Eastern District of Virginia
Press releases recorded for this federal judicial district.
Former UVA Football Player Convicted of $10 Million FraudRead the Press Release
RICHMOND, Va. – A federal jury convicted a former University of Virginia football player today of his role in a $10 million fraud scheme.
According to court records and evidence presented at trial, Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC, with co-conspirator Sherman Carl Vaughn. From 2009-2016, Robertson and Vaughn solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.
“Behind every lie is a choice,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Mr. Robertson lied to his friends and mentors, and many times had the opportunity to come clean and tell the truth. Instead, he chose to continue his lies and fraud, which had devastating effects on his victims. I applaud the terrific efforts of the trial team and our law enforcement partners in investigating and prosecuting this important case.”
Robertson and Vaughn led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.
“There are consequences for people's choices,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office. “Today Mr. Robertson was convicted for his scheme of manipulating friends and associates into trusting him with their savings and ultimately using it for his personal gain. I would like to commend the investigative team and the United States Attorney's Office for their dedication to bring justice to the victims associated with this case.”
As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
“The longevity and scope of Mr. Robertson’s scheme to defraud investors is simply astonishing,” said Kimberly Lappin, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through the joint efforts of IRS Criminal Investigation and our law enforcement partners, Mr. Robertson has been brought to justice and convicted by a jury of his peers. Today’s verdict is a reminder that IRS-CI will remain vigilant in our investigation of these schemes in order to combat this type of criminal conduct.”
“This case is merely the latest in a long tradition of Postal Inspectors relentlessly pursuing anyone who misuses the nation's mail system to commit fraud and take advantage of the American public.” said Inspector in Charge Robert Wemyss. “I'm proud of the work done by all the agents involved in this investigation, and look forward to the continued efforts of the Richmond Securities Fraud Task Force.”
Robertson was convicted of mail fraud, bank fraud, and money laundering. He faces a maximum penalty of 330 years in prison when sentenced on December 6. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the verdict. Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony are prosecuting the case.
The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted 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. 3:16-cr-133.
Former Investment Advisor Arrested for $20 Million FraudRead the Press Release
NORFOLK, Va. – The former owner of a Virginia Beach investment company was arrested today for his alleged role in leading an investment fraud scheme that caused losses of at least $20 million.
Daryl Gene Bank, 47, of Port St. Lucie, Florida, and Raeann Gibson, 45, of Palm City, Florida, were previously residents of Virginia Beach. Each have been charged with conspiracy to commit mail and wire fraud, mail and wire fraud, and engaging in unlawful monetary transactions. According to the allegations in the indictment, Bank created, owned and operated dozens of Virginia limited liability companies, including Dominion Investment Group (DIG), and Dominion Private Client Group (DPCG), with offices in Virginia Beach and in Port St. Lucie.
According to allegations in the indictment, Bank and Gibson engaged in a conspiracy by which they operated several investment fraud schemes from approximately January 2012 through July 2017. For example, in one fraud scheme, Bank caused numerous material misrepresentations and omissions to be made to several investors, including BC, who was blind and in his late 70s at the time he invested $20,000 of his retirement funds in an investment fraud called Prime Spectrum. Immediately upon receipt of BC’s funds, Bank and Gibson misappropriated 70 percent investment funds and sent BC a statement reflecting his investment in Prime Spectrum was fully invested.
During the various fraud schemes, Bank and Gibson prepared materially false and misleading investment offerings, and knowingly omitted information and made material misrepresentations to at least 300 investors, causing his victims to lose at least a combined $20 million.
According to the indictment, in 2015, the Securities and Exchange Commission (SEC) filed a civil complaint against Bank and entities he controlled accusing him of running a multi-million dollar scheme to defraud investors. That same year, the Virginia State Corporation Commission filed a civil enforcement action against both Bank and Gibson to enjoin them from the fraudulent sale of unregistered securities.
If you believe you may be a victim in this case, please call the FBI’s Norfolk Field Office at: 757-609-2514.
Bank faces a maximum penalty of 260 years in prison if convicted, and Gibson faces a maximum penalty of 240 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, 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 (USPIS), made the announcement. Assistant U.S. Attorneys Melissa E. O’Boyle and Elizabeth M. Yusi are prosecuting the case.
The FBI’s Miami Field Office provided significant assistance with the execution of the arrest and search warrants.
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-126.
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.
Career Drug Trafficker Sentenced for Distributing Heroin and CocaineRead the Press Release
RICHMOND, Va. – A Henrico man who distributed a combined total of more than 20 kilograms heroin and cocaine into the Richmond area in 2016 was sentenced today to 262 months in prison.
Alphonso Jones, 43, pleaded guilty on May 23. According to court documents, Jones, who has multiple previous drug related convictions, admitted that he been involved in the distribution of more than seven kilograms of heroin and 15 kilograms of cocaine. These quantities convert to over 220,000 individual doses. Jones also admitted to possessing a .38 caliber handgun and ammunition as a convicted felon. In addition to his prison sentence, Jones was ordered to forfeit the firearm, and a monetary judgment was entered in the amount of $1.05 million, which represented the proceeds of Jones’ drug trafficking activities.
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, Alfred Durham, Chief of Richmond Police, and Colonel Thierry Dupuis, Chief of Chesterfield County Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. 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-34.
Norfolk Man Pleads Guilty to Child Pornography CrimesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to receipt of child pornography.
According to the statement of facts filed with the plea agreement, Alfredo Martinez, 51, was identified in an online undercover operation as sharing images of minors engaged in sexually explicit conduct. In May 2017, law enforcement executed a federal search warrant at his house in Norfolk. Martinez was found in possession of numerous items of electronic media that contained images of minors engaging in sexually explicit conduct, including a cell phone, external hard drives, and three different computers. Martinez was arrested at the time of the search warrant and was later by indictment by a federal grand jury.
Martinez faces a mandatory minimum of five years and a maximum penalty of 20 years in prison when sentenced on November 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller 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-98.
Newport News Man Pleads Guilty to Hampton CarjackingRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon pleaded guilty today to his role in a violent carjacking.
According to the statement of facts filed with the plea agreement, Mark Anthony Johnson, 35, arrived at a convenience store on Shell Road in Hampton with two other vehicles in the evening of Nov. 20, 2016. Johnson got out of his car and brandished an AR-15 assault rifle at two individuals as he approached the store. He entered the store, brandished his rifle at the store clerk, then exited the store. After he exited the store, he pointed his rifle at the carjacking victim. Another vehicle that arrived with Johnson blocked the victim’s vehicle from exiting the parking lot. Johnson removed the victim from the victim’s vehicle at gunpoint, and struck the man with his rifle. The victim was forced to the ground, and a group of individuals, including Johnson, kicked the victim. The passenger of Johnson’s vehicle drove off in the victim’s car.
Johnson, who is currently on federal supervised release, pleaded guilty to carjacking and brandishing a firearm in furtherance of a crime of violence. He will be sentenced on December 4, and faces a maximum penalty of 15 years for the carjacking, and a mandatory minimum of 7 years and a maximum penalty of life for brandishing the firearm in furtherance of a crime of violence. The latter sentence will be served consecutive to the former. 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 Terry L. Sult, Chief of Hampton Police Division, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Megan M. Cowles 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-51.
Former Bank Vice President Guilty of Identity Theft and FraudRead the Press Release
ALEXANDRIA, Va. – A former banking executive pleaded guilty today to a fraud and identity theft scheme that caused over $3 million in losses.
According to the statement of facts filed with the plea agreement, Kirk Russel Marsh, 39, of Oakton, was a former vice president at Virginia Commerce Bank (VCB) and later at Fulton Bank. Virginia Commerce Bank and Fulton Bank’s parent company, Fulton Financial Corporation, received $71 million and $376.5 million, respectively, in Troubled Asset Relief Program funds from the United States Treasury. At VCB, Marsh forged the signatures of senior bank officers to cause the fraudulent issuance of over $1.25 million in loans to small businesses. At Fulton Bank, Marsh used the name and personal identifying information of a former client to fraudulently apply for and obtain a $1 million line of credit, which he used to purchase another client’s software company, Wave Software, and make the down payment on his house. Marsh also made unauthorized draws on a $485,000 line of credit of another client, which he used to pay Wave Software operating expenses. After being fired by Fulton Bank, and while purportedly cooperating with the United States, Marsh pretended to buy a company that sold beauty products, Revive You Media. He then requested real financial information as part of purported due diligence. Marsh used that financial information to hold himself out as the owner of Revive You Media and seek financing. As part of those attempts to secure financing, Marsh also used the identities of other former clients and family members. The attempted loss is over $10 million.
Marsh pleaded guilty to wire fraud, bank fraud, and aggravated identity theft. He faces a maximum penalty of 30 years in prison when sentenced on November 17. 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, Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Katherine Wong 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-122.
Virginia Man Pleads Guilty to Terrorism ChargesRead the Press Release
Lionel Williams, 27, of Suffolk, Va., pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security and U.S. Attorney for the Eastern District of Virginia Dana J. Boente; Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office; and Chief Thomas E. Bennett of Suffolk Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
According to the statement of facts filed with the plea agreement, Williams attempted to send money to a person he believed was an ISIS financier on two occasions, believing the money would be used to kill. In court documents, Williams admitted his interest in ISIS began in 2014. On Dec. 3, 2015, the day after the San Bernardino terrorist attack, he bought an AK-47 assault rifle. In March 2016, he publicly declared his support for ISIS on social media, described his hope that ISIS would take over the U.S., and stated he would decapitate any law enforcement agents he caught surveilling him. After donating money to an individual he believed to be an ISIS financier - but was actually a persona adopted by an FBI employee - Williams was told his donation had helped purchase a rocket-propelled grenade. He responded with an Arabic phrase meaning, “Praise be to Allah, and Allah is the Greatest.” Later in 2016, Williams began discussing plans for a martyrdom operation with a woman living outside the U.S. He asked an FBI confidential source to send him specific types of AK-47 ammunition and told an FBI employee that his plan was for a “local” operation. Williams was arrested and charged shortly thereafter. After his arrest, he told agents he supported ISIS and believed he was part of a “holy war.”
As part of the plea agreement, Williams agreed that he will receive the statutory maximum of 20 years in prison when sentenced on December 20.
Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse, and Trial Attorneys Alicia H. Cook and Joshua D. Champagne of the National Security Division’s Counterterrorism Section are prosecuting the case.
