Eastern District of Virginia
Press releases recorded for this federal judicial district.
Armed Drug Dealer Sentenced to 16 Years for Third Drug ConvictionRead the Press Release
NORFOLK, Va. – Myles Eugene Crandle, 33, of Virginia Beach, was sentenced today to 192 months in prison for conspiracy to distribute heroin and being a felon in possession of a firearm.
Crandle pleaded guilty on February 9. According to court documents, Crandle, who was convicted on federal drug and gun charges in 2008 and had another state felony drug conviction on his record, was caught by Virginia Beach Police with a stolen handgun in August 2015. Later that summer, Virginia State Police seized over 50 grams of heroin laced with acetyl fentanyl that Crandle had sold to another drug dealer, and found evidence of thousands of dollars in additional heroin transactions between the men. The second dealer, Henry Lee Giddens, pleaded guilty to the same heroin conspiracy and to possessing firearms in furtherance of a drug trafficking crime, and was sentenced to 10 years in prison on April 27.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Andrew Bosse prosecuted 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. 2:15-cr-158.
Former CEO of Virginia Regional Transit Pleads Guilty to BriberyRead the Press Release
ALEXANDRIA, Va. – Mark W. McGregor, 63, of Charles Town, West Virginia, pleaded guilty today to bribery concerning federal program funds for his role in a bribery scheme that caused $380,000 in losses to the U.S. government.
According to the statement of facts filed with the plea agreement, McGregor served as the chief executive officer of Virginia Regional Transit (VRT), a not for profit 501(c)(3) organization that provides transportation services throughout Northern Virginia. VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation. McGregor engaged in a bribe scheme with co-conspirator Thomas Ahalt, then President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007. Mobile Auto provided automotive repair services to VRT.
According to plea papers, from January 2007 through December 2015, Mobile Auto submitted—and McGregor caused to be approved—false invoices for additional weekly labor charges. McGregor approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional weekly labor charges. A portion of the monies VRT paid to Mobile Auto were federal program funds originating from the Federal Transit Administration, an agency within the U.S. Department of Transportation. In exchange, McGregor received regular kickback payments from Ahalt and others associated with Mobile Auto totaling half of the additional weekly labor charges. In total, McGregor received approximately $190,000 in kickback payments.
On April 6, 2016, Ahalt pleaded guilty to conspiracy to commit bribery concerning federal program funds for his role in the scheme. He is scheduled to be sentenced on June 2, and McGregor is scheduled to be sentenced on September 9.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Uzo Asonye is prosecuting the case.
Individuals with information related to public corruption in Northern Virginia should call the FBI public corruption hotline at 703-686-6225 or e-mail [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. 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-113.
Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – Christopher Salkey, 27, of Suffolk, was sentenced today to 120 months in prison for conspiracy to distribute heroin and possessing a firearm as a convicted felon.
Salkey pleaded guilty on Oct. 28, 2015. According to court documents, in the summer of 2012 up to May 2015, the defendant conspired with his father and two co-conspirators to distribute heroin in Suffolk and Portsmouth. Each week Salkey (who has a previous conviction for selling narcotics) and his father would receive a significant quantity of heroin to which they would add a cutting agent and then cap it up for distribution. During the course of the conspiracy it is estimated they distributed at least eight kilograms of heroin. On May 20, 2015, the Suffolk Police Department and federal agents from the Drug Enforcement Administration (DEA) executed a search warrant at Salkey’s residence in Suffolk where they recovered heroin and packaging material used for distribution. Additionally, agents also discovered a marijuana grow operation with 129 marijuana plants. Law enforcement later learned Salkey had hidden two firearms in the residence, which agents later recovered.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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. 2:15cr135.
Financial Advisor Pleads Guilty to Money LaunderingRead the Press Release
NEWPORT NEWS, Va. – Jeffrey A. Martinovich, 50, formerly of Newport News, pleaded guilty today to charges of money laundering.
According to court documents, Martinovich was the head of MICG, a broker-dealer located in Newport News. In 2013, Martinovich was convicted after a jury trial of federal charges related to his fraudulent inflation of assets in the Venture fund – a hedge fund he managed and administered. After these charges were brought, Martinovich engaged in a scheme to use the assets of a different hedge fund (the Partners fund) he managed to pay for his criminal legal defense, including payments to expert witnesses, a jury selection consultant, and other litigation expenses. Martinovich falsely represented to his attorney, and took other steps to conceal, the origin of these funds used for his defense. Further, Martinovich declined to make distributions to investors in the Partners fund, choosing instead to use the balance of the fund to pay for expenses related to his offense.
According to court documents, following the defendant’s convictions on May 6, 2013, it came to light that the defendant had wrongfully diverted over $700,000 from the Partners Fund and instructed an employee to conceal his theft through false bookkeeping entries.
According to court documents, on Sept. 30, 2013, Martinovich was sentenced to 140 months in prison for his fraudulent manipulation of the assets in the Venture Fund. His appeal of his convictions was denied by the U.S. Court of Appeals for the Fourth Circuit, and the case has been remanded for resentencing.
Martinovich was indicted on charges stemming from his use of the Partners fund monies by a federal grand jury on July 15, 2015. Martinovich faces a maximum penalty of 20 years in prison sentenced on September 29. 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 Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (ISR-CI), made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Brian J. Samuels and V. Kathleen Dougherty 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 about this case and Martinovich’s prior conviction may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr50 and 4:12cr101.
Corporate Hijacker Sentenced in $1.4 Million ID Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Myrick Clift Beasley, 56, of Las Vegas, was sentenced today to 60 months in prison for mail fraud in connection with a scheme to obtain goods and services on credit using the stolen identities of legitimate, inactive businesses.
“Beasley used his considerable business acumen to develop a scheme to defraud some of the nation's largest retailers and service providers," said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. "This was a complex, sophisticated fraud that required a high level of expertise to unravel. I want to thank our investigators and prosecutors for their outstanding work on this case.”
“The FBI works relentlessly to identify and disrupt complex fraud schemes such as this one,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “As a result of a thorough criminal investigation, FBI agents and analysts identified this financial predator and brought him to justice. I want to thank the dedicated FBI personnel, federal prosecutors, and our law enforcement partners for their tireless efforts to ensure that corporate and personal identities are protected and identity thieves are held accountable under the law.”
According to court documents, from 2010 through 2015, Beasley assumed the identity of at least 148 legitimate businesses nationwide, and used those stolen identities to obtain, on credit, at least $1.4 million in goods and services from various victims. Beasley admitted that, as part of the scheme, he would identify inactive, legitimate businesses that had previously been located in office buildings where virtual office providers were also located. Beasley admitted that we would assume the inactive businesses’ identities by renting virtual office space in the buildings in the names of the legitimate businesses, creating internet domain names and email addresses in the identified businesses’ names, obtaining phone numbers previously identified with the businesses when available, and, at times, supplementing state corporate filings and commercial credit records with fraudulent information designed to further the scheme. Beasley admitted that he concealed his true identity throughout the fraud by using false names and paying for the costs of operating his scheme with prepaid debit cards. Once he would assume a business’s identity, Beasley admitted that he would then order goods and services — particularly, smart phones, computers, and other electronics — from retailers on credit and have the items shipped to the virtual office location, which would then, at his direction, re-ship the items to rented mailboxes elsewhere in the country. Beasley admitted he would then retrieve the items from the rented mailboxes and sell them.
Beasley has a history of using his skills to commit fraud. He was convicted for mail fraud in 1989 and again in 1999.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Special Assistant U.S. Attorney Christopher R. Fenton and Assistant U.S. Attorney Paul J. Nathanson 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-353.
Former Postal Employee Pleads Guilty to Stealing MailRead the Press Release
NORFOLK, Va. – Tiffany Gordon, 32, of Norfolk, pleaded guilty today to theft of mail matter by a postal employee.
According to a statement of facts, Gordon had been employed by the U.S. Postal Service since December 2010 and worked as a mail processing clerk at the Norfolk Processing and Distribution Center. In September 2015, the U.S. Postal Service’s Office of the Inspector General received a complaint regarding missing mail that contained gift cards. The investigation revealed that Gordon, in the performance of her duties, had been stealing greeting cards that appeared to contain gift cards. Based on a search of her car, personal bag, and apartment, she was found to have stolen 295 pieces of mail containing more than $5,000 in gift cards.
Gordon was indicted by a federal grand jury on April 6, and faces a maximum penalty of five years in prison when sentenced on September 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 Paul L. Bowman, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Randy Stoker 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. 2:16cr53.
Syrian Electronic Army Member Extradited to the United StatesRead the Press Release
Peter Romar, 36, a Syrian national affiliated with the Syrian Electronic Army (SEA), made his initial appearance this afternoon before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia on charges that he conspired to violate U.S. law, including by unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director James Trainor of the FBI’s Cyber Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office announced Romar’s extradition.
Romar, who was detained by German authorities on a provisional arrest warrant on behalf of the United States, was charged by criminal complaint unsealed on March 22, 2016.
According to allegations in the complaint, beginning in or around 2011, co-defendant Firas Dardar, 27, known online as “The Shadow,” and another member of the SEA’s “Special Operations Division” engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of President Bashar al-Assad, including media entities, the White House and foreign governments. Beginning in or around 2013, SEA members Romar and Dardar also engaged in an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.
The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
Syrian Electronic Army Member Extradited to the United StatesRead the Press Release
ALEXANDRIA, Va. – Peter Romar, 36, a Syrian national affiliated with the Syrian Electronic Army (SEA), made his initial appearance here this afternoon on charges that he conspired to violate U.S. law, including by unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications.
Romar, who was detained by German authorities on a provisional arrest warrant on behalf of the United States, was charged by criminal complaint unsealed on March 22, 2016.
According to allegations in the complaint, beginning in or around 2011, co-defendant Firas Dardar, 27, known online as “The Shadow,” and another member of the SEA’s “Special Operations Division” engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of President Bashar al-Assad, including media entities, the White House and foreign governments. Beginning in or around 2013, SEA members Romar and Dardar also engaged in an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; James Trainor, Assistant Director of the FBI’s Cyber Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Romar’s initial appearance.
The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies.
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. 1:14-mj-292, and 1:14-mj-498.
Criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
MS-13 Gangsters Convicted of Multiple Murders and Attempted MurderRead the Press Release
ALEXANDRIA, Va. – Six members of the street gang La Mara Salvatrucha, or MS-13, were convicted today by a federal jury for their roles in three murders and one attempted murder in Northern Virginia, among other charges.
“These violent gang members brutally murdered three men and attempted to murder a fourth,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Extreme violence is the hallmark of MS-13, and these horrific crimes represent exactly what the gang stands for. This was a highly complicated, death penalty eligible case with 13 defendants and more than two dozen defense attorneys. To say I am proud of our trial team and investigative partners is an understatement. I want to thank them for their terrific work on this case and for bringing these criminals to justice.”
“The defendants terrorized our local communities with senseless, depraved acts of threats, intimidation and violence,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “They murdered in the name of MS-13, but as this jury’s verdict makes clear, no gang can protect them from facing justice for their crimes. This verdict sends a clear message that the FBI will hold violent gangs and murderers fully accountable for their actions. I would like to thank the agents, analysts and prosecutors for their tireless efforts to eradicate gang violence in our communities.”
A total of 13 defendants were charged in this case. Of those, six defendants went to trial and were convicted of all charges. Six defendants pleaded guilty prior to trial, and one defendant was severed from the case and will have a separate trial at a later date. Please see the table at the end of this press release for additional information on each defendant.
According to court records and evidence presented at trial, on Oct. 1, 2013, Jose Lopez Torres, Jaime Rosales Villegas and others drove to Gar-Field High School in Woodbridge to murder a fellow gang member. However, one of the gang members in the car had not only alerted police to the murder plot, he also made recorded phone calls and wore a body wire to a meeting where the gang members, including Pedro Anthony Romero Cruz, who participated from prison on a contraband cell phone, planned the murder. The gang members’ vehicle was under surveillance that night, the victim had been warned to not be at school, and the informant was wearing a body wire.
According to court records and evidence presented at trial, on Oct. 7, 2013, Torres, Omar DeJesus Castillo, Juan Carlos Marquez Ayala, Araely Santiago Villanueva, Jose Del Cid, and three others murdered fellow gang member Nelson Omar Quintanilla Trujillo. The gang believed Trujillo was a snitch, and so the gang members lured him to Holmes Run Park in Falls Church, and brutally killed him by stabbing him with knives and slashing him with a machete. When they were done they buried Trujillo in a shallow grave. Several gang members returned a short time later and, with the assistance of Alvin Gaitan Benitez, reburied the body of Trujillo.
According to court records and evidence presented at trial, on March 29, 2014, Castillo, Benitez, Christian Lemus Cerna, Manuel Ernesto Paiz Guevara, Villanueva, Del Cid, and one other murdered Gerson Adoni Martinez Aguilar, a gang recruit, for breaking gang rules. Like Trujillo, the gang members lured him to Holmes Run Park and killed him. They stabbed him repeatedly, cut off his head, and then buried him in a shallow grave.
According to court records and evidence presented at trial, on June 19, 2014, Jesus Alejandro Chavez, Del Cid, and Genaro Sen Garcia murdered Julio Urrutia. Several gang members including Chavez, who had been released from prison eight days earlier, were out looking for rival gang members when they approached a group of young men, flashed their gang signs, and challenged them about their gang affiliation. During the exchange Chavez pulled out a gun and shot Urrutia in the neck at point blank range.
Each defendant convicted at trial faces a mandatory sentence of life in prison when sentenced. Villegas and Cruz face a maximum sentence of 10 years in prison on the conspiracy to commit murder charge, in addition to a consecutive minimum sentence of 10 years in prison for possession of a firearm in furtherance of a crime of violence. Villegas also faces a maximum sentence of 10 years in prison on the attempted murder charge. 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Chief of Police, Fairfax County Police Department; Earl L. Cook, Chief of Police, Alexandria City Police Department; and Stephan M. Hudson, Chief of Police, Prince William County Police Department, made the announcement after the verdict was accepted by U.S. District Judge Gerald Bruce Lee.
Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are prosecuting the case. The case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department’s Gang Investigations Unit, the Prince William County Police Department, and the Alexandria City Police Department.
The case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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. 1:14-cr-306.
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Name
Age, Hometown
Charges Convicted of
Sentence or
Sentencing Date
Pedro Anthony Romero Cruz
28, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
July 15
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
August 5
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
May 20
Juan Carlos Marquez Ayala
22, Falls Church
Murder in Aid of Racketeering
June 3
Omar Dejesus Castillo
26, Arlington
Two Counts of Murder in Aid of Racketeering
August 12
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
September 9
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
September 9
Araely Santiago Villanueva
18, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
September 9
Jose Del Cid
18, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
25, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
August 5
Genaro Sen Garcia
19, unknown
Murder in Aid of Racketeering
Life sentence
Owner of Security Camera Company Arrested on Child Exploitation ChargesRead the Press Release
NEWPORT NEWS, Va. – Larry Dean Drommerhausen, 53, of Newport News, owner of Independent Systems, a Newport News business that installs video surveillance equipment, has been arrested and charged with production of child pornography. Drommerhausen appeared in U.S. district court in Norfolk this afternoon for his detention hearing.
According to court documents and court proceedings, Drommerhausen came to the attention of the FBI after numerous files containing child pornography were downloaded from his computer. On April 4, law enforcement executed a search warrant at his home and interviewed Drommerhausen, in addition to seizing numerous electronic devices. During the interview, Drommerhausen stated he owns a business that installs regular and hidden cameras, and that he had seen child pornography on hidden camera forums online. He also stated that he has adopted a child and has been a foster parent for numerous children who have been physically or sexually abused.
The FBI’s Norfolk Field Office is asking for the public’s help in identifying any additional potential victims. Individuals with information regarding this case should contact the FBI at (757) 609-2398.
Drommerhausen faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison, if convicted. 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 John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Drommerhausen’s detention hearing before U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorneys Lisa R. McKeel and Megan M. Cowles 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. 4:16-mj-78.
Suffolk Man Indicted for Distribution of Heroin Resulting in DeathRead the Press Release
NORFOLK, Va. – Carlos A. Brown, 45, of Suffolk, was indicted by a federal grand jury today on charges of distribution of heroin resulting in death, distribution of heroin resulting in serious bodily injury, distribution of heroin and distribution of fentanyl.
According to the indictment and other filed documents, the investigation of Brown’s drug activities began in November 2015 after an investigative team was dispatched to the scene of a suspected heroin overdose death in Chesapeake. Over the course of the next six months, members of the law enforcement team, which includes the FBI’s Norfolk Field Office, the Virginia State Police, and the Chesapeake Police Department, began gathering various sources of information including Confidential Human Source (CHS) interviews, as well as arrest and police reports related to the drug distribution activities of Brown. The interviews were corroborated with undercover controlled buys of heroin and fentanyl from Brown as well as physical and electronic surveillance. Documents filed with the court indicate that in late November 2015, Brown contacted one buyer describing his heroin as a “missile.” Brown told one CHS that he was aware of three or four of his customers overdosing, yet he continued to sell heroin, which lead to a fatal overdose the following day. Even after learning of the fatal overdose, Brown continued to sell heroin.
Brown faces a mandatory minimum sentence of 20 years in prison and a maximum penalty of life in prison, if convicted. 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; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the grand jury returned the indictment. Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla 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. 2:16-cr-67.
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.
Navy Senior Chief Indicted in ID Theft and Bank Fraud SchemeRead the Press Release
NORFOLK, Va. – Clayton A. Pressley, 40, of Chesapeake, was indicted by a federal grand jury today on charges of bank fraud, aggravated identity theft, and unlawfully possessing identity documents.
According to the indictment, Pressley used his position as a senior enlisted member of a local military command to access personal identity information and identification documents of members of his command. Using that information, he applied for and received several loans from Pioneer Mid-Country Bank, pretending to be two of his subordinates. He also possessed identity documents at his residence for eight other members of his military command.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Tim Quick, Special Agent in Charge of NCIS Norfolk Field Office, made the announcement after the grand jury returned the indictment. Special Assistant U.S. Attorney Alyssa Nichol and Assistant U.S. Attorney Steve Haynie 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. 2:16-cr-66.
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.
Gang Member Sentenced to 35 Years in Prison for RICO ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Robbie Bowles, 30, of Newport News, was sentenced today to 300 months in prison for various violent crime and drug offenses. Bowles’ sentence will run consecutive to a 120 month sentence on an earlier federal firearms conviction.
Bowles pleaded guilty on Nov. 16, 2015. According to court documents, Bowles was a member of the Newport News street gang Thug Relations, which engaged in the distribution of marijuana and crack cocaine. The gang established dominance over the drug trade in its territory through violence and intimidation, which included physical assaults, home invasions, and numerous shootings, some of which resulted in murders. In particular, Bowles admitted threatening victim Aaron Sumler because Sumler and a friend had allegedly been selling cocaine in the area of Aqueduct Apartments, which was part of Thug Relations territory. When those threats went unheeded, Bowles was involved in Sumler’s murder. In addition, Bowles participated in a home invasion robbery of a rival drug dealer, during which one of the victims was struck in the head with a firearm. Bowles also participated in three separate shootings of rival gang members, causing each victim serious bodily injury.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and John S. Adams, 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 Howard J. Zlotnick, Lisa R. McKeel, Brian Samuels, and Trial Attorney Yvonne L. Garcia of the Criminal Division’s Organized Crime and Gang Section prosecuted 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. 4:14-cr-59.
Former Postal Worker Sentenced to Prison for Workers’ Comp FraudRead the Press Release
NORFOLK, Va. – Ronald Henderson, 58, of Lewiston, North Carolina, was sentenced today to 13 months in prison for Federal Employees’ Compensation Fraud. He was also ordered to pay $163,956.23 in restitution to the Department of Labor.
Henderson pleaded guilty on Dec. 2, 2015. According to court documents, on June 11, 2011, Henderson falsely claimed to have injured his shoulder while performing his duties as a mail carrier in Suffolk. The injury had actually occurred previously while off-duty. In addition to receiving compensation as a result of the false disability claim, Henderson filed hundreds of false travel claims seeking reimbursement for expenses related to obtaining medical treatment. He also failed to notify the Department of Labor after he returned to work and was able to unlawfully
“double-dip” by receiving workers’ compensation payments and his normal paycheck at the same time.Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Randy Stoker prosecuted 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. 2:15-cr-120.
