
The allegations stem from Triple Canopy’s one-year contract with the Joint Contracting Command in Iraq (JCC-I), an entity established to provide contracting support related to the government’s relief and reconstruction efforts in Iraq. Under the 2009 contract, Triple Canopy was required to perform a variety of security services at Al Asad Airbase, the second largest air base in Iraq.
The government’s complaint in intervention alleges that Triple Canopy knowingly billed the United States for security guards who could not pass contractually required firearms proficiency tests. The tests were designed by the Army to ensure that the guards hired to protect U.S. and allied personnel were capable of firing their assigned weapons safely and accurately. The government further alleges that Triple Canopy concealed the guards’ inability to satisfy the firearms testing requirements by creating false test scorecards that Triple Canopy was required to maintain for government review, in an effort to induce the government to pay for the unqualified guards.
The government’s claims are based on a whistleblower suit initially filed by a former employee of Triple Canopy in 2011. The suit was filed in the federal district court for the Eastern District of Virginia under the qui tam provision of the False Claims Act, which allows private persons to file suit on behalf of the United States. Under the False Claims Act, the government has a period of time to investigate the allegations and decide whether to intervene in the action or to decline intervention and allow the whistleblower, also called the relator, to go forward alone. The government intervened in the relator’s suit in June 2012. The False Claims Act also provides the whistleblower a share of the government’s recovery. As part of the resolution, the whistleblower will receive approximately $500,000.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of Defense Criminal Investigative Service, and the Army Criminal Investigation Command. The matter was investigated by Assistant U.S. Attorneys Richard Sponseller and Christine Roushdy.
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 is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man Sentenced for Defrauding Woman of $377,000Read the Press Release
NORFOLK, Va. – A Winchester man was sentenced today to nearly 6 years in prison for defrauding a woman of approximately $377,000 based on false statements that included a fraudulent inducement of marriage.
Harry Randall Withers, Jr., 38, pleaded guilty to wire fraud and engaging in monetary transactions in criminally derived property on June 27. According to court documents, Withers made a series of false representations to a woman to induce her to lend him approximately $377,000. Withers told the woman he was the owner of a wine and cheese bar and that his employees had embezzled from him, when in fact he was the manager of the bar and had embezzled from the actual owner. Wither also told the woman he was a member of an affluent family that had founded Union Camp Corporation, a pulp and paper company that was later acquired by International Paper; that his grandmother had died and left him a large inheritance that he would use to repay a loan; and that the IRS had frozen his bank accounts. He made the further false representation that if they were married, it would solve tax and legal issues that were preventing him from accessing his money and that he would then be able to repay her. In reliance on these misrepresentations, the woman married Withers and lent him the money, which he used for his own benefit with no intention of repaying her. Withers wrote a series of checks that purported to be in partial repayment of the money the woman had lent him, but they were written on funds that had insufficient funds or were closed. He also forged the woman’s signature on checks written on her account that he made payable to himself.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-166.
Gaming Center Owner Sentenced for Obstructing Justice in ISIS CaseRead the Press Release
ALEXANDRIA, Va. – An owner of a Fairfax gaming center was sentenced to prison today for obstructing justice and making false statements involving international terrorism.
Michael Queen, 28, of Woodbridge, was sentenced to 2 years in prison. According to court documents, Queen and Soufian Amri, 32, of Falls Church, lied to FBI agents to prevent them from learning about and investigating their friend Haris Qamar’s attempt to travel to join the Islamic State of Iraq and al-Sham (ISIS). Queen and Amri knew that Qamar had attempted to travel overseas to join ISIS in 2014, yet they lied to and misled the FBI by saying that the only person they knew who might travel to join ISIS was a “tall, thin, Indian” individual. Queen later told Qamar that Queen and Amri gave the FBI the name of a Hindu individual as someone who might support ISIS. Queen told Qamar, “I’m never going to throw a Muslim underneath the bus to try to do the right thing.”
Qamar was sentenced to 8 1/2 years in prison on February 17 for attempting to provide material support to ISIS. Amri is scheduled to be sentenced on October 27.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Gordon D. Kromberg and Colleen E. Garcia 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. 1:17-cr-50.
Former Navy Comptroller Sentenced for Accepting Illegal GratuitiesRead the Press Release
NORFOLK, Va. – A former comptroller for the Norfolk Ship Support Activity (NSSA) was sentenced today to 40 months in prison for conspiracy to receive gratuities by a public official.
According to court documents, William R. Hutsenpiller, 57, of Mount Dora, Florida, oversaw the $200 million operating budget for the NSSA while serving as the civilian GS-15 Financial Department Head/Comptroller from October 2009 through November 2013. During this time, Hutsenpiller conspired with others to essentially force a government prime contractor to use a specified subcontractor—Global Services Corporation, based in Fayetteville, North Carolina—that he knew would collaborate with him to misuse government funds. As part of the scheme, Hutsenpiller directed the prime contractor to pass government funds to Global, a defense subcontractor, and in turn, Hutsenpiller directed Global to withhold unexpended funds that should have been returned to the government or to the prime contractor.
From 2010 through 2014, Hutsenpiller made numerous requests that Global provide him with various items of value and services for his personal use, which Global agreed to purchase with government funds. The gratuities that Global provided to Hutsenpiller included a variety of personal electronic items and accessories for Hutsenpiller and his family, such as cell phone service and accessories, multiple iPads, a computer, home thermostat, and streaming television boxes.
On April 10, 2017, Hutsenpiller pleaded guilty to receiving $35,870.69 in gratuities from Global Services Corp. As part of today’s sentencing, Hutsenpiller was ordered to pay a Restitution Judgment of $35,870.60, and to pay a forfeiture amount of $35,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by the U.S. District Judge Rebecca B. Smith. Assistant U.S. Attorneys Alan Salsbury and Stephen Haynie prosecuted the case.
The Defense Contract Audit Agency (DCAA) provided significant assistance with this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-43.
Final Defendant Sentenced in Crack Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – The sixth and final defendant in a multi-state crack cocaine and firearms distribution investigation was sentenced today to nearly 14 years in prison for his role in the conspiracy. As part of this case, ATF Agents and the Prince William County Police seized more than 20 firearms and 800 grams of crack.
Steve Pate, 41, of Shannon, North Carolina, was sentenced to 167 months in prison. According to court documents, Pate engaged in a conspiracy to distribute crack cocaine from at least May 2016 through February 2017. As part of the conspiracy, Pate would purchase cocaine, which he would prepare into crack. Pate would then supply the crack to co-conspirators Jerry Bullard and Cedric McEachern, who sold the drugs from a trailer in Robeson County, North Carolina.
As part of the conspiracy, co-conspirators Kristie Middleton and Kevin Shaw traveled from Virginia to purchase multi-ounce quantities of crack from Bullard and McEachern, and firearms from Bullard. Middleton and Shaw then returned to Dale City, Virginia, where they redistributed the crack and possessed and sold firearms alongside co-defendant Nifer McLaurin. See the table below for information on each defendant in this case.
Name, Age
Hometown
Pleaded Guilty to
Sentencing
Nifer McLaurin, 20
Dale City, Virginia
Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 5 years on March 24
Kevin Shaw, 42
Dale City, Virginia
Conspiracy to distribute 28 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 10 years on March 31
Cedric McEachern, 41
Red Springs, North Carolina
Conspiracy to distribute 28 grams or more of cocaine base
Sentenced to 10 years on June 30
Jerry Bullard, 37
Shannon, North Carolina
Conspiracy to distribute 280 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 15 years on July 21
Kristie Middleton, 40
Dale City, Virginia
Conspiracy to distribute 280 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 15 years on August 4
Steve Pate, 41
Shannon, North Carolina
Conspiracy to distribute 280 grams or more of cocaine base
Sentenced today to 167 months
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Paul D. Vanderplow, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Stephan M. Hudson, Chief of Prince William County Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Tobias D. Tobler 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. 1:17-cr-149.