Suffolk Man Pleads Guilty to Terrorism ChargesRead the Press Release
NORFOLK, Va. – A Suffolk man pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to the statement of facts filed with the plea agreement, Lionel Williams, 27, attempted to send money to a person he believed was an ISIS financier on two occasions, believing the money would be used to kill. In court documents, Williams admitted his interest in ISIS began in 2014. On Dec. 3, 2015, the day after the San Bernardino terrorist attack, he bought an AK-47 assault rifle. In March 2016, he publicly declared his support for ISIS on social media, described his hope that ISIS would take over the United States, and stated he would decapitate any law enforcement agents he caught surveilling him. After donating money to an individual he believed to be an ISIS financier - but was actually a persona adopted by an FBI employee - Williams was told his donation had helped purchase a rocket-propelled grenade. He responded with an Arabic phrase meaning, “Praise be to Allah, and Allah is the Greatest.” Later in 2016, Williams began discussing plans for a martyrdom operation with a woman living outside the United States, asked an FBI confidential source to send him specific types of AK-47 ammunition, and told an FBI employee that his plan was for a “local” operation. Williams was arrested and charged shortly thereafter. After his arrest, he told agents he supported ISIS and believed he was part of a “holy war.”
As part of the plea agreement, Williams agreed that he will receive the statutory maximum of 20 years in prison when sentenced on December 20.
Dana J. Boente, Acting Assistant Attorney General for National Security and U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea. Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse, and Trial Attorneys Alicia H. Cook and Joshua D. Champagne 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. 2:17-cr-1.
Fredericksburg Gas Station Owner Sentenced for Cigarette TraffickingRead the Press Release
RICHMOND, Va. – A Fredericksburg man was sentenced today to two years in prison, ordered to pay $3 million in restitution, and ordered to forfeit $1.42 million for participating in a conspiracy to traffic contraband cigarettes.
According to the statement of facts filed with the plea agreement, Bernard Ekelemu, 60, directed another individual to purchase a Gulf gas station in Fredericksburg in November 2013. Ekelemu then registered a Virginia corporation to operate that gas station, and obtained a “Certificate of Registration for the Collection of Virginia Sales and Use Tax” that exempted Ekelemu from paying the Virginia sales and use tax when making business purchases. Ekelemu opened business memberships at various wholesale clubs and with wholesale cigarette distributors in Virginia, and subsequently used those business memberships to make sales-tax-free purchases of more than $7.1 million worth of Virginia-stamped cigarettes between March 2014 and November 2016. Ekelemu stored those cigarettes at several locations, to include storage units in Fredericksburg and Springfield, where Ekelemu would sell those cigarettes to cigarette traffickers. The traffickers thereafter smuggled the cigarettes to New York State (among other locations), where they were sold as contraband cigarettes on the black market.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael B. Boxler, 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 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-46.
Operation Hardest Hit Targets Portsmouth Heroin TraffickersRead the Press Release
NORFOLK, Va. – Eleven people were arrested across three states this morning for their role in a large-scale heroin and fentanyl drug trafficking organization in Portsmouth.
Over 300 law enforcement agents made the arrests and executed 10 search warrants in Virginia, Georgia, and New York. The takedown is the result of a multi-year, multi-jurisdictional, and multi-agency Organized Crime Drug Enforcement Task Force (OCDETF) investigation designated Operation Hardest Hit.
According to the indictment, law enforcement began investigating Leroy Perdue and his drug trafficking organization (Perdue DTO) in early 2016 following the heroin overdose death of a young resident of Chesapeake. With the participation of nearly two dozen Confidential Human Sources, law enforcement infiltrated the Perdue DTO and made 10 undercover controlled purchases of heroin and fentanyl. On June 22, the investigative team arrested Rhadu Schoolfield in Norfolk with 800 grams of heroin after he returned from a trip to New York.
“Tackling the opioid epidemic is one of our top priorities,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Through the combined efforts of our prosecutors and law enforcement partners we will continue to strangle the supply of heroin and fentanyl and bring to justice those who profit from other people’s misery.”
According to the indictment, the Perdue DTO distributed in excess of 100 kilograms of heroin (approximately 250,000 doses) over a 10-year period. Members of the Perdue DTO were responsible for supplying a violent gang based in Portsmouth and continued to sell dangerous narcotics even after learning that their drugs resulted in death. The United States is alleging that at least two members of the Perdue DTO have ties to criminal street gangs and that other members possessed firearms and ammunition. Ten of the 12 federal defendants are convicted felons.
“My top priority as attorney general is keeping Virginians and their families safe, which is why my team and I are relentlessly pursuing the heroin and fentanyl traffickers who profit off addiction and endanger the lives of Virginians,” said Mark R. Herring, Attorney General of Virginia. “Operation Hardest Hit is another important step in addressing what’s become one of Virginia’s most urgent public safety and public health threats. This operation, along with the work of the Hampton Roads Heroin Working Group, shows what can happen when local, state, and federal partners are committed to working cooperatively and collaboratively. The results speak for themselves and I hope communities around the country will look to this region as an example of what can be accomplished when we come together as a community.”
“This case demonstrates the steadfast commitment of the FBI and our law enforcement partners to protecting the public from destructive enterprises that eat at the heart and soul of our community,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Division. “Operation Hardest Hit is an example of a coordinated, intelligence-driven strategy to choke the supply of these dangerous drugs by targeting the high level traffickers and criminal organizations most responsible for terrorizing our neighborhoods and poisoning our community.”
“This team effort helped take down a massive heroin and fentanyl drug trafficking organization that spanned across multiple states,” said Michael K. Lamonea, Assistant Special Agent in Charge of HSI Norfolk. “Today, I’m proud to say that our law enforcement actions saved lives. We’ll continue to be relentless in our pursuit of those who seek to exploit and harm our citizens with lethal drugs in communities across the country.”
The below individuals were among a dozen named in a 25-count indictment by returned by a federal grand jury on August 9:
Name
Age
Hometown
Charges
Leroy L. Perdue,
aka Dink, Big Heat, Big Cuz
45
Portsmouth
Conspiracy, Possession with intent to distribute heroin, Interstate travel in aid of racketeering
Rhadu J. Schoolfield, aka Big Face Dolla
33
Portsmouth
Conspiracy, Felon in possession of firearms, Interstate travel in aid of racketeering
Tywon McKelvy
42
New York
Conspiracy
Darion D. Perdue,
Aka Son Son
24
Portsmouth
Conspiracy
Abraham A. Atkins
35
Portsmouth
Conspiracy, Distribution, Possession with intent to distribute, Maintaining a drug-involved premises, Using a communications facility to cause, commit, and facilitate felony violations of the Controlled Substances Act
Valeria A. Waller
42
Portsmouth
Conspiracy; Distribution; Possession with intent to distribute; Felon in possession of a firearm
Eddie L. Tyson
46
Portsmouth
Conspiracy, Maintaining a drug-involved premises, Distribution of Fentanyl
Jamars A. Cooper,
aka Mall
26
Portsmouth
Conspiracy
Dominic Diablo Mosley
35
Portsmouth
Conspiracy
Edward Muckle,
aka Eddie
32
Portsmouth
Conspiracy, Maintaining a drug-involved premises
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Division, Michael K. Lamonea, Assistant Special Agent in Charge of HSI Norfolk, Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, Kelvin L. Wright, Chief of Chesapeake Police, and Tonya D. Chapman, Chief of Portsmouth Police, made the announcement after arrests were made.
This case was investigated by the FBI’s Tidewater Violent Crime Task Force, in partnership with HSI’s Norfolk Field Office, ATF, Chesapeake Police Department, Virginia State Police, and the Portsmouth Gang Suppression Unit. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse, William B. Jackson, and Kevin Hudson are 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. 2:17-cr-116.
Midasco Settles False Claims Act Allegations Involving I-495 HOV ProjectRead the Press Release
ALEXANDRIA, Va. – Midasco, LLC, located in Elkridge, Maryland, has agreed to pay $450,000 to settle False Claims Act allegations related to their work on the Virginia I-495 HOV/HOT Lanes Project.
The government investigated allegations that Midasco had not complied with the Davis-Bacon Act, specifically that they had not paid workers who performed electrical work on the HOT Lanes Project the prevailing wage required by federal labor standards. Instead, Midasco improperly classified workers as supervisors and paid them a salary in order to avoid paying the higher wages they were entitled to as electricians. The alleged conduct occurred between July 2012 and May 2015.
Midasco worked as a subcontractor on the HOT Lanes Project, a project that created approximately 29 miles of reversible high-occupancy toll lanes along the I-95/I-495 corridor. Midasco’s contract included installation of highway signing, lighting, toll gantries, ITS infrastructure, and electrical communication components.
The investigation was initiated after a lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The False Claims Act permits the government time to investigate allegations in qui tam complaints and to intervene in such lawsuits, when the government deems it appropriate. This case is captioned United States ex rel. David Ridley, et al. v. Midasco, LLC et al. (1:12-cv-1170 AJT-TCB).
The resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Commonwealth of Virginia’s Attorney General’s Office, the Department of Labor Office of Inspector General, and the Department of Transportation Office of Inspector General. The matter was investigated by Assistant U.S. Attorney Monika Moore and Assistant Attorney General Peter Broadbent. 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.
Two Men Convicted of Sex Trafficking 15-Year Old GirlRead the Press Release
Two men from Triangle, Virginia, have been convicted of multiple sex trafficking and child exploitation offenses.
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 Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office (WFO) made the announcement.
Christian Don’Tae Hood, 25, was convicted by a federal jury today before the Honorable Anthony J. Trenga following a three-day trial. Co-defendant Abdul Bangura, 20, pleaded guilty on the first day of trial on Tuesday.
According to the evidence presented at trial and other court documents, Hood and Bangura met the minor victim while she was living with her aunt at the Econolodge in Dumfries, Virginia. The defendants, working together, recruited the minor into their prostitution scheme and began to advertise her on Backpage.com. The minor victim was transported to multiple motels throughout Northern Virginia, Washington, D.C. and Maryland for commercial sex acts. After customers paid money to sexually exploit the minor victim, the defendants collected a portion of the money. Defendant Bangura also produced a video of child pornography involving the minor victim.
The FBI WFO's Child Exploitation and Human Trafficking Task Force, Prince William County Police and Washington D.C. Metropolitan Police investigated this case. Assistant U.S. Attorney Maureen Cain of the Eastern District of Virginia and Trial Attorney Kyle Reynolds of the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division are prosecuting the case.
Woman Pleads Guilty to Medicaid Fraud and Identity Theft ChargesRead the Press Release
A Richmond woman pleaded guilty today healthcare fraud and aggravated identity theft.