Alexandria Adult Day Healthcare Center Settles Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – Agape Health Management, Inc., which operates under the name Agape Adult Day Healthcare Center, located in Alexandria, has agreed to pay $385,917 to settle federal and state civil fraud allegations that claimed Agape submitted false claims for reimbursement to the Virginia Medicaid Program.
Agape operates a facility located in Alexandria that provides adult day health care primarily for Virginia Medicaid recipients. The services provided include community-based health, therapeutic, and social services designed to meet the specialized needs of elderly and disabled recipients. Agape also provides transportation services to and from their facility. The allegations include claims that Agape knowingly submitted false or fraudulent claims for transportation services purportedly provided to Virginia Medicaid recipients that were not present or transported to the Agape facility on the claimed dates of service.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Virginia Attorney General’s Office Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services Office of Inspector General, the Virginia Department of Medical Assistance Services, and the FBI's Washington Field Office.
The matter was investigated by Assistant U.S. Attorney Monika Moore, Assistant Attorney General Erica Bailey, and Assistant Attorney General Megan Winfield of the Virginia Attorney General’s Office Medicaid Fraud Control Unit. The civil claims settled by this Federal False Claims Act and Virginia Fraud Against Taxpayers Act agreement are allegations only; there has been no determination of civil liability.
A copy of the settlement agreement along with this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Ringleader of Bank Fraud and Identity Theft Scheme Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Dae Hyuck Ko, aka James Ko, aka Minghua Hong, 59, was sentenced today to 15 years in prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Ko was also ordered to pay forfeiture and restitution in the amount of approximately $3 million.
Ko was convicted at trial on Jan. 13. According to court documents, Ko was the leader and organizer of a sophisticated bank fraud and identity theft scheme that targeted banks and individual victims throughout the nation. The victims, like Ko and the co-conspirators he recruited, were of Korean ethnicity. Ko directed his co-conspirators to open numerous checking accounts, credit accounts, and personal lines of credit using the stolen identities of these victims. Ko then directed the complicated movement of money between these accounts to build up a banking history, which ultimately enabled him to deposit bad checks and cash out those accounts before the checks failed to clear. Ko enforced his control of the conspiracy through violence when necessary, including by having one co-conspirator beaten and sent to the emergency room with a broken nose and fractured eye socket. Three of Ko’s co-conspirators—Jaejoon Song, Jungtaek Kim, and Minho Yang—have previously pleaded guilty in the case and have been sentenced to 66, 40, and 33 months, respectively.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Maria L. Kelokates, Inspector in Charge of the U.S. Postal Inspection Service, Washington Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Grace L. Hill and Kosta S. Stojilkovic prosecuted 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-109.
Former SunTrust Mortgage VP and Loan Officers Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Mohsin Raza, 51, and his wife, Humaira Iqbal, 40, of Woodbridge, were sentenced to 24 months and 15 months in prison, respectively, for conspiracy and wire fraud affecting a financial institution.
The four defendants were convicted by a federal jury on Feb. 3. According to court documents and evidence presented at trial, in 2005 Raza was hired by SunTrust Mortgage (STM) as a vice-president tasked with opening an office in Annandale. Raza hired his wife and her brothers, Farukh Iqbal, 41, and Mohammad Ali Haider, 33, both of Chantilly, to work as loan officers at SunTrust Mortgage. From 2006 until 2007, when the defendants left SunTrust Mortgage, they falsified loan applications for borrowers and purchased fake tax documents to support the false loan applications. SunTrust Mortgage underwriters in Richmond approved the loans totaling several million dollars based in large part upon the fake documents in the files, and ultimately borrowers were given loans to buy homes that they could not afford.
Iqbal and Haider were each sentenced today to one year and one day in prison. In addition to their prison sentences, Raza and Humaira Iqbal were also ordered to forfeit two properties and $40,000 and pay restitution to victims in the amount of $1,923,324.53.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Olga Acevedo, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jack Hanly and Special Assistant Attorney Joseph Capone prosecuted 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-118.
Former Fox News Commentator Pleads Guilty to FraudRead the Press Release
ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former Fox News commentator who has falsely claimed he spent 27 years working for the Central Intelligence Agency (CIA), pleaded guilty today to major fraud against the government, wire fraud, and a firearms offense.
“Wayne Simmons is a convicted felon with no military or intelligence experience,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Simmons admitted he attempted to con his way into a position where he would have been called on to give real intelligence advice in a war zone. His fraud cost the government money, could have put American lives at risk, and was an insult to the real men and women of the intelligence community who provide tireless service to this country. This case is a prime example of this office’s ongoing commitment to vigorously prosecute government fraud and threats to national security.”
“Mr. Simmons lied about his criminal history and CIA employment in order to fraudulently obtain government contracts, and separately, defrauded a victim through a phony real estate investment deal,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “With these criminal actions, Mr. Simmons abused the trust of others, both in and outside of government, for his own personal financial gain. I commend the work of the talented FBI personnel and prosecutors who vigorously pursued this case and brought about today’s guilty plea.”
In a statement of facts filed with his plea agreement, Simmons admitted he defrauded the government in 2008 when he obtained work as a team leader in the U.S. Army’s Human Terrain Systems program, and again in 2010 when he was deployed to Afghanistan as a senior intelligence advisor on the International Security Assistance Force’s Counterinsurgency Advisory and Assistance Team. Simmons admitted making false statements about his financial and criminal history, and admitted that there are no records or any other evidence that he was ever employed by or worked with the CIA, or ever applied for or was granted a security clearance by that agency. Simmons also admitted that in order to obtain the senior intelligence advisor position, he lied about work he had done a year earlier as a team leader on the Human Terrain Systems program. Simmons admitted to making similar false statements in 2009 as well, in an unsuccessful attempt to obtain work with the State Department’s Worldwide Protective Service.
As to the wire fraud charge, Simmons admitted to defrauding an individual victim, identified as E.L., out of $125,000 in connection with a bogus real estate investment. Simmons admitted to sending E.L. promised monthly disbursements to make it appear as if her funds had been invested as promised, and to repeatedly lying to her about the whereabouts of her money in order to perpetuate the fraud. As Simmons admitted, he simply spent the funds on personal purposes and there was never any actual real estate investment project.
As to the firearms charge, Simmons admitted that at the time he was arrested in this case, he was unlawfully in possession of two firearms, which he was prohibited from possessing on account of his prior felony convictions, including a prior Maryland felony conviction and two prior federal felony firearms convictions.
Simmons was indicted by a federal grand jury on Oct. 14, 2015, and faces a maximum penalty of 10 years in prison on the major fraud against the government count, a maximum penalty of 20 years in prison on the wire fraud count, and a maximum penalty of 10 years in prison on the felon-in-possession of a firearm count when sentenced on July 15. The maximum statutory sentences are prescribed by Congress and are 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 Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Paul J. Nathanson and James L. Trump, along with the assistance of Senior Trial Attorney Robert E. Wallace of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division 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-293.
Norfolk Man Sentenced to Prison for Mail and Wire FraudRead the Press Release
NEWPORT NEWS, Va. – Nader Elnegery, 41, of Norfolk, was sentenced today to 30 months in prison for mail and wire fraud charges based on a scheme to defraud Canon, U.S.A. (Canon) and other companies of professional cameras and lenses. Elnegery was also ordered to pay $54,639 in restitution to the victims of his offense and to forfeit $38,000 recovered from his home.
Elnegery pleaded guilty on Jan. 13, just minutes before his trial was to begin. According to court documents, Elnegery admitted to falsely certifying his eligibility for membership in a program offered by Canon to professional photographers and filmmakers. Specifically, in 2013 and 2014, Elnegery applied for memberships in his own name and in the names of five aliases, falsely claiming to own several items of professional camera equipment that he had rented from a second company, ATS Rentals. Ownership of such equipment is the primary condition of membership in the Canon program. Elnegery then used the Canon memberships to obtain evaluation loans of high-end, professional cameras and lenses from Canon. Elnegery failed to return these items, as well as several items he had rented from ATS Rentals, resulting in significant losses to both companies. In March and April 2014, Elnegery sold the majority of these items in eBay auctions, collecting the proceeds from these sales through a PayPal account. Elnegery transferred the majority of the money he earned from these sales to his own checking account. The items not sold were recovered from Elnegery’s home.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Maria Kelokates, Acting Inspector in Charge of the U.S. Postal Inspection Service, Washington Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Kaitlin C. Gratton and Brian J. Samuels prosecuted 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. 4:14-cr-48.
Couple Indicted for $20 Million Visa Fraud Involving Indian WorkersRead the Press Release
ALEXANDRIA, Va. – Raju Kosuri, 44, and Smriti Jharia, 45, of Ashburn, as well as four co-conspirators, were indicted by a federal grand jury yesterday on charges of conspiracy to defraud the United States and visa fraud, among other charges.
According to the indictment, Kosuri, his spouse Jharia, and their co-conspirators have fraudulently applied for more than 800 illegal immigration benefits under the H-1B visa program. Since 2008, and at much greater scale since 2011, Kosuri has built a staffing business that amounts to a visa-for-sale system, in violation of federal law.
The indictment alleges that Kosuri has set up a network of shell companies that he presents to immigration authorities as independent businesses in need of Indian workers, but which he in fact owns and controls. The indictment further alleges that Kosuri and his co-conspirators use these entities to file petitions for non-existent job vacancies at Kosuri’s data center in Danville. Kosuri is alleged to require workers to pay their own visa processing fees, in violation of H-1B program rules; and he is alleged to treat the beneficiaries as hourly contractors, again in violation of H-1B visa program rules. The visa fraud scheme involves the forgery of numerous individuals’ signatures on visa petitions and exhibits without their knowledge. The indictment alleges that Kosuri has generated gross proceeds of at least $20 million over the life of the scheme.
Separately, the indictment alleges that Kosuri and Jharia conspired with a consultant named Raimondo Piluso to defraud the Small Business Administration, by submitting fraudulent HUBZone applications. Kosuri, Jharia, and Piluso are alleged to have concealed the true location, ownership, and employees of a business called EcomNets Federal Solutions in order to obtain federal loan and contract preferences, from which they have generated $150,000 in loan proceeds and five contract awards.