Man Indicted for Threatening to Murder U.S. OfficialsRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Herndon man with threatening to murder officials, officers, and employees of the Central Intelligence Agency and the U.S. State Department, as well as Virginia law enforcement officers.
William Lewis Weaver II, 36, is charged with two counts of threatening to assault and murder federal officials, officers, and employees and three counts of transmitting in interstate commerce a communication containing threats to injure the person of another. The indictment alleges that between August 23 and September 16, Weaver used a Twitter account to post tweets that threatened to murder a number of government officials, including specific threats involving bombs and a shotgun.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was returned. Assistant U.S. Attorney Alexander P. Berrang 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. 1:17-cr-235.
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.
Five MS-13 Gang Members Charged with MurderRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging five members and associates of MS-13 with the murder of Christian Alexander Sosa Rivas, 21, on January 1 at a park in Dumfries.
According to allegations in the indictment, Edgar Oswaldo Blanco Torres, Jose Martir Larios Espenal, Samuel Enrique Villalobos Sanchez, Dimas Misael Canales Santos, and Keyri Sujey Portillo Gonzalez conspired together and with others to kidnap and murder Sosa Rivas because they believed he was a member of a rival gang who was falsely representing himself as a member of MS-13. The indictment further alleges that the defendants kidnapped and murdered Sosa Rivas for the purpose of gaining entrance to and maintaining and increasing position in MS-13, which is an enterprise engaged in racketeering activity.
Name
Age, Country of Origin
Charges
Max Penalty
Edgar Oswaldo Blanco Torres
25, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering;
Murder in Aid of Racketeering;
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Jose Martir Larios Espenal
21, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Samuel Enrique Villalobos Sanchez
19, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Dimas Misael Canales Santos
27, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or Life in prison
Keyri Sujey Portillo Gonzalez
19, El Salvador
Conspiracy to Commit Murder in Aid of Racketeering
Murder in Aid of Racketeering
Kidnapping Resulting in Death
10 years
Death or Life in prison
Death or 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was returned. Assistant U.S. Attorneys Rebeca H. Bellows, J. Tyler McGaughey, and Nicholas U. Murphy are prosecuting the case.
This case was investigated by the FBI's Washington Field Office and the Prince William County Police Department. The Virginia Commonwealth Attorney's Office provided significant assistance with the 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. 1:17-cr-238.
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.
Four Men Charged in DOD Bribery and Kickback ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two companion indictments were unsealed today charging four men with participating in a bribery and kickback conspiracy involving a contract for the Department of Defense’s Office of Inspector General (DOD OIG).
According to allegations in the indictments, William S. Wilson, 52, of Florida, paid hundreds of thousands of dollars in kickbacks to Timothy R. Donelson, 56, of Georgia, and Ronald A. Capallia, Jr., 37, of Alabama, in return for Donelson and Capallia providing favorable treatment to Wilson’s companies in connection with prime government contracts. At the time of the kickbacks, Donelson and Capallia were employed by a telecommunications company that had been awarded a prime contract to provide an array of voice and data services to the DOD OIG and other federal agencies. In return for the kickbacks, Donelson and Capallia provided favorable treatment to Wilson’s companies, including Donelson’s award of a subcontract to one of Wilson’s companies to provide information-technology related support services to the DOD OIG, notwithstanding that Wilson’s company focused on construction and construction management, and had no relevant expertise in information technology. Capallia similarly caused his employer repeatedly to order items such as computer software and hardware and routine office moving services from Wilson’s construction company despite the lack of any legitimate business or economic reason to do so.
The indictment further alleges that Wilson paid tens of thousands of dollars in bribes to Matthew Kekoa LumHo, 42, of Fairfax Station, then employed at the DOD OIG, in return for LumHo taking official acts that benefitted Wilson’s companies. According to the indictment, these actions included LumHo placing numerous fraudulent orders through the prime contract awarded to the telecommunications company employing Donelson and Capallia, thereby causing a continued flow of revenue from that telecommunications company to Wilson’s company as its subcontractor.
As set forth in the indictment, LumHo, along with Wilson and Capallia, repeatedly caused the DOD IG to issue fraudulent service orders that were used to conceal that the co-conspirators were arranging for Wilson’s company to buy standard, commercially available items such as computer software, hardware, and accessories, and routine office moving services, significantly inflating the price, and then falsely billing the government as through it had been supplied with various professional services. As the indictment alleges, by doing so, the co-conspirators enabled Wilson’s company to reap substantial profits from transactions where there was no legitimate business or economic reason to involve Wilson’s company, and where Wilson’s company provided virtually no value to the United States.
According to the indictment, Wilson paid the bribes and kickbacks in several forms, including hundreds of thousands of dollars paid from Wilson’s companies to a side business owned by Donelson that were masked through fake invoices for non-existent work, hundreds of thousands of dollars in supposed payroll payments to Capallia’s spouse, who was nominally placed on the payroll at Wilson’s company despite doing virtually no work, and tens of thousands of dollars of supposed payroll payments to a relative of LumHo, for a job that LumHo’s relative never actually held. Wilson further paid bribes and kickbacks by paying for part of the purchase price of two vehicles bought by Donelson, by buying two vehicles outright for Capallia, paying for more than $60,000 worth of Caribbean cruises, hotel accommodations, and flights for Capallia, his family members, friends, friends’ children, and on at least one occasion, babysitters to watch Capallia’s children on one of the cruises, and paid bribes to LumHo by supplying him with electronics and high-end photography equipment.
Each defendant has been charged with conspiracy to commit wire fraud and wire fraud. The companion indictments further charge Wilson, Capallia, and LumHo with False Claims Act violations, charge Wilson and LumHo respectively with bribery and acceptance of bribes, and charge LumHo and Donelson with false statements. The conspiracy to commit wire fraud and wire fraud charges each carry a maximum sentence of imprisonment of 20 years; the False Claims Act violations each carry a maximum sentence of imprisonment of 5 years; the bribery charges each carry a maximum sentence of imprisonment of 15 years; and the false statement charges each carry a maximum sentence of imprisonment of 5 years. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was unsealed. Assistant U.S. Attorneys Matthew Burke and Samantha Bateman 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. 1:17-cr-222 and 1:17-cr-223.
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.
Attorney General Announces Reinvigoration of Project Safe NeighborhoodsRead the Press Release
ALEXANDRIA, Va. – Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America.
Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
In a statement on the program, the Attorney General said, “According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action. Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work. Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy. Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer.”
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
-Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 U.S. Attorney’s Offices to focus on violent crime reduction.
-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man Arrested for Threatening to Murder African-Americans at Howard UniversityRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was arrested today for allegedly threatening to murder African-Americans at Howard University.
John Edgar Rust, 24, a previously convicted felon, has been charged with the transmission in interstate commerce of a communication containing threats to injure the person of another. According to court documents, on Nov. 11, 2015, Rust used the in-store Wi-Fi of a restaurant in Alexandria to post a statement online threatening to murder African-Americans at Howard University.
Rust is scheduled to appear before U.S. Magistrate Judge Theresa C. Buchanan at the federal courthouse in Alexandria tomorrow at 2 p.m. for a preliminary and detention hearing.
Rust faces a maximum penalty of 5 years in prison if convicted. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Nicholas U. Murphy and Maya D. Song 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. 1:17-mj-56.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Tidewater Cocaine Dealer Sentenced to 32 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 32 years in prison for conspiring to deal more than five kilograms of cocaine and discharging a firearm during the commission of a drug trafficking felony.
Andre Monroe, 33, pleaded guilty on June 12. According to court documents, for over two years Monroe and his co-conspirators trafficked and distributed over 12 kilograms of cocaine from Maryland and North Carolina into the Tidewater area for distribution. In June 2016, while distributing cocaine, Monroe struck a drug purchaser in the face with a loaded Glock pistol. As the victim ran Monroe shot the victim in the leg, fracturing the victim’s femur.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by the HSI’s High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of officers from the Hampton Police Division. Special Assistant U.S. Attorneys Amy E. Cross and Francesca Liquori 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. 4:16-cr-11.