According to court documents, Chermeca Harris, 36, was a Medicaid beneficiary and would misrepresent her health condition to health care providers, such as hospitals and ambulance services, in order to obtain health care benefits. Specifically, Harris would falsely represent that she was suffering from sickle cell anemia and was having a sickle cell crisis in order to obtain pain killing drugs, such as dilaudid, which she wanted to receive intravenously through the neck. In fact, doctors tested Harris in January 2016, and determined she did not have sickle cell anemia. The hospitals involved were Virginia Commonwealth University Medical Center, Chippenham, Bon Secours St. Mary’s, Memorial Regional, John Randolph Medical Center, and Henrico Doctor’s. According to court documents, it was a further part of the scheme that Harris also falsely represented her identity. On some occasions she used the name of M.M., and on other occasions she used the name of R.J.; both Medicaid recipients. She also falsely stated to investigating federal agents that her name was M.M. and that she had sickle cell anemia.
Harris was charged as part of the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
Harris pleaded guilty to healthcare fraud on the Medicaid program and aggravated identity theft. She faces a mandatory minimum of two years in prison and a maximum penalty of 12 years in prison, when sentenced on October 26. 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Nick DiGiulio, Special Agent in Charge, Philadelphia Regional Office of Inspector General of Department of Health and Human Services, made the announcement after the plea was accepted by Magistrate Judge David J. Novak. Assistant U.S. Attorney David T. Maguire 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-77.
Car Salesman Pleads Guilty to Identity Theft Scheme on Eve of TrialRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to charges of conspiracy, bank fraud, and identity theft.
According to the statement of facts filed with the plea agreement, Bryan Lewis, 28, was employed as Sales Consultant at Priority Chevrolet in Chesapeake from 2011 until June 2016. In late 2014, Lewis agreed to provide an associate, Joseph Edmonds, with his customers’ personal identifying information for use in an account opening and takeover scheme through which the two planned to obtain money from bank, credit, retail, and phone accounts opened in those customers’ names. Between December 2014 and January 2016, Lewis provided Edmonds with the names, dates of birth, and social security numbers of at least 20 actual and potential Priority Chevrolet customers with whom Lewis had dealt during that same period. Neither the customers nor Priority Chevrolet knew of or consented to Lewis’s transfer of this information to Edmonds. Edmonds used the information that Lewis provided to apply for, open, and access accounts through at least 12 financial institutions and retailers. Edmonds then used these accounts to conduct transactions through which he attempted to obtain nearly $60,000. For his participation in the scheme, Lewis received approximately $1,500, all of which derived from the proceeds Edmonds obtained through his use of the information Lewis had provided.
Lewis pleaded guilty to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Trial of his case was set to begin tomorrow morning in Newport News. Lewis faces a maximum penalty of 30 years in prison, along with a mandatory, consecutive penalty of 2 years in prison when sentenced on November 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Richard W. Myers, Chief of Newport News Police, made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorney Kaitlin C. Gratton and Special Assistant United States Attorney Alexander B. Gottfried 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-20.
Maryland Man Pleads Guilty to Medicaid Fraud, Tax EvasionRead the Press Release
*The original version of this press release incorrectly identified the City of Alexandria in place of Alexandria City Public Schools. The version below has been corrected.
RICHMOND, Va. – A Maryland man pleaded guilty today to conspiring to defraud Medicaid and evading both his personal income taxes and his company’s employment taxes.
According to the statement of facts filed with the plea agreement, Lamar Taylor, 39, of Bowie, was the owner and operator of Alexandria-based Global Interventions, LLC, a business that marketed itself as a provider of mentoring services for at-risk children. Taylor obtained contracts with Alexandria City Public Schools and Hopewell Public Schools, becoming an approved Medicaid-contracted service provider for mentoring services to at-risk youth. Between April 2014 and September 2016, Taylor billed Alexandria City Public Schools and Hopewell Public Schools for hundreds of mentoring sessions with at-risk youth that did not take place, receiving approximately $595,000 in fraudulently obtained Medicaid funds. Taylor also evaded paying over his personal income taxes and Global’s employment taxes from 2012 to 2015, resulting in a tax evasion liability of approximately $398,000.
Taylor pleaded guilty to conspiracy to commit health care fraud, and tax evasion. He faces a maximum penalty of 15 years in prison when sentenced on October 26. 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, Mark R. Herring, Attorney General of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond 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. Magistrate Judge David J. Novak accepted the plea. Assistant U.S. Attorneys Thomas A. Garnett and David V. Harbach, II are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-101.
Woodbridge Man Sentenced for Drug and Firearms CrimesRead the Press Release
ALEXANDRIA, Va. – A man who dealt drugs and possessed a firearm in furtherance of his drug trafficking activity was sentenced today to 10 years in prison.
Jerrell Chisholm, 32, pleaded guilty on April 7. According to court documents, Chisholm knowingly and intentionally conspired with others to distribute 28 grams or more of cocaine base. Chisholm also carried a firearm while dealing drugs, as a means of protecting his drug supply, drug proceeds, and personal security. On January 24, Chisholm’s attempted to flee from arrest and in the process he struck two vehicles, including a vehicle belonging to the U.S. Marshals, and crashed into a building.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael B. Boxler, 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 Liam O’Grady. Assistant U.S. Attorney Colleen E. García 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-71.
Former Government Contractor Sentenced to 60 Months for His Participation in Bribery ConspiracyRead the Press Release
A former owner of a government contracting company that serviced the Military Sealift Command (MSC) was sentenced to 60 months in prison, and to pay a $15,000 fine, for his participation in a bribery conspiracy from approximately 1999 to 2014, in which he provided a contracting official at MSC with almost $3 million in bribes. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement.
U.S. District Judge Arenda L. Wright Allen today sentenced Joseph P. Allen, 56, of Panama City, Florida, following his guilty plea on April 19, to one count of conspiracy to commit bribery.
According to the statement of facts included in Allen’s guilty plea, Allen conspired with a government contracting official, Scott B. Miserendino, Sr., 58, formerly of Stafford, Virginia, to use Miserendino’s position at MSC to enrich themselves through bribery. Specifically, beginning in about 1999, Miserendino used his position and influence at MSC to facilitate and expand Allen’s company’s commission agreement with a third-party telecommunications company that sold maritime satellite services to MSC. Unknown to MSC or the telecommunications company, throughout the scheme, Allen paid half of the commissions he received from that telecommunications company to Miserendino as bribes.
For his role in the scheme, Miserendino was charged in a five-count indictment on May 4, with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery, and three counts of honest services mail fraud. His trial is currently scheduled for October 31, before U.S. District Court Judge Rebecca Beach Smith. The charges and allegations against Miserendino contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Norfolk offices of the FBI, the Defense Criminal Investigative Service and the Naval Criminal Investigative Service investigated the case. Trial Attorneys Sean F. Mulryne and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia are prosecuting the case.
Former GSA Official and Husband Sentenced for Nepotism SchemeRead the Press Release
ALEXANDRIA, Va. – A former senior official with the General Services Administration and her husband were sentenced today to 18 months and 1 year in prison, respectively, for engaging in a nepotism hiring scheme.
Helen Renee Ballard (aka Renee Ballard), 52, and Robert S. Ballard (aka Steve Ballard), 56, both of Brandywine, Maryland, pleaded guilty to conspiracy to make false statements on March 23. Renee Ballard was the Director of the Central Office Contracting Division of the U.S. General Services Administration (GSA) from May 2006 to May 2011 and worked for GSA until 2016. From 2010 through July 2014, Renee Ballard and her husband, Steve Ballard, engaged in a scheme to enrich themselves by obtaining employment with federal contractors and the U.S. government through false and misleading statements concerning Steve Ballard’s relation, education, and qualifications. As part of the more than $200,000 scheme, Renee and Steve Ballard fraudulently induced a federal contractor to hire Steve Ballard. The Arlington based contractor then placed Steve Ballard on a federal contract awarded by GSA and supervised by Renee Ballard. Later, Renee Ballard attempted to hire Steve Ballard for a federal civil service position within GSA under her supervision.
In addition, Renee and Steve Ballard caused over 139 false employment applications to be submitted to federal agencies, including the FBI, Office of the Director of National Intelligence, U.S. State Department, U.S. Transportation and Security Administration, Department of Veterans Affairs, Department of Education, Federal Communications Commission, Federal Emergency Management Agency, Department of Labor, U.S. Office of Personnel Management, and the Internal Revenue Service. These applications falsely misrepresented Steve Ballard’s education and qualifications, including that he had earned or taken classes toward a master’s degree and was certified in government contracting at Levels I, II, and III. In order to corroborate these false representations, Renee and Steve Ballard obtained and submitted fake certification documents. Furthermore, the Ballards sent Steve Ballard’s false resume to the Executive Office of the President in an attempt to obtain employment there. Subsequently, Steve Ballard submitted false applications to at least six different private contractors who worked, at times on-site, with the federal agencies, including GSA and U.S. Customs and Border Protection.
Co-conspirator Donna C. Hughes, 32, of Lanham, Maryland, who served as a contracting officer at GSA and reported directly to Renee Ballard, pleaded guilty on April 21 in case 1:17-cr-66. Hughes was sentenced today to 1 year of probation for her role in the conspiracy.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Carol Fortine Ochoa, Inspector General, GSA, made the announcement after sentencing by U.S. District Judge Claude Hilton. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-136.
Warrenton Man Pleads Guilty to Heroin and Fentanyl DistributionRead the Press Release
ALEXANDRIA, Va. – A drug dealer who operated in Fauquier County pleaded guilty today to engaging in a conspiracy to distribute heroin and fentanyl.
According to the statement of facts filed with the plea agreement, Justin Chrisp, 28, of Warrenton, sold at least half a gram of heroin every day beginning in March 2012. During this time period, at least four of Chrisp’s customers overdosed after using the drugs. Only after medical intervention by law enforcement officers responding to the scenes of these overdoses did several of these customers regain consciousness.
Chrisp pleaded guilty to conspiracy to distribute 100 grams or more of heroin, and conspiracy to distribute fentanyl. He faces a mandatory minimum of five years and a maximum penalty of 40 years in prison when sentenced on October 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Robert P. Mosier, Fauquier County Sheriff, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Tobias D. Tobler 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-163.
Arkansas Man Pleads Guilty to Developing and Distributing Prolific MalwareRead the Press Release
ALEXANDRIA, Va. – Taylor Huddleston, 26, of Hot Springs, Arkansas, pleaded guilty today to charges of aiding and abetting computer intrusions.