Kosuri, Jharia, and Piluso face a maximum penalty of 30 years in prison, if convicted. The other co-conspirators face a maximum penalty of 10 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, 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; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Bill A. Miller, Director of Diplomatic Security Service, U.S. Department of State; and Robin Blake, Special Agent in Charge of the Washington Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, made the announcement after the indictment was unsealed. Special Assistant U.S. Attorneys Paul K. Nitze and Angela Fiorentino-Rios 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. 1:16-CR-43.
Virginia Beach Crack Dealer Pleads GuiltyRead the Press Release
NORFOLK, Va. – Quinn Ausidi Goffigan, 35, of Virginia Beach, pleaded guilty today to charges of possession with intent to distribute cocaine base.
According to a statement of facts filed with the plea agreement, Goffigan was caught selling crack cocaine at a Virginia Beach hotel on Feb. 19, 2014. Virginia Beach Police were conducting surveillance at the hotel and observed Goffigan engaging in a hand-to-hand transaction with another man. After Goffigan’s transaction concluded, police approached Goffigan and saw that he had a bag containing a number of off-white rocks in plain view in the car. Suspecting the off-white rocks were crack cocaine, police went to arrest Goffigan and he fled. Police were unable to catch Goffigan that night, but arrested him on state drug trafficking charges in connection with this incident two months later. The off-white rocks were sent to the Virginia Department of Forensic Science and tested positive for crack cocaine.
Goffigan was indicted by a federal grand jury on March 9, 2016. Due to the fact that he has seven prior felony drug trafficking convictions through the Virginia state courts, Goffigan faces a maximum penalty of 30 years in prison when sentenced on September 6, 2016. 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 Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Kevin Hudson 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. 2:16-cr-34.
Norfolk Man Sentenced to Prison for Prostituting a ChildRead the Press Release
NORFOLK, Va. – Alvin Norlee Moore III, 29, of Norfolk, was sentenced today to 188 months in prison for sex trafficking of a child. He was also sentenced to 15 years of supervised release.
Moore pleaded guilty on January 6, 2016. According to court documents and evidence presented at sentencing, “Jane Doe,” a 15 year-old runaway, was found by her family after fleeing from Moore after several weeks of being forced to prostitute for him in the Tidewater area. The family then contacted the Virginia Beach Police Department. Moore had been a violent abuser of several young women since 2010. He was originally arrested by Virginia Beach, but was transferred to federal custody on a criminal complaint.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
The case was investigated by the FBI’s Norfolk Field Office and the Virginia Beach Police Department.
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. 2:15cr52.
Convicted Sex Offender Admits to Sexually Assaulting 6-Year-OldRead the Press Release
NEWPORT NEWS, Va. – Mark Anthony Lowe, 63, of Fort Worth, Texas, pleaded guilty today to charges of coercion and enticement of a child and penalties for a registered a sex offender.
In a statement of facts filed with the plea agreement, Lowe admitted he sexually assaulted a 6-year-old child while visiting the child’s family on Langley Air Force Base during the 2015 Christmas holiday. The child was taken to an area hospital and examined by a Sexual Assault Nurse Examiner and a sexual assault forensic report was completed.
Lowe, a registered sex offender, has a criminal record which includes numerous sexual assault offenses with a child in 1993 in Tarrant County, Texas.
Lowe was indicted by a federal grand jury on March 14, and faces a maximum penalty of life in prison when sentenced on Sept. 7. 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 John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond Jackson. Assistant U.S. Attorney Lisa McKeel and Kaitlin Gratton 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. 4:16cr31.
Social Security Employee Pleads Guilty to Wire FraudRead the Press Release
NORFOLK, Va. – Sophia Dix, 35, of Newport News, pleaded guilty today to charges of wire fraud.
According to a statement of facts filed with the plea agreement, Dix was a service representative for the Social Security Administration (SSA) in its Norfolk office. In her position, Dix had computer access to SSA beneficiary information, including bank account data for the direct deposit of benefit payments. From April 2014, through August 2015, Dix rerouted over $56,000 in other persons’ SSA benefits to her own bank account.
Dix was indicted by a federal grand jury on March 9, and faces a maximum penalty of 20 years in prison when sentenced on July 21. 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 Michael McGill, Special Agent in Charge, Social Security Administration Office of the Inspector General, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Elizabeth M. Yusi 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. 2:16cr32.
Woodbridge Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Christopher Craft, 41, of Woodbridge, pleaded guilty today to receipt of child pornography.
In a statement of facts filed with the plea agreement, from July 25, 2014, through Oct. 8, 2014, Craft used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including videos of children as young as 5 years-old being sexually abused. In total, Craft’s child pornography collection included 480 images and 111 videos of children being sexually exploited, including images and videos depicting sadistic or masochistic conduct.
Craft faces a mandatory minimum penalty of five years in prison, and a maximum penalty of 20 years in prison when sentenced on July 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 Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Scott Claffee 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. 1:16-cr-47.
Fairfax Man Pleads Guilty to Sex Trafficking a 15 Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Derek Leon Mantilla, 21, formerly of Fairfax, pleaded guilty today to sex trafficking of minor.
Based on court documents, from at least November 2014 through February 2015, Mantilla, together with Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15 year-old girl to engage in commercial sex acts to pay off a debt that was owed to Mantilla by Mendez. The adults taught the girl how to prostitute, took photos of her to use in advertisements, and created advertisements for commercial sex that were posted on the Internet. The three adults knew the girl was a minor and instructed her to lie about her age to customers. Over a three month period, the adults traveled with the girl through various states, including Virginia, for the purposes of advertising and engaging the girl in commercial sex. During that period, the girl worked seven days a week and saw an average of 10 to 12 customers a night. Once the girl had earned enough to pay off the debt, the Mantilla directed her to leave the adults, and she did.
Co-defendants Ismael Antonio Mendez and Caitlyn Ann Smith previously pleaded guilty in the case.
Mantilla faces a mandatory minimum of 10 years and a maximum penalty of life in prison when sentenced on July 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch 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. 1:16-cr-91.
Bon Secours Health System and Doctor Settle False Claims Act AllegationsRead the Press Release
RICHMOND, Va. –Bon Secours Health System, Inc., located in Marriottsville, Maryland, and one of its surgical oncologists, Dr. Eugene Y. Chang, M.D., of Suffolk, have agreed to pay $400,000 to settle civil fraud allegations that while at Bon Secours Maryview Medical Center in Portsmouth, Dr. Chang billed Medicare and other federal healthcare payors for non-covered breast examinations and ultrasounds.
The settlement resolves allegations that from June 1, 2010, through Dec. 31, 2014, Dr. Chang falsified documents with diagnosis codes, such as "lump or mass in breast," where none existed. Chang allegedly did this in order to induce federal healthcare payors such as Medicare to pay for non-covered “screening” breast examinations in connection with routine screening mammograms as if they had been reimbursable “diagnostic” breast examinations. Chang would assign a code that requires a chief complaint from the patient, indicating to Medicare and other payors that the examination was “diagnostic,” while patient charts maintained by Dr. Chang indicated that the patient had no complaint. Additional allegations resolved by the settlement include arranging for certain patients to receive screening breast examinations and screening breast ultrasounds at approximately six-month intervals following screening mammograms, and improperly billing these services as “diagnostic,” which resulted in federal healthcare programs paying for non-covered screening examinations and ultrasounds.
The settlement resolves allegations in a lawsuit filed in the U.S. District Court for the Eastern District of Virginia by a former Bon Secours practice manager and a former colleague of Dr. Chang under the qui tam, or whistleblower provisions of the False Claims Act. Under the False Claims Act, private citizens, also known as relators, can bring suit on behalf of the United States and share in any recovery. The relator share in this settlement is $108,000.
The relators alleged that Bon Secours’ management had specific knowledge of Dr. Chang’s activities after the relators alerted Bon Secours to the problem in August 2011.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of Health and Human Services, the Office of Inspector General, the Defense Criminal Investigative Service, and the U.S. Office of Personnel Management, Office of the Inspector General.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Richmond Man Pleads Guilty to Robbery of Cell Phone StoresRead the Press Release
RICHMOND, Va. – Julius Ripley, 60, of Richmond, pleaded guilty yesterday for his in role the robberies of a Sprint Wireless store located in Colonial Heights and the robbery of a Verizon Wireless store located in Mechanicsville. Ripley was also ordered to pay $49,002 in restitution to the victims of the offense.
In a statement of facts filed with the plea agreement, Ripley admitted that on February 1, 2015, he robbed the Adcomm store (Sprint) located in Colonial Heights. He entered the business with a small, semi-automatic handgun and demanded the employees give him cell phones and cash. He then had the employees remove their clothing and ordered them at gunpoint into the bathroom. Ripley obtained $39, 912 worth of phones and tablets from the robbery, and $140.00 in cash. Ripley also admitted that on March 2, 2015, he robbed the Wireless Zone store (Verizon) located in Mechanicsville. Ripley entered the business with a small semi-automatic handgun and demanded the employees give him cell phones. He then had the employees remove their clothing and ordered them at gunpoint into the back room of the store. Ripley obtained approximately $8,950.00 worth of phones and tablets from the robbery.
Ripley was indicted by a federal grand jury on June 2, 2015, and faces a maximum penalty of twenty years in prison when sentenced on July 28, 2016. 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Douglas A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney.
This case was investigated by officers and detectives with the Henrico County Police Division in conjunction with the FBI’s Central Virginia Violent Crime Task Force. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-107.
Former President of Financial Services Firm Sentenced to Prison for Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – James E. Dunivan, Jr., 52, of Powhatan, was sentenced today to 27 months in prison for wire fraud. Dunivan was also ordered to pay $500,000 in restitution to victims of the offense.