Springfield Man Sentenced to 13 Years in Prison for Stalking and Kidnapping WomanRead the Press Release
ALEXANDRIA, Va. – A Springfield, Virginia man was sentenced today to a total of 13 years in prison for interstate stalking, interstate domestic violence, and being a felon in possession of ammunition.
According to court records, Nam Quoc Hoang, 41, began stalking his ex-girlfriend in late December 2013. Nam’s harassment began when he sent his ex-girlfriend a series of messages in which he threatened to post sexually explicit photographs of her unless she paid him money. When his ex-girlfriend did not pay him, Nam posted the photographs and continued to repost the photographs even after Facebook took the photographs down. After posting the photographs, Nam and his co-conspirator, Khoa Dang Vu Hoang, traveled from Virginia to Maryland to stalk his ex-girlfriend throughout January 2014. This stalking included breaking into her home on two occasions and taking valuable personal items, which were never recovered.
On January 26, 2014, Khoa observed the ex-girlfriend’s Facebook post “checking in” to a nightclub in Washington, D.C. Khoa informed Nam about this post and the men drove to the nightclub and waited for Nam’s ex-girlfriend to return to her vehicle and leave. The men then followed her, and when she stopped at a traffic light Nam approached her vehicle, displayed a weapon, and demanded entry. His ex-girlfriend, afraid for her life, let Nam into the vehicle. Once inside the vehicle, Nam hit his ex-girlfriend in the face and threatened her and her family.
A federal jury convicted Khoa in March for interstate stalking and conspiracy, and he was sentenced to five years in prison on July 21, 2017.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys James L. Trump, Carina A. Cuellar, and James Levine 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-193.
Former Army Investigator Turned Commercial BeekeeperRead the Press Release
ALEXANDRIA, Va. – Gennaro Mattiaccio, 55, of Stafford was sentenced today to 21 months in prison for his fraudulent receipt of disability benefits from the Social Security Administration (SSA) and making false statements to the SSA.
Mattiaccio, a former federal law enforcement officer with the U.S. Army’s Criminal Investigation Command (“CID”), was convicted by a federal jury on February 24, 2017 of three felonies related to his fraud and false statements. According to court records and evidence presented at trial, Mattiaccio received over $75,000 in Social Security disability benefits from April 2014 through September 2016, despite being gainfully self-employed during that same time period as the owner and sole proprietor of Rock Hill Honey Bee Farms, a commercial beekeeping business. That employment disqualified Mattiaccio from receiving any disability benefits from the SSA.
In support of his fraudulent claim for benefits, Mattiaccio testified falsely under oath to an Administrative Law Judge, and also submitted false and fraudulent documents, including a fake tax return, to the SSA. When he learned that he was under investigation for his fraud, Mattiaccio also attempted to obstruct justice by back-dating the signature card to his business bank account.
In addition to his theft from the SSA, Mattiaccio also carried out a similar disability benefits fraud scheme against the Department of Veterans Affairs (VA). From 2008 through 2016, he collected another approximately $120,000 in disability benefits from the VA that he was not entitled to receive, and which he similarly collected by means of false statements and fraudulent documents submitted to the government about his supposed inability to work.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Kimberly Pedersen and Samantha Bateman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-215.
El Salvadoran National Pleads Guilty to Assaulting an ICE ContractorRead the Press Release
ALEXANDRIA, Va. – An El Salvadoran national pleaded guilty today to assaulting and impeding a transportation officer for U.S. Immigration and Customs Enforcement (ICE).
On July 3, 2017, Marlon Danilo Rivas-Mendez, 28, was being transported from the Loudoun County Adult Detention Center to an ICE facility for deportation. Rivas-Mendez had previously been deported three times to El Salvador and had recently been found in Loudoun County after having again re-entered the United States illegally. During the transportation, Rivas-Mendez complained repeatedly that his handcuffs were too tight. When the officer tried to help him, Rivas-Mendez struck the officer in the chest and neck, before fleeing the scene.
Rivas-Mendez faces a maximum penalty of eight years in prison when sentenced on October 20, 2017. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Washington Field Office, made the announcement after U.S. District Judge Hilton accepted the plea. Special Assistant U.S. Attorneys Stephen Ravas and Lilian Timmermann and Assistant U.S. Attorney Dennis Fitzpatrick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-189.
Drug Trafficker Sentenced to Nine Years in Federal PrisonRead the Press Release
RICHMOND, Va. – A Windsor, Virginia man was sentenced yesterday to nine years in prison for distribution of cocaine base, commonly known as “crack,” and for possession of a firearm by a convicted felon.
Rashard Brown, 33, pleaded guilty on July 13, 2017. According to court documents, Brown admitted to having distributed between 280 and 840 grams of crack cocaine between October 2014 and January 2015. On July 28, 2016, officers of the Hopewell Police Department attempted to stop Brown’s vehicle, and after a short pursuit on foot, Brown was caught with a stolen Glock 9mm luger semiautomatic pistol and a distribution quantity of crack cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Angela Mastandrea-Miller 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. 3:17-cr-62.
Suffolk Man Pleads Guilty to GI Bill Fraud ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Suffolk man pleaded guilty yesterday to conspiring to defraud the Department of Veterans Affairs’ Post-9/11 GI Bill educational assistance program.
According to court documents, Kent Chillous, 55, is a veteran of the U.S. Navy who attended the Hampton Roads Skills Center (HRSC) utilizing Post-9/11 GI Bill funds. HRSC purported to be a welding training school offering vocational skills to its students, many of whom were veteran students whose tuition was funded by the Post-9/11 GI Bill. Rather than actually provide an education to students, however, HRSC did not provide regular instruction for any of their course offerings, either in a classroom lecture setting or a practical, hands-on setting. Moreover, the majority of students were not even physically present at HRSC during most of the hours their courses were purportedly held. Indeed, some students never once entered the HRSC building at any point during their period of enrollment.
According to court documents, Chillous was enrolled as an HRSC student between June 2016 and July 2017, during which time he did not receive welding instruction and was rarely, if ever, physically present at the school. Nonetheless, on the basis of his enrollment, the VA paid him a regular housing stipend and paid HRSC for Chillous’ tuition. Additionally, a few months after his enrollment at the school, Chillous and the school’s owner struck a deal for Chillous to recruit veterans to enroll in HRSC, to boost the GI Bill revenue coming into the school. Chillous was paid a recruitment fee of approximately 8% of the tuition HRSC would receive from the VA on behalf of each veteran he successfully enrolled. Over the next 10 months, Kent successfully recruited approximately 20 Post-9/11 GI Bill-eligible veterans to enroll at HRSC.
Chillous pleaded guilty to conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison when sentenced on January 11, 2018. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, Office of Inspector General; Kim Lampkins, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge, Mid Atlantic Field Office; and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorneys V. Kathleen Dougherty and Kaitlin C. Gratton 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. 4:17-cr-81.
Culpeper Man Pleads Guilty to Charges of Commercial Sex with a Minor and Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Fielding Smith Daniel, 53, of Culpeper, Virginia pleaded guilty yesterday to two charges involving the sexual exploitation of children.
According to court documents, in August 2016, Daniel met a young girl on a sugar daddy website. The girl, who was 14 years old, arranged to meet with Daniel for the purpose of having sex for money. Shortly after midnight on August 11, 2016, Daniel picked the girl up from her grandmother’s house in his 2016 BMW and drove her to a Motel 6, where they engaged in sex. Although they had negotiated a rate of $200, Daniel only provided the girl with $100. On August 23, 2016, he again arranged to have sex with the minor girl for $140 and drove her to a different hotel, where they again had intercourse.