According to the statement of facts filed with the plea agreement, Huddleston developed, marketed, and distributed two products that were extremely popular with cybercriminals around the world. The first is the “NanoCore RAT,” which is a type of malicious software, or “malware,” that is used to steal information from victim computers, including sensitive information such as passwords, emails, and instant messages. The NanoCore RAT even allowed users to surreptitiously activate the webcam on the victim computers in order to spy on the victims. Huddleston’s NanoCore RAT was used to infect and attempt to infect tens of thousands of computers. Huddleston’s other product, “Net Seal,” was licensing software that he used to distribute malware for co-conspirators for a fee. For instance, Huddleston used Net Seal to assist Zachary Shames in the distribution of malware to 3,000 people that was in turn used it to infect 16,000 computers. In his guilty plea, Huddleston admitted that he intended his products to be used maliciously.
Huddleston faces a maximum penalty of 10 years in prison and will be sentenced on December 8. 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 Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, the lead investigative agency, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. The case is being prosecuted by Assistant U.S. Attorney Kellen S. Dwyer and Senior Counsel Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section.
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. 1:16-CR-289.
Newport News Man Pleads Guilty to Armed RobberyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to robbery and discharging a firearm.
According to the statement of facts filed with the plea agreement, Brian Gale, 54, robbed Ricco’s Pizza in Hampton on the evening of July 3, 2016. Gale entered the store through the rear employee entrance wearing a mask and carrying a firearm. He pushed and ordered employees to the floor and then fired his gun toward the front of the store while demanding money. Gale stole approximately $1,400 from the business before fleeing, leaving the mask he had worn inside the business. As he was fleeing, Gale encountered a delivery driver returning to the store to make additional deliveries. Gale pointed his gun at the driver’s face as he ran past. The driver and the store’s owner followed Gale to the area behind the store and watched as he fled into a nearby residential neighborhood. Before entering the neighborhood, Gale looked back and fired his gun a second time. As Gale crossed into the neighborhood, he dropped his cell phone, which was later used to identify him. Gale was also identified through DNA testing of the mask found inside Ricco’s Pizza.
Gale pleaded guilty to interference with commerce by robbery, and discharging a firearm during a crime of violence. He faces a mandatory minimum of 10 years and a maximum possible term of life in prison when sentenced on November 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, Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Terry L. Sult, Chief of Hampton Police Division, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Kaitlin C. Gratton 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-47.
Member of International Child Exploitation Conspiracy Sentenced to 210 Months in PrisonRead the Press Release
A Wichita, Kansas man was sentenced to 210 months in prison and 10 years of supervised release, for production of child pornography based on his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
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 Section Chief John J. Brosnan of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Allan Cortez, 34, was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia on April 14.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children, posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Cortez admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Cortez further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Cortez admitted that he chatted with minors in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Both websites have been disabled.
This case was investigated as part of Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children (VCAC) International Task Force. VCAC special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge. To date, over 320 minor victims have been identified as part of this operation.
In addition to his prison sentence, the defendant was ordered to pay $15,215 of restitution.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Executive Sentenced for $2.5 Million Embezzlement SchemeRead the Press Release
ALEXANDRIA, Va. – A Florida man who over seven years embezzled almost $2.5 million from a small business fencing company was sentenced today to 63 months in prison and ordered to pay nearly $2.5 million in restitution to victims.
Donald Gasser, 59, of Sorrento, Florida, pleaded guilty to wire fraud on April 5. According to court documents, Gasser served as the Chief Financial Officer and Treasurer of a small business operating out of Dulles that installed fences and decks. Between 2008 and 2015, Gasser used his position to embezzle over $2.3 million from the company. Without authorization, Gasser opened new financial accounts in the company’s name and directed accounts statements to his home. Gasser wrote company checks payable to himself, issued business checks to pay for personal expenses, and used funds embezzled directly from company to purchase luxury items such as a personal watercraft. As a result of the fraud, the fencing company was forced to lay off a portion of its workforce and its owners were assessed a tax lien of over $1 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 Anthony Trenga. Assistant U.S. Attorney Uzo Asonye 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-64.
Williamsburg Attorney Sentenced for Timeshare FraudRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg lawyer guilty of her role in a conspiracy to fraudulently transfer of hundreds of timeshare units was sentenced today to 50 months in prison.
Deborah Wagner, 45, pleaded guilty on September 9. According to court documents, Wagner conspired with others in a wide-ranging scheme to engage in the fraudulent transfer of timeshare units into the names of stolen identities and straw owners. Over the several years that the scheme operated, Wagner and her conspirators caused over $2 million in losses to resorts and owner associations while earning hundreds of thousands from individuals who sought a legitimate means to divest their timeshare ownership, but were persuaded to pay hundreds or thousands of dollars to transfer companies. These transfer companies, with Wagner’s involvement, then transferred these time share units into unqualified straw owners with no ability or intention to make the required maintenance fee payments.
Wagner worked with two Williamsburg based businesses - GoodBye Timeshare, LLC, and Exotic Equity Transfers, LLC, in conducting the transfers. The owners of these businesses, Brendan Hawkins and Keith Kosco, were prosecuted separately and received sentences of 46 months and 74 months in prison, respectively, in 2015. These other businesses paid Wagner’s law firm hundreds of thousands of dollars in fees for conducting the fraudulent transfers. Additionally, Wagner created a nominee company for the purpose of recruiting additional straw owners to use in the scheme.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brain J. Samuels and Howard J. Zlotnick 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. 4:15-cr-28.
California Man Sentenced for Cocaine Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A California man who participated in a large-scale cocaine trafficking conspiracy was sentenced today to 10 years in prison.
According to court documents, Daniel Rodriguez, 49, participated in the conspiracy with Marvin O’Neal Carter, Sr., 49, of Newport News, Michael Stephen Kuna, 42, of Canada, and his brother Hilario Rodriguez, 50, of California. Each man was charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises. In addition to the conspiracy charge, Daniel and Hilario Rodriguez were charged with interstate travel in aid of racketeering.
According to court documents, agents observed the arrival of a tractor trailer at a garage leased by Carter. With the assistance of Michael Kuna, who stopped traffic and directed the driver, the trailer was off-loaded next to the garage. Agents observed Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The men then worked together to unload cocaine from a hidden compartment located underneath the trailer. A short time later, Kuna left and returned with two large duffel bags which were taken underneath the trailer. Kuna left the location after loading the now-empty duffel bags into a vehicle. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which smelled of bulk currency.
According to court documents, as Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks, totaling nearly $1 million, were recovered. The search of the garage also led to the recovery of a firearm, a quantity of heroin and more cocaine, in addition to approximately $42,000 in cash from a safe.
The case was part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Blown Piston. 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.
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; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross 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-76.
Man Who Posted Facebook Threat to Kill Supervisor Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Washington D.C. man pleaded guilty today to using Facebook to threaten to kill his supervisor.
According to the statement of facts filed with the plea agreement, Romeo B. Twalla, 34, was an armed Protective Service Officer for the Ronald Reagan Building in Washington, D.C. After being placed on leave for absences at work, Twalla began posting threats on his Facebook page to kill his supervisor. In one post, Twalla warned that if he lost his home, his supervisor would lose his life. Twalla also posted that he had “two clips” (referring to ammunition to carry out the threats), and that Federal Protective Services could not protect the victim from Twalla because “those buildings in D.C. coming down!”
Twalla pleaded guilty to two counts of transmitting threats in interstate commerce to injure the person of another, and faces a maximum of 5 years in prison on each count when sentenced on September 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 L. Eric Patterson, Director of the Federal Protective Service, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the plea. Assistant U.S. Attorney Nathaniel Smith III and Special Assistant U.S. Attorney Lilian Timmermann 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-146.
Fraudsters Sentenced for Operating Nationwide Home Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Three California residents were sentenced today to a combined 39 years in prison for their roles in a nationwide, multi-year “home mortgage modification” fraud that scammed thousands of vulnerable victims out of at least $11 million.
Sammy Araya, 41, of Santa Ana, was sentenced to 20 years, Michael Henderson, 49, of Costa Mesa, was sentenced to 12 years, and Jen Seko, 36, of Anaheim, was sentenced to 7 years in prison, respectively. All three defendants were convicted by a federal jury on April 21, of multiple counts of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud.
According to court documents, from at least March 2011 through September 2014, Araya and his co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce them to make payments of thousands of dollars each in exchange for supposed “mortgage modification” assistance. The conspirators lured vulnerable victims into the scam through targeted mass mailers sent to homeowners facing foreclosure through Seko’s company, Seko Direct Marketing. In the mailers and in subsequent phone calls, the defendants and their co-conspirators falsely held themselves out as a non-profit organization or as affiliated with a real government program, the Home Affordable Modification Program (HAMP), designed to help homeowners at risk of foreclosure. Henderson and other “customer service representatives” in the scam convinced victims to send “reinstatement fees” and “trial mortgage payments” to the conspiracy, based on the false representations that the funds would be used to modify their mortgages. In reality, however, the defendants did nothing to help modify any mortgages. Instead, they used the victims’ payments for their own personal benefit and to further the fraud scheme. Araya, the ringleader of the scam, used the fraud proceeds to purchase expensive vehicles, a racehorse, and a variety of luxury goods, as well as to fund his personal travel and a reality television show he produced called “Make It Rain.TV.”
This scheme had devastating consequences for the victim homeowners, all of whom were already in a precarious financial position. Many victims suffered substantially greater financial hardship after falling victim to this conspiracy than they were already facing when they entered into the bogus agreements with the conspirators. In many cases, the lenders ultimately foreclosed on the victims’ homes, after the victims had been induced to make their “trial mortgage payments” to the members of the conspiracy rather than to their lenders.