Dunivan pleaded guilty on January 15. According to court documents, Dunivan was formerly the president of Virginia Financial Associates, Inc., an insurance and investment firm located in Richmond. Between May 2012 and January 2015, Dunivan engaged in a scheme to defraud two investors by convincing both to invest in two separate limited liability companies (LLCs). Dunivan represented to one investor that an LLC established by Dunivan would operate a hedge fund, and that the investor’s money would be used as capital to establish, market, and operate the hedge fund. Between May 2012 and July 2013, the investor provided Dunivan with $425,000 for investment in the hedge fund. Instead of using the investor’s money for the promised purposes, Dunivan used the funds to pay for personal and lifestyle expenses—including mortgage payments for his personal residence and over $20,000 in private school tuition—and to make interest payments owed to the investor and others related to separate investments. Between September 2014 and January 2015, Dunivan then solicited money from a second investor, representing to that investor that an LLC established by Dunivan would function as a proprietary trading firm, and that the investor’s money would be used to trade futures. After initially obtaining $50,000 from the investor, Dunivan then told the investor that the investor’s capital account had increased due to trading gains, causing the investor to invest another $25,000. In fact, Dunivan used most of the investor’s money for his own personal expenses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer. Assistant U.S. Attorney Dominick S. Gerace prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-202.
Winchester Woman Sentenced for Embezzling $1 Million from Credit UnionRead the Press Release
ALEXANDRIA, Va. – Donna L. Jennings, 44, of Winchester, was sentenced today to 54 months in prison for embezzling over $1 million from Winchester Community Federal Credit Union. Jennings was also ordered to forfeit and pay $1,059,767.52 in restitution to her victims.
Jennings pleaded guilty on Dec. 18, 2015. According to court documents, Jennings admitted to stealing over $1 million in funds from Winchester Community Federal Credit Union where she was employed as its manager. From 2001 through 2014, Jennings took cash from teller drawers, fraudulently opened financial accounts, conducted financial transactions without customers’ knowledge, made false entries into accounting records, and approved loans without authority. Jennings funneled the proceeds of her fraud into accounts she controlled and used the stolen funds to purchase gifts for herself and pay credit card bills. When federal bank examiners questioned Jennings about suspicious transactions, she made false statements and altered Board of Director meeting minutes to support her lies. As a result of Jennings’ conduct, the National Credit Union Administration placed Winchester Community Federal Credit Union into a restricted status and invited another financial institution to merge with it for the protection of its membership and the National Credit Union Administration insurance fund.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Uzo Asonye prosecuted 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-358.
Member of International Child Exploitation Conspiracy Sentenced to 21 Years in PrisonRead the Press Release
A member of an international child exploitation conspiracy was sentenced to 21 years in prison today for his participation in two websites that were operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Section Chief Calvin A. Shivers of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Brian K. Hendrix, 42, of Mt. Juliet, Tennessee, was sentenced by U.S. District Judge T.S. Ellis III of the Eastern District of Virginia, who also ordered Hendrix to serve a 10 year term of supervised release. Hendrix will also be required to register as a sex offender. In January, Hendrix was convicted at trial by a federal jury on child pornography charges. The investigation, Operation Subterfuge, identified more than 300 minor victims in the United States and an estimated 1,600 minor victims were lured to the websites.
According to evidence presented at trial, Hendrix’s co-conspirators created false profiles on social networking sites, such as YouTube, posing as young teenagers to lure children to the websites they controlled. Once children were on the conspirators’ websites, the conspirators, including Hendrix, 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. Using these videos, Hendrix and co-conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras, which the website automatically recorded. Conspirators earned points based on their contribution to the success of website objectives, which allowed them access to the sexually exploitative videos of children. Several of these sexually exploitative videos were found on digital devices belonging to Hendrix. Law enforcement agencies have disabled both websites.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia prosecuted the case. CEOS Trial Attorney Ravi Sinha assisted with the prosecution.
VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Dutch Police Service Agency, KLPD; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in the investigation. The U.S. Attorney’s Office of the Middle District of Tennessee contributed to the investigation and the prosecution.
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.
Maryland Man Sentenced to Prison for Conspiracy to Commit Bank FraudRead the Press Release
ALEXANDRIA, Va. – Kyle Cary, 25, of Hyattsville, Maryland, was sentenced today to 40 months in prison and three years of supervised release for conspiracy to commit bank fraud for his role in a five-year check fraud and identity theft conspiracy.
Cary pleaded guilty on January 8. As detailed in the below chart, seven co-conspirators were previously sentenced to significant prison terms for their roles in this same conspiracy.
According to statements of fact filed with the plea agreements, Ray Ekobena and his younger brother, Stefan Ekobena, printed fraudulent checks using victims’ bank account information. The Ekobenas obtained victims’ bank account information by enlisting bank tellers and other insiders who had access to sensitive personal information through their employment. The Ekobenas also employed a network of recruiters. One such recruiter was Cary (aka Hugo Stacks), who would recruit bank account holders to provide him with their debit card, the PIN for the debit card, and other information which Cary would then provide to his co-conspirators via middlemen such as Gani Cole and Rodney Hardy. Co-conspirators such as Jerome Johnson, Deallto Davis and Alan Lamin also furthered the conspiracy by depositing the fraudulent checks into bank accounts under false names and withdrawing the resulting funds before the banks discovered the fraud.
In total, the conspiracies victimized over 200 individuals and caused an actual loss amount of $712,231. Victims include well-known small businesses and charities, including the Leukemia & Lymphoma Society.
Name
Age
Hometown
Sentencing Information
Ray Ekobena
27
Alexandria
Sentenced Nov. 6, 2015 to 104 months in prison and three years of supervised release. Ordered to forfeit $712,231.22 and pay that amount in restitution.
Stefan Ekobena
24
Atlanta, Georgia
Sentenced Nov. 6, 2015 to 66 months in prison and three years of supervised release. Ordered to forfeit $199,808.29 and pay that amount in restitution.
Rodney Hardy
25
Hyattsville, Maryland
Sentenced Nov. 6, 2015 to 30 months in prison and three years of supervised release. Ordered to forfeit $20,618.41 and pay that amount in restitution.
Jerome Johnson
32
Washington, D.C.
Sentenced Dec. 4, 2015 to 30 months in prison and three years of supervised release. Ordered to forfeit $100,000.00 and pay $19,091.30 in restitution.
Deallto Davis
20
Washington, D.C.
Sentenced on Dec. 4, 2015 to 6 months in prison and three years of supervised release. Ordered to forfeit $7,678.24 and pay $60,954.75 in restitution.
Gani Cole
27
Bryans Road, Maryland
Sentenced on April 1, 2016 to 30 months in prison and three years of supervised released. Ordered to forfeit $5,247.48 and pay that amount in restitution.
Kyle Cary
25
Hyattsville, Maryland
Sentenced today to 40 months in prison and three years of supervised released. Ordered to forfeit $78,000.00 and pay $18,906.27 in restitution.
Alan Lamin
25
Washington, D.C.
Sentenced July 8, 2015 to 54 months in prison and three years of supervised release. Ordered to pay $124,640 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Maria Kelokates, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo prosecuted 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-180 and 1:15-cr-327.
Owner of Virginia Beach Tourist Attractions Sentenced for Tax EvasionRead the Press Release
NORFOLK, Va. – David A. Parker, 49, of Virginia Beach, was sentenced today to 24 months in prison for evading income tax assessment and payment. Parker was also ordered to pay restitution in the amount of $1,070,358.26 and a fine of $50,000.
Parker pleaded guilty on Oct. 22, 2015. According to court documents, Parker is the owner of Rudee Inlet Jet Skis and Adventure Parasail, Inc. – two companies that are in the business of providing jet ski rentals and parasailing tours at the Virginia Beach oceanfront to tourists and residents. During the relevant timeframe, Parker was also a partner in Duck Parasail, Inc., located in Duck, North Carolina, which provided similar services. In a statement of facts filed with the plea agreement, Parker admitted that from 2005 until 2011, he completely failed to file individual federal income tax returns and, also declined to file business income tax returns after 2007. For several years, Parker ignored attempts by the Internal Revenue Service to recoup his tax balance. In February 2012, an IRS Revenue Officer – again attempting to recover Parker’s outstanding tax balance – interviewed Parker about his failure to file individual income tax returns and his current finances. Parker failed to disclose all of his assets to the officer and maintained that he had little money, thus could not pay his tax balance. In the weeks after his meeting with the revenue officer, and rather than repay any portion of his tax balance, Parker traveled to casinos in Florida and Atlantic City, where he purchased nearly $50,000 in chips. Despite this meeting with the Revenue Officer, Parker continued to choose not to file his tax returns for the next several years. The combined tax due and owing resulting from Parker’s failure to file individual and business income tax returns for tax years 2005 through 2011 is over $1 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted 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. 2:15-cr-113.
Henrico Man Sentenced for Selling High Capacity FirearmsRead the Press Release
RICHMOND, Va. – Nassau Isiah Lucas, 26, of Henrico County, was sentenced today to 140 months in prison for possessing a high capacity firearm while being a convicted felon.
Lucas was found guilty after a jury trial on Dec. 30, 2015. According to court documents and evidence presented at trial, Lucas possessed a 9-millimeter semi-automatic pistol and a 7.62 millimeter semi-automatic rifle when he sold them in August 2014 and September 2014. During the two-day jury trial, evidence was presented that Lucas, a convicted felon, possessed and then sold the firearms to individuals he believed were gun runners who would sell the firearms in New York In fact, the individuals were undercover police officers with the Richmond Police Department.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Alfred Durham, Chief of the Richmond Police Department; and Douglas A. Middleton, Chief of Henrico County Police Department, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney David T. Maguire prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-077.
U.S. Department of Defense Employee in Korea Pleads Guilty to Illegally Obtaining More than $141,000 in Government Housing Allowance FundsRead the Press Release
A civilian employee of the U.S. Department of Defense’s 501st Military Intelligence Brigade pleaded guilty today in the Eastern District of Virginia to illegally obtaining over $141,561 in Living Quarters Allowance (LQA) funds.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Deputy Assistant Inspector General for Investigations Stanley A. Newell of the Defense Criminal Investigative Service (DCIS), Director Frank Robey of the U.S. Army Criminal Investigative Command’s (CID) Major Procurement Fraud Unit and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office made the announcement.
Koo Hyung Jung, 61, of Fairfax, Virginia, pleaded guilty to one count of knowing conversion of government property before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. Jung will be sentenced on July 1, 2016.
According to admissions made in connection with his plea, in 2008, 2010 and 2012, Jung submitted false documents in order to obtain LQA funds from the Department of Defense. Jung then converted the funds to his own personal benefit, contrary to the applicable regulations, allowing him to obtain government funds without paying the requisite taxes on the lump sum LQA payments, he admitted.