In early September 2016, the Stafford County Sheriff’s Office conducted a search of Daniel’s residence in Culpeper, which is in the Western District of Virginia. Law enforcement recovered numerous electronic devices, which were subsequently examined. In addition to evidence of conversations with the 14-year-old girl, hundreds of sexually explicit online communications with women were recovered. Among those chats were two 2016 conversations involving girls who indicated to Daniel that they were minors and in high school. One of those girls, who was 17 at the time, produced pictures and videos of child pornography at Daniel’s request and sent them to his online account. These pictures and videos were recovered from at least one of Daniel’s electronic devices.
Daniel entered guilty pleas to both commercial sex with a minor and causing a minor to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady. Daniel will be sentenced on January 19, 2018 in Alexandria by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorneys Jay V. Prabhu and Whitney Dougherty Russell are prosecuting the case.
Significant support for the investigation was received from the Stafford County Commonwealth’s Attorney’s Office; the Stafford County Sheriff’s Office; and the U.S. Attorney’s Offices for the Western District of Virginia, the Eastern District of New York, and the Eastern District of Pennsylvania.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-110 and 1:17-mj-145.
Fairfax Attorney Charged with Embezzling $1.4 Million from Virginia Senator, Canadian Business, and Autism OrganizationRead the Press Release
ALEXANDRIA, Va. – A Fairfax attorney has been indicted by a federal grand jury for his alleged role in three fraud schemes totaling over $1.4 million in losses, including embezzling over $653,000 from Virginia State Senator Richard Saslaw’s campaign fund.
According to the indictment that was unsealed today at his initial appearance in federal court, David H. Miller, 68, of Fairfax, participated in three fraud schemes from 2011 through 2014. In the first scheme, Miller, an attorney, along with his wife, Linda Wallis, created two fake law firms, the first known as Federal Legal Associates, and the second known as The Straile Group. Miller and Wallis used the two fake law firms to fraudulently bill Miller’s employer, SkyLink Air and Logistic Support, Inc. (SkyLink), a Canadian based aviation company that maintained an office in Dulles. Miller and Wallis allegedly caused approximately $368,400 in losses to SkyLink.
The second scheme alleged in the indictment details the embezzlement of approximately $653,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000. All of the checks were issued without the knowledge or permission of Senator Saslaw or his campaign staff, and were ultimately deposited into accounts that were controlled by Miller or Wallis. Miller and Wallis used the funds embezzled from Senator Saslaw’s campaign account for personal expenses, including to pay their home mortgage and to retain a personal lawyer.
The third scheme detailed in the indictment alleges misuse of funds from a charitable organization, which Miller co-founded and for which Wallis served as the Executive Director. The organization, known as The Community College Consortium on Autism and Intellectual Disabilities (CCCAID), claimed to provide assistance to community colleges to develop programs for individuals with intellectual disabilities. Between April 2010 and April 2013, community colleges located around the country and an individual donated approximately $783,000 to CCCAID. The funds contributed to CCCAID were supposed to be used to further the mission of the organization and not to enrich Miller or Wallis. Despite these restrictions, from April 2010 to August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts controlled by Miller and Wallis. A significant percentage of the $482,000 embezzled from CCCAID was used to pay Miller and Wallis’s personal expenses, such as mortgage payments, upgrades to an oceanfront property owned by Miller in Bethany Beach, Delaware, and travel on private aircraft from Manassas, Virginia to Montego Bay, Jamaica for a family vacation.
Miller’s co-conspirator and wife, Linda Diane Wallis, previously pleaded guilty. Wallis was sentenced to 56 months in prison on March 18, 2016.
Miller has been charged with conspiracy to commit mail and wire fraud, conspiracy to launder monetary instruments, mail fraud, wire fraud, and aggravated identity theft, and faces a maximum penalty of 20 years in prison if convicted. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Uzo Asonye and Samantha Bateman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-213.
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.
Virginia Man Indicted for Production of Child PornographyRead the Press Release
A Manassas, Virginia man was indicted today on five counts of producing child pornography of prepubescent minors announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI).
According to the indictment, Dwayne Stinson, 52, coerced minors into engaging in sexually explicit conduct for the purpose of producing pornographic images on at least five separate occasions.
Trial Attorney James E. Burke IV of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.
Two Virginia Beach Men Sentenced for Cocaine and Gun SalesRead the Press Release
NORFOLK, Va. – Juan Rivera-Gutierrez, 35, and Pedro Pabon, Jr., 42, both of Virginia Beach, were sentenced today for their respective roles in a three-and-a-half year cocaine conspiracy. Rivera-Gutierrez was sentenced to 10 years’ imprisonment and Pabon to 30 months’ imprisonment.
According to court documents, Rivera-Gutierrez and Pabon conspired to sell wholesale quantities of cocaine from September 2013 to April 2017. Special Agents from the Drug Enforcement Administration conducted nine controlled purchases and recovered over 500 grams of cocaine. During one controlled purchase, Pabon suggested that a confidential informant add a cutting agent to cocaine known as “Aroma,” a product commonly used as a carpet cleaner, to increase profits. On another controlled purchase, Rivera-Gutierrez sold a wholesale quantity of cocaine and five firearms with multiple 100-round clips and a silencer. The silencer was a Department of Defense asset and the firearms included a Russian Izhmash Saiga 12 caliber shotgun, an Israeli Tavor Sar 556 caliber rifle, a DMPS Panther 223 caliber rifle, a stolen Olympic MRF AR-15 multi-caliber rifle, and a Colt M4LE 556 caliber rifle.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-60.
Manassas Man Indicted for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Manassas man with five counts of production of child pornography.
According to the indictment, Dwayne Stinson, 52, coerced minors into engaging in sexually explicit conduct for the purpose of producing pornographic images on at least five separate occasions.
Stinson faces a mandatory minimum of 15 years and a maximum term of 30 years in prison if convicted. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney James Burke are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-211 or 1:17-mj-349.
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.
U.S. Navy Sailor Pleads Guilty to Production of Child PornographyRead the Press Release
NORFOLK, Va. – A U.S. Navy Petty Officer pleaded guilty today to the production of child pornography.
According to the statement of facts filed with the plea agreement, Gregory Kyle Seerden, 31, currently stationed in San Diego, California, used his iPhone to record himself engaging in sexually explicit conduct with a sleeping child in January 2017.
Seerden faces a mandatory minimum of 15 years and a statutory maximum sentence of 30 years in prison when sentenced on January 18, 2018. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi and Special Assistant U.S. Attorney David A. Layne 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. 2:17-cr-67.
Lorton Man Convicted of Attempted Armed Robbery and Discharge of a FirearmRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Lorton, Virginia man yesterday on charges of attempted robbery, attempted possession of marijuana with intent to distribute, and the use and discharge of a firearm during those crimes.
According to court records and evidence presented at trial, Thomas Todd, 33, conspired to rob a drug dealer at gunpoint in the basement of an apartment building in Lorton. The drug dealer arrived at the apartment building with an armed associate on June 24, 2016, and a shootout occurred in the lobby in the middle of the night.
Todd faces a mandatory minimum of 10 years in prison and a maximum sentence of life in prison when sentenced on January 19, 2018. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul D. Vanderplow, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorney Jonathan Fahey and Special Assistant U.S. Attorneys Ankush Khardori and Samuel Lord 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. 1:17-cr-24.
Former Investment Adviser Pleads Guilty to $6 Million FraudRead the Press Release
NORFOLK, Va. – A former investment adviser in Chesapeake pleaded guilty yesterday to one count of investment adviser fraud and one count of conducting unlawful monetary transactions.
According to the statement of facts filed with the plea agreement, Roger Odell Hudspeth II, 48, was an investment adviser and sole owner of Dominion Investment Advisors, LLC. Hudspeth, along with other associates, sold fraudulent, unregistered securities to his clients. Hudspeth performed inadequate due diligence into the fraudulent investment offerings and concealed that the offerings were created, offered, and controlled by his associate, who previously had been banned by the Financial Industry Regulatory Authority (“FINRA”) for fraudulent activities.