Twelve defendants have been convicted in the Eastern District of Virginia in this case and a related case in connection with this same scam. They include the following individuals:
Name, Age
Hometown
Conviction
Sentence
Sammy Araya, 41
Santa Ana, California
Convicted on Counts 1-11 of superseding indictment on April 2
Sentenced to 20 years today
Michael Henderson, 49
Costa Mesa, California
Convicted on Counts 1-6 and 9-11 of superseding indictment on April 21
Sentenced to 12 years today
Jen Seko, 36
Anaheim, California
Convicted on Counts 1-6 and 9-11 of superseding indictment on April 21
Sentenced to 7 years today
Roscoe Umali, 38
Santa Ana, California
Pleaded guilty March 22, 2016
220 months in prison on Aug. 18, 2016
Joshua Sanchez, 37
Las Vegas, Nevada
Pleaded guilty July 8, 2015
151 months in prison on Oct. 29, 2015
Kristen Ayala, 32
Las Vegas, Nevada
Pleaded guilty August 4, 2015
135 months in prison on Oct. 29, 2015
Isaac Perez, 33
Los Angeles
Pleaded guilty March 30, 2016
130 months in prison on Sept. 1, 2016
Joshua Johnson, 36
Huntington Beach, California
Pleaded guilty March 30, 2016
121 months in prison on July 7, 2016
Jefferson Maniscan, 34
Los Angeles
Pleaded guilty March 29, 2016
120 months in prison on Aug. 18, 2016
Nicholas Estilow, 34
Mission Viejo, California
Pleaded guilty January 18
80 months in prison on June 1
Raymund Dacanay, 47
Newport Beach, California
Pleaded guilty March 29, 2016
60 months in prison on July 21, 2016
Sabrina Rafo, 24
Garden Grove, California
Pleaded guilty January 19
60 months in prison on June 1
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); William Hedrick, Acting Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service; Leslie DeMarco, Special Agent in Charge for the Federal Housing Finance Agency (FHFA-OIG); and James Todak, Special Agent in Charge, U.S. Housing and Urban Development, Office of Inspector General, Los Angeles Field Office, made the announcement after sentencing of Araya and his co-defendants by Senior U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Samantha Bateman and Ryan Faulconer are 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. 1:15-cr-301.
Former Credit Suisse Banker Pleads Guilty to Conspiring with U.S. Taxpayers and Other Swiss Bankers to Defraud the United StatesRead the Press Release
A citizen and resident of Switzerland pleaded guilty today to conspiring to defraud the United States in connection with her work as the head of a team of bankers for Credit Suisse AG, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
According to the statement of facts and the plea agreement, Susanne D. Rüegg Meier, admitted that from 2002 through 2011, while working as the team head of the Zurich Team of Credit Suisse’s North American desk in Switzerland, she participated in a wide-ranging conspiracy to aid and assist U.S. taxpayers in evading their income taxes by concealing assets and income in secret Swiss bank accounts. Rüegg Meier was responsible for supervising the servicing of accounts involving over 1,000 to 1,500 client relationships. She was also personally responsible for handling the accounts of approximately 140 to 150 clients, about 95 percent of whom were U.S. persons residing primarily in New York, Chicago and Florida, which held assets under management totaling approximately $400 million. Rüegg Meier admitted that the tax loss associated with her criminal conduct was between $3.5 and $9.5 million.
Rüegg Meier assisted many U.S. clients in utilizing their Credit Suisse accounts to evade their U.S. income taxes and to facilitate concealment of their undeclared financial accounts from the U.S. Department of the Treasury and the Internal Revenue Service (IRS). She took the following steps to assist clients in hiding their Swiss accounts: retaining in Switzerland all mail related to the account; structuring withdrawals in the forms of multiple checks each payable in amounts less than $10,000 that were sent by courier to clients in the United States and arranging for U.S. customers to withdraw cash from their Credit Suisse accounts at Credit Suisse locations outside Switzerland, such as the Bahamas. Moreover, Rüegg Meier admitted that approximately 20 to 30 of her U.S. clients concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities or other structures that were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Between 2002 and 2008, Rüegg Meier traveled approximately twice per year to the United States to meet with clients. Among other places, Rüegg Meier met clients in the Credit Suisse New York representative office. To prepare for the trips, Rüegg Meier would obtain “travel” account statements that contained no Credit Suisse logos or customer information, as well as business cards that bore no Credit Suisse logos and had an alternative street address for her office, in order to assist her in concealing the nature and purpose of her business.
After Credit Suisse began closing U.S. customers’ accounts in 2008, Rüegg Meier assisted the clients in keeping their assets concealed. For example, when one U.S. customer was informed that the bank planned to close his account, Rüegg Meier assisted the customer in closing the account by withdrawing approximately $1 million in cash. Rüegg Meier advised the client to find another bank simply by walking along the street in Zurich and locating a bank that would be willing to open an account for the client. The customer placed the cash into a paper bag and exited the bank. Rüegg Meier also recommended that a few U.S. clients open new accounts at other specific banks, such as Bank Frey and Wegelin & Co., and transfer their assets from their Credit Suisse accounts to the new accounts.
Credit Suisse pleaded guilty in May 2014 for conspiring to aid and assist taxpayers in filing false returns, and was sentenced in November 2014 to pay more than $2 billion in fines and restitution.
Sentencing is scheduled for Sept. 8. Rüegg Meier faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Boente commended special agents of IRS Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Mark Lytle of the Eastern District of Virginia, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
CEO of Virginia Health Care Technology Company Sentenced to Almost 10 Years in Prison for $49 Million Shareholder Fraud and $7.5 Million Employment Tax FraudRead the Press Release
A medical doctor and entrepreneur was sentenced to 119 months and 29 days in prison today for defrauding his former company’s shareholders and for failing to account for and failing to pay employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI) and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office.
According to documents filed with the court, in or about September 2000, Sreedhar Potarazu, 51, of Potomac, Maryland, an ophthalmic surgeon licensed in Maryland and Virginia, founded VitalSpring Technologies Inc. (VitalSpring), a Delaware corporation. VitalSpring operated in McLean, Virginia and provided data analysis and services relating to health care expenditures. In or around the end of 2015, VitalSpring started doing business as Enziime LLC, a Delaware corporation. From its inception, Potarazu was VitalSpring’s Chief Executive Officer and President, and served on its Board of Directors.
From at least 2008, Potarazu provided materially false and misleading information to VitalSpring’s shareholders to induce more than $49 million in capital investments in the company. Potarazu represented on numerous occasions that VitalSpring was a financially successful company and that the sale of VitalSpring was imminent, which would have resulted in profits for shareholders. Potarazu also admitted that he concealed from shareholders that VitalSpring failed to account for and pay over more than $7.5 million in employment taxes to the IRS. For example, in 2014, Potarazu provided shareholders with a written summary of operating results that reflected VitalSpring’s 2013 revenues to be approximately $12.9 million when, in fact, the 2013 revenue was less than $1 million.
“Like a director employing actors and props on a stage, Sreedhar Potarazu arranged for an imposter to pose as a buyer, provided a link to a bogus website and supplied fraudulent balance sheets, phony bank statements and false tax returns to convince VitalSpring investors and potential buyers that the company was financially healthy and up-to-date on its taxes,” said Acting Deputy Assistant Attorney General Goldberg. “As a result of his actions, shareholders are out more than $49.5 million and over $7.5 million in employment taxes due to the U.S. Treasury were diverted and never paid. With Potarazu’s conviction and the sentencing hearings in this case, his fraud has been revealed, and today’s imposition of a 119 month sentence holds him fully accountable for his actions.”
“For years Potarazu enriched himself by abusing the trust of his company’s many investors and stealing millions of dollars from them through a complex scheme of fraud and deceit,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “This case is a prime example of this office’s ongoing commitment to bringing white-collar criminals to justice.”
“For almost a decade, Potarazu put greed ahead of his shareholders and employees by building a complex web of deceit and fraud while at the same time evading paying his employment tax liability,” said Chief Don Fort, IRS Criminal Investigation. “Today’s sentencing serves as a reminder that these types of criminal actions will be punished and IRS-CI is committed to bringing culpable individuals to justice.”
“Potarazu ran a multi-million dollar scheme that caused significant financial losses to VitalSpring shareholders for almost a decade,” said Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office. “The FBI is committed to bringing white-collar criminals to justice and we will continue to work closely with our law enforcement partners, to investigate, charge and prosecute those who engage in criminally deceitful business practices.”
Scheme to Defraud
From VitalSpring’s inception, but specifically from 2008 until his arrest in October 2016, Potarazu solicited investments through in-person meetings, emails, telephone conference calls, webinars, and phone calls. From in or about 2008 through in or about 2016, Potarazu raised approximately $49 million from more than 174 victim investors.
Potarazu induced investments from shareholders by making false representations, concealing material facts, and telling deceptive half-truths about VitalSpring’s financial condition, tax compliance, and alleged imminent sale. Potarazu also caused someone to pose as a representative of a prospective buyer on shareholder conference calls to add legitimacy to his claims regarding VitalSpring’s imminent sale.
VitalSpring never generated a profit. Nonetheless, Potarazu falsely represented to shareholders that VitalSpring’s financial position and profitability was improving from 2008 to 2016, and that VitalSpring had millions of dollars in cash reserves. To support his scheme, Potarazu presented fake bank statements to some shareholders that showed inflated balances.
Potarazu also concealed from shareholders that VitalSpring owed substantial employment tax to the IRS. Potarazu provided or caused to be provided false corporate income tax returns to some shareholders that overstated VitalSpring’s income and omitted the accruing employment tax liability.
In November 2014, Potarazu created a Special Review Committee (SRC) in response to a lawsuit filed in Delaware by shareholders that claimed Potarazu misled the victim investors about VitalSpring’s finances, the status of the impending sale, and Potarazu’s compensation. Potarazu provided the SRC with false financial records, fake tax returns, and fake bank statements to induce the SRC to believe that VitalSpring was financially healthy and to cause the SRC to make materially false representations to the Delaware court and victim investors. He also falsely represented that the alleged imminent sale would yield substantial returns to the shareholders, and used this to induce additional investments. Members of the SRC traveled interstate to the Eastern District of Virginia to attend meetings in which Potarazu presented false information for their review.
In truth, there was no imminent sale pending. Potarazu provided false financial records, including fake balance sheets, fabricated bank statements, and false tax returns, to several prospective buyers, financial advisors and investment banks. In December 2014, when he was questioned by Prospective Buyer 1 as to the accuracy and authenticity of bank records provided, Potarazu presented false or misleading emails purporting to be from a bank employee to bolster the legitimacy of the false bank records. Potarazu also presented Prospective Buyer 1 with a link to a fake website that was made to look like a website for a major national bank, and which referred Prospective Buyer 1 to VitalSpring’s false bank statements, and used a shadow, secondary email account assigned to a VitalSpring employee to provide false information to Prospective Buyer 1, thereby creating the appearance that Potarazu had not provided the information.
In October 2014, Prospective Buyer 2 informed Potarazu that it was no longer interested in VitalSpring. Nevertheless, Potarazu continued to represent to shareholders for months thereafter that there was a deal pending with Prospective Buyer 2. In March 2015 and February 2016, Potarazu organized, or caused to be organized, conference calls with shareholders to discuss the alleged sale. In advance of the calls, Potarazu obtained questions from the shareholders and used them to prepare the individual who posed as a representative of Prospective Buyer 2 for each call.