DCIS, CID and the FBI are investigating the case with assistance from the FBI Legal Attaché Jin W. Kim in the Republic of Korea and the Justice Department’s Office of International Affairs. Trial Attorneys Richard B. Evans and Justin D. Weitz of the Public Integrity Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.
President of Purcellville Company Pleads Guilty to Virginia Regional Transit Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – Thomas Eugene Ahalt, 71, of Berryville, pleaded guilty today to conspiracy to commit bribery concerning federal program funds for his role in a bribery scheme that caused over $500,000 in losses to the U.S. government.
According to the statement of facts filed with the plea agreement, Ahalt has served as the President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007. Mobile Auto provided repair services to Virginia Regional Transit (VRT), a not-for-profit 501(c)(3) organization that provides transportation services throughout Northern Virginia. VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation.
According to the plea agreement, Ahalt participated in two fraud schemes from January 2007 through December 2015. In the first scheme, Ahalt and M.M., a former chief executive officer of VRT, agreed Mobile Auto would submit—and VRT would approve—false invoices for certain labor charges. In exchange, Ahalt would make bi-weekly kickback payments to M.M. totaling half of the additional labor charges. Accordingly, between 2007 and 2015, M.M. approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional labor charges. During the same period, Ahalt gave M.M. approximately $190,000 in illegal kickback payments.
In addition to the kickback payment scheme, Ahalt also regularly caused Mobile Auto to submit false invoices to VRT for parts and labor associated with maintaining VRT vehicles. Ahalt, for example, frequently added fictitious entries to invoices for repairs that had not occurred and for parts that had not been installed. Mobile Auto submitted at least $136,000 in false invoices to VRT between 2012 and 2015. VRT subsequently paid these false invoices using, in part, federal funds from the U.S. Department of Transportation.
Ahalt faces a maximum penalty of five years in prison and a $250,000 fine when sentenced on June 21. 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Uzo Asonye 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. 1:16-cr-79.
New York Man Sentenced to Prison for Rushing Airline CockpitRead the Press Release
ALEXANDRIA, Va. – David Patrick Diaz, 36, of Poughkeepsie, New York, was sentenced today to nine months in prison and three years of supervised release for interference with flight crew members and attendants. Diaz was also ordered to complete mental health and substance abuse treatment programs, and pay restitution to United Airlines in the amount of $22,151.77.
Diaz pleaded guilty on Jan. 15, 2016. According to court documents, Diaz admitted to shouting threatening statements as he charged the cockpit of a United Airlines flight shortly after it took off from Dulles International Airport in March 2015. After being tackled by a group of passengers, Diaz said the word, “Jihad,” and he also said that there was something in the belly of the plane. The passengers and flight attendants were able to restrain Diaz until the plane returned safely to Dulles.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Tyler McGaughey and Jonathan Fahey prosecuted 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-324.
Owners of Virginia Beach Cake Shop Plead Guilty to Money Laundering, Drug and Tax ChargesRead the Press Release
NORFOLK, Va. – Vernon Michael Norvell, 43, and his wife, Cheron Johnson, 31, of Portsmouth, both pleaded guilty today to various drug, tax, and money laundering crimes. Norvell pleaded guilty to conspiring to distribute of cocaine and conspiracy to commit money laundering. Johnson pleaded guilty to money laundering and making a false statement in a tax filing.
According to court documents, Norvell was a kilogram level cocaine dealer that regularly conducted transactions at his home in the Crystal Lake neighborhood of Portsmouth, at his cake business, “G’s Cake Shop – Cake For All Occasions” in Virginia Beach, and at a Food Lion parking lot off Airline Boulevard, in Portsmouth. One confidential source regularly purchased ounce quantities of cocaine for $1,350 to $1,500 over the course of several years. Another source purchased in excess of five kilograms, often paying $46,000 per kilogram. At times, Norvell was accepting between $60,000 and $70,000 a week for cocaine. On five occasions from October 2014 to July 2015, the DEA, in partnership with the Chesapeake and Portsmouth Police Department, conducted controlled purchases of cocaine and crack from Norvell.
According to court documents, Norvell and Johnson used the proceeds of his cocaine distribution to purchase a home in the Crystal Lake neighborhood of Portsmouth, several automobiles, expensive clothing and other material items. The real estate purchase was one way the couple concealed the cocaine proceeds. While the home appraised for $315,000, they purchased it for $160,000, yet they made over $80,000 in payments before and after the closing, $14,000 of which was in cash.
In addition to the drug and money laundering crimes and according to court documents, from 2012 to 2014, Norvell and Johnson reported a combined adjusted gross income of $157,916, yet during that same period they deposited $926,854, including $338,860 in cash, into nearly a dozen bank accounts, including one off shore account located in Curaҫao. From January 2011 through August 2015 the couple deposited $468,500 in cash into their accounts.
Both Norvell and Johnson will be sentenced on June 22. Norvell faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison, while Johnson faces a maximum sentence of 20 years in prison. 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; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of Drug Enforcement Administration (DEA) Washington Field Division; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after the pleas were accepted by U.S. Magistrate Judge Douglas E. Miller. The case is being prosecuted by Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla.
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. 2:16-cr-48 (Johnson) and 2:16-cr-49 (Norvell).
Two Members of International Child Exploitation Conspiracy SentencedRead the Press Release
Two members of an international child exploitation conspiracy were sentenced today for their participation in two websites that were operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Section Chief Calvin Shivers of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Stephen R. Funk, 35, of Milwaukee, and James E. Hancock, 45, of Boston, Georgia, were sentenced to 252 and 90 months in prison, respectively, by U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Both Funk and Hancock will be required to register as sex offenders. In December 2015, Funk and Hancock each pleaded guilty to one count of conspiracy to distribute and receive child pornography. The investigation, Operation Subterfuge, identified more than 300 minor victims in the United States and an estimated 1,600 minor victims were lured to the websites.
In connection with their guilty pleas, the defendants admitted that they and other members of the conspiracy created false profiles on social networking sites, such as YouTube, posing as young teenagers to lure children to the websites they controlled. Once on the conspirators’ websites, the conspirators 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. Using these videos, the conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras, which the website automatically recorded. Conspirators earned points based on their contribution to the success of website objectives, which allowed them access to the sexually exploitative videos of children. Law enforcement agencies have disabled both websites.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia prosecuted the case. CEOS Trial Attorney Ravi Sinha assisted with the prosecution.
VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Dutch Police Service Agency, KLPD; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in the investigation. The U.S. Attorneys’ Offices of the Eastern District of Wisconsin and the Middle District of Georgia contributed to the investigation and the prosecution.
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.
Tennessee Woman Sentenced to Prison for Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Marsha King, 38, of Lakeland, Tennessee, was sentenced today to 100 months in prison for theft of government money and aggravated identity theft.
On July 30, 2015, after a week-long jury trial, King was found guilty of two counts of theft of government property and 12 counts of identity theft. According to court documents and evidence presented at trial, King resided with her sister in Memphis, Tennessee. King’s sister was employed as a school teacher in Memphis and actively engaged in various extra-curricular programs. At various times, King’s sister would print out rosters of her students and bring them home. On these rosters were various means of identification of the students in King’s sister’s class. Unbeknownst to King’s sister, the names and means of identification of these students were used by Marsha King to file false and fraudulent federal income tax returns and fraudulently receive income tax refunds.
The income tax returns were filed electronically from Memphis, and according to IRS records, a number of the false and fraudulent income tax returns can be traced back to IP addresses that originated from Marsha King’s Sprint account and her University of Memphis student account. Marsha King was a student at the University of Memphis and had a student account and access to the University of Memphis intranet system. Based upon the instructions on the false and fraudulent income tax returns, the IRS made direct deposits into a number of different bank accounts. At least one of these accounts was in the name of Marsha King. Other accounts were in the name of Marsha King’s friends and family members, including her ex-husband who was in prison.
During this time period, Marsha King had another sister who lived in Norfolk. Some of the funds obtained from these false and fraudulent tax returns were deposited into accounts in the name of King’s sister. When Marsha King traveled to Norfolk to visit her sister, she ultimately withdrew in excess of $140,000 of the fraudulently obtained income tax refunds. In total, King filed approximately 500 fraudulent returns for approximately $611,000 in loss to the government.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Stephen Haynie and Joseph Kosky prosecuted 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. 2:14-cr-65.
Romanian National “Guccifer” Extradited to Face Hacking ChargesRead the Press Release
Marcel Lehel Lazăr, 44, of Arad, Romania, allegedly the hacker “Guccifer,” made his initial appearance today in federal court in Alexandria, Virginia.
Lazăr had been temporarily surrendered from Romania to face U.S. charges relating to unauthorized access of protected computers, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security (DSS) and Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington Field Office.
“Marcel Lazar is the latest of a dozen high-level cybercriminals who have recently been extradited to face justice in the United States,” said Assistant Attorney General Caldwell. “Old-fashioned investigative work, enhanced international law enforcement relationships, and a long memory can ensure that foreign-based hackers have no safe haven even in the remote corners of the globe. As the saying goes, ‘they can run, but they can’t hide.’”
“Mr. Lazar violated the privacy of his victims and thought he could hide behind the anonymity of the Internet,” said U.S. Attorney Boente. “No matter where they are in the world, those who commit crimes against U.S. citizens will be held accountable for their actions, pursued by our investigators and prosecutors and brought to justice.”
“As a direct result of relentless investigative efforts and cooperation with our international partners, Marcel Lazar, also known as Guccifer, will begin answering for his alleged cyberhacking activities today in the U.S. judicial system,” said Assistant Director in Charge Abbate. “I commend the dedicated work of the agents, analysts, prosecutors and our federal partners to identify Guccifer, who is alleged to have gained unauthorized access to on-line accounts and violated the privacy of victims, while attempting to hide unsuccessfully behind the anonymity of the Internet.”
In the United States, Lazăr is charged in a nine-count indictment with three counts of wire fraud, three counts of gaining unauthorized access to protected computers, and one count each of aggravated identity theft, cyberstalking and obstruction of justice. Lazăr's case will be heard before U.S. District Judge James C. Cacheris of the Eastern District of Virginia.