As part of the scheme, Hudspeth and others held social security maximization seminars to obtain clients who were often in or near retirement. Hudspeth steered investors to investment offerings that were highly speculative, illiquid, and high risk by making material misrepresentations and omissions. Hudspeth’s clients lost over $6,000,000 as a result of the securities fraud scheme, and Hudspeth received over $700,000 in ill-gotten gains, including $20,000 that he used to put a down payment on a Range Rover.
In early 2016, the Virginia State Corporation Commission entered a judgment order against Hudspeth revoking his licenses, permanently closing Dominion Investment Advisors, LLC, and prohibiting Hudspeth from engaging in any investment advisory activities in the future.
Hudspeth faces a maximum penalty of 15 years in prison when sentenced on January 22, 2018. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys Melissa E. O’Boyle 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. 2:17-cr-122.
Lawyer Pleads Guilty to Distributing Videos of Child Sexual AbuseRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C., lawyer pleaded guilty today to distributing videos of child sexual abuse.
According to court documents, Jason Mark Sims, 35, replied to an advertisement placed by an undercover FBI agent on Craigslist. Sims and the undercover agent discussed meeting so that Sims could sexually abuse the undercover agent’s purported 10-year-old daughter. Although Sims ultimately declined to meet the undercover in person, he did provide the undercover with links to videos depicting the sexual abuse of girls as young as 4 years old.
Sims pleaded guilty to distribution of child pornography and faces a mandatory minimum sentence of five years and a maximum of 20 years in prison when sentenced on December 1, 2017. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorneys Laura Fong and Kellen S. Dwyer are prosecuting the case.
This case is 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
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. 1:17-cr-191.
Atlanta Man Sentenced to Three Years for $2.7 Million Bank FraudRead the Press Release
ALEXANDRIA, Va. – An Atlanta, Georgia man was sentenced today to three years in prison, followed by five years of supervised release, for his role in a bank fraud scheme that resulted in losses of approximately $2.7 million.
Thomas Scott Brown, 47, pleaded guilty to bank fraud and false statements to a financial institution on June 9. According to court documents, from approximately 2006 through 2007, Brown purchased properties for buyers with his own money and then directed those individuals to apply for home equity loans with Navy Federal Credit Union, claiming that they owned the properties free and clear of any liens when, in fact, they still owed Brown for the properties. In applying for these home equity loans, Brown instructed the buyers to submit false documentation to the bank, including fraudulent Housing and Urban Development Settlement Statements and false membership applications. Brown further ordered these individuals to pay him from the proceeds of the home equity loans.
In most instances, the homes went into foreclosure after the bank approved the loans. In total, 51 properties Brown sold eventually went into foreclosure, causing Navy Federal Credit Union losses of $2.7 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jamar K. Walker 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. 1:17-cr-104.
Previously Convicted Felon Sentenced for Firearms OffenseRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon was sentenced today to 54 months in prison for possessing a firearm.
Miles Straker, 30, an illegal alien from Trinidad and Tobago, pleaded guilty to being a felon and illegal alien in possession of a firearm on June 5. According to court documents, Straker was charged with distribution of cocaine and illegal possession of the firearm. These charges arose from a series of controlled purchases of cocaine from Straker conducted by the Virginia State Police Tri-Rivers Task Force in February 2017 in Williamsburg. Following the controlled purchases, Straker was arrested and the firearms were discovered.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-38.
Man Sentenced for $1.6 Million Tax Return FraudRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 40 months in prison for his role in a fraud scheme that prepared hundreds of false tax returns that resulted in a loss of approximately $1.6 million to the United States.
Kevin Towns, 44, pleaded guilty to conspiracy and preparing false tax returns on June 7. According to court documents, Towns was one of the principal tax preparers at A Plus Tax Service and NN Financial, which operated as tax preparation businesses at different periods between July 2009 and February 2014. Towns, along with co-defendants Stephanie Towns and Brenda Benn, conspired to operate a business based on creating false tax returns that generated inflated refunds for their clients in order to cultivate good will and generate repeat business. They used methods such as claiming false education-related expenses, stating excessively high amounts of charitable contributions, and manipulating the amount of income to take advantage of certain tax credits. The customers did not persuade or instruct the tax preparers to generate the false returns.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Randy Stoker 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-30.
Man Pleads Guilty to Attempting to Strangle GirlfriendRead the Press Release
RICHMOND, Va. – A Prince George man pleaded guilty today to attempting to strangle his girlfriend at military housing on Fort Lee.
According to court documents, Antonio Cain, 30, was staying with his girlfriend in residential housing on Fort Lee on July 29 when he physically assaulted her. During that assault, Cain repeatedly attempted to strangle his girlfriend, choking her to the point of unconsciousness on two separate occasions.
Cain pleaded guilty to assault on a spouse or intimate partner by strangling or suffocation, and faces a maximum penalty of 10 years in prison when sentenced on December 12. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Capt. Brian Bishop, Fort Lee Police Operations Officer, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney Thomas A. Garnett 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. 3:17-cr-110.
Man Pleads Guilty to Producing Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to child pornography crimes including enticing minor victims to produce child sexual abuse images online.
According to court documents, Larry Anthony Radebaugh, 40, established chat-based relationships with multiple children in which he persuaded them to send him nude images and videos of themselves. Posing as a teenage boy, Radebaugh used applications such as Kik and TextNow to befriend his victims. Radebaugh enticed the minors to strike sexual poses and perform sexual acts and then transmit the images over the internet. With one victim, he used Skype to engage in “phone sex,” while his own camera was disabled. For some of his victims, this conduct lasted approximately 1 1/2 years. Radebaugh stored many of these images in an online storage service and possessed other images on his cell phone.
Radebaugh pleaded guilty to production of child pornography and possession of child pornography and faces a mandatory minimum penalty of 15 years and a maximum penalty of 40 years in prison when sentenced on Jan. 18, 2017. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, 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 Robert J. Krask accepted the plea. Assistant U.S. Attorney Randy Stoker is prosecuting the case.
This case is 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
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-86.
Jury Convicts Sex Offender of Prostituting Two Minor VictimsRead the Press Release
ALEXANDRIA, Va. – A Dumfries man was convicted today by a federal jury on charges of sex trafficking of minors.
According to court records and evidence presented at trial, Michael Edward Gunn, 40, a previously convicted sex offender, was a pimp who sex trafficked two minor victims from July 2013 to July 2015. Gunn lured the two minor victims into his prostitution ring and kept them there by providing drugs, telling the victims the ring was a family that took care of each other, providing the victims a place to stay, and by engaging in sexual relationships with both minor victims.
According to evidence presented at trial, Gunn helped create online advertisements, drove them to prostitution appointments, and collected and controlled the money. Evidence also showed that Gunn knew both minor victims were underage. For example, around the time one of the victims was 14 years old, Gunn saw a missing persons poster with the girl’s photo and her actual date of birth.
Gunn’s two co-conspirators, adult prostitutes who assisted him in running the prostitution ring, testified at trial as to Gunn’s role in leading the conspiracy.
Gunn faces a mandatory minimum of 20 years and a maximum penalty of life in prison when sentenced on December 22. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, M. Jay Farr, Arlington County Chief of Police, Barry M. Barnard, Chief of Prince William County Police, and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Assistant U.S. Attorneys Maureen Cain and Kimberly R. Pedersen are prosecuting the case.
The Dumfries Police Department 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. 1:17-cr-137.
Government Contractor and CEO Settle Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – Calnet, Inc., a Reston based government contractor and its Chief Executive Officer and President, Kaleem Shah, also of Reston, agreed to pay $300,000 to settle allegations that Calnet and Shah submitted false information in Calnet’s bid proposal to the Federal Aviation Administration (“FAA”) to win an FAA contract for IT help desk services.