From 2011 to 2015, in addition to his salary paid by VitalSpring, Potarazu diverted at least $5 million from the victim investors and VitalSpring for his own personal use.
Employment Tax Fraud
Potarazu admitted that from 2007 to 2016, VitalSpring accrued employment tax liabilities of more than $7.5 million. Potarazu withheld taxes from VitalSpring employees’ wages, but failed to fully pay over the amounts withheld to the IRS. As CEO and President of VitalSpring, Potarazu was a “responsible person” obligated to collect, truthfully account for, and pay over VitalSpring’s employment taxes. Ultimate and final decision-making authority regarding VitalSpring’s business activities rested with Potarazu.
Potarazu was aware of the employment tax liability as early as 2007 and between 2007 and 2016, was frequently apprised of VitalSpring’s employment tax responsibilities by his employees. In addition, IRS special agents interviewed Potarazu in 2011 and informed him of the employment tax liability. In all but one quarter between the first quarter of 2007 and the last quarter of 2011, as well as the second and third quarters of 2015, Potarazu failed to file VitalSpring’s Employer’s Quarterly Federal Tax Return (Forms 941) with the IRS. Potarazu also failed to pay over any of the employment tax withheld from VitalSpring’s employees’ wages in all but one quarter between the second quarter of 2007 and the third quarter of 2011, as well as the third and fourth quarters of 2015.
Between 2008 and 2015, instead of paying over employment tax, Potarazu caused VitalSpring to make millions of dollars of expenditures, including thousands of dollars in transfers to himself and others, the publication of his book, “Get Off the Dime,” a sedan car service and travel.
In addition to the term of prison imposed, U.S. District Court Judge Gerald Bruce Lee ordered Potarazu to serve three years of supervised release, and to pay $49,511,169 in restitution to the shareholders and $7,691,071 to the IRS, and forfeiture of several homes, vehicles, and bank accounts. He was remanded into custody.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Boente commended special agents of IRS CI and the FBI, who conducted the investigation, and Assistant Chief Caryn Finley and Trial Attorney Jack Morgan of the Tax Division, and Assistant U.S. Attorney Jack Hanly, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
“King of Death” Dealer Pleads Guilty to Heroin and Fentanyl DistributionRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today for his role in leading a drug trafficking conspiracy that resulted in more than a dozen overdoses and multiple deaths.
According to court documents, Erskine A. Dawson, 33, managed more than half a dozen individuals who sold between three and 10 kilograms of heroin from a motel off of Military Highway in Virginia Beach. Dawson’s source of supply, a New Jersey man named Kenneth Stuart, a/k/a “Bones,” used stuffed animals to conceal the narcotics as they were transported down the East Coast on commercial buses.
According to court documents, Dawson’s organization was known for its potent heroin and fentanyl, which was distributed in wax baggies stamped “King of Death,” “Last Call,” and “Steph Curry,” among many others. Dawson and his dealers knew that multiple individuals had overdosed and even died using the product, yet continued to sell it anyway.
According to the statement of facts filed with the plea agreement, after one heroin overdose death, Dawson called Stuart to inform him what had happened – and Stuart advised Dawson to continue selling the heroin, which he did. In December 2016, officers from Virginia Beach and Chesapeake Police Departments executed warrants on Dawson and his co-conspirators at two motels and recovered nearly 2,000 wax baggies containing heroin and fentanyl. In Dawson’s rooms, officers recovered multiple loaded firearms, a digital scale, several thousand dollars in cash, and a stuffed animal whose stitching had been pulled apart.
Dawson pleaded guilty to conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute heroin and fentanyl, distribution of fentanyl resulting in death, and possession of firearms during and in relation to a drug trafficking crime. Dawson faces a mandatory minimum sentence of 25 years and a maximum penalty of life in prison when he is sentenced on November 1.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; James A. Cervera, Chief of Virginia Beach Police; and Kelvin L. Wright, Chief of Chesapeake Police, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Daniel T. Young are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-61.
15-time Felon Sentenced for Dealing Heroin and MethRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to nearly 15 years in prison for conspiring to distribute and possess with intent to distribute heroin and methamphetamine.
According to the statement of facts filed with the plea agreement, Christopher Robin Dennis, 38, led police on a high speed chase while attempting to elude arrest. Dennis repeatedly sold heroin and methamphetamine to a cooperating witness in Portsmouth. Dennis, a 15-time convicted felon with a history of eluding police and distributing drugs, was sentenced as a career offender.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after Senior U.S. District Judge Robert G. Doumar imposed sentence. Assistant U.S. Attorney Kevin M. Comstock 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-55.
Virginia Man Sentenced for Felon in Possession of FirearmsRead the Press Release
ALEXANDRIA, Va. – Yusuf Abdirizak Wehelie, 26, of Burke, was sentenced today to 10 years in prison for possession of firearms by a convicted felon.
Wehelie pleaded guilty on Nov. 15, 2016. According to the statement of facts filed with the plea agreement, In December 2015, Wehelie met with an FBI undercover employee (UCE #1) and engaged in a consensually recorded conversation. During the conversation, Wehelie discussed his background and told UCE #1 he was a felon, referring to his felony conviction for burglary in Fairfax County. As a convicted felon, Wehelie is prohibited from owning, possessing, or transporting firearms. In January 2016, UCE #1 asked Wehelie if he would be willing to move firearms and he willingly agreed to do so.
According to the statement of facts filed with the plea agreement, in February 2016, during a consensually recorded meeting, Wehelie met with an FBI undercover employee (UCE #2) in Baltimore. UCE #2 showed Wehelie four 9mm automatic pistols with can-style suppressors and eight 20-round magazines. Unbeknownst to Wehelie, the four pistols had been rendered inoperable before they were provided to him. UCE #2 informed Wehelie that the firearms had the ability to fire up to 1,200 rounds per minute in fully automatic mode. Wehelie told UCE #2 he had fired a weapon before but “needs more practice.” After viewing, handling, and being fully advised of the firearms’ capabilities, Wehelie concealed all four firearms in towels, and then loaded them into a duffle bag. Wehelie was paid $300 by UCE #1 for transporting the firearms.
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 Gerald Bruce Lee. This case was investigated by the FBI’s Joint Terrorism Task Force. Assistant U.S. Attorney John T. Gibbs and Special Assistant U.S. Attorney Brandon L. Van Grack 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-162.
Richmond Man Sentenced to 30 Years for Gun and Drug CrimesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 30 years in prison for gun and drug trafficking crimes.
Daymont Underwood, 31, was convicted by a federal jury of possession of a firearm by a convicted felon, possession with the intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime on April 5. According to court records and evidence presented at trial, Daymont Underwood, 31, of Richmond, was pulled over by the Richmond Police on Oct. 20, 2015, for a traffic violation. Underwood attempted to flee on foot and engaged in a struggle with officers. During the struggle, a loaded .45 caliber handgun fell from Underwood’s waistband. A search of Underwood’s vehicle revealed 78 grams of high-grade marijuana, a digital scale, and sandwich baggies. Law enforcement later determined that Underwood was a convicted felon.
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 Alfred Durham, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-18.
Member of International Child Exploitation Conspiracy Sentenced to 210 Months in PrisonRead the Press Release
A Chicopee, Massachusetts man was sentenced to 210 months in prison and 10 years of supervised release for production of child pornography based on his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
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 Section Chief John J. Brosnan of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Edward Parson, 46, was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia on April 14.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children, posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Parson admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Parson further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Parson admitted that he chatted with minors in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Both websites have been disabled.
This case was investigated as part of Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children (VCAC) International Task Force. VCAC special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge. To date, over 320 minor victims have been identified as part of this operation.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc..
Cameroonian National Sentenced for Marriage Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Cameroonian national was sentenced today for her role in a marriage fraud conspiracy dubbed “Operation Evasive Immigration.”
According to court records and evidence presented at trial, Carine Kojia Aleah Epse Mbendeke, 27, of New Carrollton, Maryland, conspired with Landry Mbendeke, who is currently serving time in federal prison for leading this marriage fraud conspiracy. The evidence presented at trial showed that beginning in December 2013, and continuing through August 2015, the Mbendekes operated a marriage fraud ring that recruited United States citizens to marry Cameroonian nationals for the promise of $5,000. Carine Mbendeke traveled with United States citizen co-conspirators to Cameroon on two occasions. While in Cameroon, Carine Mbendeke orchestrated their fraudulent marriages, acted as a translator, and collected immigration-related documents.
The Mbendekes recruited, or attempted to recruit, approximately 18 United States citizens. Seven of their co-conspirators previously pleaded guilty for their participation in the fraudulent scheme, including Marcus Carlye Brooks, Benjamin Franklin Minkins, Jr., Kenneth Cornelius Lewis, Alecia Angelita Portillo, Keonna Lakata Lynch, James Settles III, and Latrell Turner.
Carine Mbendeke was sentenced to one year and one day in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Richard Ingram, Special Agent in Charge of Diplomatic Security Service, U.S. Department of State’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Carina A. Cuellar and Special Assistant U.S. Attorney Michelle R. Pascucci 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. 1:16-cr-272.
Woman Indicted on Medicaid Fraud and Identity Theft ChargesRead the Press Release
RICHMOND, Va. – As part of the largest ever health care fraud enforcement action in Department of Justice History, a Richmond woman has been charged with healthcare fraud, aggravated identity theft, and making a false statement to federal agents.
Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Tom Price, M.D., announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
Chermeca Harris, 36, was arrested on Tuesday and the indictment was unsealed. Harris, a Medicaid beneficiary, would misrepresent her health condition to health care providers, such as hospitals and ambulance services, in order to obtain health care benefits. Specifically, she would falsely represent that she was suffering from sickle cell anemia and was having a sickle cell crisis in order to obtain pain killing drugs, such as dilaudid, which she wanted to receive intravenously through the neck. In fact, doctors tested Harris in January 2016, and determined she did not have sickle cell anemia. The hospitals involved were Virginia Commonwealth University Medical Center, Chippenham, Bon Secours St. Mary’s, Memorial Regional, John Randolph Medical Center, and Henrico Doctor’s.
According to the indictment, it was a further part of the scheme that Harris also falsely represented her identity. On some occasions she used the name of M.M., and on other occasions she used the name of R.J.; both Medicaid recipients. She also falsely stated to investigating federal agents that her name was M.M. and that she had sickle cell anemia.