According to the indictment, from December 2012 to January 2014, Lazăr hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their accounts, Lazăr publicly released his victims’ private email correspondence, medical and financial information and personal photographs. The indictment also alleges that in July 2013 and August 2013, Lazar impersonated a victim after compromising the victim’s account.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The FBI’s Washington Field Office, the DSS and the U.S. Secret Service are investigating the case with assistance from the Romanian National Police.
Senior Counsels Ryan K. Dickey and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia are prosecuting the case. The Criminal Division’s Office of International Affairs has provided significant assistance.
Romanian National “Guccifer” Extradited to Face Hacking ChargesRead the Press Release
ALEXANDRIA, Va. – The hacker "Guccifer," alleged to be Marcel Lehel Lazăr, 44, of Arad, Romania, made his initial appearance today here in federal court on charges relating to unauthorized access of protected computers.
According to the indictment, from December 2012 to January 2014, Lazăr hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their accounts, Lazăr publicly released his victims’ private email correspondence, medical and financial information and personal photographs. The indictment also alleges that in July 2013 and August 2013, Lazar impersonated a victim after compromising the victim’s account.
“Mr. Lazar violated the privacy of his victims and thought he could hide behind the anonymity of the Internet,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “No matter where they are in the world, those who commit crimes against U.S. citizens will be held accountable for their actions, pursued by our investigators and prosecutors, and brought to justice.”
Lazăr had been temporarily surrendered from Romania to face U.S. charges relating to unauthorized access of protected computers. In the United States, Lazăr is charged in a nine-count indictment with three counts of wire fraud, three counts of gaining unauthorized access to protected computers, and one count each of aggravated identity theft, cyberstalking and obstruction of justice. If convicted, he faces a maximum of 20 years in prison, with a two-year mandatory minimum for the aggravated identity theft charges. Lazăr’s next court appearance will be a detention hearing on Tuesday at 2 p.m.
“Marcel Lazar is the latest of a dozen high-level cybercriminals who have recently been extradited to face justice in the United States,” said Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division. “Old-fashioned investigative work, enhanced international law enforcement relationships, and a long memory can ensure that foreign-based hackers have no safe haven even in the remote corners of the globe. As the saying goes, ‘they can run, but they can’t hide.’”
"As a direct result of relentless investigative efforts and cooperation with our international partners, Marcel Lazar, also known as Guccifer, will begin answering for his alleged cyberhacking activities today in the U.S. judicial system,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “I commend the dedicated work of the agents, analysts, prosecutors, and our federal partners to identify Guccifer, who is alleged to have gained unauthorized access to on-line accounts and violated the privacy of victims, while attempting to hide unsuccessfully behind the anonymity of the Internet."
The FBI’s Washington Field Office, the DSS and the U.S. Secret Service are investigating the case with assistance from the Romanian National Police.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Bill A. Miller, Principal Deputy Assistant Secretary of the U.S. Department of State Bureau of Diplomatic Security (DSS); and James M. Murray, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement.
The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song, along with Senior Counsel Ryan K. Dickey and Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs has provided significant assistance.
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. 1:14-cr-213.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Former Loudoun County Sheriff’s Deputy Guilty of Asset Forfeiture EmbezzlementRead the Press Release
ALEXANDRIA, Va. – Frank Michael Pearson, 45, a former Loudon County Sheriff’s Deputy from Winchester, was convicted after a bench trial today on four counts of theft in relation to his embezzlement of over $229,000 from the asset forfeiture fund at the Loudon County Sheriff’s Office.
Pearson was indicted on July 9, 2015. According to court records and evidence presented at trial, beginning in 2006 Pearson was designated as the deputy responsible for overseeing the asset forfeiture program for the Loudon County Sheriff’s Office. The evidence presented at trial showed that beginning in or about February 2010, and continuing through October 2013, Pearson embarked on a scheme and continuing course of conduct to embezzle and steal money that had been seized by other members of the Loudoun County Sheriff’s Office for potential asset forfeiture. The evidence showed that Pearson embezzled money from 80 separate cases over this period, taking in excess of $229,000 that had been entrusted to him.
The evidence further proved that Pearson concealed his embezzlement scheme by making false statements to his coworkers and others about the timing and fact of whether he had deposited seized money into an escrow account maintained by the Loudoun County Sheriff’s Office at a local bank. For example, the evidence showed that on two separate occasions, Pearson re-used an old deposit slip from an unrelated case and passed it off as a new deposit slip to conceal the fact that he had not deposited all of the money entrusted to him. The evidence further showed that in at least one instance, Pearson took money seized in one case and passed it off as money that had been seized in another case, to hide his ongoing embezzlement.
Pearson will be sentenced on June 17, and faces a maximum penalty of 10 years in prison on each of the four counts. 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 Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was delivered by U.S. District Judge T.S. Ellis, III.
This case was investigated by the FBI’s Washington Field Office and the Virginia State Police. The Loudon County Sheriff’s Office cooperated with the investigation. Assistant U.S. Attorneys Matthew Burke and Mark D. Lytle prosecuted 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-193.
Five California Residents Plead Guilty to Defrauding Homeowners in Nationwide Home Loan Modification ScamRead the Press Release
ALEXANDRIA, Va. – Five California men have pleaded guilty for their roles in a nationwide home loan modification scam that defrauded over 400 homeowners out of over $3.8 million.
Roscoe Umali, 38; Jefferson Maniscan, 34; Raymund Dacanay, 47; Isaac Perez, 33; and Joshua Johnson, 36, all resided in the greater Los Angeles area.
According to statements of facts filed with their plea agreements, from at least October 2012 through September 2014, the defendants and their co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce those homeowners to make payments of thousands of dollars in exchange for supposed home loan modification assistance. Operating under the names of fictional companies like “Equity Restoration Group,” the defendants 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. Through mass mailings, phone calls, faxes, and emails with their victims, the defendants convinced homeowners to send them “reinstatement fees” and to make several monthly “trial mortgage payments” to the conspiracy, rather than to the homeowners’ lenders. The defendants then did nothing to help modify any mortgages. Instead, they used the victims’ payments for their own personal benefit and to further the fraud scheme.
This scam victimized over 400 individuals and families nationwide, resulting in a total loss of over $3.8 million. It also resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.
The defendants were indicted on Oct. 22, 2015, and each faces a maximum penalty of 20 years in prison. Umali, Maniscan, and Dacanay will be sentenced on June 23, while Perez and Johnson will be sentenced on July 7. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants 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; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program; and Robert Wemyss, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service, made the announcement after the pleas were accepted by Senior U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Samantha P. Bateman and James P. Gillis 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. 1:15cr301.
New York Man Pleads Guilty to Conspiracy to Defraud U.S. Defense ContractorsRead the Press Release
ALEXANDRIA, Va. – Solomon Oyesanya, 33, of Brooklyn, New York, pleaded guilty today to a charge of conspiracy to commit wire fraud.
Oyesanya admitted that he was part of a conspiracy, led by two Nigerian nationals, to fraudulently obtain computer hardware and products from contractors and vendors who were approved to do business with the U.S. Government, specifically the U.S. Department of Defense (“U.S. DoD”). To accomplish this scheme, members of the conspiracy created fake U.S. DoD and other U.S. government agency websites and email accounts (sometimes called “spoofed” websites and email accounts) and placed fraudulent government purchase orders with victim contractors and vendors for large quantities of computer hardware and similar products. In furtherance of the conspiracy, Oyesanya, using false identification, picked up or attempted to pick up fraudulently ordered shipments from legitimate carriers to divert the shipments to co-conspirators in Nigeria. The actual and intended losses to the government contractors and vendors targeted by the conspiracy exceeded $1.5 million.
Oludayo Edgal, 32, of West Covina, California, also pleaded guilty on February 4 to a felony arising from this conspiracy.
Oyesanya, who will be sentenced on June 24, and Edgal, who will be sentenced on April 29, each face a maximum penalty of 20 years in prison, respectively. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants 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; Jeffery Thorpe, Special Agent in Charge of the Defense Criminal Investigative Service Cyber Field Office; and Kevin Perkins, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorneys John D. Filamor and Nima R.T. Binara 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. 1:16-cr-69.
Cincinnati Man Sentenced for Stealing Special Agent’s Identity in connection with eBay and PayPal SchemeRead the Press Release
ALEXANDRIA, Va. – Rohit Jawa, 25, formerly of Cincinnati, Ohio, was sentenced today to 48 months in prison for wire fraud and aggravated identity theft.
Jawa pleaded guilty on Nov. 17, 2015. According to court documents, from at least February 2013 through June 16, 2015, the defendant devised and executed a complex identity theft scheme to defraud financial institutions, insurance companies, and others. The defendant managed numerous PayPal accounts that were engaged in a scheme to defraud eBay buyers and eBay’s third-party parcel insurance company. During this period, the defendant repeatedly transferred money representing the proceeds of his fraud scheme from and between accounts he controlled in victim names to accounts he controlled in his own name. In connection with this scheme, the defendant stole the identity of a Special Agent of the United States Postal Service Office of Inspector General (USPS OIG), and then used that identity to fraudulently gain access to law enforcement databases from which he stole personal identifying information of multiple victims. The defendant then used the identifying information of those individuals to open further fraudulent financial accounts in their names, without their knowledge or consent.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Rico Medina, Deputy Assistant Inspector General for Investigations for USPS OIG, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
This case was investigated by the FBI’s Washington Field Office Cyber Task Force. Assistant U.S. Attorney Whitney Dougherty Russell prosecuted 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-239.
North Carolina Registered Sex Offender Sentenced to 30 Years forCoercion and Enticement of a MinorRead the Press Release
NORFOLK, Va. – Adam Cain, 41, of Roanoke Rapids, North Carolina, was sentenced today to 360 months in prison for coercion and enticement of a minor. He was also sentenced to 30 years’ supervised release.
Cain pleaded guilty on Dec. 10, 2015. According to court documents, in August 2015, a concerned relative of a 15 year old girl contacted the Windsor Police Department because she found sexually explicit conversations on a computer tablet between the girl and Cain. Cain was a registered sex offender living in Roanoke Rapids, North Carolina, and also a relative of the 15 year old girl. The investigation revealed that Cain and the girl had been speaking online for some months. Then, Cain drove to Windsor, picked up the girl, and then drove back to his residence in North Carolina. There, they engaged in sexually explicit conduct. Cain also took sexually explicit pictures with his phone of the girl. Later on, Cain drove the girl back to Windsor.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted 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. 2:15-cr-130.