The settlement resolves civil claims alleged in a qui tam complaint filed against Calnet and Shah that allege that Calnet misrepresented its past private sector experience in providing help desk services in its proposal to the FAA in 2009 in an effort to win a contract to provide the FAA’s Aviation Safety office with technology support services, including help desk and desk side services throughout North America and at several international sites. FAA awarded the contract to Calnet.
The False Claims Act permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the Eastern District of Virginia.
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 Transportation’s Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Christine Roushdy and Department of Transportation Office of Inspector General. 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.
Executive Sentenced for $10.5 Million Bank FraudRead the Press Release
RICHMOND, Va. – A Charlottesville man was sentenced today to 51 months in prison for a bank fraud scheme that resulted in a loss of $10.5 million to Fauquier Bank.
Michael P. Klekamp, 68, pleaded guilty on December 9. According to court documents, Klekamp was the President of Capitol Components and Millwork, Inc. (CCM), of Culpeper. CCM was involved in the manufacture, fabrication and distribution of architectural building material millwork items for mid to high-end residential and commercial buildings. To run its business, CCM drew money from a standard secured revolving line of credit line at Fauquier Bank. The credit line agreement required CCM to submit periodic reports to the Bank about the value of the underlying collateral, such as accounts receivable and inventory, and the creditworthiness of CCM.
According to court documents, Klekamp fraudulently maintained the credit line by misrepresenting the true financial condition of CCM and made a variety of false statements to the bank about the true amount and quality of the collateral of CCM. On Oct. 25, 2015, Klekamp submitted documents to the bank fraudulently stating there was approximately $17 million of total accounts receivable and inventory securing the bank’s $11.5 million credit line, while in actuality there was no more than $3.4 million of total accounts receivable and inventory. Contrary to the fake financial statements submitted to the bank, CCM was not able to repay the interest or principal amount of the loan, resulting in a loss of approximately $10.5 million as a result of the scheme.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. The case was investigated by Richmond Division, Charlottesville Resident Agency of the FBI. Assistant U.S. Attorney David T. Maguire 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-141.
Employee Indicted for Embezzling $500,000 from Medical PracticeRead the Press Release
NEWPORT NEWS, Va. – A former employee of a medical practice in Williamsburg was indicted by a federal grand jury today on fraud charges for allegedly embezzling over $500,000 from her employer.
Sherea Darnell, 33, of Southfield, Michigan, has been charged with wire fraud, bank fraud, use of an unauthorized access device, and filing false tax returns. According to court documents, from March 2012 through September 2016 Darnell was employed as the administrator at Cullom Eye and Laser Center in Williamsburg.
According to allegations in the indictment, Darnell was responsible for the administrative functions of the office and was provided with two business credit cards to be used for business purposes such as supplies and office equipment. The credit cards were paid automatically each month by Cullom’s business bank accounts. When Darnell resigned in September 2016 and moved to Michigan, Cullom began reviewing the practice’s bank accounts and saw that large payments had been made to office’s credit cards. Analysis of the business credit card statements and revealed numerous charges on the cards that what were obviously personal in nature, including paying for her son’s private school tuition, maid services for her home, entertainment, dining, high end clothing, jewelry, and airline travel for Darnell and members of her family to resorts around the country and abroad. Additionally, over $90,000 in cash advances were made on the cards.
Darnell faces a maximum penalty of 30 years on each count of bank fraud, 20 years on each count of wire fraud, and 3 years on each count of filing false tax returns, if convicted. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly A. Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement. Managing Assistant U.S. Attorney Howard J. Zlotnick 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. 4:17-cr-92.
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.
Men Sentenced to Five Years for Stealing 35 GunsRead the Press Release
ALEXANDRIA, Va. – Two men were each sentenced today to five years in prison for their roles in a conspiracy to steal firearms from businesses in Virginia.
Preston G. Holmes III, 24, and Matthew D. Jones, 23, both of Prince George’s County, Maryland, were convicted by a federal jury on July 3 of conspiracy and theft of firearms from a federally licensed firearms dealer. According to court documents and evidence presented at trial, Holmes and Jones participated in the burglary of a Federal Firearms Licensee (FFL) in Chantilly, where they stole 35 semi-automatic handguns. Holmes and Jones were also involved in attempted thefts of firearms from FFLs in Spotsylvania County and Fredericksburg.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Arron J. Graves, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Alexander E. Blanchard and former Assistant U.S. Attorney Michael E. Rich 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. 1:17-cr-67.
Man Pleads Guilty to Child Pornography ChargeRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today to receipt of child pornography.
According to court documents, Charles McClung, 64, was a member of an online bulletin board dedicated to trading child pornography. The board was hosted on the dark net and had over 1,500 members. Agents with Homeland Security Investigations (HSI) began an investigation into the board in September 2015, and McClung was identified downloading content from the board in December 2015. As a result of the investigation, HSI and other law enforcement executed a federal search warrant of McClung’s residence in Chesapeake and found hundreds of thousands of images of child pornography.
McClung faces a mandatory minimum of 5 years in prison and a maximum of 20 years in prison when sentenced on January 17, 2018. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, 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 Robert J. Krask accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-105.
Business Agent Pleads Guilty to $3.5 Million Tax FraudRead the Press Release
RICHMOND, Va. – Edward R. Prestes, 48, of Glen Allen, pleaded guilty today to conspiracy to defraud the IRS of over $3 million in employment and income taxes.
According to court documents, the purpose of the conspiracy was to evade the payment of income and employment taxes to the IRS for laborers working for various construction companies by paying the laborers “under the table.” From in or about 2011 through in or about 2013, Prestes was an agent for the following nominee corporations, incorporated in the Commonwealth of Virginia: Virginia American Contractors, LLC; Elson Contractors, LLC; Proactive Services, LLC; Positive Solutions, LLC; and Service Contractors, LLC, (“nominee corporations”). These nominee corporations all had the same address, a post office box in Glen Allen, but each nominee corporation had a separate bank account for which Prestes was an authorized signatory.
According to court documents, various construction companies made regular payments to the nominee corporations. Prestes then distributed the funds from the nominee corporations to the laborers. Prestes would make these payments to laborers by both cash and check. Prestes did not withhold any income or employment taxes, issue Forms W-2 or 1099 to the laborers, or file quarterly returns (Forms 941) or yearly income tax returns for the nominee corporations as required by law. At the end of each year, the construction companies issued IRS Forms 1099 to the nominee corporations and deducted the payments.
According to court documents, from in or about 2011 through in or about 2013, the construction companies paid over $9.2 million to the nominee corporations. Prestes then paid the laborers approximately $2.8 million in cash and $6.3 million in checks. Prestes kept as a commission approximately 2 1/2 to 3 1/2 percent of the funds he received from the construction companies. As a result of this conspiracy, the IRS lost over $3 million in employment and income taxes.
Prestes faces a maximum penalty of 5 years in prison when sentenced on December 12. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge of IRS-Criminal Investigations, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-CR-114.
Three Men Sentenced in Human Smuggling Extortion CaseRead the Press Release
ALEXANDRIA, Va. – Three men have been sentenced for illegally transporting a 17-year old girl from El Salvador within the United States and demanding additional money from her family for her release.
According to court documents, Daniel Lopez-Martinez, 27, of Mexico, Juan Tomas Nicolas, 25, of Guatemala, and Ernesto Solis, Jr., 29, of Mission, Texas, worked together to transport a 17-year old girl from El Salvador within the United States for money. Once she arrived in Houston, multiple calls were made by the men to the girl’s father in Loudoun County. In the calls, the men demanded an additional $4,700. The men agreed to turn the girl over to the father only upon receipt and counting the money. The girl was rescued after FBI Agents and Task Force Officers in Houston interceded in the scheduled transfer of funds.