Harris has been charged with eight counts of healthcare fraud on the Medicaid program, two counts of aggravated identity theft, and one count of making a false statement to federal agents. She faces a mandatory minimum of four years in prison and a maximum penalty of 89 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Nick DiGiulio, Special Agent in Charge, Philadelphia Regional Office of Inspector General of Department of Health and Human Services, made the announcement after the arrest. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 91 Americans die every day of an opioid related overdose.
Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
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-77.
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.
Newport News Man Sentenced for Producing Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 35 years in prison for production of child pornography.
Ernesto Rodriguez Hernandez, 23, pleaded guilty on April 5. According to statement of facts filed with the plea agreement, Rodriguez Hernandez used two minor females to produce images of child pornography. Hernandez exchanged messages with Jane Doe 1 using the Facebook messenger application, and received images of child pornography of Jane Doe 1 through Facebook messenger. On Dec. 2, 2016, law enforcement executed a federal search warrant at Hernandez’s residence, and seized Hernandez’s computers and other media storage items. An examination revealed additional videos and images of child pornography. After forensic examination, law enforcement identified an additional minor victim, Jane Doe 2, who Hernandez used to produce additional images of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys Megan M. Cowles and Lisa R. McKeel 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-94.
California Man Sentenced for Cocaine Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A California man who participated in a large-scale cocaine trafficking conspiracy was sentenced today to 162 months in prison.
Hilario Rodriguez, 50, pleaded guilty on April 12. According to court documents, Marvin O’Neal Carter, Sr., 49, of Newport News; Michael Stephen Kuna, 42, of Canada; Daniel Rodriguez, 49, and Hilario Rodriguez, both of California; were charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises. In addition to the conspiracy charge, Daniel and Hilario Rodriguez were charged with interstate travel in aid of racketeering.
According to court documents, agents observed the arrival of a tractor trailer at a garage leased by Carter. The tractor trailer eventually off-loaded the trailer next to the garage, and agents observed Michael Kuna, and Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The four men then allegedly worked together to unload cocaine from hidden compartments located underneath the trailer. A short time later, Kuna was observed loading two large duffel bags with green straps into a vehicle before leaving the area. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which emanated with the odor of wet currency.
According to court documents, as Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks were recovered. The search of the garage also led to the recovery of a firearm and a quantity of heroin, in addition to approximately $42,000 in cash from a safe.
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; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross 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-76.
Alexandria Man Pleads Guilty to Gun and Drug CrimeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to the use and carry of a firearm during and in relation to a drug trafficking crime.
According to the statement of facts filed with the plea agreement, Bryan Jamal Matthews, 19, distributed an ounce of marijuana to an undercover police officer in the Kingstowne area of Fairfax County on February 8. Matthews then led officers on a short foot pursuit when they attempted to arrest him. During a search, officers seized a semi-automatic pistol with an extended magazine and other controlled substances from Matthews’ person. After his arrest on state charges, Matthews was released on bond and continued to distribute marijuana and possess firearms. Then, on May 19, federal agents executed a court-authorized search at Matthews’ residence and he again attempted to flee, tossing a loaded semi-automatic pistol into the nearby woods.
Matthews faces a mandatory minimum of five years and a maximum penalty of life in prison when sentenced on October 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael F. Boxler, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement after the plea was accepted by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Carina A. Cuellar 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. 1:17-cr-143.
Man Pleads Guilty to Killing a Bald EagleRead the Press Release
NORFOLK, Va. – A Smithfield man pleaded guilty today to killing a bald eagle, first shooting and wounding the bird, then finally running over it with his all-terrain vehicle.
According to the statement of facts filed with the plea agreement, Allen H. Thacker, 62, shot the bald eagle because he was upset it had been hunting and taking fish from a pond located on his property. Court records indicate Thacker first tried to scare the bird away with a warning shot. When that did not work, Thacker shot the bird with a Remington .22 caliber rifle. According to a necropsy performed on the dead eagle, Thacker’s initial shot wounded the bird, but blunt force trauma to the bird’s skull proved fatal. Though Thacker initially denied it when interviewed by investigators, a witness reported having seen Thacker drive over the bird with his all-terrain vehicle. In Court records filed with today’s guilty plea, Thacker fully admitted to shooting the bird and running it over with the all-terrain vehicle.
Thacker pleaded guilty to unlawful taking of a bald eagle, and faces a maximum penalty of one year in prison and a $100,000 fine when sentenced on October 23. 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, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
The case was investigated by the U.S. Fish and Wildlife Service after receiving a referral from the Virginia Department of Game and Inland Fisheries Conservation Police.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-mj-291.
Final Defendant Pleads Guilty in Crack Cocaine Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – The sixth and final defendant in a multi-state crack cocaine and firearms distribution investigation pleaded guilty today to 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.
According to the statement of facts filed with the plea agreement, Steve Pate, 41, of Shannon, North Carolina, 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, 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
Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 5 years on March 24
Kevin Shaw, 42
Dale City
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
Facing mandatory minimum of 15 years in prison on July 21
Kristie Middleton, 40
Dale City
Conspiracy to distribute 280 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Facing mandatory minimum of 15 years in prison on August 4
Steve Pate, 41
Shannon, North Carolina
Conspiracy to distribute 280 grams or more of cocaine base
Facing mandatory minimum of 10 years in prison on October 13
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 Stephan M. Hudson, Chief of Prince William County Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Tobias D. Tobler 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-149.
Russian-Born Cybercriminal Sentenced to over Nine Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A nearly decade-long member of several elite Russian-speaking cybercrime forums was sentenced today to 110 months in prison for running a sophisticated scheme to steal and traffic sensitive personal and financial information in the online criminal underground.
Alexander Tverdokhlebov, 29, of Los Angeles, pleaded guilty on March 31 to wire fraud. Accordingly to court documents, the defendant, who emigrated from Russia in 2007 and subsequently obtained U.S. citizenship, was an active member of several highly exclusive Russian-speaking cybercrime forums since at least 2008. Through his membership on these forums, Tverdokhlebov forged lucrative business partnerships with other Russian-speaking cybercriminals, with whom he exchanged tools, services, and stolen personal and financial information.
The defendant offered a variety of illegal services on these forums, including the laundering of stolen funds. He also operated several “botnets,” which are groups of compromised computers that can be used to steal credit card and other sensitive financial information. At various times between 2009 and 2013, Tverdokhlebov claimed on the cybercrime forums that, among other things, he possessed 40,000 stolen credit card numbers and could control up to 500,000 infected computers.
Tverdokhlebov executed a number of schemes to “cash out” or monetize the financial information he stole, such as by selling it to other cybercriminals or by providing it to accomplices who would use it to make fraudulent purchases or fraudulent withdrawals from victims’ accounts. In addition, the defendant recruited Russian students visiting the United States on J-1 visas to open bank accounts in their names, receive money from victim accounts, and then transfer the money to Tverdokhlebov or his co-conspirators.
The plea agreement stipulates to estimated losses between $9.5 and $25 million. Upon Tverdokhlebov’s arrest, the government seized $272,000 in hundred dollar bills distributed among several safe deposit boxes in Los Angeles and Las Vegas. The government was able to seize additional assets from the defendant, including Bitcoin, currently valued at approximately $5 million.
As part of the sentencing, the court also ordered the defendant to serve three years of supervised release following his prison term, with conditions of release that will include monitoring of the defendant’s computer use.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; 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 T.S. Ellis III. Assistant U.S. Attorneys Kellen S. Dwyer and Laura Fong prosecuted the case.
The New York County District Attorney’s Office, along with the U.S. Secret Service’s Los Angeles Field Office, provided significant assistance with the investigation.
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. 1:17-cr-9.
Williamsburg Man Arrested on False Statement ChargesRead the Press Release
NORFOLK, Va. – A man alleged to have made false statements during his application to join the U.S. Army and Air Force was arrested today on charges he hid information from recruiters about his foreign travel and prior arrest in the Kingdom of Jordan.
Shivam Patel, 27, of Williamsburg, was charged on June 30 with making materially false statements in a matter within the jurisdiction of the executive branch of the United States government. According to the criminal complaint unsealed today, Patel traveled to China in July 2016 and then flew to Jordan, where he was arrested, detained, and deported to the United States. In early September 2016, Patel is alleged to have told an undercover agent and a confidential source that he wanted to join a “Muslim army” and commit jihad.
After returning to the United States, Patel applied to join the U.S. Army and Air Force through the Officer Candidate Selection process beginning in December 2016. According to the complaint, when asked about his foreign travel as part of his applications, Patel did not disclose his travel to China or Jordan. Instead, Patel allegedly claimed that he had not traveled anywhere outside the United States in the past seven years, except for a family trip to India in 2011–2012.
Patel faces a maximum penalty of five 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 Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement. Assistant U.S. Attorney Andrew Bosse 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-mj-354.
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.
Former Employee of Realty Company Sentenced for $250K FraudRead the Press Release
NORFOLK, Va. – A former accounting manager at a Hampton Roads realty company was sentenced today to 37 months in prison for embezzling over $255,000 from her employer.
Lindsay Kneff, 37, of Virginia Beach, pleaded guilty on January 17 to wire fraud and engaging in a monetary transaction in criminally derived property. According to a statement of facts filed with the court, Kneff was employed in a managerial position for the Virginia Beach office of Rose & Womble Realty Company, where she was responsible for overseeing the processing of commissions and accounts payable. Over an 18-month period from January 2014 to August 2015, Kneff wrote checks on the Rose & Womble operating account to pay her personal expenses, including electricity and utility bills. Kneff also made unauthorized wire transfers of company funds into her own bank accounts, and she fraudulently altered approximately 284 Rose & Womble money orders by writing in her own name as the payee.
Kneff attempted to conceal her fraud by creating fictitious vendors in the company’s accounting software to make it appear that the vendors had received wire transfers of company funds. Kneff’s conduct resulted in a loss to the company of $255,147.20, and she was ordered by the court to pay restitution in that amount.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and George D. Purefoy, Resident Agent in Charge of the U.S. Secret Service’s Norfolk Resident Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. 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-139.
Two Men Convicted of Burglarizing Firearms DealersRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two local men today of conspiracy and theft of firearms from a federally licensed firearms dealer.
According to court records and evidence presented at trial, Preston G. Holmes III, 23, and Matthew D. Jones, 23, participated in the burglary of a Federal Firearms Licensee (FFL) in Chantilly, where they stole 35 handguns. Holmes and Jones were also involved in attempted thefts of firearms from FFLs in Spotsylvania County and Fredericksburg.