Former Postal Clerk Pleads Guilty to Stealing MailRead the Press Release
NORFOLK, Va. – Trazzonna Jacobs, 27, of Virginia Beach, pleaded guilty today to one charge of stealing from the United States Mail.
In a statement of facts filed with the plea agreement, Jacobs, who worked as a postal clerk at the Bayside Postal Station in Virginia Beach, admitted to stealing a $100 gift card and $7,000 in cash from two separate packages. According to court records, an investigation ensued when a postal customer complained of the missing gift card. An investigation determined the gift card had been used at local retailers and surveillance video identified Jacobs as the individual redeeming the gift card.
The Postal Service received another complaint against Jacobs when a postal customer had $7,000 in cash stolen from a package being sent overseas. The customer identified Jacobs as the mail clerk who had handled her package. The customer stated she informed Jacobs of the $7,000 in the box to ensure its safety. When the package arrived, the money was missing. The package was provided to the United States Postal Inspection Service, Office of Inspector General, where it was sent off to be fingerprinted by the U.S. Postal Inspection Service. The U.S. Postal Inspection Service processed the package for fingerprints and Jacobs’ fingerprints were found on the inside of the package.
Ultimately, Jacobs confessed to her actions and admitted to stealing the items in question, as well as other gift cards, in order to help pay bills and support her family.
Jacobs was indicted by a federal grand jury on February 18, 2016. Jacobs faces a maximum penalty of five years in prison when sentenced on July 7, 2016. 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 Paul L. Bowman, Special Agent in Charge, United States Postal Service, Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Joseph L. Kosky 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. 2:16-cr-26.
Computer Hacking Conspiracy Charges Unsealed Against Members of Syrian Electronic ArmyRead the Press Release
ALEXANDRIA, Va. – Three Syrian nationals, all current or former members of the Syrian Electronic Army (SEA), were charged with multiple conspiracies related to computer hacking, according to two criminal complaints unsealed today here in the U.S. District Court of the Eastern District of Virginia.
Ahmad Umar Agha, 22, known online as “The Pro,” and Firas Dardar, 27, known online as “The Shadow,” were charged with a criminal conspiracy relating to: engaging in a hoax regarding a terrorist attack; attempting to cause mutiny of the U.S. armed forces; illicit possession of authentication features; access device fraud; unauthorized access to, and damage of, computers; and unlawful access to stored communications. Dardar and Peter Romar, 36, also known as Pierre Romar, were separately charged with multiple conspiracies relating to: unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications. The court has issued arrest warrants for all three defendants.
“The tireless efforts of U.S. prosecutors and our investigative partners have allowed us to identify individuals who have been responsible for inflicting damage on U.S. government and private entities through computer intrusions,” said U.S. Attorney Boente. “Today’s announcement demonstrates that we will continue to pursue these individuals no matter where they are in the world.”
According to allegations in the first complaint, beginning in or around 2011, Agha and Dardar engaged in a multi-year criminal conspiracy under the name “Syrian Electronic Army” in support of the Syrian Government and President Bashar al-Assad. The conspiracy was dedicated to spear-phishing and compromising the computer systems of the U.S. government, as well as international organizations, media organizations and other private-sector entities that the SEA deemed as having been antagonistic toward the Syrian Government. When the conspiracy’s spear-phishing efforts were successful, Agha and Dardar would allegedly use stolen usernames and passwords to deface websites, redirect domains to sites controlled or utilized by the conspiracy, steal email and hijack social media accounts. For example, starting in 2011, the conspirators repeatedly targeted computer systems and employees of the Executive Office of the President. Despite these efforts, at no time was an EOP account or computer system successfully compromised. Additionally, in April 2013, a member of the conspiracy compromised the Twitter account of a prominent media organization and released a tweet claiming that a bomb had exploded at the White House and injured the President. In a later 2013 intrusion, through a third-party vendor, the conspirators gained control over a recruiting website for the U.S. Marine Corps and posted a defacement encouraging U.S. marines to “refuse [their] orders.”
“The Syrian Electronic Army publicly claims that its hacking activities are conducted in support of the embattled regime of Syrian President Bashar al-Assad,” said Assistant Attorney General Carlin. “While some of the activity sought to harm the economic and national security of the United States in the name of Syria, these detailed allegations reveal that the members also used extortion to try to line their own pockets at the expense of law-abiding people all over the world. The allegations in the complaint demonstrate that the line between ordinary criminal hackers and potential national security threats is increasingly blurry.”
Today, the FBI announced that it is adding Agha and Dardar to its Cyber Most Wanted and offering a reward of $100,000 for information that leads to their arrest. Both individuals are believed to be residing in Syria. Anyone with information is asked to contact their nearest FBI field office or U.S. Embassy or consulate.
“Cybercriminals cause significant damage and disruption around the world, often under the veil of anonymity,” said Assistant Director Trainor. “As this case shows, we will continue to work closely with our partners to identify these individuals and bring them to justice, regardless of where they are.”
According to allegations in the second complaint, beginning in or around 2013, SEA members Dardar and Romar engaged in multiple conspiracies dedicated to an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.
“These three members of the Syrian Electronic Army targeted and compromised computer systems in order to provide support to the Assad regime as well as for their own personal monetary gain through extortion,” said Assistant Director in Charge Abbate. “As a result of a thorough cyber investigation, FBI agents and analysts identified the perpetrators and now continue to work with our domestic and international partners to ensure these individuals face justice in the United States. I want to thank the dedicated FBI personnel, federal prosecutors, and our law enforcement partners for their tremendous efforts to ensure on-line criminal activity is countered, U.S. cyber infrastructure is safeguarded, and violators are held accountable under the law.”
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; James Trainor, Assistant Director of the FBI’s Cyber Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the charges were unsealed.
The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control 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 Nos. 1:14-mj-292, and 1:14-mj-498.
Criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Computer Hacking Conspiracy Charges Unsealed Against Members of Syrian Electronic ArmyRead the Press Release
Two Fugitives Believed to be in Syria Added to FBI Cyber’s Most Wanted
Three Syrian nationals, all current or former members of the Syrian Electronic Army (SEA), were charged with multiple conspiracies related to computer hacking, according to two criminal complaints unsealed today in the U.S. District Court of the Eastern District of Virginia.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director James Trainor of the FBI’s Cyber Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Ahmad Umar Agha, 22, known online as “The Pro,” and Firas Dardar, 27, known online as “The Shadow,” were charged with a criminal conspiracy relating to: engaging in a hoax regarding a terrorist attack; attempting to cause mutiny of the U.S. armed forces; illicit possession of authentication features; access device fraud; unauthorized access to, and damage of, computers; and unlawful access to stored communications. Dardar and Peter Romar, 36, also known as Pierre Romar, were separately charged with multiple conspiracies relating to: unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications. The court has issued arrest warrants for all three defendants.
According to allegations in the first complaint, beginning in or around 2011, Agha and Dardar engaged in a multi-year criminal conspiracy under the name “Syrian Electronic Army” in support of the Syrian Government and President Bashar al-Assad. The conspiracy was dedicated to spear-phishing and compromising the computer systems of the U.S. government, as well as international organizations, media organizations and other private-sector entities that the SEA deemed as having been antagonistic toward the Syrian Government. When the conspiracy’s spear-phishing efforts were successful, Agha and Dardar would allegedly use stolen usernames and passwords to deface websites, redirect domains to sites controlled or utilized by the conspiracy, steal email and hijack social media accounts. For example, starting in 2011, the conspirators repeatedly targeted computer systems and employees of the Executive Office of the President (EOP). Despite these efforts, at no time was an EOP account or computer system successfully compromised. Additionally, in April 2013, a member of the conspiracy compromised the Twitter account of a prominent media organization and released a tweet claiming that a bomb had exploded at the White House and injured the President. In a later 2013 intrusion, through a third-party vendor, the conspirators gained control over a recruiting website for the U.S. Marine Corps and posted a defacement encouraging U.S. marines to “refuse [their] orders.”
Today, the FBI announced that it is adding Agha and Dardar to its Cyber Most Wanted and offering a reward of $100,000 for information that leads to their arrest. Both individuals are believed to be residing in Syria. Anyone with information is asked to contact their nearest FBI field office or U.S. Embassy or consulate.
According to allegations in the second complaint, beginning in or around 2013, SEA members Dardar and Romar engaged in multiple conspiracies dedicated to an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.
“The Syrian Electronic Army publicly claims that its hacking activities are conducted in support of the embattled regime of Syrian President Bashar al-Assad,” said Assistant Attorney General Carlin. "While some of the activity sought to harm the economic and national security of the United States in the name of Syria, these detailed allegations reveal that the members also used extortion to try to line their own pockets at the expense of law-abiding people all over the world. The allegations in the complaint demonstrate that the line between ordinary criminal hackers and potential national security threats is increasingly blurry.”
“The tireless efforts of U.S. prosecutors and our investigative partners have allowed us to identify individuals who have been responsible for inflicting damage on U.S. government and private entities through computer intrusions,” said U.S. Attorney Boente. “Today’s announcement demonstrates that we will continue to pursue these individuals no matter where they are in the world.”
“Cybercriminals cause significant damage and disruption around the world, often under the veil of anonymity,” said Assistant Director Trainor. “As this case shows, we will continue to work closely with our partners to identify these individuals and bring them to justice, regardless of where they are.”
“These three members of the Syrian Electronic Army targeted and compromised computer systems in order to provide support to the Assad regime as well as for their own personal monetary gain through extortion,” said Assistant Director in Charge Abbate. “As a result of a thorough cyber investigation, FBI agents and analysts identified the perpetrators and now continue to work with our domestic and international partners to ensure these individuals face justice in the United States. I want to thank the dedicated FBI personnel, federal prosecutors, and our law enforcement partners for their tremendous efforts to ensure on-line criminal activity is countered, U.S. cyber infrastructure is safeguarded, and violators are held accountable under the law.”
The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section.
Agha and Dardar Complaint
Romar and Dardar Complaint