Solis was sentenced to 2 years and 3 months in prison today. Lopez-Martinez was sentenced to 1 1/2 years in prison on July 28, and Nicolas was sentenced to 2 years in prison on August 14.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Gregory C. Brown, Chief of Leesburg Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Maureen Cain prosecuted the case.
The case was investigated by the FBI’s Washington Field Offices’ Child Exploitation and Human Trafficking Task Force, with assistance from the Leesburg Police Department, the FBI’s Houston Field Office, the FBI’s McAllen Resident Agency, the U.S. Border Patrol, and Homeland Security Investigations.
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. 1:17-cr-6.
Man Sentenced to 5 Years for Hacking Conspiracy that Targeted Senior U.S. Government OfficialsRead the Press Release
ALEXANDRIA, Va. – A North Carolina man who conspired with others to gain unauthorized access to government computer systems and online accounts belonging to several United States government officials was sentenced today to 5 years in prison.
Justin G. Liverman, aka “D3F4ULT”, 25, of Morehead City, pleaded guilty on January 6. Liverman admitted to being a member of a conspiracy that called itself “Crackas With Attitude” to commit unauthorized computer intrusions, identity theft, and telephone harassment. According to the statement of facts filed with the plea agreement, beginning in November 2015, Liverman conspired to attempt to intimidate and harass U.S. officials and their families by gaining unauthorized access to victims’ online accounts, among other things. For example, Liverman publicly posted online documents and personal information unlawfully obtained from a victim’s personal account; sent threatening text messages to the same victim’s cellphone; and paid an unlawful “phonebombing” service to call the victim repeatedly with a threatening message. In November 2015, the conspiracy used that victim's government credentials to gain unlawful access to a confidential federal law enforcement database, where Liverman obtained information relating to dozens of law enforcement officers and uploaded this information to a public website. In total, the conspiracy targeted more than 10 victims and caused more than $1.5 million in losses to victims.
A co-conspirator, Andrew Otto Boggs, 23, of North Wilkesboro, was sentenced on June 30 to two years in prison. Other members of the conspiracy are located in the United Kingdom and are being prosecuted by the Crown Prosecution Service.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, and Special Assistant U.S. Attorney Joseph V. Longobardo prosecuted the case.
The U.S. Attorney’s Offices for the Eastern and Western Districts of North Carolina, and the FBI’s Charlotte Division provided significant assistance with the 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. 1:16-cr-313.
Man Sentenced to 14 Years for 31 Armed RobberiesRead the Press Release
NORFOLK, Va. – A Norfolk man who participated in 31 armed robberies in Hampton Roads was sentenced today to 14 years in prison.
According to court documents, from August 2016 to January 2017, Jesse Bray, 22, participated in 31 armed robberies with two other co-conspirators, including convenience stores, gas stations, cash advance stores and wireless phone stores. Bray and his co-conspirators would enter the various stores brandishing firearms, including in some instances a sawed-off shotgun, and demanding money. The men stole approximately $10,000 during the robberies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Arron J. Graves, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William D. Muhr 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-51.
Man Sentenced for Embezzling $19 Million from IT CompanyRead the Press Release
ALEXANDRIA, Va. – A Nokesville man was sentenced today to 6 1/2 years in prison for embezzling approximately $19.4 million from his employer, an information technology company headquartered in Reston.
Jon Frank, 48, pleaded guilty to wire fraud on June 9. According to the statement of facts filed with the plea agreement, Frank worked at the company as the controller. From 2007 until January 2017, he used his position to initiate transfers of approximately more than $19 million from the company’s bank account to his personal accounts. He created false documents to make it appear that the money was being sent as reimbursement to another company that was administering the health insurance plan for Frank’s employer. Relying upon his knowledge and the altered documents, he was able to mislead the individuals performing audits of the company’s financial records. Frank spent the money on expensive automobiles and real estate, among other things. In addition to his prison sentence, Frank was also ordered to pay $19,440,331 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Jack Hanly 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. 1:17-cr-144.
Former Commerce Employee Sentenced for Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – A former information technology official with the Department of Commerce was sentenced today to 4 years in prison and ordered to forfeit approximately $224,500 for conspiracy to pay and receive bribes, and acceptance of bribes by a public official.
According to court records and evidence presented at trial, Raushi J. Conrad, 43, of Bristow, served as the Director of Systems Operation and Security within the Bureau of Industry and Security (BIS), a branch of the Department of Commerce. In that position, Conrad was designated to oversee and manage a project whereby computer files were transferred from an old BIS computer network that had been infected by a virus to a new, uninfected network. Conrad was also to ensure that the transferred files were free of viruses and, in some instances, retained the full functionality of the files that had resided on the old network.
According to court records and evidence presented at trial, while serving as the project manager for the data migration project, Conrad solicited and received bribes from James Bedford, a local businessman, in return for steering a lucrative subcontract and contract to perform the data migration work to companies owned in whole or in part by Bedford. One of Bedford’s companies made $208,000 in payments to a restaurant business owned by Conrad, and many of these payments were concealed through false and fictitious invoices created by Conrad. The fake invoices made it appear that Conrad’s restaurant business had performed various services for Bedford’s company, when in fact no such services had ever been provided. Bedford’s company also arranged for various employees and subcontractors to perform over $16,000 worth of free renovation work at Conrad’s residence. Bedford pleaded guilty and was sentenced on June 30 (Case number 1:16-cr-264).
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General, and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker 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-169.
Springfield Man Pleads Guilty in Child Sex Tourism CaseRead the Press Release
ALEXANDRIA, Va. – A Springfield man pleaded guilty today to attempting to entice an eight-year-old minor to engage in sex during his trip to the Philippines in 2013.
According to the statement of facts filed with the plea agreement, Carl Sara, 63, participated in live-streaming webcam sessions depicting minors engaged in sexually explicit conduct and engaged in sexually explicit chatting with minors. During some of these chats, which occurred in or about May 2013, Sara attempted to have a woman in the Philippines assist him in enticing her eight-year old daughter to have sex with him during a 2013 trip to the Philippines. He paid her $200 dollars via Western Union as a down-payment and offered to pay her an additional $300 after he had sex with the eight-year-old.
Sara faces a mandatory minimum sentence of 10 years and a maximum penalty of life in prison when sentenced on December 8. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorney James E. Burke IV and Assistant United States Attorney Nathaniel Smith III are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
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. 1:17-cr-54.
Previously Convicted Felon and ISIS Supporter from Richmond Charged with Firearms OffenseRead the Press Release
RICHMOND, Va. – A previously convicted felon and alleged supporter of the Islamic State of Iraq and al-Sham (“ISIS”) was arrested yesterday on a charge related to his acquisition of a firearm, three weeks after he was released from state prison.
Casey Charles Spain, 28, of Richmond, was charged by criminal complaint with possession of a firearm as a convicted felon. According to the affidavit in support of the criminal complaint, Spain was incarcerated for over seven years after being convicted in 2010 for abduction with intent to defile. He was released from the Virginia Department of Corrections on August 11, 2017.
According to court documents, while incarcerated, Spain became radicalized and adopted extremist Islamic views. He obtained a tattoo on his cheek that reads “Cop Killa,” and a tattoo of the ISIS flag on his back. Two confidential sources of information who had contact with Spain while he was incarcerated separately reported that Spain swore a pledge of loyalty, commonly known as bayat, to Abu Bakr al-Baghdadi, the leader of ISIS. Spain also allegedly told both individuals that he wanted to travel overseas to engage in jihad on behalf of ISIS, and that if he were not allowed to travel upon his release, he would engage in jihad, to include acts of violence, against targets in the United States.
Given this information, the FBI began conducting intensive surveillance of Spain immediately upon his release from incarceration. This surveillance included making covert contact with Spain through FBI undercover employees (“UCE”) and a confidential human source (“CHS”). According to the complaint affidavit, Spain spoke on multiple occasions to the CHS about his strong desire to both obtain a handgun and travel overseas to engage in actions in support of ISIS. The CHS’s information regarding Spain’s plan was corroborated by several recorded conversations Spain had with still-incarcerated prisoners after his release.