Holmes and Jones each face up to 10 years in prison when sentenced on Sept. 12, 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; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Colonel Edwin C. Roessler Jr., Chief of Fairfax County Police; Roger L. Harris, Spotsylvania County Sheriff; and David W. Nye, Chief of Fredericksburg Police, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the verdict. Assistant U.S. Attorneys Michael Rich and Alexander Blanchard 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-67.
Man Sentenced in 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 2 years in prison.
Andrew Otto Boggs, aka “INCURSIO”, 23, of North Wilkesboro, pleaded guilty on January 10. According to the statement of facts filed with the plea agreement, Boggs, along with others including co-conspirator Justin Gray Liverman, aka “D3f4ult”, 24, of Morehead City, North Carolina, joined a hacking group that called itself “Crackas With Attitude.” From about October 2015 to February 2016, the group used social engineering, including victim impersonation, to gain unlawful access to the personal online accounts of senior U.S. government officials, their families, and several U.S. government computer systems. In November 2015, Boggs and other co-conspirators used a victim's government credentials to gain unlawful access to a confidential federal law enforcement database. Several months later, Boggs publicly posted documents and personal information that the conspiracy unlawfully obtained from another government system, and which included names and contact information for tens of thousands of Department of Justice and Department of Homeland Security employees. In total, the conspiracy targeted more than 10 victims and caused more than $1.5 million in losses to victims.
Liverman pleaded guilty on January 6, and is scheduled to be sentenced on July 28. 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 are prosecuting 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-314 (Boggs), and 1:16-cr-313 (Liverman).
Eight Indicted on Federal Drug and Firearms ChargesRead the Press Release
RICHMOND, Va. – A federal grand jury has returned an indictment charging eight individuals with a number of federal drug trafficking and firearms crimes related to their participation in a heroin trafficking conspiracy.
Lawrence Buckner, 37, of King George County, was arraigned today at the federal courthouse in Richmond. The charges are the result of a two-year investigation by the DEA, Naval Criminal Investigative Service, Virginia State Police, King George Sheriff’s Office, Westmoreland County Sheriff’s Office, and the Caroline County Sheriff’s Office.
The following individuals were charged in federal indictments as a result of this joint investigation:
Name
Age
County of Residence
Charges
Date of Jury Trial
Dwayne Alonzo
Proctor
37
Westmoreland
Conspiracy to Distribute Heroin, Fentanyl and Oxycodone;
Distribution of Heroin;
Distribution of Fentanyl;
Maintain Drug Involved Premises;
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Terrell Sylvester
Johnson
28
Westmoreland
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Distribution of Heroin
Maintain Drug Involved Premises
Possession of a Firearm by a Convicted Felon
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Dominic Brown
27
Caroline
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Jeffrey Diaz
Dudley
26
Westmoreland
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Distribution of Heroin
Distribution of Fentanyl
Possession of a Firearm by a Convicted Felon
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Lawrence Buckner
37
King George
Conspiracy to distribute Heroin, Fentanyl and Oxycodone
Maintain Drug Involved Premises
Possession of Firearms in Furtherance of a Drug Trafficking Crime
August 14
Clifton Wayne
Howdershelt
53
King George
Distribution of Heroin
Possession of a Firearm by a Convicted Felon
July 24
Edward Wayne
Shupe
47
King George
Distribution of Heroin
July 20
Kim Eileen
Capps
47
Fairfax
Distribution of Heroin
July 11
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; Jeremy Gauthier, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Washington D.C. Field Office; Colonel W. Steven Flaherty, Virginia State Police Superintendent; Steve F. Dempsey, King George County Sheriff; C.O. Balderson, Westmoreland County Sheriff; and A. A. "Tony" Lippa, Jr., Caroline County Sheriff, made the announcement. Assistant U.S. Attorney Olivia L. Norman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information 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-54 (Shupe), 3:17-cr-55 (Howdershelt), 3:17-cr-56 (Capps), 3:17-cr-57 (Proctor).
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.
Operation Riptide Takedown Results in 16 ConvictionsRead the Press Release
NORFOLK, Va. – Over 150 law enforcement agents and officers executed a takedown on March 1, arresting dozens of individuals for their respective roles in selling drugs and guns in Norfolk. Today, the final federal defendant pleaded guilty to firearm and drug charges, bringing the total number of convictions to 16 within four months of their arrest.
“Operation Riptide was a significant and expertly coordinated takedown of dangerous criminals here in Hampton Roads,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Public safety is our top priority, and through the combined efforts of our prosecutors and law enforcement partners we will continue to pursue and bring to justice those who seek to bring harm to this community. I want to thank our investigative partners for their extraordinary efforts on this case.”
“My top priority as Attorney General is to keep Virginians and their families safe, and Operation Riptide has been an important step in getting dangerous weapons and drugs out of Hampton Roads,” said Mark R. Herring, Attorney General of Virginia. “The cooperation and collaboration between our local, state, and federal partners shows that we all share the commitment to keeping our Commonwealth safe, and I am proud to be a part of the team that took these criminals off our streets.”
The Bureau of Alcohol, Tobacco, and Firearms (ATF) began Operation Riptide in the Fall of 2016, and in collaboration with the Norfolk Police Department, Virginia State Police, and prosecutors from the U.S. Attorney’s Office and the Virginia Attorney General’s Office, identified more than 30 individuals throughout Hampton Roads who were illegally selling firearms, heroin, and/or other narcotics. Operation Riptide resulted in the recovery of over 50 firearms (including at least 3 assault rifles, 2 sawed off shotguns, and 47 hand guns, 18 of which had obliterated serial numbers or were stolen), over 170 grams of heroin, 65 grams of powder cocaine, 290 grams of crack cocaine, and a bullet proof vest.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. Magistrate Judge Lawrence Leonard accepted the guilty plea of Michael Ovall Jackson, 34, of Norfolk, who is the 16th federal defendant.
This case was investigated by the ATF’s Norfolk Field Office, the Norfolk Police Department, and the Virginia State Police with the assistance of the Virginia Beach and Chesapeake Police Departments, the Norfolk and Chesapeake Sheriff’s Offices, and the Virginia National Guard. Attorneys from the Virginia Attorney General’s Major Crimes and Emerging Threats Unit, John F. Butler and James F. Entas, are prosecuting these cases with the assistance of Norfolk Assistant Commonwealth Attorney Catherine Paxson, and Assistant U.S. Attorneys Andrew C. Bosse, Kevin M. Comstock, Joseph E. DePadilla, Kevin Hudson, William B. Jackson, William D. Muhr, and Daniel T. Young.
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 Nos. 2:17-cr-21, 22, 24, 25, 26, 27, 28, 31, 32, 34, 35, 36, 37, 54, 64.
Name, AKA
Age, Hometown
Pleaded Guilty to the Following Charge(s)
Date of Guilty Plea
Darryl Moore,
aka “Little Darryl”
28, Norfolk
Felon in Possession of a Firearm
March 16
Kejuan Dante Perry,
aka “KP”
25, Chesapeake
Distribution of a Controlled Substance; Possession of Firearms in Furtherance of a Drug Trafficking Crime
March 21
Maurice Owen Johnson,
aka “Dink”
28, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
March 22
Leonard Lee Brickhouse,
aka “Leo Brixx”
24, Norfolk
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
March 29
Evrick Speight
aka “P”
23, Virginia Beach
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
April 5
Jason Gilliard,
aka “Hoodro Wilson”
32, Virginia Beach
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin
April 10
Lamare Pierre Jordan,
aka “L”
30, Norfolk
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
April 11
James Andre Martin,
aka “Big Buff”
44, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm
April 10
Keone Devon Perry
23, Chesapeake
Transfer of Firearm to Prohibited Person
April 10
Carl Lee Walton,
aka “CJ”
22, Virginia Beach
Felon in Possession of a Firearm
April 11
Demetrius Lamont, Davis
aka “Meat”
39, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
April 26
James Curtis Lamb
28, Chesapeake
Felon in Possession of a Firearm
May 2
Adrean Lamont Hall
25, Virginia Beach
Felon in Possession of a Firearm
May 15
James Edward Hill
43, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
May 18
Joseph Maurice Dobey
38, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
May 30
Michael Ovall Jackson
34, Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or More of Cocaine Base
June 28
North Carolina Defense Contractor Pleads Guilty to $15 Million FraudRead the Press Release
NORFOLK, Va. – A Fayetteville defense contractor pleaded guilty today to his role in multiple conspiracies to overbill the federal government by more than $15 million on government contracts.
According to the statement of facts filed with the plea agreement, Philip A. Mearing, 48, is the owner of Global Services Corporation (Global). In 2004, Mearing, along with co-conspirators Kenneth Bricker and Ken Deines, entered into an agreement whereby fraudulent payments were made by Global to Bricker’s two straw corporations, Tempo and BPM, regarding hundreds of invoices for work and services on behalf of Global that were never performed by Tempo and BPM. As part of their agreement with Global, Mearing, Deines, and Bricker normally retained five percent of the fraudulent payments made by Global to Tempo and BPM. Shortly thereafter, Bricker transferred the remaining 95 percent of these fraudulent payments to Mearing and to DeShas, an Ohio LLC controlled by Mearing. From 2004 to 2014, Bricker received approximately $13.6 million in fraudulent payments from Global, retained approximately $558,000 for his personal use, and subsequently issued checks totaling approximately $13 million to DeShas or to Mearing.
In a separate conspiracy to defraud the government, Mearing, Deines, and William Hutsenpiller, the former Comptroller for Norfolk Ship Support Activity (NSSA), knowingly and willfully conspired to submit false claims to the government via false and/or fictitious invoices that resulted in a loss of approximately $1.8 million. The combined loss amount to the Government from the two separate conspiracies is $15,413,029.76.
Mearing pleaded guilty to conspiracy to commit wire fraud, and faces a maximum penalty of five years in prison when sentenced on September 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; 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; and Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorneys Alan M. Salsbury and Stephen W. Haynie 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-94.
Man Pleads Guilty to Stalking and Kidnapping WomanRead the Press Release
ALEXANDRIA, Va. – A Virginia man pleaded guilty today to charges of interstate stalking, interstate domestic violence, and being a felon in possession of ammunition.
According to court records, Nam Quoc Hoang, 41, of Springfield, 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 Jan. 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. Khoa will be sentenced on July 21, 2017. Nam faces a maximum penalty of 30 years in prison when sentenced on September 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; 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 James L. Trump, Carina A. Cuellar, and James Levine 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. 1:16-cr-193.