Based upon Spain’s desire to obtain a firearm and the impatience he exhibited with regard to obtaining one, the CHS—as part of a controlled FBI undercover operation—offered to provide Spain with what the CHS described as his own personal weapon. In fact, it was a 9 mm Glock semi-automatic handgun that FBI personnel had rendered inert, for safety reasons.
According to court documents, in the early morning hours of August 31, 2017, as part of the undercover operation, the CHS and an FBI UCE met Spain outside of his Richmond residence. At that meeting, the CHS provided Spain the above-described firearm, and Spain was subsequently arrested by the FBI Richmond SWAT team. Spain initially attempted to flee and escape arrest by running and jumping a nearby fence, but FBI SWAT members pursued Spain on foot and quickly apprehended him. The agents also recovered a cell phone and the gun, which Spain had discarded during the foot-chase.
On August 31, 2017, Spain made his initial appearance in federal court following his arrest on the charge of being a felon in possession of a firearm. United States Magistrate Judge Roderick C. Young ordered that Spain be held without bond pending a probable cause and detention hearing, which is scheduled for September 6, 2017.
Spain faces a maximum penalty of 10 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentence would be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorney Brian Hood of the Eastern District of Virginia and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism 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. 3:17-mj-152.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Newport News Man Convicted of CarjackingRead the Press Release
NEWPORT NEWS, Va. – Adrian D. Briggs, 21, was convicted today by a federal jury on charges of carjacking and brandishing a firearm in furtherance of a crime of violence.
According to court records and evidence at trial, on Aug. 11, 2016, Newport News Police Department officers responded to a hotel parking lot following a report of a carjacking in which Briggs had brandished a firearm and threatened the victim, a U.S. Army veteran who had served two tours of duty in Iraq and Afghanistan. The victim had agreed to loan Briggs his cell phone, which Briggs then took along with the car.
The investigation revealed video footage showing a man matching the defendant’s description entering the hotel shortly before the carjacking, and another video showing the same person pulling into a nearby 7-Eleven in the victim’s car just before using the victim’s credit card at the location. Briggs’ DNA was identified by fingerprints in the victim’s car, and the victim positively identified Briggs from a photo spread. In addition, phone records showed that Briggs had used the victim’s cell phone to call Briggs’ mother and sister on the morning of the crime.
Briggs faces a maximum penalty of 22 years in prison when sentenced on November 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Richard W. Myers, Chief of Newport News Police, made the announcement after the verdict was accepted by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Bethany J. Lipman of the Criminal Division’s Organized Crime and Gang 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. 4:17-cr-33.
Bowie Woman Sentenced to Prison for Fraud Scheme and Identity TheftRead the Press Release
ALEXANDRIA, Va. – A Bowie, Maryland woman was sentenced today to 70 months in prison for bank fraud, mail fraud, and aggravated identity theft. The court also ordered Lewis to forfeit and pay over $249,000 in restitution.
According to court documents and evidence presented at trial, Tonia Latrice Lewis, 47, obtained the identities of dozens of victims and used those identities to open bank accounts and apply for loans in the names of the victims, without their knowledge or consent. Lewis submitted over 30 applications to open accounts and get access to funds from various financial institutions, including Pentagon Federal Credit Union, Lafayette Federal Credit Union, U.S. Postal Service Federal Credit Union, Interior Federal Credit Union, D.C. Teachers Federal Credit Union, M&T Bank, and others. Most of the financial institutions that Lewis defrauded were not-for-profit credit unions.
According to court documents and evidence presented at trial, Lewis took sophisticated steps to perpetrate the years-long scheme and conceal her identity. Lewis focused on financial institutions that allowed her to apply for and submit back-up documentation online, thereby minimizing the risk that she would be caught on surveillance video. Lewis fabricated a variety of fraudulent documents to substantiate the applications and stolen identities, including paystubs and driver’s licenses, and she paid to run detailed credit reports/checks on her victims. In perpetrating this scheme, Lewis created fake email accounts, purchased burner phones that were used as the contact numbers on the fraudulent applications, and caused the victims’ mail to be forwarded to vacant/abandoned properties. When Lewis went to withdraw funds from the fraudulent accounts, she often wore clothing such as hats, glasses, or scarves that obscured her face, and even took steps to cover up surveillance cameras by covering them with aluminum foil.
Lewis sought over $600,000 in loans and financing, and her actions caused actual losses of $249,858.29. Lewis used the proceeds from the fraud in part to purchase jewelry, items of clothing, and to gamble at a casino in West Virginia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and J. Thomas Manger, Montgomery County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Katherine L. Wong and Special Assistant U.S. Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-25.
Virginia Department of Transportation Officials and Snow Removal Contractors Arrested for Bribe SchemeRead the Press Release
ALEXANDRIA, Va. – Two Virginia Department of Transportation (VDOT) officials and four private VDOT contractors were arrested today for their alleged involvement in a bribery scheme involving the awarding of over $9.1 million in snow removal contracts.
According to allegations in the indictment, from as early as 2013, Anthony Willie and Kenneth Duane Adams, VDOT supervisors at the Burke Area Headquarters (AHQ), secretly used their official positions as employees of the VDOT Burke AHQ to enrich themselves by soliciting and accepting cash bribes in exchange for various favorable official acts, such as awarding snow removal work to local trucking companies during winter snow storms in the northern Virginia area.
According to the allegations in the indictment, Willie and Adams negotiated bribe agreements with several owners and operators of trucking and snow removal companies, including Rolando Alfonso Pineda Moran, Shaheen Sariri, and John Lee Williamson (see table below), seeking snow removal work from the VDOT Burke AHQ. At their core, each agreement stated that the company owners would provide a percentage or a flat rate of their hourly contracts as bribes in the form of cash payments to Willie and Adams, in exchange for being awarded snow removal work and having Willie and Adams sign off on their VDOT invoices. Beginning in the 2013‑2014 snow season and continuing through at least the 2015‑2016 snow season, Willie and Adams received approximately $140,000 in cash bribes from the company owners under those agreements.
The indictment also alleges that from 2011 through 2016, Adams conspired with Elmer Antonio Mejia by negotiating an agreement whereby Mejia would sub-contract snow removal work out to Adams’ nominee-owned company, Supreme Landscaping. During this period, Mejia paid Adams more than $160,000, frequently disguising the payments as pay for snow removal work allegedly performed by Adams’ nominee-owned company.
The indictment charges six defendants for the following offenses:
Name, Age
Hometown
Charges
Max Penalty
(per count)
Anthony “Andy” Willie, 54,
Culpeper, Virginia
Conspiracy; Honest Services Mail and Wire Fraud
20 years
Kenneth “Kenny” Duane Adams, 41, Fairfax, Virginia
Conspiracy; Honest Services Mail Fraud
20 years
Rolando Alfonso Pineda Moran, 50, Alexandria, Virginia
Conspiracy; Honest Services Mail Fraud
20 years
Shaheen “Shane” Sariri, 30,
Fairfax, Virginia
Conspiracy; Honest Services Mail Fraud
20 years
John Lee Williamson, 51,
Springfield, Virginia
Conspiracy; Honest Services Wire Fraud
20 years
Elmer Antonio Mejia, 50,
Aldie, Virginia
Conspiracy; Honest Services Mail Fraud
20 years
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Kimberly R. Pedersen and Samantha P. Bateman are prosecuting the case.
This case involved a joint investigation by the FBI’s Washington Field Office, Virginia State Police, and Fairfax County Police Department. Additional assistance was provided by the Virginia Department of Transportation’s Office of Assurance and Compliance.
Any person who believes they may have information regarding public corruption or fraud in the northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225 or e-mail tips to [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-188.
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.